Service charges typically cover a wide range of costs, and is very good value for money when you consider how much is included. The cost will naturally be higher if the development is a luxury one, and for some developments may extend to thousands of pounds. It covers such facilities as:
• Maintenance of grounds and common areas
• Staff costs
• Heating and lighting of common areas
• Lift maintenance
• Emergency call system
• Provision of restaurants and spa facilities
• External window cleaning
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The service charge is usually reviewed annually and may be increased if the costs of providing services has gone up. You will be advised of the increase and may also be able to attend a meeting with management. Before committing to the purchase of a retirement property, you should examine your finances carefully and be sure that your income will be sufficient to cover all your needs, including utilities and the service charge. Do remember that although the service charge may seem high, there is a lot included and you will no longer have to pay for many of the maintenance costs that you had to pay on your old home.
If you want to sell, the service charge will still have to be paid until the property is sold. There are no exceptions should the property need to be sold after your death; the service charge will need to be paid even though you are not using the facilities. This is out of fairness to other residents, as otherwise their service charge would need to be increased.