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Leaseholders

Back charges and old debts. Do you actually have to pay?

If a letter has just landed asking for thousands and the work was done years ago, the first thing to check is not your bank balance. It is whether the demand is even valid.

Five free checks you can do yourself before you send a penny. If the demand is out of time, missing the statutory notices, or includes major works that were never consulted on, parts of it may not be enforceable.

Run the 5 checks →

General information, not legal advice. Always seek professional counsel on your specific circumstances.

5 free checks What to do next Read your lease Take action
Step-by-step guide

Five checks to do yourself

1. How old are the costs?

Check the invoice dates on the demand against the date the demand was served. Section 20B LTA 1985Section 20B, Landlord and Tenant Act 1985. Costs incurred more than 18 months before a demand are not recoverable unless the landlord notified the leaseholder within that 18-month window. Source says a landlord cannot recover costs incurred more than 18 months before the demand, unless you were notified within that 18-month window.

What to do: Find the work order or invoice showing when the work was done. Count back 18 months from the demand date. If the work is older than that and you received no letter or notice about it within 18 months of the work, the Section 20B defence is likely available.

2. Was a valid demand served at the time?

Even if the costs are within 18 months, the original demand must have been valid. Sections 47 and 48 LTA 1987Landlord and Tenant Act 1987, ss.47 and 48. Every written demand for rent or service charges must contain the landlord's name and address (and, if it is outside England and Wales, an address in England or Wales for service of notices). Amounts can be treated as not due until the requirement is met. Source require every service charge demand to include the landlord's name and address. Section 21B LTA 1985Section 21B, Landlord and Tenant Act 1985. Every service charge demand must be accompanied by a Summary of Rights and Obligations in the prescribed form. If it is not, the leaseholder may withhold payment until the summary is supplied. Source adds the requirement to include a Summary of Rights and Obligations.

What to do: If you have the original demand from years ago, check it contained these details. If it was defective, the amount can usually be treated as not yet due. If you never received a demand at that time, that strengthens your position.

3. The payment schedule the lease sets

Your lease specifies when and how service charges are payable: quarterly, half-yearly, annually, in advance or arrears. It also sets out what happens if payment is late.

What to do: Look for the service charge provisions in your lease. If you're being chased for amounts outside the schedule you agreed to, or if there's a dispute about timing, that's defensible. → Ask LEASE-iQ: "What does my lease say about when service charges are payable and what happens if payment is late?"

4. Were any major works properly consulted?

If back charges include major works costing any leaseholder more than £250, Section 20 consultationSection 20, Landlord and Tenant Act 1985, as amended. Full procedure is set out in the Service Charges (Consultation Requirements) (England) Regulations 2003. Triggered when any leaseholder's contribution would exceed £250 for works, or £100/year for long-term agreements. Source must have been completed before the work started. Without consultation, recoverable cost per leaseholder is usually capped at £250.

What to do: Ask the landlord or managing agent in writing for copies of the Section 20 notices. If they cannot provide them, or the consultation happened after work began, the £250 cap is likely to apply.

Footnote: a landlord who skipped or botched consultation can apply to the First-tier Tribunal for dispensation under Section 20ZASection 20ZA, Landlord and Tenant Act 1985. The tribunal can dispense with the consultation requirements if it is satisfied it is reasonable to do so. The leading case is Daejan Investments Ltd v Benson [2013] UKSC 14, which shifted the focus to whether the leaseholder was prejudiced by the failure to consult. Source. If dispensation is granted, the cap does not apply, so check whether any such application has been made.

5. What are your options?

Once you have checked the above, you have two formal paths:

  • (a) Request a summary of costs. Under Section 21 LTA 1985Section 21, Landlord and Tenant Act 1985. Leaseholders may request a written summary of service charge costs. Landlord must supply within one month of the request or six months of the end of the accounting period, whichever is later. Source, you have the right to ask for a written summary of service charge costs. Once the summary is supplied, Section 22Section 22, Landlord and Tenant Act 1985. Within six months of receiving the summary, the leaseholder may require the landlord to allow inspection of the accounts, receipts and other documents. Source allows you to require inspection of the supporting documents. Compare to market rates and benchmarks.
  • (b) Challenge reasonableness at the First-tier Tribunal. Under Section 19 LTA 1985Section 19, Landlord and Tenant Act 1985. A service charge is only payable to the extent that costs were reasonably incurred and services or works are of a reasonable standard. Source, you can apply to the FTT if you believe the charges are unreasonable. Application fees are typically modest (check current Property Chamber fees on gov.uk). A solicitor is not required, though the process rewards preparation. If you have not run one before, start with the LEASE advisory service.
60-second self-check

