Leasehold service charges in England: what you pay for and how to challenge them

Most flats in England and Wales are sold as leasehold. The flat’s owner pays a service charge to the freeholder or managing agent for the upkeep and repair of the building’s common parts. A leaseholder’s rights are protected by law, and a charge you think is too high can be challenged.

What does a service charge cover?

What the charge covers is set out in your lease. It usually includes cleaning and lighting of communal areas, lift servicing, repairs to the roof and exterior, and buildings insurance. GOV.UK notes that insurance of the building itself (not your contents) is normally arranged and paid for by the freeholder, with the cost shared among leaseholders.

ADV · A001ONLYWAY JEWELRY — gold, silver and platinumRings, chains, bracelets, earrings and pendants. Delivery across the UK.Advertise here

Do I have a right to a summary of costs?

Yes. If you pay a service charge, you can ask for a summary of how it is worked out and what it is spent on, along with supporting paperwork such as receipts. Your landlord must provide this; GOV.UK stresses that it is a criminal offence if they do not.

Can you challenge a charge you think is too high?

Yes. If you believe a charge is unreasonable, the standard of work is poor, or that you should not have to pay at all, you can apply to a tribunal (the First-tier Tribunal, Property Chamber in England). You cannot apply if you have already agreed to pay the charge, the dispute is already before a court, or you pay a fixed charge.

When must you be consulted about major costs?

The law requires a consultation (Section 20) if you would have to pay more than £250 for one-off planned works or more than £100 a year under a long-term agreement for services lasting over 12 months. If the landlord has not consulted properly, there is a limit on how much they can recover from you.

Where can you get help?

The Leasehold Advisory Service (LEASE) gives free advice on leasehold. Before challenging, ask for a detailed summary of costs and compare it with your lease: disputes are often resolved at this stage. Keep correspondence and invoices — you will need them at a tribunal.

What is “ground rent” and how does it differ from a service charge?

As well as a service charge, a leaseholder may have paid the freeholder a separate “ground rent”. This is a different payment: it is not linked to the upkeep of the building. For many new leases ground rent is reduced to a token “peppercorn” (effectively nil). Check your lease for whether it applies and at what level.

How should you handle a dispute over a charge?

First ask in writing for a detailed summary of costs and supporting paperwork — by law the landlord must provide it. Compare the figures with the terms of your lease and check whether a consultation took place for major works. If the matter is not resolved, contact the Leasehold Advisory Service for free advice, then a tribunal if needed. Be careful about paying a disputed sum: expressly agreeing to pay can remove your right to challenge it.