Leasehold Property Management in England: LTA 1985, Section 20 and Leasehold Reform 2024

Landlord and Tenant Act 1985 — the core leasehold legislation

The LTA 1985 (sections 18–30) is the primary statute governing service charges in England. It establishes the "reasonableness" test for service charges (s.19), the right to request a summary of costs (s.21), the right to inspect documents (s.22), and the right to challenge unreasonable charges at the First-tier Tribunal (Property Chamber). All qualifying leaseholders in England — from a one-bedroom flat in Manchester to a penthouse in Kensington — have these statutory rights regardless of what their lease says. IgeraFincas pre-loads LTA 1985 and explains which rights apply to each leaseholder based on their specific lease.

Section 20 consultation — major works and long-term agreements

Section 20 of the LTA 1985 (as amended by CLRA 2002) requires landlords to consult leaseholders before entering into a qualifying long-term agreement or carrying out qualifying major works. The consultation requires two Notices (Notice of Intention and Notice of Estimates), a 30-day response period for each, and requires the landlord to respond to leaseholder observations. If Section 20 is not properly followed, the landlord's recoverable costs are capped at £250 per leaseholder for major works or £100 per year for long-term agreements. IgeraFincas answers Section 20 compliance queries citing the LTA 1985 s.20 and the Landlord and Tenant (Notice of Completion of Qualifying Works) (England) Regulations 2004.

Leasehold Reform Act 2024 — what changed for English leaseholders

The Leasehold Reform Act 2024 (in force from various dates in 2024–2025) introduced significant changes for English leaseholders: (1) ground rent on new residential leases must be zero (peppercorn); (2) marriage value abolished in most lease extension premiums; (3) 990-year lease extension right confirmed; (4) right to manage non-residential threshold raised to 50% (from 25%); (5) new transparent tribunal fees for lease extension and enfranchisement applications. Important: the LRA 2024 does NOT retrospectively zero-ise ground rent on existing leases granted before 30 June 2022. IgeraFincas applies the correct LRA 2024 provisions based on the specific lease date.

Right to Manage and commonhold — the alternatives to traditional leasehold

The Right to Manage (CLRA 2002) allows qualifying leaseholders in England to take over management of their building without proving landlord fault. Requirements: the building must be self-contained, at least 2/3 of flats must be held on long leases, and no more than 50% of floor area can be non-residential (LRA 2024 raised this threshold). An RTM company must be incorporated and an RTM notice served on the landlord. Commonhold, introduced by CLRA 2002 and modified by LRA 2024, is an alternative to leasehold for new developments. IgeraFincas explains both options and the eligibility criteria for any specific building.

"Can my landlord start major works without consulting us?"

Section 20 LTA 1985 requires a two-stage consultation whenever qualifying major works will cost any leaseholder more than £250. The landlord must serve a Notice of Intention, allow 30 days for observations and contractor nominations, then serve a Notice of Estimates with a further 30-day response period. Non-compliance caps the landlord's recoverable contribution at £250 per leaseholder regardless of actual cost. A dispensation from the First-tier Tribunal (Property Chamber) is possible but must be applied for by the landlord, not leaseholders.

"I want to extend my 1996 lease — how does the new 2024 law affect the premium?"

The LRA 2024 removes marriage value from the premium calculation for most lease extensions — beneficial for holders of pre-2003 leases. You are entitled to a 990-year extension at a peppercorn ground rent. Because your lease was granted in 1996, some transitional provisions may affect the calculation. An RICS-qualified surveyor should be instructed for a formal valuation before serving a formal notice under the LRA 1993 as amended. The new statutory valuation methodology under LRA 2024 generally produces a lower premium than the pre-2024 rules for leases with fewer than 80 years remaining.

"My service charges doubled this year. Can I challenge them?"

Yes — under LTA 1985 s.27A you can apply to the First-tier Tribunal (Property Chamber) for a determination of whether service charges are reasonably incurred and/or whether the standard of works or services is reasonable. Before applying, you have the right to request a written summary of costs under s.21 and to inspect documents under s.22. Note the 18-month rule: charges incurred more than 18 months before the demand are not recoverable unless the leaseholder was notified of the charge within 18 months. IgeraFincas identifies whether the 18-month rule applies to any disputed item.

"Our managing agent is incompetent. Can we replace them without the freeholder's consent?"

Yes — under the Commonhold and Leasehold Reform Act 2002 qualifying leaseholders can exercise the Right to Manage without needing to prove landlord fault and without the freeholder's consent. You must incorporate an RTM company, ensure at least 50% of qualifying leaseholders join, and serve a formal RTM notice on the landlord giving 3 months' notice. The LRA 2024 raised the non-residential floor area threshold to 50%. IgeraFincas assesses eligibility, explains the RTM company formation process, and identifies any building-specific complications.