Estimate your leasehold service charge from building costs. Includes insurance, maintenance and reserve fund.
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against UK lender and FCA 2026 guidance
Rates verified: 28 September 2026
Check your lease. Equal share: 8.33%.
Annual costs for the whole building
Your annual service charge
£1,850.00
£154.17/month · 8.33% of the building total of £22,200.00
| Cost | Building | Your share |
|---|---|---|
| Buildings insurance | £4,800.00 | £400.00 |
| Repairs and maintenance | £3,600.00 | £300.00 |
| Cleaning of communal areas | £2,400.00 | £200.00 |
| Gardening and grounds | £1,200.00 | £100.00 |
| Communal electricity and lighting | £1,200.00 | £100.00 |
| Lift maintenance | £1,200.00 | £100.00 |
| Managing agent fee | £3,000.00 | £250.00 |
| Reserve or sinking fund | £3,600.00 | £300.00 |
| Other (fire safety, door entry, CCTV) | £1,200.00 | £100.00 |
Total over 5 years
£10,020.00
£2,164.00 in year 5
Total over 10 years
£22,211.00
£2,633.00 in year 10
Total over 20 years
£55,089.00
£3,898.00 in year 20
Section 20 consultation (Landlord and Tenant Act 1985) is required before major works that would cost any one leaseholder more than £250, and before a long-term agreement (over 12 months) that would cost any one leaseholder more than £100 a year. At your share, your own contribution passes these limits when works cost the building more than £3,000.00, or an agreement costs it more than £1,200.00 a year (consultation starts sooner if another flat pays a bigger share).
Projections assume every cost rises by the same percentage each year and leave out one-off major works charges.
Disclaimer
This calculator is for guidance only. It is not financial or tax advice: check anything you rely on against the official source or a qualified adviser. Rates and figures come from lenders' published rates and FCA guidance and are reviewed for 2026. Everything is calculated in your browser; nothing you enter is sent to our servers.
How It Works
Leasehold service charges cover the cost of maintaining and managing communal areas of a building or estate. Common items include building insurance, cleaning, gardening, lift maintenance, communal lighting, management company fees and contributions to a sinking or reserve fund for major works. Charges vary widely, from £500 to £5,000+ per year, and the spread has more to do with facilities than with the size of the flat.
Under the Landlord and Tenant Act 1985, service charges must be reasonable, and landlords must consult leaseholders under Section 20 before carrying out major works that would cost any one leaseholder more than £250, or entering a long-term agreement (over 12 months) that would cost any one leaseholder more than £100 a year. Leaseholders have the right to challenge unreasonable charges at the First-tier Tribunal (Property Chamber), where the application fee is £114, plus a £227 hearing fee if the case goes to a hearing, and a charge can be reduced if the tribunal accepts it is excessive.
Enter the annual costs for the whole building from the service charge budget, item by item, together with the number of flats and your share from the lease. The share defaults to an equal split, but many leases set a different percentage, often based on floor area. The calculator multiplies the building total by your share, shows how your contribution splits across each cost, and projects the total you would pay over 5, 10 and 20 years at the yearly increase you choose. The starting figures are illustrative costs for a 12-flat block with a lift, so replace them with your managing agent's budget where you have it.
Leasehold flat owners almost always pay a service charge, while freeholders on a managed estate may pay an estate charge instead. In 2026 a typical block runs at £1,500-£3,500 a year, with premium developments at £2,500-£8,000 or more. What the money buys is building insurance, communal lighting and heating, garden maintenance, lift servicing, concierge, building security, structural repairs, lobby cleaning, refuse collection and water for the common areas.
It helps to know what each element should cost on its own. Building insurance runs £200-£1,500 a year per flat depending on the building and its history of leaks, communal lighting and electricity £50-£200, cleaning £100-£400 and garden maintenance £100-£400. A lift costs £400-£1,200 a year to maintain, split across the flats it serves, and a concierge in a large development £500-£3,000. The managing agent takes £150-£400 per flat, district heating where it exists adds £200-£800, and the reserve fund absorbs £200-£2,000.
