leaseholdersProblem guide
Service charges and bills
A service charge is what you pay towards running and repairing your building. It can feel like the bill keeps going up with little explanation. The law says service charges must be reasonable, and you have rights to see where your money goes and to challenge charges.
The key facts
- Service charges must by law be reasonable, and the work or service must be of a reasonable standard.
- You can challenge a service charge at a tribunal: the First-tier Tribunal (Property Chamber) in England, or the Leasehold Valuation Tribunal in Wales.
- Your landlord must consult leaseholders before major works costing any one leaseholder more than £250, or before a long-term agreement costing any one leaseholder more than £100 a year. This is often called "Section 20 consultation".
- You have the right to ask for a written summary of the costs behind your service charge, and to inspect the receipts and invoices.
- The managing agent or freeholder cannot charge whatever they like. They must follow your lease.
Common questions
What you can do now
- 1Find your lease and look for the section on service charges.
- 2Compare your bill with previous years and note anything new or much higher.
- 3Ask in writing for a summary of the costs behind your service charge.
- 4Ask to inspect the receipts and invoices.
- 5If you get a Section 20 notice, note the deadline and send your comments in writing.
- 6Keep copies of everything. If you are still unhappy, consider the tribunal.
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