What is the primary purpose of service charges in leasehold properties?

The primary purpose of service charges in leasehold properties is to cover communal facility expenses. These charges are typically collected by the landlord or managing agent to maintain shared areas and facilities, such as hallways, gardens, elevators, and recreational spaces. Service charges ensure that costs related to management, maintenance, and repair of communal areas are accounted for, allowing for a well-maintained living environment that benefits all residents.

Option B accurately reflects this purpose, as these expenses are necessary for the upkeep of shared resources which enhance the quality of living for all leaseholders. This collective financial responsibility supports the overall health of the property and ensures compliance with safety and maintenance standards.

The other responses do not align with the primary role of service charges; for example, while income for leaseholders could indirectly fluctuate based on property value, it does not represent the function of service charges. Similarly, funding local government projects or paying mortgage loans pertain to different financial structures and responsibilities unrelated to the communal management of leasehold properties.