Service charges explained
Service charges fund the upkeep of the shared parts of a building. Understanding what they cover — and the protections you have — helps you judge whether a manager is giving value, and spot when a charge isn't reasonable.
What service charges typically cover
- Repairs and maintenance to the structure, roof, and common parts
- Buildings insurance for the block
- Cleaning, gardening, lighting and lifts in shared areas
- Management fees paid to the agent
- Contributions to a reserve (sinking) fund for future major works
What you can be charged for is set by your lease — an agent cannot recover costs the lease doesn't allow.
Charges must be "reasonable"
Under the Landlord and Tenant Act 1985, service charges must be reasonably incurred, and the work must be of a reasonable standard. You're entitled to ask for a summary of the costs that make up the charge and to inspect the supporting invoices.
Section 20: consultation for big spends
Before carrying out expensive work or signing a long-term contract, the manager usually must consult leaseholders ("Section 20"). Consultation is generally triggered when:
| Trigger | Threshold (per leaseholder) |
|---|---|
| Qualifying works (e.g. major repairs) | More than £250 |
| Qualifying long-term agreement (over 12 months) | More than £100 per year |
If the manager skips consultation, their ability to recover the cost can be capped at those figures unless the tribunal grants dispensation.
Challenging a service charge
If you think a charge is unreasonable and can't resolve it with the manager, you can apply to the First-tier Tribunal (Property Chamber) in England (Leasehold Valuation Tribunal in Wales) for a determination of what's payable. Keep your evidence and correspondence.
This guide is general information about leasehold in England & Wales, not legal advice. Rules differ in Scotland and Northern Ireland, and leasehold law is changing — check your lease and current guidance, or take professional advice, before acting.
Last updated June 2026.