Service Charge Payments-Frequently Asked Questions
Can you refuse to pay service charge leasehold?
The leaseholder is required by the terms of their lease to pay the service charges and ground rent as determined by their lease in advance of the anticipated year's expenditure. Any non-payment will result in a breach of the lease.
Can I refuse to pay ground rent?
If you don't pay your ground rent, the freeholder can apply to the court for repossession of the property. This type of action is known as 'forfeiture'. The freeholder can only start taking court action if: You're three or more years in arrears with your ground rent.
Can a leaseholder withhold payment?
A leaseholder who is not served with a compliant service charge demand(s) in accordance with section 47 and 48 of the Landlord and Tenant Act 1987 can withhold payment of his service charge until such time as he has received a compliant demand.
What rights do leaseholders have?
Leasehold ownership of a flat is simply a long tenancy, the right to occupation and use of the flat for a long period – the 'term' of the lease. Furthermore, under right to manage (see below), the lessees may not own the freehold but are able to manage the building as if they were the landlord.