There is legislation relating to major service charge expenditure by the landlord or manager, which requires consultation with leaseholders when an amount of £250 or more is spent in relation to any leasehold flat. This also applies to any qualifying long-term agreement which is an agreement entered into by or on behalf of the landlord for a term of more than 12 months and if the annual amount payable by anyone leaseholder exceeds £100.
If the landlord fails to consult in accordance with the legislation, which is ‘Section 20 of the Landlord and Tenant Act 1985’, the landlord might be unable to recover any amount in excess of £250.
