Skip to content
RunYourBlock

Glossary

Service-charge demand

Also called: service charge bill, demand for payment, service charge invoice

A written request to a leaseholder to pay a service charge, which in England must include the landlord's name and address and be accompanied by the prescribed summary of rights and obligations.

In plain words, it's the bill to leaseholders. Getting its contents right matters, because a defective demand can mean the money isn't legally due yet.

What it must have

  • The landlord's name and address (s.47). If it's missing, the charge is treated as not due until the information is given. An RTM company gives its own name and address. Many also include the freeholder's details, to be safe.
  • An address in England and Wales for serving notices must have been given to leaseholders (s.48).
  • The summary of rights and obligations in the prescribed form (s.21B). Without it, the leaseholder may withhold payment until it is provided.
  • What the lease requires, such as the payment dates, the share of costs, and any budget or certificate.

Two warnings

  • Costs incurred more than 18 months before the demand may be lost for good: see the 18-month ruleThe 18-month rule (Section 20B)The rule that a leaseholder doesn't have to pay service-charge costs that were incurred more than 18 months before they were demanded, unless they were warned in writing within that time that the costs had been incurred and would be charged..
  • Follow the lease's rules on how notices must be served. Some leases don't allow email.

Most of these defects can be cured by sending a corrected demand. See What a service-charge demand must contain.

Sources

  1. Landlord and Tenant Act 1985, s.21B (summary of rights to accompany demands)
  2. Landlord and Tenant Act 1987, s.47 (landlord's name and address)
  3. Landlord and Tenant Act 1987, s.48 (address for service)

Last reviewed Plain text (Markdown)

All terms