Section 20 of the Landlord and Tenant Act 1985 requires landlords and managing agents to consult leaseholders before carrying out qualifying works costing more than £250 per leaseholder. Here's what you need to know.

Understanding Section 20 Consultations: A Guide for Leaseholders and Directors

Major works can be one of the most significant expenses faced by leaseholders. Whether the project involves roof repairs, external decorations, lift replacement, fire safety upgrades or structural works, it is important that the correct consultation procedures are followed.

Section 20 of the Landlord and Tenant Act 1985 sets out the consultation requirements that landlords, Resident Management Companies (RMCs) and Right to Manage (RTM) Companies must follow before carrying out certain works and entering into long-term agreements.

What is a Section 20 Consultation?

A Section 20 consultation is a statutory process designed to ensure leaseholders are informed about major expenditure and have an opportunity to comment on proposed works.

Consultation is generally required where:

The cost of qualifying works exceeds £250 per leaseholder; or
A qualifying long-term agreement will cost an individual leaseholder more than £100 per year.

The process provides transparency and helps ensure leaseholders are involved in significant decisions affecting their building.

The Three Stages of a Section 20 Consultation

Stage 1 – Notice of Intention

The landlord or managing agent serves a Notice of Intention describing the proposed works and inviting observations from leaseholders.

Leaseholders are also entitled to nominate contractors for consideration.

Stage 2 – Statement of Estimates

Once quotations have been obtained, a Statement of Estimates is issued setting out the estimated costs and providing leaseholders with an opportunity to inspect the quotations.

Any observations received must be considered before a decision is made.

Stage 3 – Notice of Reasons

Where the selected contractor is not the lowest tender or a leaseholder-nominated contractor, a Notice of Reasons may be required explaining the decision.

This helps ensure transparency and accountability throughout the procurement process.

Why is Section 20 Compliance Important?

Failure to comply with Section 20 consultation requirements can have serious financial consequences.

Unless dispensation is granted by the First-tier Tribunal (Property Chamber), recovery of costs may be limited to:

£250 per leaseholder for qualifying works; or
£100 per leaseholder per year under qualifying long-term agreements.

For major projects costing tens or hundreds of thousands of pounds, failure to consult correctly can create significant financial exposure.

Emergency Works and Section 20 Dispensation

In some situations, urgent works cannot wait for the full consultation process to be completed.

Examples may include:

Dangerous structural defects
Significant water ingress
Fire safety risks
Lift failures affecting vulnerable residents
Critical building service failures
Health and safety emergencies

In these circumstances, an application can be made to the First-tier Tribunal for dispensation from the consultation requirements.

The Tribunal will consider whether leaseholders have suffered any relevant prejudice as a result of the consultation process not being followed in full.

Whilst emergency works may need to proceed quickly, it is still important to keep leaseholders informed and maintain clear records explaining the reasons for urgency.

Best Practice for Directors and Managing Agents

Successful major works projects depend on:

Early planning
Clear communication
Competitive tendering
Accurate budgeting
Proper consultation
Detailed record keeping

Directors should seek professional advice at an early stage to ensure compliance and avoid unnecessary disputes.

How Archery Estates Can Help

At Archery Estates, we regularly manage Section 20 consultations on behalf of Freeholders, RTM Companies and Resident Management Companies.

Our experience includes major refurbishment projects, fire safety works, lift replacements, insurance reinstatement projects and Building Safety Act related works.

We can assist with:

Preparing consultation notices
Tendering and contractor procurement
Leaseholder communication
Major works planning
Emergency works procedures
First-tier Tribunal dispensation applications
Project management and cost control

Need Advice?

If your development is planning major works, considering a Section 20 consultation or facing an emergency situation requiring urgent action, contact Archery Estates for practical advice and support.