Service charge - new builds London

[Peanutbutteryday]

Just wondered approx what people’s service charges are on fairly new build London one or two bed flats - if anyone didn’t mind sharing please?

Also what do such charges typically cover?

Hi,our service charge is approx. £200 per month for a 2 bedroom apartment(with undercover parking space) in Wandsworth. It covers the concierge for 6 days a week,cleaning staff 5 days a week,gardener a few times per month,outside windows cleaning every few months,insurance,electricity,water bills for the development (not for the apartment),managing agent fees ,sinking fund...I think I have covered everything.

From when I was looking last year (around East London/Essex border) most apartments with shared communal spaces were generally between £1,300 - £2,000. All of the flats that I looked at though were quite 'low frills' though, so without communal seating areas, underground parking or concierges etc. which would drive that up quite a bit.

Thank you for sharing!! Your service charge seems to cover a lot so hopefully you find the price reasonable.

Thank you for sharing

If you're looking at a new build, I would also be prepared for the service charges to increase by up to 25% in the first few years of ownership. Developers keep them low to make the building a more attractive prospect for sales, plant goes out of warranty and as the building ages it will need more work. Ideally it wouldn't happen - but it is sensible to base your affordability on that basis.

Your sevice charge generally includes:-

1. Day to day services - communal cleaning, lighting, door entry and lift repairs, fire checks, if there is a communal laundry then repairs and checks there, water testing,any annual inspections.

1. sinking Fund - The management company should be able to provide detail on the sinking fund element. They should have decided what they will collect for and at what rate so that by the time the lift (eg) needs replacing there is enough in the pot. If they replace lifts and there isn't enough on the pot you won't necessarily be asked for the full difference, possibly your sinking fund contribution will just go up a bit each year to cover the short fall. Worth asking them about this. Also Google Section 20 - this is what they can/can't pass on to you without consultation.

1. Insurance - a contribution towards the insurance for the building. You probably are expected to pay your own contents insurance

1. Admin fees - usually a % of the total collected in section 1 above, payable to the management Co for managing the freehold and doing the accounting of your service charges.

Just as an aside, if your (anyone's) management fees are based on a percentage of service charge spend, you should challenge them - it's really bad practice and against the RICS code of conduct for managing agents. There should be no incentive for agents to spend more; they should be acting in a 'reasonable' manner which includes justifying the choices they make with your money.

Fees should be fixed and increase on a basis laid out in the management contract.

The development is upmarket and well kept(due to above fees) and this is reflected in how quickly the apartments sell when they get put on the market. In the last month 3 were for sale and they all had multiple offers. Are you in the process of buying?

I’ve been looking at some one beds recently - only online at the moment - but often the service charge on rightmove is left blank. I assume estate agent will provide on viewing but I just wanted a very rough gage anyway which you have kindly provided.

Your block sounds lovely. The cost you mention sounds ok to me - my thoughts always if you had a house you’d probably spend that amount on similar outside general maintenance anyway.

@LBOCS2 and @BernadetteRostankowskiWolowitz

thank you - some really useful comments which I don’t have any previous experience of - so helpful. Thank you

Wow @windmill26 that's incredibly low fit all those amenities!
OP I pay about £2000/year on a small flat in Fulham (not new build) and get... nothing other than building insurance and annual maintenance (fire alarm testing, gutter cleaning after we hassle the managing agents a million times, that sort of thing).
I think there's usually a per sq foot charge. Watch out for allowed increases though!

Always ask the agent how much is the service charge,what does it cover,how much has it gone up over the years and the most important thing is who is the managing agent (google the managing agents to make sure that you are not getting the worst on the market) and does the development have a residents association? Before signing anything make sure that your solicitor asks for the minutes of the residents association meetings (ideally for the past few years).

Our service charge has not increased for the last few years but we have a residents association and we are all very vocal when things are not done to our liking. You are paying over the odds for the service you are getting. You guys need to set up a residents association and then change the managing agents as they are ripping you off. Who are you using?