Freeholder Dispute – Urgent advice needed after demands?
Hello everyone, I’m facing a serious issue with my Freeholder situation and would really appreciate some guidance.
Background: I purchased my leasehold flat in 2001. The block has 8 flats in total. I am the only leaseholder – the other 7 owners bought the freehold together in 2007.
In 2016, I extended my lease.
Service Charges & Maintenance: Up until 2016, I paid service charges regularly.
After that, the freeholders kicked out the management company and: No maintenance was carried out. No grass cutting, no cleaning, no communal lighting. No building insurance was in place.
As a result, the building fell into disrepair, and I lost rental income because the communal areas were so poorly kept.
Sudden Demand & Debt Collection: Out of the blue, the freeholders recently appointed a rogue management company. Despite knowing I don’t live at the property (it’s rented), they sent all correspondence to the tenanted address, not my email.
They issued a demand for: £5,000 service charge, £500 reserve fund.
When I didn’t respond (because I never received the letters), they passed it to a debt collection company.
The debt collectors then emailed me (so they did have my correct contact details!) with a Pre-Action Protocol demand for: £5,500 (service + reserve), £360 late payment charges and £432 debt collection fees.
My Response: I immediately replied, contesting the charges and requesting Invoices, Accounts, Breakdown of costs and Receipts for works done.
The debt company responded, saying the matter had been referred back to their client, and my file was temporarily on hold.
Just an hour later, the management company emailed me directly: They removed the £432 instruction fee. But still demanded £5,000 service charges + £500 reserve fund + £360 late fees. They completely ignored my request for documentation and a breakdown of charges.
Current Situation: I visited the property myself. Nothing has been done. The communal areas are exactly the same – no works, no improvements, no insurance evidence. I have taken photos as proof.
My Concern: This is the only property I own. It feels like they are trying to make it unaffordable for me to keep the flat, possibly to force me out.
Questions: Has anyone dealt with a similar situation?
What are my rights if they refuse to provide a breakdown or evidence of works?
Can they enforce these charges without proper documentation?
Should I take this to the First-tier Tribunal (Property Chamber)?
Any advice would be greatly appreciated.
Thanks in advance,
Jaz
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Member Since September 2024 - Comments: 95
4:52 PM, 17th September 2025, About 7 months ago
Reply to the comment left by NewYorkie at 17/09/2025 – 16:19
It’s worth being aware of all the relevant legislation and case law. The Directors of ours took me to the Tribunal. Not only did they lose, but they were told in no uncertain terms that their actions fell under the 1968 Theft Act and that, as such, even their liability insurance (which it turned out they didn’t have!) wouldn’t have covered them if I chose to take the matter further.
Luckily they swiftly settled.
Member Since October 2022 - Comments: 403
5:23 PM, 17th September 2025, About 7 months ago
Having read 2023 report on Morshead I took from decision that the sums needed were for costs of litigation etc which did not fall under the lease but were allowed under RMC Articles.which allowed for such provision.
Di Marco argued that these demands were service charge under section 18 under the Landlord and Tenant act.
The court found these costs did not fall under the lease. The RMC directors put to the leaseholders as shareholders of the RMC under Article 16 a resolution which was passed by shareholders agreeing to £4000 into a Reserve fund from each shareholder in the agreed apportionment.
This is a cost separately accounted for in Company accounts from service charge contributions to the RMC as lessor/landlord.
Leaseholders as shareholders have obligations under RMC Articles and
Leaseholders as Lessees have obligations and protections under their leases
RMC Directors should seek advice from properly qualified law firms before proceeding with this.
The OPs post said he did not hold a share in the freehold in a limited liability Residents Management Co.registered at Companies House so Morshead does not apply.
So IMO the claim against him has no merit and he should seek legal advice from properly qualified lawyers.
Member Since September 2024 - Comments: 95
5:33 PM, 17th September 2025, About 7 months ago
Reply to the comment left by Kizzie at 17/09/2025 – 17:23
“so Morshead does not apply”
My reference to that case was in answer to a specific question to me, not the original post.
Member Since October 2013 - Comments: 1630 - Articles: 3
7:42 PM, 17th September 2025, About 7 months ago
Reply to the comment left by Steve Rose at 17/09/2025 – 16:52
It doesn’t get any easier, does it?Fortunately, I’m retired with only 1 rental remaining.
Member Since April 2024 - Comments: 10
8:03 AM, 18th September 2025, About 7 months ago
Average service charge in the UK: £2,300/an
No service charge paid between 2016-2025: 9 years
Total Service Charge an average leaseholder could have expected to pay in that period: £20,700.
If you’re only be asked to pay £5,500 now to help get the building back up to standard then you’re quids in. Pay it and take the win.
