Service charges are the single biggest source of complaints leaseholders bring to the Leasehold Advisory Service, and when a landlord becomes insolvent, those charges can suddenly feel like a black box. You might still be liable for the same costs, but the person you’re paying has changed, and the protections you thought you had may feel less certain. Here’s what you actually need to know.
I’ve been following leasehold reform for a while now, and the pattern I keep seeing is that service charge disputes are where most of the friction lives — even before insolvency enters the picture. When a landlord goes under, the usual routes for challenging an unreasonable charge can feel blocked, but they aren’t. The key is knowing which door to knock on and what paperwork to bring. If you’re also navigating a commercial lease, you might find our guide on key steps to renting a commercial space useful for understanding your broader rights.
What landlord insolvency actually means for your service charge
When a landlord becomes insolvent — whether through bankruptcy, administration, or liquidation — an insolvency practitioner steps in to manage the landlord’s affairs. Your lease doesn’t vanish. The Housing Act 1988 and the Rent Act 1977 still protect you. But the practical question is: who do you pay, and who fixes the leaky roof?
My first move would be to get written confirmation from whoever is now managing the property — the insolvency practitioner, the managing agent, or the landlord themselves — about where to send rent and service charges. Don’t rely on a phone call. A paper trail is your best friend here. If you’re unsure about the legal side of things, speaking with a tenant landlord lawyer can clarify your obligations without you having to guess.
Why this matters more than you might think
Service charges are already the single biggest subject of enquiry among leaseholders seeking advice, according to the Leasehold Advisory Service. When insolvency enters the picture, the risk is that charges become less transparent and harder to challenge. You might be asked to pay for major works that were never properly consulted on, or find that the sinking fund you’ve been contributing to has been swallowed by the landlord’s creditors.
Consider this scenario: your landlord enters administration halfway through a block of major roof repairs. The insolvency practitioner demands the full service charge for the work, but you were never given a proper consultation notice before the work started. Under the Leasehold and Freehold Reform Act 2024, you have stronger grounds to challenge that charge as unreasonable. The Act also scraps the presumption that leaseholders must pay their landlord’s legal costs when challenging service charges — a change that removes a significant barrier to holding landlords accountable.
What I tend to notice is that leaseholders often assume they have no leverage once a landlord is insolvent. That’s not true. The statutory protections in the Housing Act 1988 remain in force, and the tribunal can still decide whether a charge is reasonable. The difference is that you need to be more organised about your evidence and more proactive about who you contact. If you’re also dealing with a commercial lease, our article on navigating business rates covers a related area where charges can spiral if you’re not paying attention.
Where leaseholders commonly go wrong
Paying the wrong person and losing your money
The most common mistake is continuing to pay the landlord directly after insolvency, even though the insolvency practitioner now controls the accounts. If you pay the wrong party, you could be asked to pay again — and you’d have to join the queue of unsecured creditors to try to get your money back. Always get written instruction about where to send payments. If you’re unsure, a property lawyer can review the situation quickly.
Assuming your deposit is gone for good
If your deposit was protected under a statutory scheme, you can still pursue its return through the scheme or the First-tier Tribunal. The landlord’s insolvency doesn’t cancel the scheme’s obligations. But if the landlord held the deposit personally and didn’t protect it, you become an unsecured creditor in the insolvency process. That means you’ll need to submit a proof of debt form to the insolvency practitioner. The difference between these two outcomes is night and day, so check your deposit protection status immediately.
Ignoring major works consultation rights
The Leasehold and Freehold Reform Act 2024 strengthens your right to be consulted before major works begin. If the landlord or insolvency practitioner starts significant repairs without proper consultation, you can challenge the service charge as unreasonable. Don’t assume that insolvency suspends these rules — it doesn’t. The tribunal can still decide that the charge is unreasonable and reduce what you owe.
