Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Service charge definition

What does Service charge mean? A service charge is a variable payment made by a tenant, leaseholder or other occupier to a landlord, owner or management/factoring company to recover the cost of providing, maintaining, repairing, insuring and managing common parts and shared services in a multi‑occupied building or estate (residential or commercial). It is typically budgeted annually, demanded on account, and later reconciled by a balancing charge or credit. Apportionment is usually set by the lease or title (for example, a fixed percentage, floor area, rateable value or a “fair proportion”). Demands commonly include managing agent fees and contributions to reserve/sinking funds, and...

Residential service charge consultation under s.20 LTA 1985: qualifying works, long-term agreements, procedures, dispensation and limits on recovery (England and Wales)

Published by a LexisNexis Property Disputes expert

Practice notes

Overview of consultation process

The flowchart below sets out a straightforward overview of the matters to weigh up when deciding whether consultation is required and, if so, the sequence of steps to follow. It is not a replacement for the fuller guidance that appears below, which should be consulted at every stage.

When do the consultation requirements apply?

The landlord must consult with tenants before any of the following occur:

carrying out qualifying works that will mean the contribution of any tenant towards those works exceeds £250, or
entering into a qualifying long-term agreement where the costs will result in the contribution of any tenant being more than £100 within any 12-month accounting period

This process is often informally called 's 20 consultation', a shorthand derived from sections 20–20ZA of the Landlord and Tenant Act 1985 (LTA 1985).

Its purpose is to ensure that, where a landlord plans to undertake either qualifying works or to enter into a qualifying long-term agreement, they must first consult leaseholders, giving them the chance to have their say by understanding the nature of the works or agreement proposed and by suggesting candidates for selection...

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Web page updated on 21/05/2026

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