Retentions or retention monies refer to where the seller leaves a sum of money with their solicitor to pay a service charge bill when it eventually gets issued.
Its purpose is to address where there is a larger period of time between costs being incurred and the requisite service charge bill being sent out. Normally retentions are agreed between the seller and the buyer at the point of sale.
A new leasehold cannot be charged for a service charge bill which was issued to, but not paid by, a previous leaseholder.