Section 20 Consultation Guidance Note
Section 20 consultation: What it is and what you need to know
What Triggers a Section 20 Consultation?
A Section 20 consultation is required if:
- Major works are planned that will cost more than £250 per leaseholder, or
- You are entering into a long‑term agreement (over 12 months) where the cost will exceed £100 per leaseholder per year.
“Major works” refers to significant repairs, improvements or renewals to communal parts of a building, including roof repairs, external decorations, structural works, lift repairs and similar projects.
Why Section 20 matters
The consultation process gives leaseholders:
- The right to be informed about proposed work or contracts
- The chance to comment on proposals or ask questions
- In some cases, the opportunity to nominate contractors for the work
- Assurance that you’ve taken leaseholder interests into account before spending their money
If the correct consultation isn’t followed, this can limit the amount you can recover through the service charge, for example, for major works the cap can be as low as £250 per leaseholder.
How the consultation works
For major works, the process will usually involve up to three notices sent to leaseholders and any recognised tenants’ association:
- Notice of Intention
- Sets out what works are proposed
- Explains why the works are necessary
- Invites leaseholders to give written comments and (in many cases) nominate a contractor
- Leaseholders usually have 30 clear days to respond
- Statement of Estimates
- Provides at least two contractor estimates, including one from someone unconnected to the landlord or managing agent
- Offers a further opportunity to comment (typically another 30 clear days)
- Notice of Reasons (if applicable)
- If you choose not to use the lowest tender, this notice explains why
- Confirms who has been appointed to do the work and summarises responses received during consultation
For long-term agreements, a shorter consultation may apply, but the key principles are the same: inform leaseholders, allow comments, and consider their input.
What leaseholders can do during consultation
During the consultation:
- Read each notice carefully as they explain what’s being proposed, why, and how you can respond
- Submit comments within the timeframes set out in the notices
- Where allowed, nominate contractors you think should be asked for an estimate
Engaging actively can help ensure the proposals are efficient and cost-effective for everyone involved.
In summary
Section 20 is a legal requirement designed to protect leaseholders and ensure transparency around major works and long‑term contracts. Although it can feel administrative, following the process correctly:
- Supports fair decision‑making
- Ensures leaseholder voices are heard
- Helps avoid financial restrictions on cost recovery
- Provides a clear and defensible audit trail
A well‑managed consultation process builds trust and ensures that works are delivered in the best interests of the building and its residents.