Leasehold Law, Leases and the Legal Framework
The statutory map
Leasehold management in England and Wales rests on a small group of statutes you must be able to separate under exam pressure: the Landlord and Tenant Act 1985 (service charges, insurance, s.20 consultation), the Landlord and Tenant Act 1987 (right of first refusal, appointment of a manager), the Leasehold Reform, Housing and Urban Development Act 1993 (collective enfranchisement, lease extension), the Commonhold and Leasehold Reform Act 2002 (right to manage, s.168 forfeiture notice, s.20C costs, pay-now-argue-later), the Building Safety Act 2022 and the Leasehold and Freehold Reform Act 2024, much of which is not yet in force.
The lease is the constitution
The lease defines the demised premises, rights granted and reserved, covenants, the apportionment mechanism (fixed percentage or floor-area based), insurance obligations, alteration rights and forfeiture. A manager's first step on any problem is to read the lease: questions frequently test whether a manager may charge for a service, enter a flat or recover legal costs, and the answer usually turns on a specific covenant.
Traps
The £250 consultation threshold is per leaseholder per accounting period, not the total contract value, and costs are aggregated across the period. Long-term agreements use £100 per leaseholder per year. Failing to consult caps each contribution unless the First-tier Tribunal grants dispensation under s.20ZA. Do not confuse the non-residential limit for right to manage (traditionally 25%, rising to 50% under the 2024 Act) with the level of tenant support a claim needs.
Worked example
A 40-flat block needs roof works costing £120,000: £3,000 per flat exceeds £250, so full s.20 consultation is required - notice of intention, 30 days for observations and contractor nominations, estimates, then 30 days for comment.