Service charge
What a leaseholder pays the freeholder or managing agent towards the costs of the building: repairs, cleaning, insurance and management of the shared parts.
In short: A service charge is a variable payment under a lease towards the costs of maintaining and managing a building. By law it must be reasonable, and leaseholders must be consulted before large works. Disputes about whether it is reasonable can go to the First-tier Tribunal.
Money, tax and insuranceSelling a home
England. Checked against the law on 5 October 2026. Information, not legal advice.
The main protections are in sections 18 to 30 of the Landlord and Tenant Act 1985:
- Costs must be reasonably incurred and works done to a reasonable standard.
- Consultation (section 20) is needed before works costing any one leaseholder more than £250, or long-term contracts costing any one more than £100 a year.
- Leaseholders can ask for a summary of costs and inspect the accounts.
- A demand must come with the government's summary of rights.
For a landlord who lets a leasehold flat, the service charge is their own cost: it cannot be passed on to the tenant except through the rent.
Related: Leasehold, Ground rent, First-tier Tribunal (Property Chamber)
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