Most flats in England are leasehold, and the lease usually requires the leaseholder to pay a service charge towards the building’s upkeep. GOV.UK says leaseholders can get information about charges, be consulted on some costs and challenge certain charges in some circumstances. The rules differ in Wales, where the Leasehold Valuation Tribunal hears applications, and in Scotland and Northern Ireland.
What the lease and the law require
GOV.UK says the lease sets out how the service charge is organised and what can be charged. A leaseholder who pays a service charge has the right to ask for a summary showing how it is worked out and what it is spent on, and to see supporting paperwork such as receipts. GOV.UK states that the landlord must provide this information and that it is a criminal offence if they do not. Building insurance is usually arranged by the landlord and forms part of the service charge, and the leaseholder can ask for a summary of the policy. Some leases also require payments into a reserve or sinking fund for unexpected repairs, and GOV.UK notes that money paid in usually cannot be recovered on moving home.
Ground rent is separate from the service charge. For a lease granted before 30 June 2022, GOV.UK says no ground rent is due unless the landlord has sent a formal written demand, and that unpaid ground rent can be recovered for up to six years. For a lease granted on or after that date, the charge is usually no more than a “peppercorn” of zero, under the Leasehold Reform (Ground Rent) Act 2022, although the change does not apply to someone who bought an existing lease from another leaseholder after that date.
Consultation before larger costs
Leaseholders must be consulted about running or maintenance costs if they would have to pay more than £250 for planned work or more than £100 a year for work and services lasting more than 12 months, according to GOV.UK. The steps are known as a Section 20 consultation. GOV.UK says there is a limit on what a leaseholder must pay if the landlord has not consulted properly, and suggests contacting the Leasehold Advisory Service for advice.
When a charge can be disputed
GOV.UK says an application to a tribunal may be possible if the leaseholder thinks a charge is unreasonable, thinks the standard of the work is unsatisfactory, or does not think it should be payable at all. An application cannot be made where the charge has been agreed, where the dispute is already before a court, or where a fixed charge is paid. The First-tier Tribunal (Property Chamber – Residential Property) hears leasehold disputes such as variable service charges, and GOV.UK also lists insurance costs, management disputes and lease variation among the cases covered. Mediation is suggested as an alternative, and leaseholders in flats may be able to change management through the Right to Manage or by asking the tribunal to appoint a manager after proving bad management.
How the tribunal process works
The tribunal’s guide (form T541, updated in January 2026) says an application form is needed in almost all cases and that a copy is sent to the other party. Some cases can be decided on paper, although any party can ask for a hearing. In many cases the tribunal issues directions on the documents to be exchanged and a hearing bundle prepared with numbered pages, typically including the lease and invoices. It may inspect the property, and inspection is considered necessary in most service charge cases. The guide states that a decision is usually issued within six weeks of the hearing.
Fees depend on the application, and the guide says a hearing fee of £227 becomes payable when notice of the hearing date is received. Help with fees may be available. A party who has paid a fee can ask for reimbursement, which the tribunal may order if fair.
Costs and the lease
The tribunal does not usually order the losing side to pay the other party’s costs, but it can order costs where unreasonable behaviour or failure to follow directions caused them. The guide adds that some leases let landlords include their tribunal costs in the service charge, and that section 20C of the Landlord and Tenant Act 1985 lets the tribunal, on a tenant’s application, order that such costs are not treated as relevant costs for the service charge.
FAQs
Can I refuse to pay a service charge while I dispute it?
GOV.UK warns that a landlord can take a leaseholder to court if they stop paying a charge they are responsible for, so take advice before withholding payment.
Is there free advice?
GOV.UK points to the Leasehold Advisory Service for free advice on service charges, lease extensions and buying the freehold.
Does this apply in Wales?
Not in the same form. GOV.UK says a different dispute process applies in Wales, where leaseholder applications go to the Leasehold Valuation Tribunal.
Bottom line
A leaseholder in England is entitled to see how service charges are calculated, to be consulted on works above the statutory thresholds and to apply to the Property Chamber where a charge is unreasonable or the work is poor. Applications have limits, fees apply and the lease itself matters, so confirm the position with the Leasehold Advisory Service or a solicitor. This is general information only.