The first Section 20 question is not simply whether a block's total budget looks large. Identify the legal category, the relevant costs and the contribution of each tenant under the leases. The English regulations use different tests for qualifying works and qualifying long-term agreements. This guide explains what information to assemble, how the shared HCS checker uses the current amounts, and why a consultation proposal must not be substituted for legislation that is actually in force.
The qualifying-works amount
Regulation 6 sets the amount by reference to a tenant's relevant contribution being more than £250. The phrase more than matters: equality does not exceed the amount. A total divided by the number of flats can help with an initial estimate, but it does not establish the highest share where lease percentages differ. Include relevant VAT where payable when assembling the contribution information.
Write down the cost description used for the check. Identify whether an allowance covers the work itself, access, related professional input or a wider package. Ask the appropriate adviser which costs and premises belong in the legal assessment. A result is only as useful as its inputs; a preliminary construction sum that omits known components should not become a certificate that consultation is unnecessary.
The separate agreement test
The agreement limb concerns a qualifying long-term agreement and a relevant contribution of more than £100 in an accounting period. Section 20ZA defines the agreement category by reference to a term of more than 12 months, subject to the legislation and exclusions. Check the actual agreement, including its termination and continuation provisions, before treating a service's informal annual label as decisive.
Keep the agreement value, accounting period and works budget in separate records. A cleaning or maintenance proposal should be read with its term and charging basis, not entered into the works calculation because that seems familiar. Conversely, work procured under an existing agreement raises its own procedural questions. Ask the client's legal adviser to confirm the route and whether any exception is relevant.
Use actual lease apportionments where available
Create a contribution schedule from the leases or an appropriately checked service-charge record. Note the source and date of the percentages, any separate schedules for different parts of the property and questions that remain unresolved. Do not assume the physical size of a flat determines its share. The relevant allocation comes from the documents and their proper interpretation, not a visual comparison of the building.
Where the highest actual share is known, enter it in the Section 20 contribution checker. If only an equal-split estimate is available, retain that limitation in the briefing. An average below a threshold can conceal another tenant's higher contribution. Ask for the missing information before relying on the result to organise procurement or respond to a resident's question.
A threshold calculation does not settle the whole instruction
Consultation, lease recoverability, reasonableness and the technical need for work are distinct questions. A calculation can compare a supplied contribution with a stated amount. It cannot decide whether a particular demand is payable, whether a notice has been served correctly or whether a repair specification is adequate. Keep the next question attached to the result rather than treating a number as an all-purpose approval.
For a works programme, assemble the condition record and the proposed procurement route alongside the contribution schedule. For an agreement, retain the proposed terms and accounting-period basis. If work is urgent or consultation has been missed, seek advice about the circumstances and any tribunal application. Do not alter the financial input merely to obtain a more convenient result from a tool.
What the reform material does and does not establish
Government has consulted on raising the thresholds and a draft Leasehold and Commonhold Reform Bill was published in January 2026. The consultation considered changes to the major-works regime, including threshold questions. A consultation is an invitation to consider proposals; publication of a draft Bill is also not commencement of replacement thresholds. Read the document's status, geographical scope and proposed legal mechanism before applying any suggested amount to a real instruction.
The government's response updated on 15 July 2026 distinguishes the reforms addressed in that response from further Section 20 and reserve-fund proposals, for which a separate response was promised. The current HCS figures remain linked to the operative regulations. Do not copy a proposed threshold from a headline into the checker or tell a board that an anticipated reform has removed its present consultation responsibilities.
Check the source date and the effective date separately
The regulations' commencement date is different from the date on which the sources were checked. A source check also does not record an individual technical review. That distinction matters when an older page is updated or a board forwards guidance months after first reading it. Revisit the linked statutory source before relying on an amount for a live decision.
In an instruction file, retain the version of the cost schedule and the legal advice used at the time. If the law changes during procurement, obtain advice on commencement and any transitional provisions rather than assuming the latest published figure applies retrospectively. A future amendment should lead to a controlled review of the calculation, explanatory wording and programme, with the decision recorded for the client.
Prepare a useful threshold enquiry
Send the proposed works or agreement, the relevant lease apportionments, the cost basis and the current stage. Identify notices already issued and any time-sensitive commitment. Describe uncertainties plainly, such as a missing lease schedule or an agreement with unclear renewal wording. This gives the responsible adviser a defined problem instead of asking for a general assurance based on the building's approximate total budget.
The HCS Section 20 technical support service can address the specification and tender information within an agreed appointment. Statutory notices remain with the landlord or managing agent, with their solicitor where required; HCS does not prepare or serve them or give legal advice. An independent leaseholder review first requires a conflict check, including any existing HCS managing-agent appointment for the block.