Most flats in England and Wales are leasehold. Your landlord, or the residents' management company (RMC) or right to manage (RTM) company that runs the block, charges a service charge, and the law sets rules on how it is spent and what you can ask for.
Before major works where any one leaseholder would pay more than £250, the landlord must consult the leaseholders (Landlord and Tenant Act 1985, section 20, and regulation 6 of the Service Charges (Consultation Requirements) (England) Regulations 2003; Wales has its own 2004 Regulations with the same threshold). The same applies to long-term agreements where any one leaseholder would pay more than £100 in a year. Whoever runs the block, landlord, RMC or RTM company, has to follow it.
| Stage | What you get | What you can do |
|---|---|---|
| 1. Notice of intention | A description of the works and why they're needed. | Send written observations, and nominate a contractor to be asked for an estimate, within 30 days. |
| 2. Statement of estimates | At least two estimates. At least one must be from a contractor wholly unconnected with the landlord. | Send written observations on the estimates within 30 days. Ask to see the estimates in full. |
| 3. Notice of reasons | If the contract goes to someone other than the lowest bidder or a leaseholders' nominee: the reasons, within 21 days of signing. | Read it, and keep it with the other notices. |
Service charges are payable only to the extent they are reasonably incurred, and for works or services of a reasonable standard (section 19). Either side can ask the tribunal to decide what is payable (section 27A).
If a cost was incurred more than 18 months before you were sent a demand for it, you don't have to pay it, unless within those 18 months you were told in writing that the cost had been incurred and you would be asked to contribute (section 20B).
You can ask in writing for a summary of the service charge costs (section 21), and then, within six months of getting it, ask to inspect the accounts, receipts and other documents behind it (section 22). The letters below do both.
In England, the First-tier Tribunal (Property Chamber). In Wales, the Leasehold Valuation Tribunal, part of the Residential Property Tribunal Wales. LEASE, the government-funded Leasehold Advisory Service, gives free initial advice.
Fill in the square brackets, keep a copy, and send them in a way that gives you proof of delivery. Always send comments on a Section 20 notice before the date shown on the notice.
[Your name]
[Your address]
[Date]
To: [Landlord, managing agent or company secretary], [their address]
Flat: [flat number and building]
Re: Notice of intention dated [date] for [description of the works]
I have received the notice of intention for the works described above. These are my written observations, sent within the consultation period.
[Set out your observations, for example: why the works are or aren't needed now, whether the specification includes work that isn't necessary, whether items should be phased, or whether earlier repairs should have been done under a warranty.]
I nominate the following contractor to be asked for an estimate: [contractor name, address, phone and email].
Please confirm you have received this letter and that my observations will be taken into account.
Yours faithfully,
[Your name]
[Your name]
[Your address]
[Date]
To: [Landlord, managing agent or company secretary], [their address]
Flat: [flat number and building]
Re: Statement of estimates dated [date] for [description of the works]
These are my written observations on the estimates, sent within the consultation period.
[For example: the estimates don't price the same scope; the lowest estimate leaves out [item]; the professional fees of [x]% are high for this job; the contingency of £[amount] is not explained; VAT has been added to [item] twice.]
Please send me a copy of the full specification and each estimate in full, if they are not already enclosed, and tell me where I can inspect them.
Please confirm you have received this letter and that my observations will be taken into account before a contract is signed.
Yours faithfully,
[Your name]
[Your name]
[Your address]
[Date]
To: [Landlord, managing agent or company secretary], [their address]
Flat: [flat number and building]
Under section 21 of the Landlord and Tenant Act 1985, I request a written summary of the costs incurred in the service charge accounting period [ending on date / the last accounting period], showing how those costs are reflected in the service charges payable.
Please send the summary to the address above.
Yours faithfully,
[Your name]
[Your name]
[Your address]
[Date]
To: [Landlord, managing agent or company secretary], [their address]
Flat: [flat number and building]
I received the summary of service charge costs for the period ending [date] on [date received].
Under section 22 of the Landlord and Tenant Act 1985, I require you to make facilities available for me to inspect the accounts, receipts and other documents supporting that summary, and to take copies or extracts from them.
Please tell me when and where I can inspect them, or send copies.
Yours faithfully,
[Your name]
Running the company that runs your block: Section 20, service charges, the accounts, insurance and your own liability as a director.
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