Failing to document everything
This one sounds basic, but it’s where most cases fall apart. Keep copies of your tenancy agreement, all rent receipts, photos of disrepair, and every letter or email from the landlord, agent, or insolvency practitioner. If you end up at the tribunal, the quality of your evidence often determines the outcome. A simple file — physical or digital — can save you thousands.
→ Scroll right to see all columns
| Issue | What changes at insolvency | What you should do |
|---|---|---|
| Rent payments | Payee may change to insolvency practitioner | Get written instruction before paying |
| Service charges | Still payable, but challenge rights remain | Scrutinise all charges for reasonableness |
| Deposit protection | Scheme protections continue if deposit was protected | Check status and pursue via scheme or tribunal |
| Major works | Consultation requirements still apply | Challenge if no proper consultation was given |
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Your practical guide to protecting yourself during landlord insolvency
Get written confirmation of who to pay
Contact the insolvency practitioner, managing agent, or landlord immediately and ask for written confirmation of where to send rent and service charges. Don’t accept verbal instructions. If you’re told to pay the insolvency practitioner, ask for their official contact details and a reference number for your account. Pay by bank transfer so there’s a clear electronic record. Keep every confirmation email and letter in a dedicated folder.
Apply to the tribunal for unresolved disputes
If you believe a service charge is unreasonable, or if your deposit hasn’t been returned, the First-tier Tribunal (Property Chamber) in England is your route. You can apply for a rent repayment order if you discover the landlord didn’t have required licences before insolvency. The application process doesn’t require a solicitor, but having your documents organised makes it much smoother. If the situation is complex, a small claims lawyer can help you prepare your case.
Report urgent repairs to the local council
If the property has serious health and safety hazards — like no heating, a gas leak, or structural damage — and the insolvency practitioner won’t act, contact your local council’s housing enforcement team. They have powers to force repairs even when the landlord is insolvent. Document the hazard with photos and dates, and keep a copy of your report to the council. This creates a paper trail that can support a later claim for compensation or rent reduction.
Understand the upcoming reforms
The Leasehold and Freehold Reform Act 2024 is being implemented in stages. A consultation running from July to September 2025 is gathering views on how to strengthen leaseholder protections over service charges and major works. The government has also committed to introducing mandatory qualifications for managing agents. These changes won’t fix your current problem overnight, but they signal that the direction of travel is toward more transparency and accountability. If you’re planning to challenge a charge, the new legal framework may give you stronger grounds than you realise. For more context on how property trends are shifting, our piece on commercial property trends covers what landlords may not be telling you.
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1Gather your documentsCollect your tenancy agreement, rent receipts, photos of disrepair, and all communication from the landlord or managing agent. Organise them in one file.
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2Confirm who to payContact the insolvency practitioner, managing agent, or landlord for written confirmation about where to send rent and service charges. Pay only as instructed.
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3Challenge unreasonable chargesIf a service charge seems unreasonable, apply to the First-tier Tribunal. Use the GOV.UK page for rent repayment orders if applicable.
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4Report hazards to the councilIf urgent repairs aren’t being done, contact your local council’s housing enforcement team. Keep records of your report.
Frequently asked questions
Can I be evicted just because my landlord is insolvent? ▾
What happens to my service charge if the landlord’s company goes into liquidation? ▾
My deposit wasn’t protected. Can I still get it back? ▾
Do I need a solicitor to apply to the First-tier Tribunal? ▾
Will the new 2024 Act help me challenge past service charges? ▾
Landlord insolvency is unsettling, but it doesn’t strip you of your rights. Your lease continues, your deposit may still be recoverable, and you can challenge unreasonable service charges through the tribunal. The most important step you can take right now is to get written confirmation of who to pay and start organising your documents. If this was useful, you might also want to read top maintenance tips for renting a commercial space in the UK.
Sources and Further Reading
The great office debate: is remote work really killing UK commercial leasing? — Explores how shifting work patterns are affecting commercial property demand and lease structures.
Tenant rights when your landlord is insolvent in England. Tenant Rights UK, 2025.
Strengthening leaseholder protections over charges and services consultation. UK Government, 2025.
