Service Charge Dispute — First-tier Tribunal 2026 Guide

In short: A First-tier Tribunal (Property Chamber) service charge application lets a leaseholder ask the tribunal to determine whether a service charge is payable and reasonable, to challenge a section 20 consultation breach, or to seek orders such as a section 20C costs limitation. The tribunal hears these disputes cheaply and often remotely, with no strict rules of evidence. eLitigant drafts the application package — or checks the draft you have written — from your own documents, for £30.

The service charge demand has doubled. The accounts are opaque. Works have been billed that were not consulted on, or were of poor quality, or were obviously overpriced. Leaseholders have rights — powerful ones — and the First-tier Tribunal hears these disputes cheaply and remotely.

The legal framework

• Landlord and Tenant Act 1985 s.18–20C — reasonableness, consultation, costs recovery
• Landlord and Tenant Act 1987 — right to manage, appointment of manager
• Commonhold and Leasehold Reform Act 2002 — right to challenge through FTT
• Leasehold Reform (Ground Rent) Act 2022 — ground rent abolished for new qualifying leases

Section 19 — the reasonableness test

Service charges are only payable where:

• Costs were reasonably incurred
• Works or services were of a reasonable standard

Both limbs apply. A reasonable cost for poor-quality work is still challengeable. A fair-quality outcome at an unreasonable price is still challengeable.

Section 20 — the consultation rule

Qualifying works above £250 per leaseholder, or long-term agreements above £100 per year per leaseholder, require consultation:

1. Notice of Intention to carry out works
2. At least 30 days for leaseholder observations and nomination of contractors
3. Notification of estimates with further 30 days
4. Decision and notice of award

Failure to consult properly caps recovery at £250 per leaseholder — whatever the actual cost. Unless the FTT grants dispensation under s.20ZA, which is fact-specific.

The FTT process

• Application to First-tier Tribunal (Property Chamber) — modest fees, often £100 or less
• Directions — usually paper-based
• Hearing — often remote, informal, no strict rules of evidence
• Decision — binding, appealable to Upper Tribunal on points of law

Common claims

• Challenging a specific charge as unreasonable
• Challenging a s.20 breach
• Seeking a determination of payability before paying
• Appointing a manager under s.24 LTA 1987
• Right to Manage claim under CLRA 2002
• Section 20C order preventing landlord recovering legal costs through service charge

Structure — the Litigant Standard

Each disputed item addressed separately. Contract. Invoice. Work actually done (or not). Market comparator quote. Impact on leaseholder. Statutory breach relied on.

Can Chris draft the FTT application package?

Yes. Upload the lease, the service charge demands, the budgets, accounts, any s.20 notices, and your correspondence. Chris drafts the application with numbered disputes, supporting evidence, proposed findings, and a s.20C costs application if appropriate. Express Case (£300/month) for the whole case through hearing.

Prepare to win. Plan not to fail.

Freeholders have specialists. Leaseholders now have Chris.

Frequently asked questions

What is the reasonableness test for service charges?

Under section 19 of the Landlord and Tenant Act 1985, service charges are only payable where the costs were reasonably incurred and the works or services were of a reasonable standard. Both limbs apply, so a reasonable cost for poor-quality work, or a fair-quality outcome at an unreasonable price, can still be challenged.

When does the section 20 consultation rule apply?

Consultation is required for qualifying works above £250 per leaseholder, or long-term agreements above £100 per year per leaseholder. The process involves a Notice of Intention, time for leaseholder observations and contractor nominations, notification of estimates, and notice of the award. Always check the current figures for your situation.

What happens if the landlord fails to consult?

Failure to consult properly caps recovery at £250 per leaseholder, whatever the actual cost — unless the tribunal grants dispensation under section 20ZA, which is fact-specific.

What can I claim at the First-tier Tribunal?

Common claims include challenging a specific charge as unreasonable, challenging a section 20 breach, seeking a determination of payability before paying, appointing a manager under section 24 of the LTA 1987, a Right to Manage claim under the CLRA 2002, and a section 20C order preventing the landlord recovering legal costs through the service charge.

How does the FTT process work?

You apply to the First-tier Tribunal (Property Chamber), directions are usually paper-based, the hearing is often remote and informal with no strict rules of evidence, and the decision is binding and appealable to the Upper Tribunal on points of law. Check the current HMCTS fee before applying.

Can Chris draft the whole application package?

Yes. Upload the lease, the service charge demands, the budgets, accounts, any section 20 notices and your correspondence, and Chris drafts the application with numbered disputes, supporting evidence, proposed findings, and a section 20C costs application where appropriate.

Related guides: N244 application notice guide · Possession and property claims · All civil court forms