Typical service fees

[Spencer0220]

How do I figure out if a service fee is reasonable?

We are FTB. Looking to purchase the flat we currently rent.

The only sticking point is the service fee which is £1067.96 per 6 months. Mortgage broker isn't optimistic about that one.

Flat is valued at £370k.

It's in Slough, if that makes a difference.

Difficult to say, it sounds a lot to me ( and I wonder if they are stating for 'per 6 months' so it appears less when listed) They may be trying to build a contingency for some maintenance that they know will be needed soon. If the flat has a lift that always seems to cause a higher service charge.

I would also want to know what the potential annual increases might be - you do sometimes here some real horror stories about that.

What is that paying for? Lift maintenance is always expensive. Is there a gym or pool in the block? Is something big about to be done so they are building a fund for that?

As PP said it depends what in includes? Does it include water rates, are there lifts and/or private gated parking? How often is block maintained eg painting, communal area carpet replacement. How often are gardeners and cleaners? Is external window cleaning included. How many bedrooms is flat.

Hi, thanks everyone.

It's a gated community. Two lifts. Gardeners every 2 weeks. Window cleaning every 3 months and communal cleaning bi weekly.

2 bed flat. 84 flats in building.

Personally that doesn’t sound too bad. Service charges for London flats (gym, concierge, utilities), even for those built 20+ years ago are often around £6k PA. Mine works out at £550 PCM for a two bed. The flat is currently valued at £0 due to cladding issues.

Fingers crossed for you.

Thanks. We find out later today if we can get a mortgage. 🤞🏻

Hope something gets sorted with your cladding soon x