What can I do if I think my service charge is too high?

Written by Joshua Poh Ee Kheng, Verahold

You're not powerless here. Start by requesting a full breakdown of costs from your managing agent, then check it against what's reasonable for a building like yours. Leaseholders are legally entitled to see the accounts and supporting invoices behind their service charge under the Landlord and Tenant Act 1985.

What are your rights?

Your rights under this legislation include:

• Requesting a written summary of costs from your managing agent

• If unsatisfied, requesting to inspect the supporting accounts, receipts and invoices within 6 months of receiving that summary

• Managing agents are required to comply within set statutory timeframes

• Failing to do so without reasonable excuse can leave them liable

This is general information rather than legal advice, so it's worth confirming the specifics for your situation with a solicitor if it gets to that point.

Where can the costs run high?

Common areas where costs run high without good reason include:

• Buildings insurance

• Cleaning contracts

• Maintenance work, particularly if the same contractor has been used for years without being put out to tender

A jump in charges year on year isn't automatically wrong, but it should always come with a clear explanation.

What are my options?

If the figures don't add up or the agent is slow to respond, your options include:

• Raising a formal dispute directly with the managing agent

• Taking the matter to the First-tier Tribunal (Property Chamber), which can determine whether charges are reasonable

• Building a clear evidence trail before you get to that stage: what was charged, what it should have cost, and how the agent responded when challenged

This evidence trail makes a case far stronger if it gets that far.

If you'd rather not navigate this alone, Verahold helps leaseholders and RTM directors build exactly this kind of evidence trail. We cover a range of issues beyond just service charges too, from Section 20 consultation disputes to Section 21 and 27A rights, benchmarking your costs, flagging anomalies, and preparing the paperwork you'd need to challenge a managing agent properly. You can find out more at verahold.co.uk.

About the author
Joshua Poh Ee Kheng is part of the Verahold founding team, helping leaseholders and RTM directors understand their legal rights and challenge issues such as unreasonable service charges, Section 20 consultation disputes and other leasehold management matters.