Service charges and other issues
A guide to service charges, administration charges, ground rent, recognised tenants associations and forfeiture.
You have two courses of remedy, depending on whether the charge is variable or fixed in the lease:
- where the charge is variable, you may make an application to the First-tier Tribunal (Property Chamber) for a determination of reasonableness. A variable administrative charge is one where the amount of the charge is not specified in the lease or calculated according to a formula specified in the lease.
- where the charge is fixed by the lease or a formula in the lease, you may apply to the Tribunal to vary the lease, on the grounds that the amount specified is unreasonable or that the formula is unreasonable. If the Tribunal is satisfied, it may make an order to vary the terms of the lease, to substitute a reasonable amount or to amend the formula, either as requested by you or as the Tribunal finds appropriate.
An application cannot be made to the Tribunal where the charge has been agreed or admitted by the leaseholder, has been or is to be referred to arbitration pursuant to a post-dispute arbitration agreement, or has already been determined by a court or Tribunal.
More information you might find useful:
- Service Charges and other issues: Administration charges
- Application to the First-tier Tribunal (Property Chamber)
- Application Form – Application for a determination as to liability to pay an administration charge or for the variation of a fixed administration charge
- I am in dispute with my landlord but I do not want to go to Court or Tribunal. Is there an alternative?
- More Frequently Asked Questions on Administration Charges
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