Major works are the unwelcome surprise. Works costing any one leaseholder more than £250 trigger a Section 20 consultation, as do long-term agreements such as a lift or cleaning contract costing any one leaseholder more than £100 a year, and the usual culprits are roof replacement, lift refurbishment, external decorations and structural repairs. In a 20-flat building, a £100,000 roof works out at £5,000 per leaseholder. The reserve or sinking fund is meant to spread that cost by building up annually, but it is frequently inadequate, and demands of £5k-£20k or more have caught out many leaseholders. Ask what sits in the fund and what the balance forecast looks like before you buy.
Charges are far easier to control if somebody actually reads them. Ask for the annual accounts and the budget, then compare them against similar buildings nearby. Management fees above 15% of the service charge, commission earned by the freeholder on the insurance policy and services that never quite materialise are the charges most often challenged. Right to Manage lets leaseholders take management away from the freeholder altogether. You can already ask for a written summary of the costs behind the charge and then inspect the accounts and receipts. The Leasehold and Freehold Reform Act 2024 adds a standard service charge demand form, an annual report and new rules on legal costs, but those measures have not yet been brought into force, and the government expects them from 2027. The Leasehold Advisory Service, LEASE, gives free guidance at lease-advice.org.
Example: flat in a 12-flat block with a lift, equal shares
- Building costs: insurance £4,800, repairs £3,600, cleaning £2,400, gardening £1,200, electricity £1,200, lift £1,200, managing agent £3,000, reserve fund £3,600, other £1,200
- Building total: £22,200 a year
- Your share: 1 of 12 flats = 8.33%, so £22,200 ÷ 12 = £1,850 a year (£154.17/month)
- Largest parts of your charge: insurance £400, repairs £300, reserve fund £300, managing agent £250
- At a 4% yearly increase: £10,020 over 5 years, £22,211 over 10 years and £55,089 over 20 years
- Section 20: your contribution passes £250 when works cost the building more than £3,000
Frequently Asked Questions
- What is covered by a leasehold service charge?
- Common charges cover building insurance, cleaning, gardening, lift maintenance, communal lighting and management company fees, along with money set aside in a reserve fund for major works. Larger developments add concierge, building security and sometimes district heating. Annual bills range broadly, from roughly £500 to £5,000 or more, and the biggest single driver is how many facilities the block has to run.
- Can I challenge a service charge that seems too high?
- Yes. Under the Landlord and Tenant Act 1985 charges must be reasonable, and the First-tier Tribunal (Property Chamber) hears disputes for a £114 application fee, plus a £227 hearing fee if there is a hearing, and can reduce a charge it finds unreasonable. Start by asking for a summary of the costs, the annual accounts and budget, and comparing them with similar buildings. Management fees above 15% of the service charge, commission taken by the freeholder on the insurance and services that are never delivered are the usual grounds. The Leasehold and Freehold Reform Act 2024 service charge transparency measures, such as a standard demand form and an annual report, have not yet been brought into force; the government expects them from 2027.
- What is a Section 20 consultation for major works?
- It is the formal consultation a landlord must run before carrying out works that cost any single leaseholder more than £250, or before entering a long-term agreement (over 12 months) that costs any single leaseholder more than £100 a year. Roof replacements, lift refurbishments, external decorations and structural repairs are the usual triggers. The sums involved are serious, since a £100,000 roof on a 20-flat building comes to £5,000 each. Section 20 applies to the service charge alone, so it has no bearing on ground rent.
- How much is a typical service charge on a flat?
- In 2026 a typical block costs £1,500-£3,500 a year, while premium developments with concierge and extensive facilities run £2,500-£8,000 or more. Within that total, building insurance is usually £200-£1,500 per flat, the managing agent takes £150-£400, a lift costs £400-£1,200 a year to maintain across the block and the reserve fund absorbs £200-£2,000. Across the market as a whole the figures stretch from £500 to £5,000 or more.