Checklist: Questions to ask about service charges before you buy

Check with your solicitor as to how service charges have been divided between individual owners. This is known as apportionment. This should be shown in your lease
Find out how much your service charge will cost and ask for a detailed list of the services that it covers
If possible, find out about service charges in similar developments (age, size, style) in the area
Request a projection of future service charges
If relevant , ask to see the most recent set of financial statements from the management company
Ask about the sinking fund. If it is low or doesn't exist owners may have to pay more in the form of a once off increase in their annual service charge when significant work has to be done
Ask if there is a history of withholding charges in the complex? By not paying service charges, owners damage the financial health of the management company and its effectiveness. This may affect the value of your investment