Challenge to Unreasonable Service Charges
Formal letter from a leaseholder to a landlord or management company challenging service charges as unreasonable under the Landlord and Tenant Act 1985.
When to use this template
Use this letter when you are a leaseholder and you believe service charges demanded by your landlord or management company are unreasonable, have not been incurred in accordance with your lease, or have not been supported by adequate accounts and receipts. This letter creates a formal paper trail before an application to the First-tier Tribunal (Property Chamber).
When NOT to use this template
This letter challenges the reasonableness of service charges — it does not withhold payment of undisputed charges. Withholding all service charges without a formal dispute can expose you to forfeiture proceedings. If you are challenging an administration charge or a ground rent demand, different provisions apply. Always check your lease before disputing.
Legal Basis
Landlord and Tenant Act 1985, s.19 (service charges — limitation to reasonable costs); s.21 (right to demand a summary of costs); s.22 (right to inspect accounts, receipts, and other documents). Service charges are only payable to the extent that the costs are reasonably incurred and, where works are involved, the works are of a reasonable standard. The First-tier Tribunal (Property Chamber) has jurisdiction to determine the reasonableness of service charges.
Common Mistakes to Avoid
- ✗Not first requesting a summary of costs and supporting invoices under s.21 LTA 1985 before challenging
- ✗Withholding all service charges rather than ringfencing disputed amounts in a separate account
- ✗Missing the 18-month rule — landlords cannot demand service charges for costs incurred more than 18 months earlier unless a notice was given within 18 months (s.20B LTA 1985)
- ✗Not checking whether Section 20 consultation was carried out for qualifying works over £250 per leaseholder
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Letter preview
[YOUR FULL NAME (LEASEHOLDER)] [YOUR PROPERTY ADDRESS] [DATE OF LETTER] [LANDLORD OR MANAGEMENT COMPANY NAME] --- Dear Sir or Madam, **FORMAL CHALLENGE TO SERVICE CHARGES — [SERVICE CHARGE PERIOD BEING CHALLENGED]** **Property: [YOUR PROPERTY ADDRESS]** I write as the leaseholder of the above property to formally challenge the service charges demanded for the period [SERVICE CHARGE PERIOD BEING CHALLENGED] in the sum of £[TOTAL AMOUNT BEING DISPUTED (£)]. **Grounds of challenge** [DETAILED GROUNDS FOR YOUR CHALLENGE] **Legal basis** Pursuant to section 19 of the Landlord and Tenant Act 1985, service charges are only recoverable to the extent that the costs incurred are reasonable. The relevant costs must have been reasonably incurred and, where services or works are provided, the services or works must be of a reasonable standard. I do not accept that the charges demanded satisfy this test. **Request for information** In accordance with section 21 of the Landlord and Tenant Act 1985, I formally request a written summary of the costs incurred during the period [SERVICE CHARGE PERIOD BEING CHALLENGED] within 21 days. I further request, pursuant to section 22 of the 1985 Act, an opportunity to inspect the accounts, receipts, and supporting documentation within the same period. Please confirm a date and time for inspection. **Position on payment** Without prejudice to my challenge to the reasonableness of the charges, I am willing to pay the undisputed portion of the service charge demand while this dispute is resolved. I reserve my right to apply to the First-tier Tribunal (Property Chamber) under section 27A of the Landlord and Tenant Act 1985 for a determination of the reasonableness of the disputed charges. Please respond within 21 days of the date of this letter. Yours faithfully, [YOUR FULL NAME (LEASEHOLDER)]
Unfilled fields appear as [FIELD NAME]. Review the letter carefully before sending. This template is a starting point — adapt it to your specific circumstances.