Leasehold service charges are generally levied to cover the costs of maintaining the shared parts of a building (particularly in the case of blocks of flats) or upkeep of the grounds. Expenses of the freeholder which may require service charge payments include:
- repairs to the outside of a building which contains flats, including the roof, external walls and structural issues
- drainage and water mains connections
- cleaning of common parts of a shared building
- gardening of shared grounds
- maintenance of a lift
- buildings insurance
- management charges or administration fees
The lease should specify the various regular maintenance charges and the types of services which can be subject to additional charges (eg unexpected building repairs due to storm damage etc).