What can a service charge include?
Your lease decides what you pay for. The law decides how it must be charged.
Reviewed by Mark Cunningham AssocRICS MTPI MIFSM, Leasehold Director. Last reviewed 3 October 2026.
A service charge is what leaseholders pay towards repairs, maintenance, insurance, services and management. Section 18 of the Landlord and Tenant Act 1985 defines it as a charge that can vary with the costs incurred.
The lease comes first
Only costs your lease allows can be charged. Typical items are buildings insurance, cleaning, communal electricity, repairs to the structure and common parts, fire safety equipment, the managing agent's fee and contributions to a reserve fund.
Rules every demand must follow
- Costs must be reasonably incurred and work of a reasonable standard (s19).
- Each demand must come with a summary of your rights and obligations (s21B).
- The landlord's name and an address in England and Wales for notices must be shown (ss47 and 48, Landlord and Tenant Act 1987).
If something looks wrong
Ask for a summary of costs and the invoices behind it. You have a legal right to both.
Sources
Landlord and Tenant Act 1985 (legislation.gov.uk)Landlord and Tenant Act 1987LEASE: the Leasehold Advisory ServiceHow we can help
Full block managementSection 20 major worksAJ LiteWe provide block management across Southport, Churchtown and Kew, Birkdale and Ainsdale, Formby, Ormskirk and Aughton, Crosby and Maghull, Bootle and Litherland, Liverpool, Hesketh Bank and Tarleton and Preston, Penwortham and Longton. For the law in brief, see Know the law.General information about the law in England, not advice on a particular building.