A service charge is the contribution payable by the owner of a leasehold property typically to the owner of the freehold. The service charge covers the cost of insuring, maintaining, repairing, cleaning the building and any common parts.
The service charge may also include the costs of management services provided by the landlord or by a professional managing agent, and contributions to a reserve fund or sinking fund for future liabilities.
Further resources
Leasehold Advisory Service – useful article on service charges
