Purpose of this page
This page is provided as a permanent reference under “Useful Links”. It reproduces the statutory Summary of Leaseholders’ Rights and Obligations in relation to service charges.
By law, this summary must accompany service charge demands. It is published here for ease of reference, transparency, and to help leaseholders understand their legal rights.
What are service charges?
Your lease requires you to contribute to service charges in addition to any ground rent.
Service charges are amounts payable for:
- Services
- Repairs and maintenance
- Improvements
- Insurance
- Management costs
These costs are only recoverable to the extent that they have been reasonably incurred, as required by law.
Your right to challenge service charges
You have the right to apply to the First-tier Tribunal to determine:
- Whether a service charge is payable
- Who must pay it, and to whom
- The amount payable
- When and how it must be paid
You may apply before or after paying a service charge.
These rights do not apply where the matter has already been:
- Admitted or agreed by you
- Determined by a court or tribunal
- Referred to arbitration by agreement
Major works and long-term agreements (consultation limits)
Your contribution may be capped unless proper consultation takes place, where a landlord:
- Proposes works costing more than £250 per leaseholder, or
- Proposes a long-term agreement (over 12 months) costing more than £100 per leaseholder per year
The First-tier Tribunal may dispense with consultation only in limited circumstances.
Access to service charge accounts and documents
You have the right to request a written summary of service charge costs, covering:
- The last accounting year, or
- The 12 months ending on the date of your request
This must be provided within statutory time limits.
You also have the right, within six months of receiving a summary, to:
- Inspect accounts, invoices, and receipts
- Take copies or extracts
Audits and professional review
Leaseholders may have the right to request an independent audit or professional review of service charge expenditure by an accountant or surveyor.
Whether this can be done individually or requires collective support depends on the circumstances. Independent advice is recommended before exercising this right.
Forfeiture and enforcement safeguards
Although a lease may allow forfeiture for non-payment, a landlord:
- Must meet strict legal requirements
- Must obtain a court order
- Cannot proceed unless liability has been admitted or formally determined
Courts have wide discretion and will consider all circumstances.
Important note
This summary does not provide a full interpretation of the law.
Leaseholders should seek independent professional advice if they are uncertain about their rights or obligations.
Download the statutory summary
A copy of the official statutory summary is available here:
