Leasehold risk checklist

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Leasehold Service Charge Check

Use this page when you want to check whether service charge costs look stable or could jump after completion.

Built for England & Wales leasehold transactions.

Checklist

  • Collect at least 3 years of service charge accounts and this year's budget.
  • Compare budget vs actual spend and note repeated overspends.
  • Check whether reserve/sinking fund contributions are consistent.
  • Look for one-off balancing charges or unusual admin fees.
  • Verify any cost lines that do not appear in previous years.

Warning signals

  • Large year-on-year swings with no documented explanation.
  • Budget materially below actuals for multiple years.
  • Reserve fund absent or unclear for an older building.
  • Frequent balancing demands or ad-hoc charges.

Questions to ask

  • What explains the largest year-on-year service charge movement?
  • Are there known upcoming works that are not reflected in the current budget?
  • What is the current reserve fund balance and ring-fencing position?
  • Can you share a detailed breakdown for admin and management fees?

Apply this to a live pack

This page is generic guidance. Use LeaseLens when you want pack-specific Quick Findings and the option to unlock the Full Report.

Related guides

Related topics

  • Service charge and reserve fund

    Understand annual charge pressure, reserve fund weakness, balancing charges, and why service charge history matters before exchange.