Property Foundations

Section 20 Notice Guide

If your freeholder is planning major works or a long-term service contract, the law requires them to consult you first. This guide explains the Section 20 process, what to look out for at each stage, and what happens if your freeholder skips it.

1. What is a Section 20 notice?

Section 20 of the Landlord and Tenant Act 1985 requires your freeholder or managing agent to formally consult leaseholders before carrying out "qualifying works" or entering a "qualifying long-term agreement" where any individual leaseholder's contribution would exceed a set threshold.

Trigger Threshold
Qualifying works (repairs, improvements, one-off projects) Any leaseholder's contribution exceeds £250
Qualifying long-term agreement (a contract lasting more than 12 months, e.g. a cleaning or lift maintenance contract) Any leaseholder's contribution exceeds £100 per year

The consultation exists to give leaseholders visibility and a say before significant costs are committed on their behalf — it does not give leaseholders a veto, but it does require the freeholder to genuinely consider observations raised.

2. The three stages

Stage 1: Notice of Intention

The freeholder must describe the works or agreement they intend to carry out, explain why, and invite leaseholders to make written observations and nominate a contractor to be invited to tender. Leaseholders typically have 30 days to respond.

Stage 2: Notice of Proposals (Estimates)

After considering observations, the freeholder must obtain at least two estimates — one of which must be from a contractor unconnected to the freeholder or managing agent, and one from any contractor nominated by leaseholders (if reasonable). These estimates, along with a summary of observations received and the freeholder's response, must be circulated. Leaseholders again have 30 days to comment.

Stage 3: Notification of Award

If the freeholder chooses a contractor other than the cheapest, or one not nominated by leaseholders, they must explain why in writing within 21 days of awarding the contract.

3. Your rights during consultation

  • Submit written observations at both the Notice of Intention and Notice of Proposals stages, and expect them to be genuinely considered.
  • Nominate a contractor to be invited to provide an estimate.
  • Inspect the estimates that have been obtained, not just a summary of them.
  • Request a written summary of the observations made and how the freeholder responded to them.

4. If your freeholder gets it wrong

If your freeholder fails to follow the consultation process correctly — skipping a stage, not obtaining enough estimates, or not properly considering observations — the amount they can recover from each leaseholder for those works is capped at £250 (or £100 per year for a long-term agreement), regardless of the actual cost, unless they successfully apply to the First-tier Tribunal for dispensation from the requirements.

Pro Tip

Keep every notice, estimate and piece of correspondence you receive. If you later need to challenge a charge, having a complete paper trail makes it far easier to show the process wasn't followed correctly.

5. Common questions

Can I stop the works from happening?

Not directly — Section 20 is a consultation right, not a veto. But a properly run consultation can influence the scope, contractor and cost, and a badly run one caps what you can be charged.

What if there's an emergency?

Freeholders can apply to the First-tier Tribunal for dispensation from all or part of the consultation requirements in urgent situations, such as a genuine emergency repair, though they still need to justify this.

Does this apply to routine maintenance?

No — Section 20 is triggered by the cost per leaseholder, not the nature of the work. Routine, low-cost maintenance generally falls below the threshold and doesn't require consultation.

6. Related tools and guides

If you've received a Section 20 notice, these may help:

Service Charge Calculator

Check whether the works being proposed look reasonable against UK cost benchmarks.

Launch Tool →
Your Rights

The full picture on tribunal rights, paying under protest, and challenging unreasonable charges.

Read the guide →
Pro Tip

If major works consultations keep going badly for your building, read our guide to Right to Manage — taking over management yourselves puts you in control of the process.