GUIDE · LEASEHOLD COSTS · Last reviewed August 2026
Service charge red flags before you offer on a flat
Property portals don't require service charges to be listed. Here's what to actually check before you commit — and what patterns suggest costs are about to rise.
Service charge is one of the biggest hidden variables in buying a leasehold flat — and unlike the mortgage payment, it's rarely front and centre when you're viewing a property. It's not optional, it's not usually negotiable, and it can move significantly year to year.
Where to actually find the figure
- Ask the estate agent directly — they're required to disclose it if asked, even though it's rarely on the listing itself
- Request the last 3 years of service charge accounts via your solicitor during conveyancing, not just the current figure
- Ask specifically whether any major works (a Section 20 notice) are planned or in progress — these bills sit outside the normal annual charge and can run into thousands
What a Section 20 notice means
Landlords/management companies must formally notify leaseholders before carrying out major works costing over a set threshold per leaseholder. If a building has an active or recent Section 20, ask exactly what it covers and what your specific share would be — this is one of the most common surprise costs in leasehold buying.
Red flags that suggest rising costs ahead
- A building over 10–15 years old with no recent major works — lifts, roofs, and cladding eventually need attention, and it may be due
- Large year-on-year jumps in the last 3 years of accounts — a sign of poor budgeting or a managing agent catching up on deferred maintenance
- A high proportion of amenities — concierge, gym, gardens, lifts all add ongoing cost; a building with more shared facilities usually means a higher charge, permanently
- Cladding or EWS1-related buildings — even where you're protected from remediation costs under the Building Safety Act 2022, interim measures (waking watch, insurance premium increases) can still show up in service charges
- A managing agent with a poor reputation — worth a quick search; poor management often shows up as inconsistent or opaque accounts
Ground rent — check this separately
Ground rent is a separate charge from service charge, paid to the freeholder. Older leases sometimes have escalating ground rent clauses (doubling every 10 years, for example) which can make a flat very hard to mortgage or resell later. Always check the exact clause, not just the current amount — see our glossary for how this differs from service charge, and our 2026 reform guide for how ground rent rules are changing. This is a particularly common issue on ex-local-authority flats, where management and billing can be less predictable.
Factor real running costs into what you can afford
Homabu's calculator adds an estimated service charge to your monthly cost, so you see the true number — not just the mortgage payment.
Try the calculator →