Service charges are payable by the leaseholder to the landlord for services provided by the landlord under the terms of the lease.
Service charges can either be paid in advance of the landlord incurring costs, based on an estimate of costs in the coming year or arrears. They can also be paid in arrears, where the landlord incurs the costs before billing the leaseholder. The lease will state when the service charge is due and how the service charge is to be paid.
Examples of Service Charges
They can include maintenance and repair, insurance of building, costs of management and sometimes improvement of: – the exterior, structure, roofs, foundations, window frames, guttering, communal drains and pipes and common areas.
There are some circumstances, in which you can legally withhold payments. For example, where the demand does include the prescribed summary of right and obligations or where the demand does not contain the landlord’s name and address for service of notices.
However, once the demand has been sent in the correct format, you may be required to pay.
I have received a service charge demand and I think it is too high. What should I do?
Service charges should be reasonable, but it is not advisable to withhold payments as it may be a breach of your lease. You could contact your landlord to express your concerns about the charge and you could try and resolve the matter amicably, perhaps using mediation. If this does not work, then you may have the option of challenging the service charges at the First Tier Tribunal (Property Chamber). You may require the services of a solicitor or surveyor.
My landlord is carrying out improvement works to the building, do I have to contribute towards the costs?
The lease is the starting point for any queries in relation to service charges. You should refer to the terms of your lease to see whether you are required to contribute to the costs of carrying out the improvements. If the lease does not require you to pay for improvements, you may not have to contribute to costs, however, there is sometimes a fine line between repair and improvement depending on the nature of the works. If there is a dispute, you can apply to the First-tier Tribunal (Property Chamber) for a determination.
I have received a service charge demand for works undertaken 2 years ago. Do I have to pay?
Your landlord should only demand payment from you within 18 months of the costs being incurred, under Section 20B of the Landlord and Tenant Act 1985, unless they have written to you within 18 months of the costs being incurred and informed you that it will be billed at a later date.
Am I liable to pay for the renewal of the roof on a block in which I own a flat?
The terms of your lease will set out what you are required to pay for. If your lease requires that you contribute to roof repairs, you will be liable to pay, provided the costs are reasonable and statutory requirements have been complied with, for example a Section 20 consultation.
I recently put double glazed windows in my flat with my landlord’s consent. I have now received a bill for window replacement in my block. Do I have to pay?
When your landlord granted consent for the replacement of the windows, the terms of the consent may have included an exemption from the cost of future window replacement or an agreement that you pay a reduced contribution. If there was no agreement, you should refer to your lease to see if you have to pay for the window replacement.
LEASE provides FREE initial advice to members of the public on fire safety aspects of residential long leasehold property. We can help if your enquiry is about a flat with a lease longer than 21 years.
We are here to:
- Give free, independent. impartial information and guidance on fire safety
- Advice by telephone, email and post is initial advice. This is outline, summary, legal advice to ensure you understand your rights. We will help you better engage on fire safety issues, such as interim and remedial fire safety costs. We cannot act for you. If you need other assistance, we will guide you to where you should go next.
- Advice and information by ‘outreach’. If there are 20 or more leaseholders in your building, then an outreach event may be the most efficient way for us to assist. We can speak to the group about a particular point of concern and/or have an advice surgery for individuals to obtain personal advice.
Please use our event form to arrange an event close to you.
We can also hold events by Skype, conference call, or webinar.
- Assisting in resolution of disputes with your landlord regarding the costs of fire safety measures
- We offer a free mediation service. Mediation can be a swifter and less expensive way of sorting out issues.
