Below, you’ll see references to different numbered sections of the Landlord and Tenant Act 1985. These are the parts of the law that relate to service charges and set out the rights and protections available to residents. 

The law says service charges must be reasonable. 

This means we must: 

  • Only charge for costs allowed under your lease 
  • Make sure costs are reasonable 
  • Make sure services and repairs are provided to a reasonable standard 
  • Explain how charges have been worked out 

If you think a charge is unreasonable, you can contact us for more information or apply to the First-tier Tribunal (Property Chamber) for an independent decision. 

Under Section 20B, landlords can usually only recover service charge costs within 18 months of the costs being incurred. 

This rule helps make sure service charge accounts are completed within a reasonable time and are based on the correct invoices for each financial year. 

Sometimes, we aren't able to confirm all costs within 18 months because we're still waiting for final invoices or information from contractors and suppliers. 

If this happens, we may send you a Section 20B Notice. This tells you there’s been a delay and that some costs will be confirmed and charged later. 

A Section 20B Notice: 

  • is not a bill 

  • does not ask you to make a payment 

  • is for information only 

We'll send your final service charge account once the costs have been confirmed. 

Section 19: Service charges must be reasonable

The law says service charges must be reasonable. 

This means we must: 

  • Only charge for costs allowed under your lease 
  • Make sure costs are reasonable 
  • Make sure services and repairs are provided to a reasonable standard 
  • Explain how charges have been worked out 

If you think a charge is unreasonable, you can contact us for more information or apply to the First-tier Tribunal (Property Chamber) for an independent decision. 

Section 20B: Notice of costs that have not yet been included in your final account

Under Section 20B, landlords can usually only recover service charge costs within 18 months of the costs being incurred. 

This rule helps make sure service charge accounts are completed within a reasonable time and are based on the correct invoices for each financial year. 

Sometimes, we aren't able to confirm all costs within 18 months because we're still waiting for final invoices or information from contractors and suppliers. 

If this happens, we may send you a Section 20B Notice. This tells you there’s been a delay and that some costs will be confirmed and charged later. 

A Section 20B Notice: 

  • is not a bill 

  • does not ask you to make a payment 

  • is for information only 

We'll send your final service charge account once the costs have been confirmed. 

Questions, complaints and challenges 

If you have a question about your service charges, or think a charge may be incorrect, please contact us first. We'll explain how the charge has been worked out and try to answer any concerns you may have.  

If you're unhappy with how we've handled the matter, you can make a complaint through our complaints process. 

If the issue still isn’t resolved, you may be able to ask the First-tier Tribunal (Property Chamber) to decide whether the charge is payable and whether it is reasonable. 

The First-tier Tribunal (Property Chamber) is an independent body that helps resolve disputes between tenants or leaseholders and landlords.  

The Tribunal can make decisions about: 

  • whether a service charge is payable 

  • whether costs are reasonable 

  • whether services or work have been carried out to an acceptable standard 

The Tribunal looks at information and evidence from both sides before making a decision, and usually shares its decision in writing.  

You can apply using the Tribunal’s official forms or you can also contact your local tribunal office for information about applying in writing.  

When you apply to the Tribunal, you may need to pay an application fee, and there may be an additional fee if your case goes to a hearing. Please check the latest fees before you apply, as they can change.

Before applying, it's also useful to know that: 

  • You do not need a solicitor - you can represent yourself 

  • Each side will usually pay for its own legal costs, but you should check the tribunal rules and you may want to consider getting independent advice before making an application 

  • If you're on a low income or receive certain benefits, you may be able to get help with the tribunal fee 

  

What is the First-tier Tribunal?

The First-tier Tribunal (Property Chamber) is an independent body that helps resolve disputes between tenants or leaseholders and landlords.  

The Tribunal can make decisions about: 

  • whether a service charge is payable 

  • whether costs are reasonable 

  • whether services or work have been carried out to an acceptable standard 

The Tribunal looks at information and evidence from both sides before making a decision, and usually shares its decision in writing.  

You can apply using the Tribunal’s official forms or you can also contact your local tribunal office for information about applying in writing.  

Fees and legal support

When you apply to the Tribunal, you may need to pay an application fee, and there may be an additional fee if your case goes to a hearing. Please check the latest fees before you apply, as they can change.

Before applying, it's also useful to know that: 

  • You do not need a solicitor - you can represent yourself 

  • Each side will usually pay for its own legal costs, but you should check the tribunal rules and you may want to consider getting independent advice before making an application 

  • If you're on a low income or receive certain benefits, you may be able to get help with the tribunal fee 

  

Worried about your service charges? We're here to help.

We understand that paying for service charges can be challenging, especially when costs are higher than you expected.

If you're worried about money or are finding it difficult to manage the cost of living, support is available. To find out how Southway can help, please visit our Cost-of-Living Support Hub or get in touch and a member of the team will be happy to help.