18 month rule checker.
In short
A service charge cost incurred more than 18 months before it is demanded generally cannot be recovered from the leaseholder, unless within those 18 months the leaseholder was told in writing that the cost had been incurred and that they would later be required to contribute to it.
The checker
Use the date the cost was invoiced or paid, not when the work was done. Runs in your browser; nothing is sent anywhere. A guide to section 20B of the Landlord and Tenant Act 1985, not legal advice.
When does the 18 months start?
When the cost was incurred, which is generally when it was paid or invoiced rather than when the work was done or the budget was set. A demand served more than 18 months after that is too late for that cost.
How can a board protect itself?
By demanding balancing charges promptly after year end, and where a cost cannot be demanded in time, by writing to every leaseholder within the 18 months to say the cost has been incurred and that they will be asked to contribute. A general statement that costs may come is not enough; it needs to identify the cost.
Where does the rule bite most?
On balancing charges demanded late after the year end, on bills that arrive long after the work, and on costs carried over from a previous agent's year that nobody demanded before the handover.
Where Servanda comes in
Servanda asks when the oldest cost in a balancing or one-off demand was incurred and warns before issue if it is outside 18 months, so a late bill is caught while there is still time to write to the leaseholders.
Try it free for 30 days, no card · How it works for boardsThe law
The legislation is the authority; this tool is a plain guide for England, checked on 2026-11-02. Wales and Scotland have their own rules. Take advice on any particular building.