Residential—statutory consultation procedure for service charges
Residential—statutory consultation procedure for service charges

The following Property guidance note provides comprehensive and up to date legal information covering:

  • Residential—statutory consultation procedure for service charges
  • When do the consultation requirements apply?
  • Tenancies bound by the consultation requirements
  • Who must be consulted?
  • Consultation process for qualifying (major) works
  • Section 20 three-stage consultation procedure (qualifying works)
  • Notice of intention (qualifying works) (stage one)
  • Statement of estimates (qualifying works) (stage two)
  • Notice of reasons (qualifying works) (stage three)
  • Consultation process for qualifying long-term agreements
  • more

When do the consultation requirements apply?

A landlord must consult with its tenants before:

  1. undertaking qualifying works (defined in section 20ZA of the Landlord and Tenant Act 1985 (LTA 1985) as meaning works on a building or any other premises) which exceed an appropriate amount. Currently the appropriate amount under Service Charges (Consultation Requirements) (England) Regulations 2003, SI 2003/1987 (the ‘Consultation Requirement Regulations’) is an amount which results in the relevant contribution of any tenant being more than £250), or

  2. before entering into a qualifying long-term agreement (defined in LTA 1985, s 20ZA as meaning an agreement entered into, by or on behalf of the landlord or a superior landlord, for a term of more than 12 months):

    1. if relevant costs incurred under the agreement exceed an appropriate amount, or

    2. if relevant costs incurred under the agreement during a period prescribed by the regulations exceed an appropriate amount

  3. currently under the Consultation Requirement Regulations, if relevant costs incurred under the agreement in any accounting period exceed an amount which results in the relevant contribution of any tenant, in respect of that period, being more than £100

The consultation is often colloquially referred to as 's 20 consultation', derived from LTA 1985, ss 20–20ZA. The objective is to ensure that where a landlord is intending to undertake either qualifying works