Leasehold risk checklist
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 your actual pack
This page is generic guidance. Use the app to review your own pack and get findings with document references and downloadable files.