A service charge is a variable payment made by leaseholders to cover the costs of maintaining and managing the building and communal areas. Under the Landlord and Tenant Act 1985, service charges must be reasonable, and costs must have been reasonably incurred. Demands must be accompanied by a summary of leaseholder rights. Leaseholders can challenge unreasonable charges at the First-tier Tribunal (Property Chamber).

The Leasehold Reform (Ground Rent) Act 2022 banned ground rent above a peppercorn for new residential leases granted on or after 30 June 2022. Existing leases with ground rent provisions are not affected — ground rent under those leases continues to be chargeable and collectable in accordance with the lease terms, subject to the correct demand procedures.

If a leaseholder withholds service charges, the freeholder or management company can pursue recovery through the County Court or, where the amount is in dispute, apply to the First-tier Tribunal for a determination. Once determined, unpaid charges may be registered as a charge on the property and, in serious cases, forfeiture proceedings can be commenced — though forfeiture is rarely granted for service charge disputes and requires court approval.

We provide full transparency through certified annual accounts, budget summaries, expenditure breakdowns and supporting invoices. All leaseholders receive an annual statement of account and have the right to inspect underlying documentation. Our leaseholder portal provides 24/7 access to service charge statements, budgets and correspondence.

An RMC is a company formed by leaseholders to take responsibility for managing their building, either having acquired the freehold (through collective enfranchisement) or having been given management responsibilities under the lease. RMCs are typically director-managed by leaseholders. Property Management Wales can act as managing agent for the RMC, handling day-to-day operations on behalf of the directors.

Yes — we manage leasehold developments of all sizes, from 2-unit conversions to large purpose-built apartment blocks. Small blocks often have informal management arrangements that can lead to compliance failures. We provide professional management regardless of block size, with fees scaled to reflect the number of units.