Qualifying long-term agreements: the £100 a year consultation rule

England and Wales · Law checked 24 October 2026 · Not legal advice

Free tool: Section 20 calculator. Works for long-term contracts too: check whether your share is over £100 a year.

A qualifying long-term agreement (QLTA) is a contract the landlord enters for more than 12 months, for example lift maintenance, cleaning, fire alarm servicing or sometimes the management agreement itself. Under the consultation regulations, section 20 applies if any leaseholder's contribution under the agreement is more than £100 in an accounting period (England reg 4, SI 2003/1987; Wales has an equivalent rule).

If there was no consultation

Your contribution under that agreement can be capped at £100 per accounting period unless the tribunal dispensed with consultation.

How to spot one

• Ask under section 22 for copies of service contracts and their start and end dates.
• Look for rolling contracts with long minimum terms or notice periods.
• Check whether any notice of intention to enter the agreement was sent to you.

Some agreements are excluded (for example, certain contracts of employment and some agreements with associated companies, depending on the circumstances), so get advice if unsure.