Legal & Tenure

What is a Section 20 Notice? How Leaseholders Are Consulted on Major Works

A Section 20 notice is the formal consultation a freeholder must carry out before spending above a set threshold on major works. Leaseholders who understand the process can protect themselves from excessive charges.

Published: 16 Mar 2026 · Updated: 16 Mar 2026 · 7 min read

#PropertyLaw#UKConveyancing#Section20#Leasehold#ServiceCharge#PropertyPassportUK

What is Section 20?

Section 20 of the Landlord and Tenant Act 1985 (as amended by the Commonhold and Leasehold Reform Act 2002) sets out the consultation procedure a landlord or management company must follow before carrying out "qualifying works" costing more than £250 per leaseholder, or before entering a "qualifying long-term agreement" for services costing more than £100 per leaseholder per year.

The purpose is to give leaseholders the opportunity to comment on proposed works, obtain estimates, and nominate their own contractors, acting as a check on potentially inflated charges.

The Three Stages of Section 20 Consultation

Stage	Leaseholder right	Deadline for landlord
Notice of Intention	Nominate contractor; make observations	Must allow 30 days
Notice of Estimates	Review estimates; make further observations	Must allow 30 days
Notice of Award	Receive statement of reasons if cheapest not selected	Within 21 days of award

**Stage 1, Notice of Intention:** The landlord must describe the proposed works, state why they are necessary, and invite leaseholders to submit observations and nominate a contractor within 30 days.

**Stage 2, Notice of Estimates:** After obtaining at least two estimates (one of which must be from a nominated contractor if one was nominated), the landlord serves a Notice of Estimates and invites further observations within 30 days.

**Stage 3, Notification of Award:** If the landlord does not select the lowest estimate, they must within 21 days provide a statement of reasons to any leaseholder who requested one.

What Happens If the Landlord Fails to Consult?

If a landlord carries out qualifying works without following the Section 20 procedure, the amount they can recover from each leaseholder through the service charge is capped at £250, regardless of the actual cost. For expensive works such as roof replacements or cladding remediation, this can represent a very significant shortfall that the landlord must absorb.

Landlords can apply to the First-tier Tribunal (Property Chamber) for dispensation from the consultation requirements where there is genuine urgency (for example, emergency repairs).

How Leaseholders Can Challenge Charges

If you believe you have been charged for works carried out without proper Section 20 consultation, or if the charges are unreasonable, you can apply to the First-tier Tribunal (Property Chamber) to determine whether the service charge is payable. The Leasehold Advisory Service (LEASE) provides free guidance on the process.

Property Passport UK allows leaseholders to store Section 20 notices and major works correspondence against their property record, maintaining a clear audit trail of the consultation process.