Understanding service charges
A service charge covers the cost of maintaining and managing communal or shared areas.
This usually includes communal areas that your home:
- Has access to
- Benefits from the upkeep of
- Forms part of the overall scheme or estate
Service charges are separate from your rent and are paid in addition. It’s also likely you will pay for buildings insurance too and LiveWest are responsible for arranging suitable buildings insurance if we are the freeholder. Please note, shared owners (like tenants) are responsible for insuring their own belongings, and it’s important you have suitable Contents Insurance.
Service charges are payable in full, regardless of the share you own.
Your contribution (apportionment) depends on:
- The type of property you own
- The design and layout of the development
- The services provided
This is always set out in your lease, which is the most important document governing how service charges are calculated. Apportionments are commonly described in the lease using wording such as:
- “A fair proportion”, or
- “One twelfth of block costs and one sixtieth of estate costs”
In some cases, a management company or managing agent is responsible for providing services. If so, LiveWest is responsible for paying the service charge on your behalf until and if final staircasing is achieved. You can find out more about Managing Agents here.
