One of the questions we hear most often from leaseholders goes something like this: “I paid the bill two years ago. I had no idea I could challenge it. Is it too late?” For some people, this comes after they’ve moved in with someone who knew their rights; for others, it’s after seeing a news story about leasehold reform. For us, it was after qualifying as surveyors and realising with some horror what we’d paid a decade earlier.
The answer — sometimes — is no, it’s not too late. Here’s what the law says, and what the practical options are.
The Basic Time Limit: 18 Months
Under Section 27A of the Landlord and Tenant Act 1985, the First-tier Tribunal can make a determination about whether a service charge is payable and in what amount. However, there’s an important limitation: the tribunal cannot make a determination in relation to a service charge that has already been agreed, or one that has been the subject of a final determination by a court or tribunal.
Critically, a service charge demand is not “agreed” simply because you paid it. The fact of payment doesn’t constitute agreement to the amount. However, there are circumstances where agreement can be inferred — for example, if you signed a settlement agreement, or if there is a specific clause in your lease that deems paid amounts to be agreed.
The relevant limitation period for service charge disputes at the tribunal is generally 18 months from the date the charge was demanded (not the date the works were completed or the date you paid). If it’s been more than 18 months since the demand was issued, you may face procedural difficulties — though there is some flexibility in how this is applied.
What About Older Bills?
For bills older than 18 months, the position is more complex but not hopeless. Options include:
- Limitation Act 1980: Contract claims generally have a six-year limitation period in England and Wales. Some service charge challenges based on breach of contract (rather than the statutory route via Section 27A) may be possible within this longer window.
- County court proceedings: If the freeholder is seeking to enforce an unpaid service charge debt through the county court, you can raise the reasonableness of the charge as a defence, regardless of when it was demanded.
- Administrative errors or fraud: If you can demonstrate that the service charge demand was based on fraudulent invoices or deliberate misrepresentation, different limitation periods may apply.
The Practical Reality
Retrospective challenges are harder than prospective ones — not because the law is necessarily more restrictive, but because evidence degrades over time. Contractor records may no longer be available. Market rate data from five years ago requires more careful sourcing than current data. The managing agent’s personnel may have changed.
That said, we have helped leaseholders pursue challenges for bills that are two or three years old, and successfully recovered significant sums. The most important variables are:
- Whether the 18-month period has elapsed
- Whether there is any document that could constitute “agreement” to the amount
- Whether the overcharging was significant enough to be worth pursuing
- Whether the freeholder or managing agent is still the same entity (if they’ve changed, evidence may be harder to obtain)
What If I’m Still Being Charged?
If your major works are funded through a service charge account with ongoing contributions — where you’re paying off the works over multiple years — you may be in a stronger position. As long as the demand is ongoing, you’re within the active charging period, and the 18-month clock hasn’t necessarily run on each individual demand instalment.
The Right Approach: Act Now, Even If the Bill Is Old
Our strong advice: don’t wait to find out if you have grounds for a retrospective challenge. Get a professional assessment first. If we find significant overcharging, we can advise you on the best route — whether that’s a Section 27A tribunal application, a negotiated settlement, or a different legal mechanism.
The sooner you act, the more options you have. Every month that passes makes the challenge slightly harder and the evidence slightly less fresh.
Think your bill might be inflated? Get an independent assessment from Section20.org.uk — 48-hour turnaround, fixed fee. Email info@rapidqs.uk, WhatsApp us at +44 7438 628277 (5-minute response guaranteed), or fill in our contact form at section20.org.uk