Service charges are payments leaseholders make towards the costs of maintaining and managing their building. Under the Landlord and Tenant Act 1985, charges are only recoverable to the extent that they are reasonably incurred and works or services are of a reasonable standard.
Common grounds to challenge
- Costs that were not reasonably incurred
- Poor quality work or services
- Missing invoices or inadequate breakdowns
- Charges for items not covered by the lease
- Failure to follow consultation rules (see Section 20)
- Lack of transparency in the accounts
Steps before tribunal
- Check your lease — it defines what can be charged and often sets query procedures
- Write to the landlord or agent with specific concerns and request a breakdown
- Use the landlord's complaints procedure and, if applicable, the agent's redress scheme
- Keep a paper trail — dates, amounts, and copies of correspondence
Important:
Non-payment of undisputed charges can risk forfeiture proceedings in extreme cases. Seek advice before withholding money, even when you believe charges are wrong.
When to use the tribunal
The First-tier Tribunal (Property Chamber) can determine whether specific charges are payable and, in some cases, order a manager to be appointed. It is a formal step — organised evidence (lease, demands, invoices, Section 20 notices) strengthens your case.