Service charges are usually paid by people who own a flat with a leasehold contract within a larger block or building. These charges go toward the general upkeep and maintenance of the building, making sure it runs efficiently with contributions from all the owners and residents.
The landlord will usually be responsible for paying the service charges on a flat. Property management companies may manage the company on behalf of the landlords who own individual flats on a long lease. There may alternatively be a residents’ association run by the flat owners, who take care of maintenance and day to day running. Ultimately, whoever is the landlord of the block of flats will receive ground rent and service charges in order to look after the building.
Service charges will pay for construction work and general upkeep, like window cleaning and heating in the hallways and corridors. They will also pay for major works, like a roof replacement.