The Hidden Costs of Mixed-Use Schemes: Are You Paying for Services You Don’t Use?

Imagine being charged for something you never use?   That’s exactly what happened to one of our clients occupying a retail store in a busy mixed-use centre near London – and it’s something we see all too often.

This store faced an annual service charge of £55,000, far in excess of £10 per sqft.  The Centre is a mix of retail, leisure, and residential elements, with different service charge schedules to reflect the variety of occupiers.

What drew our attention here was the allocation of costs to a schedule titled ‘Late Night Trading’, which was unusual given the nature of this store as a daytime trading retail store.  Despite closing at 6pm, the store was paying for services used between 6pm and 9pm.

We challenged the unfair allocation with the Managing Agent, stating they shouldn’t pay for late-night services they didn’t benefit from, given the store shut at 6pm and earlier on a Sunday.

After reviewing the details, the Managing Agent agreed.   A credit note was issued, reducing the store’s annual liability by more than 10%.  A significant win – and exactly the kind of outcome we aim for.

Mixed-use schemes often mean complex schedules and allocations – and it’s easy for occupiers to end up paying more than they should.  That’s where our expert team steps in.

Assure are experts in identifying such discrepancies, utilising our bespoke database, Verivi.  We have specialist knowledge when scrutinising service charge allocations, ensuring that occupiers are only charged for services that benefit them.  With a keen eye for detail and an understanding of lease agreements and service charge schedules, we can spot and rectify unfair charges effectively.

If you’re questioning your service charges – or haven’t questioned them in a while – now might be the time for our team to take a closer look. Complete the contact form below and one of our experts will be in touch.