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Your lease requires you to pay extra fees called service charges to your landlord. These cover costs for things like repairs, maintenance, and insurance. You can read in detail about them at the government website.
Service Charges Summary: You should get a summary of these charges with your yearly estimate. Without this summary, you have the right to not pay the service charges. If you're unsure about your rights, it's best to get advice.
Challenging Charges: You can ask a tribunal to check if you really need to pay these charges for things like repairs or insurance. This can be done before or after you pay. If the tribunal says you must pay, it might also decide on related legal costs.
Legal Costs and Tribunals: If your lease says your landlord can charge you for their legal costs, you can ask a tribunal to decide if this is fair. Applying to a tribunal costs money, and you might also have to pay for professional advice.
Limits on Charges for Works: If your landlord plans to do work costing you more than £250, or sign a service contract costing you more than £100 a year, they must consult you first unless the tribunal says it's not needed.
Asking for a Costs Summary: You can ask your landlord for a detailed summary of the service charges. They must provide it within 1 month of your request or 6 months after the charge period, whichever is later.
Inspecting Accounts: After getting the summary, you have 6 months to ask to see the detailed accounts and take copies.
Financial Audit: You can have an accountant check if your service charges are being used properly. You might need others in your building to join you in this request. It's wise to get advice before doing this.
Non-payment and Legal Action: If you don't pay the charges as required, your landlord can take legal action to force you to pay. They must meet legal standards to do this, and a court will consider your situation before deciding.
We on the CMRA are very aware how daunting taking on these financial details can be. We are learning that we have strength in numbers and can help each other. Become a member and get help at one of our workshops and surgeries.
This information is meant to help you understand your lease better. Always consider getting professional advice for your specific situation.
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