What are Service Charges?
Service charges are the mechanism which apply in leasehold properties and relate to the costs payable by the occupier tenant for the common and shared services the landlord is obliged to provide under the terms of the lease, and typically in accordance with the principles of good estate management. The lease sets out the way in which the service charges are organised and managed, along with stipulating what can and cannot be charged. There are often complex and complicated arrangements and calculations that apply, to arrive at the correct tenant apportionment and contribution. Service charges are administered on an annual basis and can fluctuate considerably depending on the costs incurred by the landlord, with recent years seeing a general trend of exceptional rising costs.
Benefits of Service Charges Advice :
• Provides a sense check and peace of mind that all is in order with your service charges, particularly in the context of rising costs and demands
• Ensures the service charges are correctly managed and calculated, with any errors identified potentially going back years or continuing for years to come if left unaddressed and without challenge
• Holds the landlord to account to properly justify and evidence important decisions that impact the level of service charges, particularly those issues and events that have high cost implications
• Improves the quality and value of the services provided
• Mitigates risk, costs and outgoings, with reduced service charges payments and refunds due where savings are achieved.
Our Service Charges Surveyor Services
At Bradley-Mason LLP, our experienced chartered building surveyors provide comprehensive Service Charges advice tailored to your property’s specific needs. Here’s how we can help:
1. Initial Pre-lease Check
Prior to acquiring your premises and signing your lease, be that by way of renewal, re-gear, assignment or new terms, we will review the service charges lease provisions and advise on any potentially onerous risks, so that you are fully aware and pre-warned, and so that the terms can be varied or restructured accordingly.
2. Initial Assessment
We will provide a desktop review and assessment on your existing service charges obligations to provide a quick and cost-effective appraisal of the quality, accuracy and value of the service charges being provided. We will identify any miscalculations and errors that may apply in the service charges caps, apportionment matrix and schedules, and advise if this impacts your service charges positively or negatively. A detailed challenge will be recommended as appropriate.
3. Detailed Challenge
This involves a further forensic review of the lease and service charges documents, along with a detailed technical building surveying site inspection, to further identify, establish and succinctly articulate all opportunities for potential savings. As chartered building surveyors, our advantage is that we deal with all technical, legal and cost implications, to ensure the lease provisions are being applied and adhered to correctly. All negotiations will then be progressed proactively to a conclusion, often resulting in significant savings achieved.
4. Landlord’s Sense Check
Our offering for landlords entails a peer review and sense check of your current arrangements, to ensure accuracy, value and best practice across the management of your estate(s). We can also advise prior to acquisition or deal completion, to ensure the service charges are set up and documented as desired and expected, to minimise future risks, disputes and shortfalls.
Why Choose Our Service Charges Services?
• Expert knowledge: Our chartered building surveyors and director-led approach brings years of experience and an in-depth understanding of all the legal, technical and cost components involved with service charges disputes across all sectors of commercial property.
• Tailored approach: We develop and provide customised and commercial service charges advice that addresses the unique requirements of your business and property interests, to reduce expenditure and mitigate risks.
• Cost-effective: Our proactive, robust and forensic approach gives you peace of mind and ensures your service charges are fair, properly managed and correct, to provide value for money and often with significant savings achieved.
