Service Charges After Death: A Property Manager’s Guide to Recovery Before Probate

The Key Principle: The Lease Lives On

 A lease does not end on death. The obligations under it, including the payment of service charges continue and bind the deceased’s estate. In practical terms, this means the debt still exists and will ultimately need to be settled from estate funds. However, before probate is granted, there is no legally recognized personal representative with authority to deal with the estate. That can delay recovery, but it doesn’t stop it. 

Joint and Several Liability: A Faster Route to Recovery

In most residential leases, service charge liability is joint and several, meaning that each leaseholder is individually responsible for the full amount of any sums due under the lease.

This has important practical consequences where one of multiple leaseholders dies. In many cases, a property manager does not need to wait for probate at all. Instead, they can pursue the surviving leaseholder directly for the full amount of any outstanding service charges, regardless of how the leaseholders held the property between themselves.

While the distinction between joint tenants and tenants in common affects how the legal title passes on death, it is often less significant from a recovery perspective where joint and several liability applies. Whether the deceased’s interest passes automatically to a survivor or into the estate, the surviving leaseholder will usually remain liable for the entirety of the arrears.

That said, property managers should always check the wording of the lease to confirm that joint and several liability applies, as this is the key provision underpinning recovery in these circumstances. Where it does, pursuing the surviving leaseholder is often the quickest, simplest and most commercially effective route to recovery, avoiding the delays and uncertainty associated with waiting for a grant of probate.

First Steps: Confirming the Position

The starting point is to confirm the position. In many cases, you will be informed by neighbours, managing agents, or family members, but it is sensible to obtain formal confirmation—usually via a death certificate. This ensures you are acting on accurate information and avoids the embarrassment (and potential liability) of pursuing someone who is not in fact deceased.

In a world where fraud and identity issues are increasingly common, this is more than admin, its basic risk management. 

Opening Lines of Communication

Once confirmed, your next step is to identify whether anyone is acting informally on behalf of the estate. Often, a family member or close associate will begin dealing with practical matters before probate is granted. While they do not yet have legal authority, they can still be a useful point of contact. Opening a line of communication early can make a significant difference. A tactful, empathetic approach is essential here—this is not a standard arrears situation, and sensitivity goes a long way in encouraging cooperation.

Making the Position Clear

At this stage, you should provide a clear statement of the outstanding service charges, along with any supporting documentation such as budgets, accounts, and demands. Make it explicit that the charges continue to accrue under the terms of the lease and will ultimately be payable by the estate. While you cannot demand payment from an individual who lacks legal authority, you can ensure that the liability is clearly understood and documented.

Keeping the Paper Trail Alive

One common misconception is that nothing can be done until probate is granted. While it is true that formal enforcement options are limited, there are still practical steps you can take to protect your position.

For example, you should continue to issue service charge demands in accordance with the lease and statutory requirements. These should be addressed to “The Personal Representatives of [Deceased’s Name]” at the last known address, which is typically the demised premises. This ensures that the demands remain valid and that the debt continues to accrue properly. Failing to issue demands could weaken your ability to recover the charges later.

In addition, keep meticulous records. Document all correspondence, demands, and attempts to engage with those connected to the estate. If the matter later escalates, whether through negotiation or legal proceedings, having a clear audit trail will be invaluable.

Practical Considerations on the Ground

Another key consideration is the condition and occupation of the property. If the flat is left empty, there may be practical issues such as security, maintenance, or insurance compliance. While these are separate from service charge recovery, they can influence how quickly matters are resolved. In some cases, families are motivated to progress probate and settle liabilities in order to sell the property. Maintaining a constructive dialogue can help align interests.

Where There’s a Lender Involved

If there is a mortgage on the property, the lender may also become involved. Lenders have a vested interest in preserving the value of their security and may be willing to engage even before probate is granted. While they are not directly liable for service charges at this stage, they can sometimes facilitate communication or encourage progress.

After Probate: The Position Strengthens

Eventually, a grant of probate (or letters of administration, if there is no will) will be issued. At that point, the legal personal representatives gain authority to deal with the estate, and your position becomes much clearer. You can then pursue the outstanding service charges directly against the estate, typically by submitting a formal claim.

It is worth noting that service charge arrears are generally treated as unsecured debts of the estate, but they often carry practical priority because they relate to a property that may need to be sold. In many cases, the charges are settled on completion of a sale, alongside other outgoings such as ground rent and legal fees.

Enforcement as a Last Resort

If payment is not forthcoming after probate is granted, you can consider more formal enforcement options. These may include applying to the First-tier Tribunal (Property Chamber) for a determination of the amount payable or ultimately taking recovery action through the courts. However, these steps are usually a last resort and can often be avoided through early engagement and clear communication.

Pitfalls to Avoid

There are also some pitfalls to avoid during the pre-probate period. One is applying undue pressure on family members or attempting to hold them personally liable. Unless they have taken specific actions that create personal liability, they are not responsible for the deceased’s debts. Overstepping in this way can damage relationships and, in extreme cases, lead to complaints or legal challenges.

Sital Patel, Associate Partner, JPC