Leasehold Guide
Section 20 of the Landlord and Tenant Act 1985
Section 20 is the rule that stops leaseholders being handed a large bill for works they were never told about. It requires the landlord to consult before carrying out qualifying works or entering a long-term agreement.
When consultation is required
Two thresholds trigger the consultation requirements. For qualifying works — repairs, improvements or major projects — consultation is required if any one leaseholder's contribution would exceed £250. For a qualifying long-term agreement, meaning a contract lasting more than 12 months, consultation is required if any one leaseholder's contribution under it would exceed £100 in any accounting period.
Note that the test is per leaseholder, not the total value of the contract. On a large block a substantial project can fall below the threshold; on a building of four flats a modest job can exceed it.
The detail of the process sits in regulations made under Section 20, which set out the notices, the timescales and the information that must be given.
The consultation stages
For most major works the process runs in two stages, each with a 30-day period for leaseholders to respond.
- Notice of intention: describes the proposed works or explains where a description can be inspected, invites written observations within 30 days, and invites leaseholders to nominate a contractor
- Obtaining estimates: at least two estimates must be obtained, including one from any nominated contractor where possible, and one from a party unconnected to the landlord
- Notice of estimates: sets out the estimates, summarises the observations already received and the responses to them, and allows a further 30 days for observations
- Award and notification: where the cheapest estimate or a nominated contractor's estimate is not chosen, the reasons must be given to leaseholders
Section 20 questions
What happens if the landlord does not consult?
The amount recoverable from each leaseholder for those works is capped at the threshold — £250 for qualifying works — with the balance falling on the landlord. Dispensation from the requirements can be sought from the First-tier Tribunal, but it is granted on the facts and should not be relied on as a shortcut.
Does consultation mean leaseholders can veto the works?
No. Section 20 is a duty to consult and to have regard to observations, not a vote. But observations must be genuinely considered and responded to, and ignoring them tends to end in a dispute that costs more than listening would have.
Are emergency repairs covered?
Urgent safety works cannot always wait for a 60-day process. The lawful route is to apply to the tribunal for dispensation, ideally while keeping leaseholders informed throughout, rather than simply skipping consultation and hoping.
Does Section 20 apply to a long-term maintenance contract?
Yes, if it lasts more than 12 months and any leaseholder's contribution exceeds £100 in an accounting period. Lift maintenance, grounds maintenance and cleaning contracts commonly qualify.
Related pages
- Leasehold Service ChargesWhat a leasehold service charge covers, how budgets and reserve funds are set, when charges can be challenged, and what a managing agent should provide each year.
- Accounting for Service ChargesHow service charge accounts work: trust monies, budgets versus actuals, year-end certification, reserve funds, and how service charge accounts differ from company accounts.
- Residential Estate ManagementSpecialists in residential estate management for private estates, Residents' Management Companies and communal developments. We don't just administer estates. We manage them.
Facing major works?
We run Section 20 consultation and project management for the developments we manage, from notices through to final account.