Leasehold

Good Reserves

Service Charge Calculator

Calculate your share of annual service charges for a leasehold property. Understand the breakdown and validate costs with AI analysis.

AI-Powered

Free to use

Building details

Enter the building service charge budget

Your service charge

Based on your share

Annual Charge

£3,749

Your total yearly cost

Monthly

£312

Monthly equivalent

Quarterly

£937

If paid quarterly

Your Share

8.33%

Of building costs

Total Building Costs

£45,000/yr

33% in reserves

Your cost breakdown

How your charge is split

Building Insurance

£1,250

Management Fees

£666

Cleaning & Gardening

£250

Lift Maintenance

£208

Communal Electricity

£125

Repairs Reserve

£417

Major Works Reserve

£833

Total (your share)£3,749

Building Insurance: 33%Management Fees: 18%Cleaning & Gardening: 7%Lift Maintenance: 6%

About the Service Charge Calculator

What it does and how it helps you

The Service Charge Calculator helps UK leaseholders understand and validate their annual service charge obligations. Service charges cover the cost of maintaining communal areas, buildings insurance, management fees, and reserve funds. This calculator breaks down your share of total building costs, identifies whether charges are reasonable, and checks if adequate reserves are maintained for major works to avoid unexpected Section 20 demands.

Calculate your annual service charge liability

Break down costs by category with visual analysis

Assess adequacy of reserve funds

Identify unreasonable or excessive charges

How It Works

Understanding the calculation method

The calculator analyses service charges through the following components: 1. Building Costs - Aggregates all annual costs including insurance, management fees, cleaning, repairs, utilities, and reserve contributions 2. Your Share Calculation - Applies your percentage share (as defined in your lease) to determine your personal liability 3. Breakdown Analysis - Shows how your charge is distributed across different cost categories 4. Reserve Assessment - Evaluates whether the building maintains adequate reserves (typically 20%+ of total costs) to avoid large Section 20 major works bills 5. Benchmarking - Compares costs against typical ranges for your property type The calculator identifies whether charges are reasonable and if the freeholder/management company is adequately funding reserves.

When to use this calculator

Use this calculator when purchasing a leasehold property to understand ongoing costs, when reviewing annual service charge budgets from your management company, or when challenging unreasonable charges through the First-tier Tribunal. Essential for budgeting rental yields on buy-to-let flats, assessing affordability before purchase, and identifying potentially excessive management fees or inadequate reserve contributions.

Frequently Asked Questions

Common questions about this calculator

Service charges vary widely by property type and location. Purpose-built blocks typically charge £1,000-£2,500/year for a 2-bed flat. Mansion blocks with porters can reach £3,000-£5,000+. High-rise towers with lifts may be £2,000-£4,000. New-build developments often have higher charges (£2,500-£4,000) due to managing agent fees and reserve requirements. Always request 3 years of service charge accounts before purchasing.

Yes - you can challenge service charges through the First-tier Tribunal (Property Chamber) if you believe they're unreasonable or unnecessary. Common grounds include excessive management fees (typically should be £150-£300 per flat), lack of competitive tendering, charges for improvements rather than repairs, or unreasonable reserve demands. You must follow the Section 27A process for determination.

Reserve funds (or sinking funds) are money set aside annually for major future works like roof replacement, lift renewal, or external decorations. Buildings should maintain reserves of 15-25% of annual service charges. Adequate reserves avoid large Section 20 bills when major works arise. Buildings with poor reserves may hit leaseholders with £10,000-£30,000+ bills for major works.

Section 20 of the Landlord and Tenant Act 1985 requires freeholders to consult leaseholders before carrying out major works costing over £250 per leaseholder. The consultation involves notices explaining the works, opportunity to nominate contractors, and reviewing estimates. Without proper consultation, your liability is capped at £250. Section 20 works typically include roof repairs, external redecoration, lift replacement, or window renewal.

Your share is defined in your lease, typically as a percentage or fraction. In blocks with identical flats, it's usually equal shares (e.g., 8.33% for 12 flats). In mixed blocks, it may be based on floor area, bedrooms, or rateable values. Some leases have weighted shares where larger flats pay more. Always check your lease Schedule to confirm your exact share percentage.

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