Service charge
A service charge is an ongoing charge (common on leasehold flats) covering building management and maintenance costs. It can change over time.
Last verified: 10/03/2026
Definition
A service charge is money paid (usually monthly or yearly) towards the cost of managing and maintaining a building and shared areas.
Why it matters
Service charges can be a major part of monthly housing cost for:
- leasehold flats
- shared ownership homes (often leasehold)
They can change from year to year and may include “lumpy” costs (for example major works).
Practical tip
Before committing to a property, ask for the latest service charge budget, what it covers, and recent historical changes.
Related terms
- Leasehold
- Shared ownership