# Qualifying long-term agreement

A contract made by or for the landlord (or the company managing the block) for a term of more than 12 months, which needs Section 20 consultation if any leaseholder would pay more than the set amount a year towards it.

Also called: QLTA, long-term agreement.

Common examples are a managing agent's contract, a lift maintenance contract or a cleaning contract that runs for more than a year, or rolls on automatically.

## When you must consult

If any one leaseholder's contribution to the agreement would be more than £100 in an accounting period, you must consult before signing. The steps are similar to those for works: a notice of intention, proposals (at least one from someone unconnected), and observations.

## A simple way to avoid it

Many small blocks keep contracts to **12 months or less**, so they're not long-term agreements at all. Check for automatic renewal clauses that could make a contract last longer.

If you don't consult when you should have, each leaseholder's contribution is capped at the threshold unless the tribunal grants [dispensation](https://runyourblock.co.uk/glossary/dispensation).

## Related terms

- [Section 20 consultation](https://runyourblock.co.uk/glossary/section-20-consultation)
- [Dispensation](https://runyourblock.co.uk/glossary/dispensation)
- [Managing agent](https://runyourblock.co.uk/glossary/managing-agent)

## Sources

- [Landlord and Tenant Act 1985, s.20ZA(2)](https://www.legislation.gov.uk/ukpga/1985/70/section/20ZA)
- [Service Charges (Consultation Requirements) (England) Regulations 2003, reg 4](https://www.legislation.gov.uk/uksi/2003/1987/regulation/4)
- [SI 2003/1987, Schedule 1 (consultation for qualifying long-term agreements)](https://www.legislation.gov.uk/uksi/2003/1987/schedule/1)

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Updated 22 October 2026. Source: https://runyourblock.co.uk/glossary/qualifying-long-term-agreement