A guide for resident directors
Service charge demands: what every demand must include
In short
A service charge demand in England must come with the prescribed summary of leaseholders’ rights and obligations, and must give the landlord’s name and an address in England and Wales. Without the summary the leaseholder may withhold payment; without the name and address the charge is treated as not yet due. Ground rent needs its own prescribed notice.
| Summary of rights | Landlord and Tenant Act 1985, section 21B, in the form the 2007 Regulations prescribe |
|---|---|
| Landlord’s name and address | Landlord and Tenant Act 1987, section 47 |
| Address for notices | Landlord and Tenant Act 1987, section 48 |
| Ground rent | A section 166 notice, giving 30 to 60 days to pay |
| Time limit | 18 months from when a cost is incurred (section 20B) |
The summary of rights and obligations
Section 21B requires every demand for a service charge to be accompanied by a summary of the rights and obligations of leaseholders. Its wording and form are prescribed by the Service Charges (Summary of Rights and Obligations, and Transitional Provision) (England) Regulations 2007.
Until it is provided the leaseholder may withhold payment, and the lease’s terms about late or non-payment, such as interest, do not apply for that time. Administration charges need a summary of their own.
The landlord’s name and address
Any written demand must give the landlord’s name and address and, if that address is not in England and Wales, an address there at which notices can be served (section 47 of the 1987 Act). Without them, the service charge is treated as not due until the information is given.
Separately, the landlord must give each leaseholder an address in England and Wales for notices (section 48). Until it has, rent and service charges are treated as not due. In a resident-run block, check who the lease names as the landlord: the freehold company, the management company, or both.
Ground rent is different
A leaseholder is not liable to pay ground rent until the landlord has given a notice in the prescribed form under section 166 of the Commonhold and Leasehold Reform Act 2002. It must state the amount and the date it is due, which must be between 30 and 60 days after the notice is given, and no earlier than the date in the lease.
A checklist for each demand
- The landlord’s name, and an address in England and Wales.
- The flat and the leaseholder it is addressed to.
- The amount, what it is for and the period it covers.
- The date it is due under the lease, and how to pay.
- The summary of rights and obligations, attached.
- For any cost incurred more than 18 months ago: proof a section 20B(2) notice was served in time.
- A record of when and how it was served.
Questions
What happens if a service charge demand has no summary of rights?
The leaseholder may withhold payment until it is provided, and the lease’s late-payment terms do not apply for that period. Serve the demand again with the summary attached.
Must a service charge demand include the landlord’s address?
Yes. Section 47 of the Landlord and Tenant Act 1987 requires the landlord’s name and address, and an address in England and Wales for notices if theirs is elsewhere. Without them the service charge is treated as not due until the information is given.
How much notice does a ground rent demand need?
A section 166 notice must give a payment date between 30 and 60 days after the notice is given, and no earlier than the date in the lease.
Sources
- Landlord and Tenant Act 1985, section 21B
- Service Charges (Summary of Rights and Obligations, and Transitional Provision) (England) Regulations 2007
- Landlord and Tenant Act 1987, section 47
- Landlord and Tenant Act 1987, section 48
- Commonhold and Leasehold Reform Act 2002, section 166
This guide explains the law in general terms. It is not legal advice: for a decision that matters to your block, take advice on your own leases and circumstances.