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Belgrave Estates

Glossary · All jurisdictions · tenure

Service charge

A service charge is an annual fee paid by leasehold flat owners (UK) or condominium owners (UAE, US) to cover the upkeep of communal areas, building insurance, and contributions to a reserve fund for major works.

On a UK leasehold flat the service charge is set out in the lease. It usually covers: building insurance, communal-area cleaning + lighting + landscaping, lift maintenance, concierge / security where present, accounting + management agent fees, and a reserve-fund contribution for big-ticket future works (roof, lifts, façade).

You're entitled to a year-end statement showing how the money was spent. Disputes go to the First-tier Tribunal (Property Chamber). Unreasonable charges — for example padding the management-agent margin — are reviewable.

In Dubai service charge is administered by the master-developer's owners' association under RERA oversight; bills are issued in arrears and a no-objection certificate (NOC) confirms payment before resale.