In a recent real-world example, a leaseholder offered to review the building’s 2025 service charge accounts and formally requested the supporting receipts and invoices. The managing agent blocked the request, stating that because the annual accounts had been reviewed by independent accountants, they were sufficient—adding that any discussion of errors was a matter for the Board alone. This response is not just an administrative stonewall; it is flatly illegal.
Service charges in leasehold buildings represent a major annual cost, yet many leaseholders face immediate friction when they ask for transparency. A common defense tactic used by managing agents and resident boards is the “Board Only” excuse: the claim that detailed financial scrutiny is strictly a matter for directors.
In a recent real-world example, a leaseholder offered to review the building’s 2025 service charge accounts and formally requested the supporting receipts and invoices. The managing agent blocked the request, stating that because the annual accounts had been reviewed by independent accountants, they were sufficient—adding that any discussion of errors was a matter for the Board alone.
This response is not just an administrative stonewall; it is flatly illegal.
Your Statutory Weapons: Sections 21 and 22
Under the Landlord and Tenant Act 1985, leaseholders hold absolute, individual statutory rights to financial information. You do not need the permission, approval, or blessing of a resident board to see where your money went.
Let’s repeat this one more time; You do not need the permission, approval, or blessing of a resident board to see where your money went.
1. Section 21: The Written Summary
You have the right to demand a regular, written summary of the costs making up your service charges for the last accounting year.
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The Deadline: The landlord or agent must provide this within one month of your request (or six months from the end of the accounting period, whichever is later).
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The Rule: If the building contains more than four dwellings, this summary must be formally certified by a qualified accountant.
2. Section 22: The Right to Inspect the Receipts
A high-level summary is rarely enough to spot overcharging. Once you receive that Section 21 summary, you have a six-month window to inspect the underlying proof.
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What You Can See: You are legally entitled to inspect the actual accounts, receipts, invoices, insurance policies, and service contracts.
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The Deadline: The landlord must make these documents available free of charge within one month of your request, and they must remain accessible for a further two months. You have the right to take copies (subject to reasonable copying fees).
⚠️ The Criminal Element: Section 22(2)
Failing to comply with a Section 21 or Section 22 request without a reasonable excuse is a summary criminal offence. Managing agents and landlords who ignore these requests face prosecution in the Magistrates’ Court and uncapped fines. The law does not care if an agent thinks their high-level summary is “sufficient”—denying access to the raw invoices is a crime.
Why “Board-Reserved” Responses Fail the Legal Test
Managing agents frequently treat invoice requests as a sign of distrust or a personal inconvenience. They will deploy classic, deflection phrases designed to get leaseholders to back down:
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“The accounts are already audited, so you don’t need to see the bills.”
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“Only the Board of Directors can discuss variances or financial errors.”
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“Providing raw invoices is too administratively burdensome.”
In reality, Section 19 of the Landlord and Tenant Act 1985 states that service charges can only be recovered if they are reasonably incurred and if the works match a reasonable standard.
An auditor only checks that the math adds up; they do not check if a lift company charged you for a broken emergency alarm or if a contractor overcharged for cleaning. The people paying the bills have a standalone legal right to verify that those costs are reasonable.
Recent Reforms: The Transparency Push
The push for transparency is accelerating. The Leasehold and Freehold Reform Act has fundamentally shifted the power balance by introducing:
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Mandatory, standardized service charge demand formats so agents can no longer hide costs in vague categories.
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A statutory framework explicitly expanding a leaseholder’s right to request invoices, insurance commissions, and underlying contracts.
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A complete reversal on legal fees: leaseholders can no longer be forced to pay their landlord’s legal costs simply for challenging unreasonable service charges at a Tribunal.
What to Do If You are Being Stonewalled
If you receive a “Board Only” response, do not argue. Pivot immediately to a formal legal track:
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Serve the Notice in Writing: Formally cite Section 21 and Section 22 of the Landlord and Tenant Act 1985 in your email or letter. Use the words “Failure to comply constitutes a summary offence under Section 22(2) of the Act.”
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Document Everything: Keep a precise paper trail of the dates your requests were sent and the exact wording of their refusals.
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Escalate to the First-tier Tribunal (Property Chamber): If they refuse access or if the bills look heavily inflated once you see them, apply under Section 27A for a formal determination on whether the service charges are actually payable.
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Report to Local Authorities: Because non-compliance is a criminal matter, local housing authorities have the power to prosecute rogue landlords and agents who refuse to open their books.
Final Thoughts
Telling a leaseholder they are not entitled to see individual expenses is a dangerous misconception born out of poor training or deliberate evasion. Proactive, inquisitive leaseholders are not “interfering”—they are exercising basic financial oversight over their own investments.
If your managing agent tells you that the invoices are for “Board eyes only,” remind them of the law, remind them of the criminal penalties, and demand to see the bills.
At Stonelink International, we welcome the opportunity to review your specific tenancies or simply talk through your options. Just call direct on: + 44 (0) 207 993 4081 or contact us now for a fast response.
