September 16, 2026

Section 27A Service charge claims: What leaseholders and landlords need to consider

Posted in Property Disputes, Property Disputes

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Angela Gregson

Partner

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Service charge disputes are one of the most common issues we encounter in residential property management. Whether you are a leaseholder questioning a demand or a landlord seeking to recover expenditure, a Section 27A application can provide a route to obtaining clarity.

What is a Section 27A application?

An Application under Section 27A of the Landlord and Tenant Act 1985 is a request to the First-tier Tribunal (Property Chamber) asking it to determine whether a service charge is payable and, if so, by whom, in what amount and when. A Section 27a Application can be made by either the leaseholder or the landlord. The Tribunal can consider a wide range of issues, including whether the costs were reasonably incurred and whether the works or services were carried out to a reasonable standard.

If you are a landlord….

For landlords and managing agents, Section 27A applications provide an opportunity to establish that service charges have been properly incurred and are recoverable under the lease.

In our experience, a favourable decision can also provide useful guidance for future years and may discourage similar challenges from other leaseholders where the same costs or management practices are disputed.

The success or failure of many service charge disputes comes down to the quality of the landlord’s records. Landlords should ensure that service charge demands, consultation documents, invoices, accounts and supporting records are maintained accurately and can be readily produced if challenged. Efficient record keeping is often one of the most effective ways of reducing risk and encouraging a successful Section 27A application.

If you are a leaseholder…

If you have concerns about a service charge demand, it is important to carefully review both your lease and the supporting documentation provided by the landlord or managing agent.

When looking at these documents, you should consider:

Are the costs recoverable under my lease?
Have the works or services actually been carried out?
Are the costs reasonable?
Has the landlord complied with any consultation requirements?
Have I been provided with adequate accounts, invoices and supporting documents to help me understand what I am being asked to pay?

In our experience, the strength of a Section 27a Application made by a leaseholder often depends on the documentary evidence available. It is therefore sensible to gather service charge demands, budgets, accounts, correspondence and any evidence relating to the works as early as possible.

How can we help?

Our Property Disputes team regularly advises both leaseholders and landlords on service charge disputes and Section 27A applications. We can help review service charge demands, leases, consultation procedures and supporting documentation and comment on the potential strengths and weaknesses of a claim. Obtaining advice early can help identify the key issues, preserve important documents and assess whether the dispute can be resolved through negotiation before formal proceedings become necessary.