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What to do next

Two paths forward

I think the charges are time-barred

If the costs are more than 18 months old and you weren't notified at the time:

  • Write to your landlord or managing agent citing Section 20B LTA 1985
  • Request proof of when costs were incurred
  • Request proof of notification within 18 months
  • If they cannot provide both, the Section 20B defence is likely available; take advice before paying

I think the charges are unreasonable

If you're unsure whether they're time-barred, or if they're recent but seem excessive:

  • Request a summary under Section 21 (you have a legal right)
  • Compare to market benchmarks and other buildings
  • Consider First-tier Tribunal if costs seem genuinely unreasonable
  • Call LEASE advisory service (free) first to discuss your case
Your lease determines what's recoverable

When to read your lease

Your lease specifies: what costs can be recovered as service charges, who pays what percentage, when payments are due, and whether certain works require consultation. The statutory rules (Sections 20, 20B, 19, 21) apply on top of the lease. If the lease is more restrictive than the statute, the lease terms apply.

Ask LEASE-iQ: "My freeholder has sent me a demand for [describe charge]. Using my lease: (1) What is my service charge apportionment? (2) Does the lease authorise this type of charge? (3) Is there a Section 20 requirement in the lease? (4) Are there any limits on management fees? (5) Is there anything that would prevent this charge being recovered?"

What if the demand looks valid?

Sometimes the checks come back clean. The costs are recent, the notices are in order, and the lease authorises the charge. In that case your options narrow to two:

  • Pay on time and keep the evidence trail. Paying under protest is not a thing in UK leasehold law, but paying with a written note that you reserve the right to challenge reasonableness later under Section 19 is sensible if the amount is large.
  • Agree a payment plan. Most freeholders and managing agents prefer a realistic plan over a formal dispute. Put the request in writing and keep a copy.
  • Escalate through the Section 21 summary route first. Even where a demand is valid on its face, a Section 21 summary can reveal unexpected charges that are worth challenging on reasonableness grounds.
Use this within 14 days of receiving the demand

Draft challenge letter: questionable demand, Section 20B, or missing summary of rights

Copy this. Fill the highlighted bits. Send by recorded delivery and keep the receipt. The letter is deliberately neutral and procedural. It puts the burden on the freeholder or managing agent to prove the demand is valid, and it preserves your right to apply to the First-tier Tribunal if they cannot.

Dear [Freeholder / Managing Agent name],
Re: Service charge demand dated [date of demand] for [flat address]
I acknowledge receipt of your service charge demand dated [date] in the amount of £[amount]. I am writing to ask you to confirm a number of points before I treat the demand as payable.
1. Section 20B of the Landlord and Tenant Act 1985: the 18-month rule
Some or all of the costs covered by this demand appear to relate to expenses incurred more than 18 months before the date of this demand. Section 20B(1) of the Landlord and Tenant Act 1985 provides that a leaseholder is not liable for service charges for costs incurred more than 18 months before the demand, unless I was given written notification within that 18-month window that the costs had been incurred and would later be charged. Please confirm:
  • The exact dates on which each cost item in this demand was incurred.
  • For any cost item incurred more than 18 months before the date of this demand: the date and form of any Section 20B notice that was given to me, and a copy of that notice.
2. Section 21B summary of rights and obligations
Section 21B of the Landlord and Tenant Act 1985 (as inserted by the Commonhold and Leasehold Reform Act 2002) requires every service charge demand to be accompanied by a summary of the rights and obligations of leaseholders in the prescribed form. Please confirm whether the prescribed summary was included with this demand. If it was not, I am withholding payment under section 21B(3) until a compliant demand is served.
3. Section 19 reasonableness
Without prejudice to the points above, I reserve the right to challenge the reasonableness of any of the costs claimed under section 19 of the Landlord and Tenant Act 1985. Please provide the supporting invoices, contractor selection process, and (where applicable) any Section 20 consultation documents that relate to the costs in this demand.
4. Lease provisions
Please confirm under which clause of the lease each cost item is recoverable as a service charge, and confirm my apportioned percentage as set out in the lease.
I am genuinely seeking to resolve this without escalation. Please respond within [14 / 21] days. If I do not receive a substantive response, I reserve the right to apply to the First-tier Tribunal (Property Chamber) for a determination under section 27A of the Landlord and Tenant Act 1985 as to whether the costs are payable, and to seek an order for costs.
Yours sincerely,
[Your name]
[Your address]
[Date]
For a clause-cited reply that maps these statutory points to your specific lease, upload your lease to LEASE-iQ. For a written deliverable in 24 hours with optional solicitor sign-off, see talk to us.

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Last reviewed: 17 April 2026 · Spot something wrong? Tell us and we'll fix it.
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