How to challenge your service charge

2 Consider the documents

Read the lease and service charge documents and note how, for example, they show estimated or actual costs incurred and how the different costs are divided between your flat and other parts of the property. Analyse if the costs charged to you are consistent with what you understand from the lease.

3 Investigate

Research the law governing residential service charges set out in the Landlord & Tenant Act 1985.
These include a ‘Requirement for Reasonableness’ (s19), the need for Consultation before major works or long term agreements are entered into (s20) and whether the landlord has abided by the 18 month rule (s20B). If you now have concerns, raise them with the landlord in writing.
Does your lease agree you can be a member of the landlord / management company, which is increasingly common for new-build property? In this case, you may be able to obtain greater information and control over sums spent by becoming a director of that company.

4 Resolution

Ordinarily, uncertainties or minor disputes will be resolved after initial contact. Sometimes over a period of time, an impasse sets in and the parties cannot reach agreement. You must now decide whether you will back down or wish to proceed with a formal dispute. You are entitled to have charging issues resolved by the Leasehold Valuation Tribunal (LVT) or the County Court. This should not be taken as a knee-jerk reaction; you should carefully consider your argument and the evidence you will need to back up your case. You may wish to appoint a professional to review your case and assist you as you will need to present to the Tribunal. One important point is, if you or the landlord seek a County Court decision there is a risk of a County Court Judgement against you, even if you succeed in having the sum payable reduced from what the Landlord originally sought. This can affect your credit rating and for this reason, most informed leaseholders choose to apply to the LVT, which will ultimately provide resolution.