Leasehold Disputes: How to Resolve Them
Leasehold disputes can be stressful and costly if not handled properly. This guide explains the most common types of disputes, how to resolve them informally, and when to escalate to the First-tier Tribunal or a property redress scheme.
Common Types of Leasehold Disputes
Disputes between leaseholders, freeholders, and managing agents are more common than many people realise. Understanding the type of dispute you are dealing with is the first step towards finding the right resolution route.
- Service charge disagreements - challenges to the reasonableness or transparency of annual service charges and how funds are allocated
- Major works costs - disputes over the cost, scope, or necessity of large-scale building projects and whether the Section 20 consultation process was properly followed
- Managing agent performance - complaints about poor communication, slow response times, or failure to carry out agreed maintenance and management duties
- Freeholder obligations - disagreements where the freeholder has failed to maintain the building structure, common parts, or insurance as required by the lease
- Lease breaches - disputes arising from alleged breaches of lease terms by either the leaseholder or the freeholder, including unauthorised alterations or subletting
- Communal area disputes - disagreements about the upkeep, use, or management of shared spaces such as hallways, gardens, parking areas, and bin stores
- Ground rent issues - disputes related to ground rent demands, unreasonable escalation clauses, or the validity of ground rent charges under recent legislative changes
If you are unsure which type of dispute applies to your situation, our team can help you understand your leaseholder rights and the best course of action.
Resolving Disputes Informally
Most leasehold disputes can be resolved without going to a tribunal or redress scheme. Informal resolution is usually quicker, less expensive, and less stressful for everyone involved. The key is to approach the situation constructively and keep a clear record of all communications.
Start by raising your concern directly with the relevant party, whether that is your managing agent, freeholder, or a fellow leaseholder. Put your complaint in writing and be specific about what has gone wrong and what outcome you are seeking. A good managing agent will have a formal complaints procedure and should acknowledge your concern promptly.
If direct communication does not resolve the matter, consider mediation. Mediation involves an independent third party who helps both sides reach a mutually acceptable agreement. It is voluntary, confidential, and significantly cheaper than tribunal proceedings. Many disputes over communal areas, noise, or neighbour behaviour are well suited to mediation.
The managing agent plays a crucial role in dispute resolution within a block of flats. A proactive agent will identify potential disputes early, communicate transparently with all parties, and work to find practical solutions before issues escalate. If your managing agent is not fulfilling this role, it may be time to consider challenging their approach or switching to a more responsive agent.
If informal methods fail, you have several formal escalation routes available, including the First-tier Tribunal, The Property Ombudsman, and the Property Redress Scheme.
The First-tier Tribunal (Property Chamber)
The First-tier Tribunal (Property Chamber) is the main legal forum for resolving leasehold disputes in England. It is a specialist tribunal that deals with a wide range of property matters, including service charge disputes, lease variations, the appointment of managing agents, and disputes about the reasonableness of administration charges.
To apply, you submit an application form to the tribunal along with the relevant fee and supporting documents. The tribunal will then set directions for both parties to exchange evidence and may schedule a hearing. Hearings can be conducted in person, by video, or on paper, depending on the complexity of the case.
Evidence is critical. You will need to provide copies of your lease, service charge demands and accounts, correspondence with the freeholder or managing agent, and any expert reports or photographs that support your case. The tribunal expects evidence to be well organised and clearly presented.
One of the most important features of the First-tier Tribunal is its no-costs jurisdiction for most leasehold claims. This means that each party generally pays their own costs, regardless of the outcome. You will not normally be ordered to pay the other side's legal fees, which removes a significant barrier to pursuing legitimate complaints.
Typical timeframes range from three to twelve months depending on complexity. Simple service charge disputes are often resolved more quickly, while cases involving multiple leaseholders or large developments may take longer.
Tribunal decisions are legally binding and enforceable. If the tribunal determines that service charges are unreasonable, the freeholder or managing agent must comply with the decision. Failure to do so can result in further legal action.
Property Redress Schemes and the Ombudsman
All managing agents in England must belong to a government-approved redress scheme. The two approved schemes are The Property Ombudsman (TPO) and the Property Redress Scheme (PRS). Both provide free, independent dispute resolution for leaseholders and other consumers.
Use the Property Ombudsman or Property Redress Scheme when your complaint is about the conduct or service of your managing agent rather than a specific legal question about your lease. Common complaints include poor communication, failure to respond to enquiries, unreasonable delays, and breaches of the agent's code of practice.
