Service Charge Disputes: How to Challenge Excessive Charges as a Leaseholder

Your right to challenge

Section 27A of the Landlord and Tenant Act 1985 gives leaseholders the right to apply to the First-tier Tribunal (Property Chamber) for a determination of whether a service charge is reasonable and whether the work it relates to is of a reasonable standard. The freeholder cannot prevent you from making this application, although they can defend their charges.

The Tribunal can reduce or strike out charges that are excessive, unreasonable, or for work that has not been done to a reasonable standard. Decisions are binding and are published.

Common grounds for challenge

The most successful service charge challenges fall into a few categories:

1. Cost is excessive for the work done, for example a £30,000 lift maintenance bill for a small block where comparable contractors charge £8,000.

2. Insurance commissions, where the freeholder insures the building through a broker that pays a commission back to the freeholder. The Tribunal has consistently held that excessive commissions are unreasonable.

3. Major works without proper consultation, where the freeholder has failed to follow the Section 20 consultation procedure for works costing more than £250 per leaseholder.

4. Work to a poor standard, where the work has been done badly or not finished.

5. Charges outside the scope of the lease, where the freeholder is charging for items the lease does not allow them to charge for.

6. Unreasonable management fees, where the managing agent fee is much higher than market rates.

What to do before applying

1. Request a detailed breakdown of every line in the service charge. You have a statutory right to this under Section 21 of the 1985 Act.

2. Check the lease. Read the service charge clause carefully to confirm what the freeholder is allowed to charge for.

3. Get comparable quotes from contractors for the disputed items. This is the most powerful evidence you can bring to a Tribunal.

4. Check Section 20 consultation. For works over £250 per leaseholder, the freeholder must have served notices and considered leaseholder responses. If they did not, charges can be capped at £250.

5. Talk to your fellow leaseholders. A joint application with multiple leaseholders is much stronger than a solo one.

6. Try to resolve directly. Write to the freeholder or managing agent asking them to justify the charge or reduce it.

How the Tribunal works

You apply on Form LVT1 and pay a fee (currently up to £100 for a single charge dispute, £200 for larger). The Tribunal will direct both sides to file evidence and submissions. Most cases are decided on paper or at a short hearing. There is no costs award against you in most cases, unlike court litigation, which makes the Tribunal a relatively low-risk forum to challenge unfair charges.

You do not need a solicitor. Many leaseholders represent themselves successfully, although for complex cases or large blocks legal advice is worth getting.

Improvements coming under the 2024 Act

The Leasehold and Freehold Reform Act 2024 introduces standardised service charge demands, requires freeholders to provide a clear breakdown of management costs and insurance commissions, and limits the freeholder's ability to pass legal costs back to leaseholders through the service charge. These provisions are being commenced during 2025 and 2026 and will make challenges easier.

Confirm tenure before you start

Service charge rules only apply to leasehold (and commonhold) properties. If you are not sure whether your home is leasehold, you can confirm in seconds by searching it on Property Passport UK at [/search](/search). The platform sources tenure directly from HM Land Registry for every property in England and Wales.

Look up any leasehold property on Property Passport UK

Property Passport UK shows tenure (freehold or leasehold) sourced directly from HM Land Registry for every one of the 19.35 million properties in England and Wales. For leasehold properties, you can also see lease length, ground rent, and service charge information where it has been published. Search by postcode or address at [propertypassport.uk/search](/search), or look up an EPC at [/epc](/epc).

Related guides

• What is a leasehold property
• How to extend a lease
• Leasehold Reform Act 2024 explained
• Service charge disputes