Section 20 consultation explained
A Section 20 consultation is the process a freeholder must follow before charging leaseholders for expensive works or signing them up to a long-term contract. If the cost to any one leaseholder would be more than £250 for works, or more than £100 a year for a long contract, the freeholder has to consult first. If they skip it, the amount they can recover is capped at £250 per leaseholder, no matter how big the real bill.
It is one of the most useful protections leaseholders have, because it gives you a say before the money is spent and gives the process real teeth if the freeholder cuts corners. This guide explains when it applies, the stages, and what happens if it is not done properly.
What is a Section 20 consultation?
Section 20, from the Landlord and Tenant Act 1985, requires a freeholder to formally consult leaseholders before carrying out costly works or entering a long-term agreement that the leaseholders will pay for through the service charge. The point is fairness: you should have the chance to see what is proposed, comment on it, and even suggest your own contractor, before you are committed to paying a large sum.
When does it apply?
There are two triggers. The first is qualifying works, meaning one-off works where the cost to any single leaseholder would be more than £250. The second is a qualifying long-term agreement, meaning a contract lasting more than 12 months, such as a lift maintenance or cleaning contract, where the cost to any leaseholder would be more than £100 a year. Note that the test is the cost to an individual leaseholder, not the total bill, so a £6,000 repair shared across ten flats at £600 each clears the £250 threshold and must be consulted on.
The stages of the consultation
For typical major works, the consultation runs in stages:
- Notice of intention. The freeholder writes to each leaseholder describing the proposed works and why they are needed, and invites written observations within 30 days. Leaseholders can also nominate a contractor to be asked for an estimate.
- Estimates. The freeholder obtains estimates, including from any contractor a leaseholder nominated, and shares a statement of those estimates, again inviting observations within 30 days.
- Notification of the award. If the freeholder does not choose the cheapest estimate or a leaseholder’s nominee, they must explain their reasons.
At each stage you have a real opportunity to comment, and the freeholder has to have regard to what you say.
What if the freeholder skips it?
This is what gives Section 20 its force. If the freeholder fails to consult properly when they should have, the amount they can recover from each leaseholder for the works is capped at £250, however large the actual cost. For a major project running to thousands of pounds per flat, that can leave the freeholder unable to recover a very large shortfall. It is a strong incentive to consult, and if you are facing a big works bill it is always worth checking whether the consultation was carried out correctly. If it was not, that may be a basis to challenge the charge.
Dispensation: when the rules can be waived
The freeholder can ask the First-tier Tribunal to dispense with the consultation requirements, known as dispensation. The tribunal will generally only grant this where there was a good reason not to consult fully, most obviously genuine urgency, such as an emergency repair that could not wait. Dispensation is about whether the failure to consult caused leaseholders any real prejudice, so it is not a free pass, and leaseholders can object. It does not, by itself, decide whether the cost is reasonable.
Is the £250 threshold changing?
The £250 and £100 thresholds have not changed since 2003, and there has been criticism that £250 is now far too low, given how much works cost today, meaning almost any significant job triggers consultation. The government has proposed raising the thresholds, to £600 for works and £300 a year for long-term agreements, but that change is not yet in force, so the £250 and £100 figures still apply. Our leasehold reform tracker keeps the current position.
Frequently asked questions
Does the £250 apply to the whole bill or my share?
Your share. The trigger is whether the cost to an individual leaseholder would exceed £250, not the total cost of the works. Because each leaseholder’s share of a significant job usually clears £250 easily, most major works require consultation.
Can I stop works I disagree with through Section 20?
Not directly. Section 20 gives you the right to be consulted and to have your views considered, not a veto. But a proper consultation, combined with the reasonableness test, is your route to challenge works or costs you think are unjustified.
What should I do if I get a Section 20 notice?
Read it, and respond within the 30 days if you have views, including nominating a contractor for an estimate if you know a good one. Engaging at this stage is far more effective than objecting after the work is done and the bill has arrived.
This guide provides general information about Section 20 consultations in England and Wales. It is not legal advice, and the rules have detailed exceptions. For advice on your own situation, consult a solicitor or a specialist such as the Leasehold Advisory Service (LEASE). Sources: Landlord and Tenant Act 1985 (section 20 and section 20ZA); Service Charges (Consultation Requirements) (England) Regulations 2003; GOV.UK and LEASE guidance. Last reviewed [date]; reviewed whenever the law changes.