3 lessons I learned challenging my extortionate service charge in London
No concierge, no pool, no gym. Just a normal London block of flats, and a bill that kept climbing.
My service charge went up by more than half in five years and reached £6,500 a year. Nothing new was being provided. When I came to remortgage, the size of the charge started to matter to lenders, and an annoying bill turned into a real problem. (I've written about what a high service charge means for your mortgage separately.)
So I challenged it myself, without a solicitor. It took weeks of reading. These are the three things I wish I'd known on day one.
1. Read your lease, not your bill
The bill tells you what they spent. The lease tells you what they're allowed to charge you for, and how your share is worked out. Those are different questions, and the second one is where most winnable arguments live.
My winning point was buried in the lease: my share was meant to reflect how much I actually benefit from each service. I'd never have found it by staring at the budget. If you only read one document, read the service charge clauses and the schedule that sets out your percentage.
2. The obvious complaint is often the one you'll lose
I was ready to go after the management fee. It felt like the obvious target. It turned out to be below the national average, and I'd have lost.
The law asks whether costs were reasonably incurred and of a reasonable standard (Landlord and Tenant Act 1985, section 19), not whether they feel high. Pick the points your lease and the law back you on: charges the lease doesn't allow, a share that's been worked out wrongly, major works done without consultation, or costs billed too late.
3. Ask in writing. They have to answer
You have a legal right to a summary of the costs behind your service charge, and the right to inspect the accounts and receipts. Ask in writing and the managing agent has to respond within set time limits. My guide to requesting a section 21 summary of costs has the details.
A polite, specific letter that quotes your lease and asks for the evidence gets taken seriously. An angry phone call doesn't. Keep paying the parts you don't dispute while you ask.
What I'd do if I started again
- Gather the lease, the latest demand, the budget and the year-end accounts.
- Read the service charge clauses and find your share.
- Write for a summary of costs and copies of anything unclear.
- Check each big line against what the lease allows, and against the section 20 consultation rules and the 18-month rule.
- Put your points in writing, with the evidence. Escalate only if they won't engage.
If you want the full process step by step, start with how to challenge a service charge. Working all of this out took me weeks, which is why I built the free check below: it reads your lease and documents and does the first pass for you.
General information about leasehold law in England, not legal advice.