Service Charges cover the costs of providing services to a property, estate or scheme. They are often split between the day-to-day services that keep the building and communal areas clean and tidy and in good repair, and the sinking fund which builds up reserves for planned maintenance and decoration to the building.
Day-to-Day Services met from the Service Charge might include:
- Cleaning and caretaking of the communal areas or open spaces
- Communal or open space gardening
- Electricity costs for lighting of the communal areas
- Day-to-day repairs to the communal parts and structure of the building
- Communal water supply charges
- Buildings and public liability insurance
- Lift maintenance.
Service Charges will differ from property to property and your lease will advise what services you are obliged to contribute to. These will be reviewed annually and consequently may increase or decrease on an annual basis. Every year we will provide you with an estimated Service Charge for the coming year.
Our information article explains the various services we charge for including services associated directly with your home, such as individual heating, hot water and water rates.
This is a savings fund used to build up reserves for the planned maintenance of the building, such as:
- External decoration
- Decoration of the communal halls and stairways if you live in a block of flats
- Roof renewal
- Replacement of gutters and downpipes
- Window replacement
- Renewal of entry phones, lifts or shared TV aerials
Your lease will specify if you are required to contribute money to a sinking fund. Some leases may contain clauses that a contribution is due to the sinking fund upon the sale of your property.
Annually, we will advise you how much is in this fund and how much we have spent. If you sell your property, the contributions you have made cannot be refunded to you, they will continue to be held in trust by Jigsaw for long-term planned maintenance.
