Published: 27/07/2026

Leaseholder Navigating Section 20

Section 20 of the Landlord and Tenant Act 1985 (as amended by the Commonhold and Leasehold Reform Act 2002) requires landlords (including freeholders, resident management companies/RMCs, and right-to-manage companies/RTMs) in England and Wales to consult leaseholders before carrying out certain “qualifying works” or entering into certain “qualifying long-term agreements” that will be charged through the service charge.
The rules protect leaseholders from unexpected or excessive bills by giving them notice of proposals, a chance to comment, and (in many cases) the ability to nominate contractors. Detailed procedures are set out in the Service Charges (Consultation Requirements) (England) Regulations 2003 (and equivalent Welsh regulations).

When consultation is required

Consultation is triggered if:

• Qualifying works (repairs, maintenance, or improvements to the building or premises — e.g. roof works, external redecoration, lift replacement, window programmes) would cost any one leaseholder more than £250 (including VAT). The threshold is per leaseholder (based on the highest share if proportions differ), not a total project cost.
• A qualifying long-term agreement (a contract lasting more than 12 months for works or services, e.g. cleaning, gardening, or maintenance contracts) would cost any one leaseholder more than £100 in any 12-month accounting period (including VAT).

VAT and relevant consultants’ fees are generally included when assessing the threshold for works. Professional fees alone are typically not treated as “qualifying works.”
Certain agreements are excluded (e.g. employment contracts, some intra-group arrangements, or contracts of 12 months or less that must be renewed annually such as buildings insurance).
Public-sector landlords (local authorities, housing associations) may have additional public-notice/procurement rules; in those cases leaseholders usually cannot nominate contractors but can still make observations.

The consultation process (standard qualifying works)

The process usually has three stages and typically takes at least 2–3 months (often longer in practice) because of mandatory observation periods:

1. Notice of Intention The landlord describes the proposed works in general terms, explains why they are necessary, and invites written observations and (where applicable) nominations of contractors. Leaseholders and any recognised tenants’ association (RTA) have at least 30 days to respond. The landlord must have regard to observations and try to obtain an estimate from a nominated contractor.
2. Statement of Estimates / Notice of Estimates After obtaining at least two estimates (one from a contractor unconnected to the landlord; plus any from nominated contractors), the landlord serves a notice summarising the estimates, stating how they can be inspected, and inviting further observations (another minimum 30-day period).
3. Notice of Reasons / Award of Contract (where required) If the landlord does not award the contract to the lowest estimate or to a leaseholder-nominated contractor, they must give reasons (usually within 21 days of entering the contract) to leaseholders who requested them or as required by the regulations.

For works under an existing qualifying long-term agreement the process is shorter (often a single stage). Notices must be served on every relevant leaseholder (and RTA). The “date of the notice” for timing purposes is generally treated as two working days after posting if sent by post.

Works or the relevant contract should not start until consultation is complete (unless dispensation is granted).

Consequences of failing to consult properly

If the landlord fails to follow the required procedure, the amount recoverable from each leaseholder through the service charge is generally capped at £250 for qualifying works (or £100 per year for qualifying long-term agreements), regardless of the actual cost.
The landlord (or RMC/RTM directors) may have to cover the shortfall. Leaseholders can still challenge the reasonableness of costs or the necessity of works under other provisions (e.g. section 19 of the 1985 Act) at the First-tier Tribunal (Property Chamber).

Dispensation

The First-tier Tribunal (Property Chamber) in England (or equivalent in Wales) can dispense with some or all consultation requirements if it is reasonable to do so (section 20ZA). This can be sought before or after the works. Following the Supreme Court decision in Daejan Investments Ltd v Benson [2013] UKSC 14, the key question is whether leaseholders suffered relevant prejudice (and to what extent) from the failure to consult; dispensation can be granted on terms (e.g. a reduction in recoverable costs) to address any proven prejudice.
Emergency works are a common situation in which dispensation may be sought.

Leaseholder rights and practical points

• You can make written observations at the relevant stages; the landlord must have regard to them.
• You can nominate a contractor (except where public-notice rules apply).
• You can inspect estimates and supporting documents.
• You cannot stop necessary works, but you can challenge unreasonable costs or improper consultation.
• Service-charge demands can still be issued in accordance with the lease, but recovery above the statutory caps may be restricted if consultation was defective.
• RMCs and RTMs are fully subject to the rules even if all leaseholders are members.

Reliable independent advice is available from the Leasehold Advisory Service (LEASE) at lease-advice.org. The Property Institute (TPI) also publishes practical guidance notes. For formal disputes, the First-tier Tribunal is the usual forum. Always check the specific notices received and the terms of your lease, and consider professional advice for significant sums or complex situations. Thresholds and procedures can be subject to future legislative change.


Always consult a qualified professional before making major changes to your life & property.

If you would like to discuss buy-to-lets or any other residential issues please do not hesitate to call Willmotts for help with all your property needs, 020 8222 9958  info@willmotts.com

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Source
https://www.lease-advice.org/costs-and-charges/section-20-consultation/responding-to-section-20-consultation/
https://www.tpi.org.uk/media/v3lbmogw/tpi-advice-note-section-20.pdf
https://www.propertypassport.uk/guides/section-20-notice-leasehold-major-works
https://www.leaseholdknowledge.com/advice/section-20-analysis-of-daejan-v-benson/