Thinking of Buying a Leasehold Flat? Count the Full Cost First
You have found the flat. The light is right, the location works and the price is within reach. Then the estate agent mentions, almost in passing, that the property is leasehold, that there is a service charge and that a management company looks after the building. For many buyers, that is where the questions stop. It should be where they start. Leasehold is not a minority arrangement. The English Housing Survey indicates that around four million leasehold properties in England pay a service charge, and the great majority of flats are held on leases. Nor are the sums trivial. Hamptons, in its Service Charge Index, reported that the average annual service charge reached £2,300 by the end of 2024, an increase of 11 per cent in a single year, with further rises recorded since. Those figures are the visible costs. This article is about the less visible ones, the fees charged by landlords and managing agents when you buy, while you own, and when you sell. What You Are Actually Buying Wh...
