Service Charge Calculator
Estimate your leasehold service charge from building costs. Includes insurance, maintenance and reserve fund.
Last updated: April 2026 · Source: GOV.UK — Leasehold service charges
100% = you pay total. Equal split = set units.
Annual Building Costs
Your Annual Service Charge
£2,800.00
£233.33/month · Building total: £2,800.00
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
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.
Under the Landlord and Tenant Act 1985, service charges must be reasonable, and landlords must consult leaseholders before carrying out major works costing more than £250 per leaseholder. Leaseholders have the right to challenge unreasonable charges at the First-tier Tribunal (Property Chamber).
This calculator estimates your annual service charge based on the building type, number of units, facilities and location. It also shows how contributions break down across categories and projects your costs over 5, 10 and 20 years including expected increases. Enter known charges or use typical estimates for your building type.
Example: 2-bed flat in a 24-unit block, London
- Building insurance share: £350
- Management company fee: £500
- Cleaning and gardening: £400
- Lift maintenance share: £200
- Sinking fund contribution: £600
- Total annual service charge: £2,050 (£171/month)
Frequently Asked Questions
- What does the Service Charge Calculator do?
- Estimate your leasehold service charge from building costs. Includes insurance, maintenance and reserve fund. All calculations are performed in your browser using official UK rates and thresholds.
- Is this based on current interest rates?
- You can enter any interest rate to model different scenarios. Check the Bank of England base rate and current mortgage deals from lenders for the latest rates.
- Should I get professional advice?
- This calculator provides estimates for guidance only. For a formal mortgage offer, speak to a mortgage broker or lender who can assess your full circumstances and provide personalised advice.