# Leasehold in England: service charges, ground rent and your rights > Many flats are leasehold, which means the owner pays ongoing charges to a landlord. This guide explains service charges, ground rent, the… - URL: https://centiview.com/uk-money/leasehold-service-charges-and-ground-rent - Published: 2026-10-21T16:16:00.000Z - Figures checked: 2026-10-21 - Edited by David A - Topic: Property & Renting (UK) - Publisher: Centiview (Persie Ltd, London) - General information only, not financial advice Many flats are leasehold, which means the owner pays ongoing charges to a landlord. This guide explains service charges, ground rent, the consultation thresholds and how to challenge a charge, with a worked example. ## What leasehold means If you own a leasehold property, you own it for a fixed period set by a lease, which is a legal agreement with the landlord, also called the freeholder. When the lease ends, ownership goes back to the landlord. Most flats are leasehold, and houses can be too, particularly those bought through shared ownership schemes. The lease sets what you pay, what you are responsible for, whether you need permission for alterations and who handles repairs, so its wording is the starting point for almost every question here. GOV.UK lists several rights that leaseholders have in England. You can ask for information about service charges and insurance, you can find out the name and address of your landlord, you should be consulted about certain maintenance and running costs, and in some circumstances you can challenge charges. If lease conditions are not followed, a court may order the leaseholder to pay for damage, and it can take the lease away, so the obligations matter as much as the rights. ## Service charges and building insurance A service charge is the amount a leaseholder pays towards the upkeep and running of the building, such as repairs, cleaning of shared areas and management. Your lease sets how the charge is organised and what can be charged. You can ask the landlord for a summary of how the charge is worked out and what it is spent on, together with supporting paperwork such as receipts. GOV.UK says the landlord must provide this and that failing to do so is a criminal offence. The landlord usually arranges buildings insurance (not your contents cover), and its cost normally forms part of the service charge. You can ask for a summary of the policy. If you think the cost is unreasonable, it can be challenged at a tribunal. Some leases also require payments into a reserve or sinking fund, a pot for unexpected large repairs such as a new roof, which is usually not refundable if you move. > **Key numbers** Consultation is required if your share of planned work would be more than £250, or more than £100 a year for work or services lasting more than 12 months. Ground rent on leases granted before 30 June 2022 can be recovered going back 6 years. Figures from GOV.UK, checked 21 October 2026. ## Consultation thresholds Before a landlord carries out larger works, leaseholders have a right to be consulted. This is often called Section 20 consultation, after the section of the law that created it. The right applies where your share of the cost of planned work would be more than £250, or where your share of a contract for work or services lasting more than 12 months would be more than £100 per year. If the landlord does not consult properly, there is a limit on how much you can be required to pay towards the cost. ## A worked example These figures are illustrative only. Suppose a block has 10 flats that each pay an equal share, and the landlord plans a roof repair costing £24,000. Each flat's share is £24,000 divided by 10, which is £2,400. That is well above the £250 threshold, so consultation applies. Now suppose a cleaning contract runs for three years at £1,500 a year across 12 flats. Each share is £1,500 divided by 12, which is £125 a year. That is above £100 a year, so consultation applies there too. If the same contract cost £1,200 a year, each share would be £100, which is not more than £100, so the threshold would not be crossed. Shares are not always equal, so check your own lease. ## Ground rent Ground rent is a payment some leaseholders make to the freeholder, separate from the service charge. For leases granted before 30 June 2022, GOV.UK says you only have to pay if the landlord has sent a formal written demand. If you do not pay after a demand, the landlord can take legal action, and unpaid ground rent can be recovered going back 6 years, with the landlord able to demand the whole amount at once. Increases are allowed only if you agree or the lease permits them. For example, if ground rent of £150 a year went unpaid for 8 years, the amount recoverable looking back 6 years would be 6 multiplied by £150, which is £900. The Leasehold Reform (Ground Rent) Act 2022 changed this for new leases. GOV.UK states it came into force on 30 June 2022 and that most new qualifying long residential leases in England and Wales must have a ground rent of one peppercorn a year, meaning no money is payable. Retirement properties are covered from 1 April 2023. Leases granted earlier but bought second-hand still carry any ground rent the lease requires. ## Challenging a charge and extending a lease If you think a service charge or insurance cost is unreasonable, the work is of poor standard, or you should not be paying it at all, you can apply to a tribunal. GOV.UK says you cannot apply if you have already agreed to pay the charge, if the dispute is already being dealt with by a court, or if you pay a fixed charge. Other routes include mediation and the Right to Manage, which lets some leaseholders change how the building is managed. You can ask your landlord to extend your lease at any time. GOV.UK says that, if you qualify, a flat lease may be extended by 90 years and a house lease by 50 years. Who qualifies and how the price is set are detailed questions, and the Leasehold Advisory Service offers a calculator for flats. ## Reform on the way A draft Commonhold and Leasehold Reform Bill has been published, and a parliamentary committee reported on it on 27 May 2026. We found no confirmation that a final law has been passed, so the rules above are those we could confirm today. Proposals can change before they are passed, so it can be worth checking GOV.UK and Parliament's website. - This guide applies to leasehold homes in England. Rules in Wales, Scotland and Northern Ireland differ. ## Check before you act Rules, thresholds and proposals can change, so it can be worth confirming the details on the official pages linked below and reading your own lease. Free help is available from the Leasehold Advisory Service. ### Sources - [GOV.UK, Leasehold property](https://www.gov.uk/leasehold-property) - [GOV.UK, Service charges and other expenses](https://www.gov.uk/leasehold-property/service-charges-and-other-expenses) - [GOV.UK, Leasehold Reform (Ground Rent) Act 2022 guidance](https://www.gov.uk/guidance/leasehold-reform-ground-rent-act-2022) - [GOV.UK, Extending, changing or ending a lease](https://www.gov.uk/leasehold-property/extending-changing-or-ending-a-lease) - [UK Parliament committees, Pre-legislative scrutiny of the draft Commonhold and Leasehold Reform Bill](https://api.parliament.uk/committees/work-packages/9587/publication-types/1)