The £100 long-term agreement rule

Contracts lasting more than 12 months normally require consultation when one leaseholder pays more than £100 in a year.

Service-charge first-pass checker

Type of chargeYour contribution (£)Months since the cost was incurred Section 20 consultation completed Written notice of the incurred cost received within 18 months Demand included the statutory rights summary

Points to check before accepting the demand

Section 20: consultation appears to have been required. Without proper consultation, recovery may be limited to £100 unless a tribunal grants dispensation.

This checker provides information, not legal advice. Do not simply stop paying a disputed charge without advice.

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What to do next

Read the lease, keep the full demand and notices, request supporting records where relevant, and get independent advice before withholding payment or starting tribunal proceedings.

Frequently asked questions

When is Section 20 consultation required?

For qualifying works, consultation is normally required when any one leaseholder must contribute more than £250. For a qualifying agreement lasting over 12 months, the threshold is more than £100 per leaseholder in a year.

What happens if the landlord did not consult?

Recovery may be limited to £250 for qualifying works or £100 per year for a qualifying long-term agreement, unless the tribunal grants dispensation.

What is the 18-month rule?

A cost is normally not recoverable if it was incurred more than 18 months before it was demanded, unless the leaseholder was notified in writing within that period that the cost had been incurred and would later be charged.

Can a service charge be challenged as unreasonable?

Yes. Variable service charges are payable only to the extent reasonably incurred, and works or services must be of a reasonable standard. The First-tier Tribunal can determine payability and amount.

Can I ask to see invoices?

You can request a written summary of relevant costs and, within six months of receiving it, ask to inspect accounts, receipts and other supporting documents.

Do the 2024 reforms already apply?

Not all of them. In July 2026 the government confirmed that major transparency and legal-cost reforms are intended to come into force from 2027. This checker uses the rules in force now and labels future reforms separately.

More leasehold guides

Educational triage for leasehold properties in England. It does not determine whether a charge is legally payable and is not legal advice. Check your lease and seek guidance from GOV.UK, LEASE or a qualified adviser.