Q. Why do I have to pay Service Charge when I live in a Freehold House?
Answer:
Some developments of freehold houses have the benefits of shared facilities or areas which have to be managed, and the associated costs of this paid for by the house owners. There will generally be less maintenance required compared to a typical block of apartments, but maintenance costs might include electronic gates, shared grounds, areas of open space and private roads and drainage that are not adopted by the local authority or utility companies. Where there are shared areas Property Owners Liability (Public Liability) insurance will need to be arranged.
Where a development is mixed and comprises houses and apartments and in some cases commercial properties, the costs are apportioned fairly between the various elements and this is reflected in the service charge.
RETURN TO FAQ’sOther Service Charge & Ground Rent questions
- What is a Service Charge?
- What are my rights?
- Why is my Service Charge higher than my neighbour or the building down the road?
- What do I do if the wrong name is on my service charge invoices?
- What has happened to the Service Charge that I paid to the developer when I bought my home?
- My property is empty, why do I have to pay?
- What is the Management Fee?
- What is the Reserve Fund and Redecoration Fund?
- How do I know what Hobdens is spending my Service Charge on?
- Why has my Service Charge increased?
- How can I pay my Service Charge or Ground Rent?
- Why do I have to pay Ground Rent?
- What is the Service Charge?