How to challenge service charges at the First-tier Tribunal

The First-tier Tribunal (Property Chamber) — Residential Property has exclusive jurisdiction over most residential service charge disputes in England. If you are a leaseholder who believes a charge is unreasonable, wrongly demanded or not payable at all, an application under section 27A of the Landlord and Tenant Act 1985 is usually the right route.

This guide walks you through what to apply for, what evidence you need, what the tribunal will actually decide, and how to avoid the two costs traps that catch most litigants in person.

What s.27A lets you ask the tribunal to decide

Section 27A(1) lets any interested party ask the FTT to determine:

• whether a service charge is payable;
• who is liable to pay it;
• to whom it is payable;
• the amount payable;
• the date for payment; and
• the manner in which it is payable.

Crucially, this includes charges that have already been paid (s.27A(2)) — payment is not an admission. It also covers proposed future charges (s.27A(3)), which is useful for stopping a bad major works spend before it happens.

Two independent tests you must satisfy

For any given charge to be payable, the landlord must show:

1. It is due under the lease — check the wording carefully. If the lease does not authorise the item, the tribunal cannot rewrite it (see Arnold v Britton [2015] UKSC 36).
2. It is reasonable in amount and reasonably incurred — the statutory test under s.19 LTA 1985.

A charge can be lawfully demanded under the lease and still be knocked out as unreasonable — and vice versa. Litigants regularly lose because they only argue one leg.

Preparing the application

1. Gather your lease and every demand. The tribunal will read the lease from cover to cover. Highlight the service charge machinery: covenant to pay, definition of expenditure, apportionment, on-account vs balancing, reserve fund powers.
2. Get the accounts. You are entitled to a written summary of costs under s.21 LTA 1985 and to inspect receipts and invoices under s.22. Non-compliance is a criminal offence and directly supports a s.27A challenge on transparency.
3. Build a Scott Schedule. One row per disputed item: what was charged, why it is disputed, what you say is reasonable, the evidence relied on. See our [Scott Schedule template](/resources).
4. Check the demand itself. Missing name and address of the landlord (s.47 LTA 1987) or missing s.48 notice makes the sum not due until served. The prescribed Summary of Rights and Obligations must also accompany the demand.

The application itself

Use form Leasehold 1 (or Leasehold 10 for a wider dispute) at gov.uk/property-chamber-tribunal-forms. The fee is £100–£300 depending on remedies. File electronically through the tribunal portal or by post to the London regional office.

Directions will typically require a statement of case, disclosure, a Scott Schedule, witness statements and a hearing bundle. Expect 4–8 months from application to decision in London.

What the tribunal actually does

The FTT is inquisitorial in practice. It will read the papers, question witnesses, and reach its own view on reasonableness — it is not a rubber stamp for either side. Comparables, industry benchmarks (RICS, BCIS), and internal consistency are the currency of a good case.

The two costs traps

• Section 20C order (LTA 1985). Without one, the landlord can add its legal costs of the case back to your service charge — even if you win. Always ask for a s.20C order in your application.
• Paragraph 5A Schedule 11 CLRA 2002. Blocks the same recovery via any administration charge route.

Both are routinely granted where the leaseholder has acted reasonably. Not asking is the mistake.

Common outcomes

• A charge is disallowed in whole or in part → the amount is reduced and any overpayment is credited or repaid.
• The charge is confirmed → payable within the tribunal's timescale.
• The tribunal makes findings that shape future years (e.g. on apportionment, on the correct interpretation of a covenant).

Next steps

• Read [Section 20 major works consultation explained](/guides/section-20-consultation-explained-for-leaseholders-major-works).
• If you also want to remove the landlord's ability to recover legal costs, see [The section 20C costs order guide](/guides/section-20c-costs-order-explained-recover-landlord-legal-costs).
• Draft your case with the [AI Case Dashboard](/dashboard) then export a full tribunal bundle with the [Bundle Builder](/bundle-builder).