Section 20 Glossary

Short definitions of the terms that come up in Section 20 notices and service charge demands, for leaseholders in England. Each is a simplified summary with the usual exceptions noted, not legal advice. Where a guide covers a term in depth, it’s linked.

Consultation thresholds (£250 and £100): The statutory amounts above which a landlord normally has to consult: more than £250 from any one leaseholder for qualifying works, or more than £100 in an accounting period for a qualifying long-term agreement. They are not caps on what can be charged. Read the guide: The £250 / £100 Thresholds
Dispensation: A First-tier Tribunal decision that some or all of the consultation requirements need not be met, made if the tribunal is satisfied it is reasonable. It can be granted on conditions, and isn't available for works to which section 20D applies (certain building-safety remediation works). Read the guide: Dispensation Applications
First-tier Tribunal (Property Chamber): The tribunal in England that can decide whether a service charge is payable and reasonable (section 27A), and that hears landlords' dispensation applications. Read the guide: Which Escalation Route
Housing Ombudsman: A free complaints scheme for landlords that are members of it. Social landlords (councils and housing associations) are required to be members; private landlords and managing agents can join voluntarily. It looks at complaint handling and service, not whether a charge is payable. Read the guide: Which Escalation Route
LEASE (the Leasehold Advisory Service): A government-funded body that gives free initial advice to leaseholders in England, at lease-advice.org.
Managing agent: A company that manages a building on the landlord's behalf. It often sends Section 20 notices and service charge demands for the landlord.
Nomination (of a contractor): Under the ordinary procedure, a leaseholder or recognised tenants' association can propose, within the observation period, a person from whom the landlord should try to obtain an estimate. Where public notice is required, there's no nomination right.
Notice of intention: The first Section 20 document under the ordinary procedure for qualifying works. It normally describes the works (or says where to inspect a description), gives the landlord's reasons, invites written observations within the relevant period and invites contractor nominations. Read the guide: What a Notice Looks Like
Notice of proposals: The document a landlord normally sends, in place of a statement of estimates, when consulting on a qualifying long-term agreement.
Notice of reasons: Under the ordinary procedure, a notice normally sent within 21 days of the landlord entering into the contract, explaining the choice, where the contractor is neither a nominee nor the lowest estimate.
Observations: Written comments a leaseholder sends the landlord about proposed works or estimates during the relevant period. The landlord must have regard to observations made in time. Read the guide: Writing an Observation Letter
Prejudice (in dispensation cases): Whether leaseholders were harmed by a failure to consult. Following Daejan Investments Ltd v Benson, this can include harm to their ability to take part, such as scrutinising estimates or nominating a contractor, not only a provably different final cost. Read the guide: Dispensation Applications
Public notice procedure: A different consultation procedure used where works or agreements have to be advertised under public procurement rules, often by councils and some housing associations. The documents differ, and leaseholders don't have a right to nominate a contractor.
Qualifying long-term agreement: An agreement entered into by or on behalf of the landlord (or a superior landlord) for a term of more than 12 months, such as a multi-year cleaning or maintenance contract, subject to exclusions in the 2003 Regulations. Read the guide: The £250 / £100 Thresholds
Qualifying works: Works on a building or any other premises (section 20ZA). Consultation is normally needed where any one leaseholder's contribution would be more than £250. Read the guide: The £250 / £100 Thresholds
Recognised tenants' association: A residents' group formally recognised under section 29 of the Landlord and Tenant Act 1985. It receives consultation notices and can nominate a contractor.
Relevant period (observation period): The period of 30 days beginning with the date of a consultation notice, during which leaseholders can send written observations. The end date printed on the notice is the one to rely on.
Section 20 consultation: The process set by section 20 of the Landlord and Tenant Act 1985 and the 2003 Regulations that a landlord in England normally has to follow before charging leaseholders above the consultation thresholds. If it isn't followed, recovery is normally limited to the threshold amounts unless dispensation is granted. Read the guide: Section 20 Notices Explained
Section 20B (the 18-month rule): A leaseholder generally isn't liable for costs incurred more than 18 months before they were demanded, unless they were told in writing within those 18 months that the costs had been incurred and that they would be required to contribute. Read the guide: The 18-Month Rule
Section 21 summary of costs: A leaseholder's right to ask the landlord in writing for a summary of the costs behind the service charge. The Leasehold and Freehold Reform Act 2024 will replace section 21 when that part comes into force.
Section 22 inspection: After receiving a section 21 summary, a leaseholder can ask, normally within six months, to inspect the accounts, receipts and other documents supporting it and take copies.
Service charge: An amount a leaseholder pays, in addition to or as part of the rent, for services, repairs, maintenance, improvements, insurance or management, which varies with the landlord's costs (section 18).
Statement of estimates: The second document under the ordinary procedure. It normally sets out at least two estimates (at least one from a contractor wholly unconnected with the landlord), summarises observations and responses, says where all estimates can be inspected and invites observations. Read the guide: Reading a Statement of Estimates

For free, independent advice on your own situation, contact LEASE or a solicitor.