Commercial Leases · glossary

Service charge

The tenant's share of the cost of running and repairing the shell and shared parts of the building. Linnet pays a fixed half of the office block's service costs listed in Schedule 3, quarterly on account, settled after each year. Costs it must never pay are excluded by name. Lease, Schedule 3 · Chapter 5 · see Service charge cap, Common parts

Explained in Chapter 5, Service Charge and Insurance, of Commercial Leases.

How it comes up, in Chapter 3
Linnet will pay £60,000 a year for the first floor. The lease calls this sum the Annual Rent, and this chapter calls it “the rent”. Linnet also pays a share of the cost of insuring the building, the insurance rent, and a share of its running costs, the service charge (Chapter 5). The lease calls the three payments, with any VAT and late-payment interest on them, the Rents.
Read Chapter 3, Rent, Rent-Free and VAT →

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Where this term lives

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