Before submitting a complaint to either scheme, you must first exhaust the managing agent's internal complaints procedure. If the agent does not resolve your concern within eight weeks, or you receive a final response that you find unsatisfactory, you can escalate to the relevant redress scheme. Check which scheme your agent belongs to before submitting your complaint.
The process involves submitting a written complaint with supporting evidence. The ombudsman reviews evidence from both parties and issues a decision, typically within ninety days. Decisions are binding on the managing agent and can include an apology, a change of practice, or financial compensation.
Compensation limits are currently up to twenty-five thousand pounds, though most awards are significantly lower. If your complaint involves the reasonableness of service charges rather than agent conduct, you will need to apply to the First-tier Tribunal instead, as the redress schemes do not have jurisdiction over service charge levels.
Preventing Disputes Through Good Management
The best way to deal with leasehold disputes is to prevent them from arising in the first place. Transparent, professional block management significantly reduces the likelihood of disagreements between leaseholders, freeholders, and managing agents.
Transparent communication is fundamental. Leaseholders should receive clear, regular updates about building maintenance, financial accounts, and any decisions that affect their property. A managing agent that communicates openly and responds promptly to enquiries builds trust and reduces the potential for misunderstandings.
Regular financial reporting ensures that leaseholders understand how their service charges are being spent. Detailed annual accounts, clear budget breakdowns, and accessible records help prevent disputes before they start. Leaseholders have a legal right to inspect the accounts and supporting documents, and a good managing agent will make this process straightforward.
Proper consultation on major works and long-term agreements is a legal requirement under Section 20 of the Landlord and Tenant Act 1985. Failure to consult correctly is one of the most common causes of leasehold disputes. An experienced managing agent will ensure that all consultation requirements are met and that leaseholders have a genuine opportunity to comment on proposed works.
Professional standards matter. Accredited managing agents who are members of recognised industry bodies such as ARMA, RICS, or IRPM are bound by codes of conduct that set clear expectations for service delivery. Choosing an accredited agent provides an additional layer of protection and accountability.
At Block, we are committed to the highest standards of transparency and professional practice. If you are experiencing disputes in your block and believe that better management could make a difference, get in touch to discuss how we can help.
Frequently Asked Questions
Can I take my freeholder to the First-tier Tribunal?
Yes, leaseholders can apply to the First-tier Tribunal (Property Chamber) to challenge unreasonable service charges, request the appointment of a new managing agent, or seek a determination on the terms of their lease. You do not need a solicitor to make an application, though legal advice can be helpful for complex cases. The tribunal is designed to be accessible to individuals, and the process is less formal than a court hearing.
How much does a First-tier Tribunal application cost?
Application fees for the First-tier Tribunal are relatively low compared to court proceedings. Most applications cost between one hundred and three hundred pounds. The tribunal operates a no-costs jurisdiction for most service charge and leasehold disputes, meaning each party typically pays their own costs regardless of the outcome. This removes much of the financial risk associated with pursuing a legitimate complaint.
Can I withhold my service charge if I have a dispute?
Withholding service charges is generally not advisable as it can put you in breach of your lease, even if you believe the charges are unreasonable. A better approach is to pay the disputed amount under protest, in writing, and then apply to the First-tier Tribunal for a determination on the reasonableness of the charges. If the tribunal finds in your favour, the freeholder or managing agent will be required to adjust the charges accordingly.
How long does a tribunal case take to resolve?
The timeframe for a First-tier Tribunal case varies depending on complexity and the tribunal's caseload. Simple service charge disputes may be resolved within three to six months from application. More complex cases involving multiple issues or large developments can take six to twelve months. The tribunal will set directions and timescales for both parties to submit evidence, and a hearing date is typically scheduled several weeks after all evidence has been exchanged.
What evidence do I need for a leasehold dispute?
Strong evidence is essential for any leasehold dispute, whether you are complaining to a redress scheme or applying to the tribunal. Gather copies of your lease, all relevant correspondence with the managing agent or freeholder, service charge demands and accounts, Section 20 consultation notices, photographs of any maintenance issues, and any independent reports or surveys. Keep a chronological record of events and ensure all communications are in writing.
Can I claim compensation for a leasehold dispute?
Compensation routes depend on the nature of your dispute. The Property Ombudsman and Property Redress Scheme can award compensation of up to twenty-five thousand pounds for complaints about managing agent conduct. The First-tier Tribunal can reduce or disallow service charges found to be unreasonable but does not typically award compensation. For claims involving financial loss caused by negligence or breach of contract, you may need to pursue a claim through the county court.
Need Help Resolving a Leasehold Dispute?
Whether you are dealing with a service charge challenge, a managing agent complaint, or a disagreement with your freeholder, our experienced team can help you find the right resolution.