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Glossary

Glossary for block and property managers: 14 terms in plain English

Each definition is taken from one of our guides, which gives the rule in full and where it comes from. The terms are in alphabetical order.

18-month rule (section 20B)

A cost incurred more than 18 months before it is demanded cannot be recovered through the service charge unless the leaseholder was told in writing, within those 18 months, that the cost had been incurred and would be charged. Of the four statutory tests on a demand it is the only one that loses the money for good.

Free tool: Service charge demand checker: the 18-month rule and the three things every demand must carry

Source: Landlord and Tenant Act 1985, section 20B

Apportionment

The share of a block's costs that each flat pays under its lease. A flat with a 4.5% share of a £48,000 budget and a £6,000 reserve contribution pays £2,430 a year, or £1,215 on each half-yearly demand.

Free tool: Service charge apportionment calculator: what each flat pays and the works cost that triggers Section 20

Source: Our own arithmetic, in tests/warden/tools-check.txt

Dispensation (section 20ZA)

A tribunal order allowing a landlord to recover the cost of works without having completed Section 20 consultation. The application goes on form Leasehold 5 and costs £200 to issue plus £300 if a hearing is listed, on fees in force from 13 July 2026.

Full guide: Section 20 dispensation: how to apply under section 20ZA, what it costs and what the tribunal looks for

Source: Landlord and Tenant Act 1985, section 20ZA; First-tier Tribunal fees from 13 July 2026

Forfeiture

A landlord's right to end a lease for breach, including non-payment. It is unavailable for arrears of £350 or less unless they have been outstanding for more than three years, and a service charge that is neither admitted nor determined cannot found forfeiture at all.

Free tool: Service charge arrears letter template for managing agents: three letters before the solicitor

Source: SI 2004/3086; Housing Act 1996, section 81

Higher-risk building

A building of at least 18 metres or 7 storeys with at least 2 residential units. At that height the landlord owes the Building Safety Regulator registration, a safety case report and a resident engagement strategy. A 12-metre building with 2 flats is not higher-risk.

Full guide: The Building Safety Act for managing agents: which buildings are caught and what the duties are

Source: Building Safety Act 2022

Leasehold and Freehold Reform Act 2024

The 2024 Act that changes leasehold law in stages. As at 1 October 2026 we count three commencement orders: building-safety amendments on 31 October 2024, the end of the two-year ownership rule on 31 January 2025 and right to manage changes on 3 March 2025. Part 4, on service charges, is not in force.

Full guide: Leasehold and Freehold Reform Act 2024: what is in force for managing agents on 1 October 2026

Source: SI 2024/1018, SI 2025/57 and SI 2025/131

Regulation 10 fire door checks

In a block of flats above 11 metres in England, communal fire doors must be checked at least every 3 months and flat entrance doors at least every 12 months on a best endeavours basis, with a record of every attempt to gain access. A 40-flat block with 12 communal doors needs 88 checks a year.

Free tool: How often must fire doors be checked in a block of flats? The 11-metre rule, the access record and a check sheet

Source: Fire Safety (England) Regulations 2022, regulation 10

Relevant building

A building of at least 11 metres or 5 storeys with at least 2 dwellings, to which the Building Safety Act's leaseholder protections apply. Its landlord owes the cost caps and certificates even where the building is too low to be a higher-risk building.

Full guide: The Building Safety Act for managing agents: which buildings are caught and what the duties are

Source: Building Safety Act 2022

Relevant period

The time leaseholders have to make observations at each stage of a Section 20 consultation: 30 days beginning with the date of the notice. The date of the notice is day one, so a notice of intention dated 6 October 2026 closes on 4 November, not 5 November.

Full guide: The Section 20 consultation process, stage by stage, with what each notice must say

Source: Service Charges (Consultation Requirements) (England) Regulations 2003

Residential PEEP

A personal emergency evacuation plan for a resident whose ability to get out without help is compromised by a cognitive or physical impairment or condition. The 2025 regulations came into force on 6 April 2026 and cover blocks of at least 18 metres or seven storeys, and blocks over 11 metres that have a simultaneous evacuation strategy.

Free tool: Residential PEEPs: which blocks are caught from 6 April 2026, what the responsible person must do, and a letter to residents

Source: Fire Safety (Residential Evacuation Plans) (England) Regulations 2025

Right to manage handover

When leaseholders take over management through a right to manage company, the outgoing landlord or agent must supply information within 28 days of a notice asking for it. An ordinary change of managing agent is different: no statute lists what must be handed over, and the RICS code asks for a final reconciliation within three months.

Full guide: Taking over a block from another managing agent: a handover checklist and the clocks that keep running

Source: Commonhold and Leasehold Reform Act 2002; RICS Service Charge Residential Management Code, 4th edition

Section 20 consultation

The consultation a landlord must carry out before works that will cost any one leaseholder more than £250. Without it, or a dispensation, the landlord can recover only £250 from each leaseholder. On a £48,000 roof job across 24 equal shares that is £6,000, leaving £42,000 unrecovered.

Free tool: Section 20 checker: does this job need consultation, and what are the dates?

Source: Landlord and Tenant Act 1985, section 20; Service Charges (Consultation Requirements) (England) Regulations 2003

Section 21 summary

A written summary of service charge costs that a leaseholder can ask for. Where the charges are payable by tenants of more than four dwellings it must be certified by a qualified accountant as a fair summary supported by accounts, receipts and other documents. The section does not use the word audit.

Full guide: Do service charge accounts need to be audited? What the Act requires, what the lease requires, and the difference

Source: Landlord and Tenant Act 1985, section 21

Section 22 inspection

A leaseholder's right to inspect the accounts, receipts and other documents behind a cost summary. The request must come within six months of getting the summary. The landlord must open the file within one month and keep it open for two months, free of charge.

Free tool: Leaseholder asks to see the invoices: how to answer a section 22 request, with the dates and a reply template

Source: Landlord and Tenant Act 1985, section 22

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AEO Lookup editorial team

We write practical guides for people who run small UK firms, and we check every fact against its source on the date shown. Read how we review, or tell us if something has changed.