Leasehold homeowners who are trapped paying high service charges that they can’t control have a way of fighting back.
Leaseholders can “fight” rip-off service charges and get up to £3,000 free cash, it has emerged. Leasehold homeowners who are trapped paying high service charges that they can’t control have a way of fighting back.
Kevin Mountford, co-founder of financial firm Raisin, said: “Many leaseholders face inflated service charges that can feel like an unavoidable financial burden, but there are ways to challenge and reduce these costs.
“Start by requesting a full breakdown of charges from your managing agent or freeholder—transparency is key. Compare costs with similar properties to identify overcharges, and if something seems excessive, don’t hesitate to negotiate.”
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The Right to Manage (RTM) lets some leasehold property owners take over management of the building – even without the agreement of the landlord. As a landlord, the leaseholders in your building will send you notice if they plan to do this. If they’re successful, you’ll still own the building but they’ll manage it.
The government is also removing the requirement for leaseholders to cover freeholders’ legal frees during Right to Manage claims, which it expects will save homeowners around £3,000. Mr Mountford said: “In some cases, collective action such as forming a Right to Manage company can give leaseholders direct control over service costs, often reducing them by 20-30%.
“This could save you hundreds, if not thousands of pounds a year.” Mr Mountford added: “Leaseholders have the legal right to challenge unfair charges via a tribunal, which can lead to significant savings.”
To use the right, leaseholders must set up an RTM company and follow certain procedures. The RTM company can manage the building directly, or pay a managing agent to do it.
As landlord, you have the right to be a member of the RTM company and to vote on decisions. You get at least 1 vote. How many votes you’ll get depends on how many flats you own in the building.