Questions From Residents
Why do I have to pay a service charge or a ground rent?
Your property is located in a development with common parts and or common grounds. One of the legal documents when you purchased the property (for flats this is the lease) will have outlined this and detailed the services the Management Company or Residents Association must provide.
This may include gardening, cleaning common areas, buildings insurance, building maintenance and decoration. The Company will have to meet the legal requirements of the Company, prepare accounts and file documents with Companies House and the Inland Revenue. The service charge will reflect a budget prepared to cover these costs / requirements.
If you pay a ground rent this suggests a third party owns the land your property is built on.