Question 1

How do I check if my service charge is fair?

Accepted Answer

Compare your charge to similar buildings in your area using market data. Answer questions about your building type, size, services, location, and flat size. This benchmarking tool compares what you pay to actual comparable properties.

Question 2

What factors affect whether a service charge is reasonable?

Accepted Answer

Building type, size, location, services provided (lift, concierge, heating, grounds), and management approach all affect reasonable charges. A newer building with concierge will cost more than a basic older block.

Question 3

What should I do if my charge is significantly higher than comparable buildings?

Accepted Answer

Check if the higher charge reflects better services or maintenance. If not justified, you can challenge it at the First-tier Tribunal. You can also request detailed accounts from your managing agent.

Question 4

Does a reserve or sinking fund increase my charge?

Accepted Answer

Yes. A reserve fund sets aside money for future major works like roof or window replacement. This increases your annual charge but protects against sudden massive bills later.

Question 5

Can my managing agent's fees be unreasonably high?

Accepted Answer

Yes. Managing agent fees should be proportionate to market rates. Unreasonably high fees can be challenged at the First-tier Tribunal. Compare fees to similar buildings as part of your fairness assessment.

Is your service chargeactually fair?

Is your service charge
actually fair?