Selling a leasehold flat with a service charge dispute: what to know

England and Wales · Law checked 24 October 2026 · Not legal advice

You can sell a flat while disputing service charges, but the dispute will come up in the conveyancing, so it's best to plan for it.

The paperwork

• Your forms: as seller you complete the Law Society's property forms, including the leasehold information form (TA7). Answer questions about disputes honestly: wrong or incomplete answers can lead to a misrepresentation claim.
• The management pack: the buyer's solicitor asks the landlord or agent for leasehold information, usually on form LPE1. It covers the budget, accounts, arrears, planned major works, the reserve fund and any disputes.
• Fees: agents charge for this pack. There is currently no legal cap. The 2024 Act has powers to regulate these charges, but they are not yet in force (October 2026). A pack fee is an administration charge if payable under the lease, so it must be reasonable.

On completion

• Arrears are usually expected to be cleared on or before completion. Paying disputed sums "under protest" can keep your challenge open (see paying under protest).
• Apportionment: the current year's service charge is normally split between you and the buyer at the completion date.
• Retention: the buyer may ask for money to be held back from your sale proceeds to cover a future balancing charge or major works bill. Agree in writing how much, for how long and how it is released.
• Reserve fund: contributions usually stay with the building, not with you. Some sellers reflect this in the price.

What happens to the dispute?

Once you sell, future demands go to the buyer. Who gets the benefit of any refund for past years depends on your contract with the buyer and on the facts, so agree this through the solicitors. If a tribunal case is running, tell your solicitor early.

Tips

1. Tell your solicitor about the dispute at the start.
2. Keep a tidy file: demands, your dispute letter, replies and evidence.
3. Try to resolve or narrow the dispute before listing, if you can.

Questions