Q. Why do I have to pay Service Charge when I live in a Freehold House?

Answer:

Some developments of freehold houses have the benefits of shared facilities or areas which have to be managed, and the associated costs of this paid for by the house owners. There will generally be less maintenance required compared to a typical block of apartments, but maintenance costs might include electronic gates, shared grounds, areas of open space and private roads and drainage that are not adopted by the local authority or utility companies. Where there are shared areas Property Owners Liability (Public Liability) insurance will need to be arranged.

Where a development is mixed and comprises houses and apartments and in some cases commercial properties, the costs are apportioned fairly between the various elements and this is reflected in the service charge.