Introduction

Service charges are often the single biggest source of tension between leaseholders and those who manage their building. For leaseholders, it can feel like they’re paying too much for too little. For directors or managing agents, it’s about keeping the block running while following the lease. For leaseholder, the good news is that UK law gives leaseholders the right to challenge service charges they think are unfair. And when disagreements can’t be sorted out informally, the First-tier Tribunal (Property Chamber) is there to step in. In this blog, we’ll explain what can be disputed, how challenges work, and how the Tribunal approaches these cases in practice.

What service charges can be disputed by leaseholders?

Leaseholders can dispute whether a charge is payable at all, whether it’s reasonable, and whether the works or services were carried out to a proper standard. This covers things like cleaning, gardening, repairs, insurance, or major works. If it’s not allowed under the lease or if it’s unreasonably high, it can be challenged.

How can a leaseholder start a service charge dispute?

If as a leaseholder you wish to dispute your service charges, the first step is usually to raise the issue with the managing agent or directors of the Residents’ Management Company. Often, disputes come down to misunderstandings that can be cleared up with better communication or clearer accounts. If that doesn’t work, a leaseholder can take the matter to the First-tier Tribunal for an independent decision.

To support transparency, leaseholders have rights to inspect invoices and accounts in an attempt to satisfy themselves and to reduce unnecessary disputes to the Tribunal.

Evidence and Tribunal Consideration in Service Charge Disputes

Like any court process, Tribunal cases require both leaseholders and landlords or managing agents to supply clear paperwork. For landlords or management companies, this usually means producing the lease, service charge accounts, invoices, and evidence of work carried out. Leaseholders may present correspondence, photos, or expert reports that question the quality or necessity of the works.

The Tribunal takes a practical yet legal approach when weighing this evidence. Because many leaseholders represent themselves, the panel explains procedures clearly and ensures both sides are heard fairly. Ultimately, it considers three central questions:

• Is the charge payable under the lease?

• Was it reasonably incurred?

• Were the works or services provided to a reasonable standard?

Tribunal panels typically include a property lawyer and a surveyor, allowing them to balance both legal interpretation and technical judgment before issuing their decision.

What outcomes can the Tribunal order in a dispute?

The Tribunal can decide that charges are payable in full, partly payable, or not payable at all. It may also decide how costs should be split between leaseholders. Importantly, the Tribunal doesn’t punish landlords or ManCos – it simply makes a ruling on what’s reasonable in the circumstances.

How can disputes be avoided in the first place?

The best prevention is transparency. Clear budgets, regular updates, and accessible accounts and supporting records go a long way. Directors and managing agents should explain why costs are what they are and consult leaseholders on major works. For leaseholders, asking questions early and keeping communication polite helps stop disagreements from escalating.

Service charge disputes are never pleasant, but leaseholders don’t have to accept charges they think are unfair. From questioning costs informally to applying to the First-tier Tribunal, there are clear routes to challenge. For directors and managers, the key is to stick to the lease, keep things reasonable, and stay transparent. Handled properly, disputes can be minimised – and when they do arise, the Tribunal is there to provide a fair, balanced decision.

When handled with openness and respect on both sides, service charge issues don’t have to become battles. Many leaseholders find that once accounts are explained clearly, or once they’ve had their concerns heard, tensions ease and trust is rebuilt. Likewise, landlords and managing agents who embrace transparency often find smoother relationships and fewer formal disputes. And when the Tribunal does need to step in, its role is to bring clarity and fairness so everyone knows where they stand. In the end, the goal is simple: well-managed buildings, fair costs, and communities where leaseholders feel confident that their money is being used wisely. That’s an outcome everyone can be happy with.

Total Transparency with ServiceChargeSorted.co.uk

When it comes to service charges, clarity is everything. Most disputes arise not because leaseholders don’t want to pay — but because they don’t understand what they’re being charged for, or feel they’ve been kept in the dark. That’s exactly what ServiceChargeSorted.co.uk is here to fix.

With Service Charge Sorted, your service charge accounts are professionally arranged, fully compliant, and clearly presented to all service charge payers. But we don’t stop there. Every leaseholder gets secure access to our members portal, where they can view:

• The live balance of the service charge bank account
• All supporting invoices
• Full financial history and documentation

This level of visibility dramatically reduces confusion, builds trust, and helps prevent disputes before they start. And if there ever is a disagreement, the documentation and transparency are already in place to make resolving it faster and easier.

ServiceChargeSorted.co.uk gives you peace of mind — not just with accurate accounts, but with real, ongoing access to the financial information that matters most.

Transparency. Accountability. Sorted.
Visit ServiceChargeSorted.co.uk and see how we’re changing the service charge experience for leaseholders and directors alike.