The Service Charge Demand Arrives
I am happy with the amount demanded
I can afford to pay I cannot afford to
the demand pay all at once
Pay the demand Contact property
manager to explore
payment options
If local authority
leaseholder consider
mandatory and
discretionary caps
I am not happy with the amount demanded
What Should I Do?
Pay demand under Withhold payment*
protest
Can still challenge Risk of forfeiture
payability and/or /termination of lease
reasonableness of Property Manager may
the service charge at contact mortgage lender
court or the
Risk of paying interest,
appropriate tribunal legal fees and debt
collection fees
*-not recommended
 Challenging the Amount Demand – Clarify the Issue
Procedural Quantum
• Landlord’s name and address not on the demand • Was it a reasonable decision to incur costs?
• No summary of rights and obligations with the demand • Are the costs reasonable considering quality of work and/or
• Statutory consultation not followed services?
• Charge not recoverable under the lease terms • Were the works necessary?
• Machinery in the lease not followed e.g.
o Advance charges not recoverable
o Works outside the scope of the Lease
o Accounts not certified /audited as required by the lease)

What Action Should I Take?

Raise concerns in writing with property manager Are there customer care issues?
• As soon as possible after demand received • Invoke internal complaints process
• support dispute with evidence e.g. • If complaint still not satisfied complain to the redress scheme
o alternative quotes to which the property manager belongs
o experts reports
o photographs
o records of unanswered complaints
• explain what result you are seeking
• Try to narrow down issues
• give deadline for manager to respond.

Who Can Help Me? What can I do if the dispute is not resolved?

• Leasehold Advisory Service • Apply for mediation

• Citizens Advice Bureau • Apply for early neutral evaluation
• Law Centres • Apply to the Appropriate Tribunal
• Bar Pro Bono Unit • In England
• Solicitors
o First-tier Tribunal(Property Chamber)
• Barristers
• Direct Access Scheme • In Wales
• Interpreters o Leasehold Valuation Tribunal