Compare Three Years of Service Charge Accounts

Who this is for

Buyers, investors and professionals who need to understand whether annual ownership costs are stable, rising or poorly explained.

Why it matters

One year of accounts is a snapshot. Three years shows pattern: recurring overspend, sudden insurance jumps, repair cycles, reserve weakness and whether the current budget is likely to hold.

What to check first

• Create a simple table of total charge, insurance, repairs, management fees, utilities and reserve contribution for each year.
• Mark one-off items separately from recurring cost increases.
• Check whether year-end accounts are certified, draft or unaudited.
• Look for balancing charges, deficits or transfers between funds.
• Compare the trend against the current year budget.

Red flags in the pack

• Only one year supplied where more should be available.
• Large increases without notes.
• Repairs or insurance rising faster than the overall budget.
• Reserve contributions falling while repair spend rises.
• Deficits carried forward without an explanation.

Evidence to gather

• Three years of accounts or income/expenditure statements.
• Current budget and current demand.
• Notes to accounts and managing agent explanations.
• Reserve fund statement and planned maintenance plan.

Questions to send

• Please provide the missing years of accounts and any notes explaining material variances.
• Which cost lines are expected to recur next year?
• Were any balancing charges issued after these accounts?
• Does the current budget reflect the trend shown in historic accounts?

How LeaseLens uses this

LeaseLens extracts dated figures, plots service charge trend and flags volatility where the movement looks material or poorly supported.

Official context

• LEASE: service charges
• LEASE: reserve or sinking funds

Caution

This is an informational screening guide only. It is not legal advice, does not interpret your lease for you, and does not replace advice from a qualified conveyancer or solicitor.