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Service charge challenge letter template
Received a service charge demand you think is unreasonable? Use this free template to formally challenge the charges and put your landlord or managing agent on notice.
Steps
Step 1
Gather your evidence
Collect the service charge demand, any supporting accounts, and any correspondence about the works or charges. The stronger your paper trail, the stronger your position.
Step 2
Complete the letter
Fill in the sections that apply to your situation. Section A is for missing Section 20 consultation. Section B for threshold concerns. Section C for unreasonable charges. Section D to request supporting documents.
Step 3
Send and keep a copy
Send by email and recorded delivery. Keep copies of everything. If you do not receive a satisfactory response within 14 days, consider a tribunal application.
This letter is for leaseholders who have received a service charge demand they believe is unreasonable, unjustified, or unlawful. You can use it whether or not a Section 20 consultation was required. It covers three common situations: works carried out without the required Section 20 consultation; charges structured just below the consultation threshold; and routine service charges that appear excessive or are not properly evidenced.
Under the Landlord and Tenant Act 1985, service charges are only recoverable if they have been reasonably incurred and the works or services are of a reasonable standard. Your landlord must be able to evidence that costs were reasonable. If they cannot, you have the right to challenge the charge at the First-tier Tribunal.
Sending this letter before making a tribunal application shows you have tried to resolve the matter directly. Many disputes are resolved at this stage without the need for formal proceedings.
Your details
Shown on your letter so they can reply to you.
Recipient details
Demand details
Section A: No Section 20 consultation (optional)
Tick if works were carried out without the required Section 20 consultation process
Section B: Charges near consultation threshold (optional)
Tick if you believe charges have been structured to fall just below the £250 threshold
Section C: Unreasonable or unjustified charges (optional)
Describe the specific charges you believe are unreasonable or not properly evidenced
Section D: Request for supporting documents (optional)
Complete the sections that apply to your situation. You must complete at least one of Sections A, B, C or D.
How to send your letter
- Send by email to your landlord or managing agent and request a read receipt.
- Also send by recorded delivery to their registered address. That creates a paper trail if anything is disputed later.
- Keep a copy of everything: the original demand, your letter, and any replies.
If your landlord does not respond within 14 days, you can apply to the First-tier Tribunal (Property Chamber) to determine whether the charges are reasonable. If you are tired of opaque service charge demands and want permanent control over costs, leaseholders who use Right to Manage run their own budget and choose their own contractors. Check if your building qualifies.
Frequently asked questions
When should I use this letter?
Use this letter when you have received a service charge demand you believe is unreasonable, unjustified, or unlawful. Send it before making a tribunal application. It shows you have tried to resolve the matter directly and may result in the landlord reducing or justifying the charge without the need for formal proceedings.
What is the difference between this letter and a Section 20 observation letter?
A Section 20 observation letter is sent during the consultation process, before the works begin. This letter is sent after you have received a service charge demand, after the works are completed and the bill has arrived. The two letters serve different purposes and are used at different stages.
Does sending this letter stop the clock on my tribunal application?
No. There is no fixed time limit for service charge disputes but delay can weaken your case. Send this letter promptly after receiving the demand and apply to the tribunal if you do not receive a satisfactory response within 14 days.
Do I have to pay the service charge while disputing it?
In most cases the safest approach is to pay under protest while the dispute is ongoing to avoid the risk of lease forfeiture proceedings. Write to your landlord stating that payment is made under protest and without prejudice to your right to challenge the charge. Take independent legal advice before withholding payment.
What if my landlord ignores this letter?
If you do not receive a satisfactory response within 14 days, you can apply to the First-tier Tribunal (Property Chamber) to determine whether the service charge is reasonable. The tribunal can reduce the charge to whatever amount it considers reasonable. Application fees are capped at £100 and total tribunal fees are capped at £500.
Can I use this letter for routine service charges as well as major works?
Yes. This letter covers any service charge you believe is unreasonable: routine management fees, insurance charges, cleaning costs, and major works bills. Use Section C to describe the specific charges you are challenging.
What evidence should I gather before sending this letter?
Collect the service charge demand and any supporting accounts or breakdown; any previous correspondence about the charges; your own research into market rates for similar services; and any evidence that the works or services were not carried out to a reasonable standard. The stronger your evidence, the stronger your position at tribunal.
This template is for general guidance only and does not constitute legal advice. If you are in any doubt about your rights or obligations, seek independent legal advice before sending. Read our full disclaimer.