Let us say there is a small estate of two blocks (A & B). Each block has ten flats of equal size, with four leasehold flats and six tenanted flats in each.
The service charge for the leaseholders would be calculated as follows:
Estate costs are split between all 20 flats - that is, five per cent for each flat.
Block costs are split between the ten flats in each block - that is ten per cent for each flat.
Costs per year
|
Service
|
Estate
|
Block A costs
|
Block B costs
|
Split
|
Block A per flat
|
Block B
per flat
|
Grounds maintenance
|
£1200
|
|
|
5%
|
£60
|
£60
|
Caretaking
|
|
£600
|
£650
|
10%
|
£60
|
£65
|
Caretaking
|
£400
|
|
|
5%
|
£20
|
£20
|
Block lighting
|
|
£120
|
£100
|
10%
|
£12
|
£10
|
Estate lighting
|
£200
|
|
|
5%
|
£10
|
£10
|
Block repairs
|
|
£450
|
£550
|
10%
|
£45
|
£55
|
Estate repairs
|
£600
|
|
|
5%
|
£30
|
£30
|
Buildings Insurance
|
|
|
|
N/A
|
£180
|
£180
|
Total service charge
|
|
|
|
|
£417
|
£430
|
The service charge for leaseholders would be £417 in Block A and £430 in Block B.