Member Since October 2013 - Comments: 1630 - Articles: 3
10:48 AM, 18th September 2025, About 7 months ago
Reply to the comment left by Joey Barton at 18/09/2025 – 08:03
True, but they must still act within the law.
Member Since July 2023 - Comments: 15
8:19 AM, 20th September 2025, About 7 months ago
1. Demand for Documents (Legal Right)
• Under the Landlord and Tenant Act 1985, leaseholders have the right to:
• A summary of service charge costs (s21).
• To inspect supporting documents/invoices (s22).
• If they’ve formally requested this, the freeholder/agent must comply. Failure to do so weakens their position.
Action: Send a written s21 request (keep copy) for accounts and invoices. If ignored, that’s strong evidence in tribunal/court.
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2. Reasonableness of Charges
• By law (s19 LTA 1985), service charges must be “reasonable” and relate to works/services actually provided.
• No insurance? No cleaning? No maintenance? → They can’t legally demand money for services not carried out.
Action: Keep the photographic evidence of disrepair and lack of services.
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3. Reserve Fund
• Reserve fund demands must also be reasonable and properly established under the lease. If no actual fund is being managed, or there are no accounts, you can dispute it.
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4. Debt Collection
• They can’t just add random admin or debt collector fees unless the lease specifically allows it. Most leases do not.
• The fact that they dropped the £432 “instruction fee” suggests they knew it wasn’t enforceable.
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5. First-tier Tribunal (FTT)
• The FTT (Property Chamber) is the correct place to challenge the reasonableness and payability of service charges.
• You can apply to the FTT to determine:
• Whether the charges are payable.
• Whether they are reasonable.
• Whether the late fees/debt collection charges are valid.
• FTT is relatively low-cost and designed for leaseholders to use without a solicitor.
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6. Insurance Issue
• The freeholder has a legal duty to insure the building (under most leases). Failure to do so is a serious breach.
• If there was no insurance, this could expose all leaseholders to huge liability — it also strengthens your case that the management is negligent.
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7. Practical Next Steps
1. Send a formal written request (s21 LTA 1985) for service charge accounts, invoices, receipts, insurance documents.
2. State clearly in writing that you dispute the charges until documentation is provided.
3. Gather evidence: photographs, timeline, copies of all emails/letters, proof of missed communications.
4. Do not pay until the FTT determines liability (otherwise it may weaken your position).
5. Apply to the FTT to challenge the service charge demand.
6. Consider reporting the managing agent to their regulator (if they’re ARMA or RICS members) and raising a complaint with Trading Standards if they are acting aggressively.
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8. Legal Advice
• A short consultation with a leasehold solicitor is worthwhile. Some offer fixed-fee advice.
• If income has been lost due to their neglect, it might also be possible to claim damages (though harder to pursue).
⸻
Bottom line:
They cannot enforce unreasonable service charges without documentation. The leaseholder should formally request accounts, gather evidence, and take it to the First-tier Tribunal. Debt collectors have no special powers unless a court judgment is obtained.
⸻
Member Since October 2013 - Comments: 1630 - Articles: 3
8:47 AM, 20th September 2025, About 7 months ago
Reply to the comment left by Conscientious Landlord at 20/09/2025 – 08:19
I’m all for challenging what’s demanded if you can prove it’s unfair. I’ve been there. But if your lease states ground rent is payable, I would advise you pay it and challenge at the FTT after. But pay it only if you receive a (legally required) formal demand, with the freeholder’s registered address. Otherwise, you could open yourself up to forfeiture proceedings (which are unlikely to succeed).
Member Since October 2022 - Comments: 403
9:03 AM, 20th September 2025, About 7 months ago
This set of rights and obligations under leasehold law should accompany every purchase of a leasehold property and every demand for service charge and also with every acceptance by a mortgage company for a mortgage on a leasehold property.
From posts and responses on 118 and other websites there is widespread ignorance of rights and obligations under leasehold laws and leaseholders ignorance is exploited for monetary gain.
Leasehold in England and Wales based on the feudal laws is ridiculously
out of date in a society entering era of AI.
Member Since October 2022 - Comments: 403
9:34 AM, 20th September 2025, About 7 months ago
FTT jurisdiction does not cover Ground Rent only service charge under a lease.
Ground rent must be formally demanded under Section 166 Commonhold and Leasehold Reform Act in name and address of the Landlord which then falls under Ss 47 and Ss 48 Landlord and Tenant act 1987 cannot be the address of MA and is only due to whoever holds the Landlord interest in the lease who may also be the freeholder or may not.
It is not service charge under a lease and must be separately accounted for that is not held in a section 42 LTA 87 trust client account.
GR continues to be payable if not formally demanded.
In addition fixed Estate Charges can only be disputed in the Civil Court not in FTT as these are also not service charges under a lease and not have rights to be reasonable and the legal protection under LTA.