The Service Charge: What Are We Really Paying For?

As leaseholders at Chalkwell Lodge, we collectively contribute a significant amount each year to the service charge—money that is supposed to maintain and enhance the property we call home. Yet, despite our substantial financial commitment, one question echoes among us: Where is our money actually going, and how is it being used?

Lack of Transparency

We pay over £17,000 annually in management fees to Hair and Son, alongside other substantial charges for maintenance, repairs, and services. However, we are consistently left in the dark about how these funds are allocated. Itemised invoices, detailed receipts, and specific explanations of expenditures are notably absent, even after multiple formal requests. This lack of transparency leaves leaseholders feeling not only excluded but also concerned about whether their money is being managed responsibly and in their best interests.

Exclusion from Decision-Making

Decisions about costly projects and expenditures are made without engaging the very people footing the bill. A glaring example is the recent refurbishment of the caretaker’s flat—an expensive project undertaken without consulting residents. No meetings, no meaningful updates, and no input from leaseholders. The committee and Hair and Son continue to operate within an outdated system that prioritises their control over our involvement, perpetuating an environment where leaseholders are sidelined and silenced.

Additionally, the Annual General Meeting (AGM) is held just once a year. Minutes from this meeting, which are distributed afterward, provide a minimal snapshot of key discussions but are wholly inadequate as a means of ongoing communication. Once-a-year engagement is simply not good enough for the residents who are paying for these decisions. Regular updates, transparency, and real opportunities for leaseholders to contribute to discussions should be the standard—not an afterthought.

Refusal to Share Documentation

On three separate occasions, Hair and Son have refused to provide invoices or documentation related to significant expenditures, including the caretaker’s flat refurbishment. These refusals are typically justified by citing auditing processes, delays, or policies, but they disregard our rights as leaseholders under the Landlord and Tenant Act 1985. This law entitles us to inspect financial records, yet Hair and Son’s resistance suggests either incompetence, indifference, or something more troubling.

Adding to the issue, the balance sheet for service charges is only sent out once a year, leaving residents without any meaningful insight into how funds are being allocated throughout the year. This single annual document is not only insufficient but also inaccessible to many, as most leaseholders lack the financial expertise to interpret a balance sheet effectively. Hair and Son seem to exploit this lack of understanding, providing the bare minimum while avoiding the accountability that comes with full transparency.

Financial Burden Without Accountability

The service charge has skyrocketed over the years, creating a heavy financial burden for leaseholders. What’s more, there’s little evidence that the increased costs have led to meaningful improvements or enhanced services. Instead, many of us feel like we’re financing questionable projects, paying inflated fees, and receiving little accountability in return. The current system benefits a few while leaving leaseholders powerless, uninformed, and frustrated.

Enough Is Enough

It’s time for a change. The Chalkwell Lodge Residents’ Association (CLRA) is committed to advocating for transparency, accountability, and collaboration. Our ultimate goal is simple yet powerful: to ensure that every leaseholder knows where their money is going and what they’re paying for. We want to work alongside Hair and Son and the committee in a way that ensures financial decisions are made openly, responsibly, and with input from the people who are most affected—us, the leaseholders.

The outdated systems that give disproportionate power to the committee and management company must evolve. Leaseholders deserve to be heard, respected, and empowered. Together, we can ensure that our voices shape the future of Chalkwell Lodge.

What do you think? Have your say below and let us know your thoughts?