What is a reasonable service charge and can it be challenged even after it has been paid?

There is no legal definition of what might be reasonable and if a dispute cannot be settled between the parties it can be referred to a First-tier Tribunal (FTT) which has the authority to determine this exercising judicial discretion. It is possible to challenge a service charge that has already been paid as long as the leaseholders have not admitted that they agreed with the full amount charged. If a service is not specified in the lease, the landlord or manager is most unlikely to recover the costs from the leaseholders.

If there is a dispute regarding whether a service charge is payable or the amount charged, the LA can help its members by proving conciliation or by referring the matter to an independent Service Charge Panel for resolution.