Your Rights as a Leaseholder

Laws like the Landlord and Tenant Act 1985 are there to make sure that charges are reasonable, and leaseholders can challenge unfair fees. Under Section 20, freeholders, which in our case is us, Incommunities, must consult leaseholders before major works. You can always request a breakdown of costs and dispute charges if needed.

Section 20 of the Landlord and Tenant Act 1985 is a legal requirement that ensures leaseholders are consulted before a freeholder or managing agent carries out major works or enters into a long-term agreement that will be funded through service charges.

How Does Section 20 Work?

If the cost of major works will exceed £250 per leaseholder, or if a long-term contract will cost more than £100 per leaseholder per year, the freeholder must follow a three-stage consultation process:

  1. Notice of Intention – Leaseholders are informed about the proposed works or agreement and given 30 days to provide feedback or suggest contractors.

  2. Notice of Estimates – The freeholder must obtain at least two quotes, one from an independent contractor, and share them with leaseholders, who again have 30 days to respond.

  3. Notice of Award – Leaseholders are informed of the chosen contractor and given a summary of any feedback received.

 

Why Is Section 20 Important?

This process ensures transparency and gives leaseholders a chance to voice concerns or suggest alternative contractors. If a freeholder fails to follow Section 20 correctly, leaseholders may challenge the costs through a tribunal.

Qualifying Long-Term Agreements (QLTAs)

A Qualifying Long-Term Agreement (QLTA) is a contract between a freeholder and a service provider that lasts more than 12 months and is over £100 per year and is funded through leaseholder service charges. These agreements typically cover services like building management, cleaning, maintenance, and utilities.


Why Are QLTAs Important?

QLTAs help ensure consistent service quality and long-term planning for building upkeep. However, because leaseholders contribute to the costs, freeholders must follow legal consultation requirements before entering into these agreements.

If a freeholder fails to consult properly, leaseholders may challenge the agreement, and the freeholder may be limited to recovering only £100 per leaseholder per year for the contract. Leaseholders can also dispute unreasonable costs through a tribunal.

Disputes & Challenging Charges

We understand that leasehold charges can sometimes feel confusing or unexpected. If you ever believe a charge is too high, unclear, or unfair, you have the right to challenge it. We must follow legal rules when setting charges, and you can always ask for more details.


What to Do If You Have Concerns

  1. Check your statement – Review the breakdown of costs and what they cover.

  2. Ask for clarification – If something seems unclear, contact your us or managing agent.

  3. Request a full cost breakdown – You have the right to see exactly how charges are calculated.

  4. Challenge unfair fees – If you believe a charge isn’t justified, you can dispute it via our complaints procedure.

How to Challenge Charges

  • Speak to us or managing agent - Many issues can be resolved informally.

  • Apply to a tribunal - If an agreement isn't reached, you can take your case to the First-tier Tribunal (Property Chamber) for a formal review.

  • Know your rights - Laws like the Landlord and Tenant Act 1985 require charges to be reasonable, and us as your freeholders must consult leaseholders on major works (Section 20 rules).


Free advice and support are available from organisations like the Leasehold Advisory Service (LEASE) to help you understand your rights.