Leaseholders could save money on high service charges and up to £3,000 on legal fees under new regulations.

Under Right to Manage (RTM), leaseholders will no longer have to cover freeholders' legal fees during the claim, which is expected to save around £3,000.

RTM allows homeowners of a leasehold property to take over management of their building, even without freeholder agreement, and ultimately choose who supplies their services which could save money.

Co-founder of financial firm Raisin, Kevin Mountford, said: "Many leaseholders face inflated service charges that can feel like an unavoidable financial burden, but there are ways to challenge and reduce these costs.

"Start by requesting a full breakdown of charges from your managing agent or freeholder — transparency is key. Compare costs with similar properties to identify overcharges, and if something seems excessive, don’t hesitate to negotiate."

Leaseholders have to give notice to their landlord to create a RTM company, and they have a right to be a member with at least one vote on decisions, which can rise depending on the amount of flats they own.

Mr Mountford said: "In some cases, collective action such as forming a Right to Manage company can give leaseholders direct control over service costs, often reducing them by 20-30%.

"This could save you hundreds, if not thousands of pounds a year. Leaseholders have the legal right to challenge unfair charges via a tribunal, which can lead to significant savings."

RTM applies when the building contains at least two flats, and at least two-thirds of the flats must be owned by long leaseholders of more than 21 years when first granted.

At least half of the flats must take part, and it won't qualify if non-residential areas such as shops or restaurants make up more than 25% of the whole floor area of the building.