Long-Term Agreements and Public-Notice Consultation Explained

The short answer

The 2003 Consultation Regulations set five Section 20 procedures, not one. Where a landlord enters a long-term agreement (a contract for more than 12 months), carries out works under one, or has to advertise a contract publicly, the documents and steps differ from the ordinary procedure. You can still make written observations, but under public notice there is no right to nominate a contractor, and works under an existing agreement normally get a single notice.

The five procedures at a glance

Regulations 5 and 7 of the Service Charges (Consultation Requirements) (England) Regulations 2003 decide which schedule applies. The table below summarises what each schedule normally involves.

The ordinary procedure is covered step by step in the Section 20 consultation process explained. This guide covers the other four.

What a long-term agreement is

Section 20ZA of the Landlord and Tenant Act 1985 defines a qualifying long-term agreement as an agreement entered into by or on behalf of the landlord "for a term of more than twelve months". Typical examples are multi-year contracts for repairs, maintenance or management. Regulation 3 of the 2003 Regulations excludes some kinds of agreement.

Consultation applies to a long-term agreement where the costs under it in an accounting period would make any leaseholder’s contribution for that period more than £100 (regulation 4). For works, the figure is £250 per leaseholder. These are statutory thresholds, set by the Act and the Regulations.

Consultation on a long-term agreement (Schedules 1 and 2)

When a landlord plans to enter a long-term agreement, it normally sends a notice of intention describing the agreement (or saying where you can inspect a description), giving its reasons, and inviting written observations by a stated date.

• Not publicly advertised (Schedule 1): the notice also invites you to nominate someone the landlord should try to get an estimate from. The landlord then prepares at least two proposals, at least one with a party wholly unconnected with the landlord, and sends a notice of proposals inviting observations. Each proposal normally shows the estimated cost for each flat where that’s reasonably practicable, the agreement’s intended length, and a summary of earlier observations with the landlord’s response.
• Publicly advertised (Schedule 2): the notice must say why you aren’t invited to nominate. The landlord then sends one proposal naming the parties, any connection with the landlord, and the estimated costs (or the reasons they can’t yet be given and when they will be). The landlord must reply in writing to observations within 21 days of receiving them.

Works under an existing agreement (Schedule 3)

This is the procedure council and housing association leaseholders often meet without realising it. If the works are carried out under a long-term agreement that was itself consulted on, possibly years earlier, the works normally get one notice. It describes the works (or where to inspect a description), gives the landlord’s reasons, states the total estimated expenditure, and invites written observations by a stated date. The landlord must have regard to observations and reply in writing within 21 days of receiving them.

There is no nomination stage and no statement of estimates, because the contractor is normally chosen when the agreement is made. If your notice looks shorter than you expected, this may be why.

Works with a publicly advertised contract (Schedule 4 Part 1)

Where the landlord has to give public notice of the works contract, the notice of intention must say why you aren’t invited to nominate a contractor. The landlord then prepares a statement naming the proposed contractor and any connection with the landlord, and estimating each flat’s share of the cost where reasonably practicable (otherwise the total, or the current unit cost or rate). It sends you a notice inviting observations on that statement, and must reply in writing to observations within 21 days of receiving them.

Your observation period

Each notice invites written observations within the relevant period: 30 days beginning with the date of the notice (regulation 2). Our deadline calculator works out the usual last day, but the end date printed on your notice takes priority.

What stays the same

• If a landlord doesn’t follow the consultation requirements that apply and hasn’t been granted dispensation, what it can recover from each leaseholder is limited to the £250 or £100 statutory thresholds. Only the First-tier Tribunal decides whether to dispense with the requirements, and dispensation isn’t available for certain building-safety remediation works.
• Raising a question doesn’t pause any payment deadline. Get advice before withholding anything.
• Whether a particular notice or charge meets the rules is for the tribunal or a qualified adviser to decide, not this guide.

Questions you can ask

• Which consultation procedure is this notice under?
• If the works are under a long-term agreement, which agreement is it, when was it entered into, and when did consultation on it take place?
• Was the contract publicly advertised, and why are leaseholders not invited to nominate?
• Where and when can I inspect the description of the works or agreement?
• How has my share of the estimated cost been worked out?

Our free request letter templates can help you ask for cost information in writing. The council landlord directory shows who is likely to be the landlord for former council homes in each area.