buying

Service charge on a flat: what is reasonable, what you can challenge and where

Service charge on a flat explained: your right to a summary, the reasonableness test, Section 20 consultation limits and how to apply to a tribunal.

4 min read
Last reviewed 4 November 2026
By Your Property Check team

Part 1 of 9

What a service charge is

General information, not advice. GOV.UK explains that most flats are leasehold: you own the home for a fixed period under a lease with the landlord, usually called the freeholder. The lease sets out what you must pay towards services and other expenses. This page covers England, because the tribunal route differs in Wales. We read GOV.UK and the legislation on 4 November 2026.

Part 2 of 9

What is reasonable

The rule is in section 19 of the Landlord and Tenant Act 1985. Costs are taken into account in working out a service charge only to the extent that they are reasonably incurred, and only if the services or works are of a reasonable standard. The amount payable is limited accordingly. Where a charge is payable before the costs are incurred, no greater amount than is reasonable may be payable, and any necessary adjustment is made by repayment, reduction or subsequent charges.

Part 3 of 9

Your rights and where to challenge

Item	Rule	Where to challenge
Summary of the charge	GOV.UK: you can ask for a summary showing how the charge is worked out and what it is spent on	Landlord must provide it, and GOV.UK says it is a criminal offence if they do not
Reasonableness	Section 19: reasonably incurred, reasonable standard	Tribunal, if you think the charge is unreasonable
Building insurance cost	You can challenge the cost if you think it is unreasonable	Tribunal
Major works	Section 20 consultation	Tribunal if consultation was not followed
Unsatisfactory work	You can say the work is unsatisfactory	Tribunal

Part 4 of 9

Section 20 consultation

GOV.UK says you have the right to be consulted if you would pay more than £250 for planned work, or more than £100 a year for work or services lasting more than 12 months. The landlord must follow set steps, called a Section 20 consultation. GOV.UK adds that there is a limit on how much you have to pay if you have not been consulted properly.

The page does not set out the steps in detail. If a letter mentions Section 20, keep it and check the dates against the work.

Part 5 of 9

How to challenge a charge

GOV.UK suggests trying to settle first. Mediation is described as confidential and usually quicker and cheaper than going to court, and the Leasehold Advisory Service (LEASE) offers free advice on service charges. Before you apply, ask for the summary and gather your invoices and any quotes.

You may apply to a tribunal if you think the charge is unreasonable, the work is unsatisfactory, or you should not pay it at all. The pages we read do not state a tribunal fee, so we do not quote one. In Wales there is a different dispute process, and applications go to the Leasehold Valuation Tribunals.

Part 6 of 9

A practical order of steps

Ask the landlord or managing agent for the summary of how the charge is worked out and what it is spent on.
Compare it with your lease and with any demand you received, and note whether planned work passed the Section 20 limits of £250 for the work or £100 a year for longer services.
Ask LEASE for free advice, and consider mediation, which GOV.UK describes as usually quicker and cheaper than court.
Only then consider applying to the tribunal, and check first that you have not agreed to pay the charge and the matter is not already in court.

Part 7 of 9

When you cannot apply

GOV.UK says you cannot apply to the tribunal if you have agreed to pay the charge, if the dispute is already being handled elsewhere such as in court, or if you pay a fixed charge.

Part 8 of 9

What if you cannot pay?

GOV.UK warns that your landlord can take you to court if you stop paying a charge you are responsible for. Withholding a charge is therefore a risk. The page does not describe hardship routes, so we do not list any. Contact your landlord or managing agent early and get independent advice, for example from LEASE.

Part 9 of 9

Buying or selling a flat

Service charges matter at sale. A buyer will want the recent accounts and any planned works, and a seller may be asked for them. Our guide to the EWS1 form for selling a flat covers one common request, and our article on ground rent covers the other regular lease cost. If you are not sure of the tenure, see how to check if a house is freehold or leasehold, and our glossary entry for leasehold. Before you offer on a flat, OfferCheck gives a plain-English risk report on the address, including tenure.

Our take

Ask for the summary before you argue

Our view: start with paper, not a dispute. Ask for the summary of how the charge is worked out, compare it with your lease and any Section 20 letter, and use LEASE and mediation before a tribunal. The risk to avoid is withholding payment, because GOV.UK warns the landlord can take you to court.

If you are weighing up a flat, OfferCheck gives a plain-English risk report on any UK address before you offer, including tenure, with every figure sourced. Pair it with the service charge accounts the seller can show you.

Get OfferCheck

Our opinion, drawn from the facts on this page: not advice and not a forecast. We earn from OfferCheck reports and from introducing sellers to cash buyers, so weigh it with that in mind (see our disclosure). We are not authorised or regulated by the FCA.

Questions, answered

Frequently asked questions

What is a service charge?

The amount a leaseholder pays towards the cost of services and other expenses for the building, as set out in the lease. Most flats are leasehold, according to GOV.UK.

Can I challenge my service charge?

Yes. GOV.UK says you may apply to a tribunal if you think the charge is unreasonable, the work is unsatisfactory or you should not pay it at all, unless you have agreed to pay it or the dispute is elsewhere.

What is Section 20 consultation?

A set of steps a landlord must follow before major work. GOV.UK says it applies if you would pay more than £250 for planned work or more than £100 a year for work or services lasting over 12 months.

Can I ask what my service charge pays for?

Yes. GOV.UK says you can ask for a summary showing how the charge is worked out and what it is spent on, and that it is a criminal offence if the landlord does not provide it.

What if I cannot pay my service charge?

GOV.UK says your landlord can take you to court if you stop paying a charge you are responsible for. Contact your landlord early and get independent advice, such as from LEASE.

Where this comes from

Sources

Last reviewed 4 November 2026 by the Your Property Check team. This page is general information, not legal, tax or financial advice. For your own situation, speak to a conveyancing solicitor or another qualified professional.