1 Obtain information

Firstly locate your lease. If you cannot find it, try your solicitor or thereafter the Land Registry. The lease should define the physical areas of your flat and the costs for which you are responsible by way of service charge. Collate all the service charge documents you have received from your landlord (and managing agent), in date order.

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.

Decide if the costs charged to you are consistent with what you understand from the lease.

3 Investigate

If you can stomach it, research the law governing residential service charges, as set out in the Landlord & Tenant Acts 1985 and 1987, and the Commonhold Leasehold (Reform) Act 2002 (as amended). These set out statutory requirements for service charges and related matters in respect of residential dwellings. Examples of these are
as follows:

     (a) Service costs can only be recovered if they are reasonably incurred; s.19(1)
     (b) Only works or services performed to a reasonable standard can be charged; s.19(2)
     (c) Prior consultation is required in respect of certain costs; s.20
     (d) Costs incurred by a landlord must be charged within 18 months, or notified in that time; s.20B

If your lease obliges or allows you to be a member of the landlord / management company, which is increasingly common for new-build properties, you may be able to obtain greater information and control over sums spent by becoming a director of that company. However, this brings additional legal responsibilities.

4 Resolution

The next move is to correspond with your landlord or managing agent to bring to their attention your concerns. Uncertainties or minor disputes may be resolved after initial contact. Unfortunately, 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 should ultimately provide resolution.

If you would like us to guide you through any of these steps, please contact us.