The service charge covers the cost of running the property such as building insurance, maintenance of lifts, fire alarm systems, cleaning of common parts etc and also includes the water rate for the whole building.
The terms of your lease require that the service charge is paid twice a year on 1 January and 1 July. It is collected by the Managing Agent on behalf of the RTM Company.
A Reserve Fund has also been set up to pay for major items such as decorating and replacement of carpets. This element is collected with the Service Charge as above.
Please note that the Managing Agent has been instructed to apply interest on all payments not made at the required time and if necessary to take legal action against leaseholders in default.
Late payment of your Service Charge could cause cash flow problems and could also affect the services being provided to the property which in the longer term can affect the repair and maintenance of the building and the equity you have invested in your property.