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Types of application to the First-tier Tribunal (Property Chamber)

Estate management charges under estate management schemes

In this guide

These rights are set out in Section 159 of the Commonhold and Leasehold Reform Act 2002.

Under estate management scheme agreements approved under the Leasehold Reform Act 1967 or the Leasehold Reform, Housing and Urban Development Act 1993, people living in the scheme area (including freeholders) must contribute towards the costs of meeting the scheme’s aims. These will usually relate to work to areas that are intended to make the building or estate more pleasant or convenient for the people living there (for example, gardens), roads and footpaths, and will generally aim to preserve the particular architectural or historic significance of the area and make sure that the appearance and quality of the area are maintained properly.

The charges made by an estate management scheme must be reasonable. If you do not feel they are, you can apply to the tribunal for a decision on whether they are reasonable and whether you have to pay them.

You can challenge estate management scheme charges in a similar way to service charges and administration charges. If the charge, or a formula for calculating the charge, is not stated in the scheme, the tribunal can decide what is reasonable in the circumstances. This becomes the maximum amount the manager of the scheme can charge.

If a charge or a formula for calculating a charge is stated in the estate management scheme agreement, the tribunal can vary the agreement to amend the amount or to change or delete the formula.

The tribunal may also decide:

  • whether you are responsible for paying the estate management charge
  • who you should pay the estate management charge to
  • how much you should pay
  • when you should pay the estate management charge
  • how you should pay the estate management charge

As with service charges, you can make an application to the tribunal whether or not you have paid the charge, but not if:

  • you have already agreed the charge is reasonable or admitted responsibility for paying it
  • the charge has been decided by a court
  • the charge has been referred to arbitration (with your agreement following the dispute); or
  • the charge has been decided by arbitration as a result of an agreement following the dispute

Any clause in your lease or any other agreement which appears to commit you to taking part in arbitration before a dispute arises will not be valid and will not prevent you from applying to the tribunal.

Last updated:
11 May 2025
Next review:
18 December 2026