Glossary
Apportionment
Also called: service charge apportionment, service charge percentage, share of service charge
How the total cost of running the building is divided between the flats, using the shares or method set out in each lease.
Each lease says what share of the costs that flat pays. It might be a fixed percentage (for example 12.5% for each of eight equal flats), a share by floor area, or "a fair proportion" decided by the landlord or manager.
Things to check
- Do the shares add up to 100%? If they add up to more or less, the leases may need varying. The tribunal can vary leases that don't make satisfactory provision for this (s.35).
- Different schedules. Some leases split costs differently for different things, such as the lift, the car park or the shops.
- Non-residential units. In an RTM building, if some units aren't held by qualifying tenants and the flats' shares come to less than 100%, the landlord pays the shortfall (s.103).
Rounding
When you split a bill in pounds and pence, the parts must add up exactly to the total. A good method is to round each share down and give the leftover pennies to the largest remainders, so nobody is over-charged and nothing is lost.
You can't change the shares just because it seems fairer. The lease governs until it is varied.
Related terms
Sources
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