England & Wales, Leasehold, Section 20, Service Charges, Qualifying Works

Section 20 Consultation Guide UK, Major Works

Section 20 of the Landlord and Tenant Act 1985 requires landlords and freeholders to follow a prescribed three-stage consultation process before carrying out qualifying works. Failure limits service charge recovery to £250 per leaseholder.

8 min readUpdated 19 May 2026Last reviewed: 19 May 2026 by Richard Wood, FounderSection 20LeaseholdService ChargesQualifying Works

Written and reviewed byRichard Wood· Founder, LetSafe UKLast reviewed: 19 May 2026

Section 20 of the Landlord and Tenant Act 1985, as amended by the Commonhold and Leasehold Reform Act 2002, requires landlords, freeholders, and managing agents to consult leaseholders before carrying out qualifying works where any leaseholder's contribution would exceed £250. Non-compliance limits recovery to £250 per leaseholder regardless of actual cost.

What triggers Section 20?

Any works on a building or its common parts where the costs are recoverable via service charges and any single leaseholder's share exceeds £250. Emergency works are exempt but the landlord must apply to the First-tier Tribunal for retrospective dispensation.

Stage 1: Notice of Intention (30 days)

Serve a written Notice of Intention on all leaseholders and any recognised tenants' association. The notice must describe the proposed works, explain why they are necessary, and invite: (1) written observations within 30 days, and (2) nomination of a contractor to be invited to tender within 30 days.

Stage 2: Notification of Estimates (30 days)

After the Stage 1 observation period, obtain at least two competitive estimates (including any nominated contractor). Circulate a notice summarising Stage 1 observations and listing all estimates. Invite further written observations within 30 days.

Stage 3: Notice of Reasons (if needed)

If you award the contract to a contractor who was neither the lowest-priced nor a leaseholder-nominated contractor, serve a written notice of reasons within 21 days of contract award.

The £250 penalty for non-compliance

Miss any required stage or observation period and you lose the right to recover more than £250 per leaseholder from the service charge for those works. Leaseholders raise this as a defence in First-tier Tribunal service charge applications. Apply for dispensation to the Tribunal if emergency works have been carried out without consultation.

Primary sources

This page is drafted against the legislation below. Always check the current text of the law before acting.

Landlord and Tenant Act 1985 (legislation.gov.uk)

Frequently asked questions

Can I start works before the Section 20 consultation is complete?+

Generally no. Section 20 requires you to complete both Stage 1 (30-day observation period) and Stage 2 (30-day estimate period) before awarding the contract. If you start works prematurely, you cannot retrospectively cure the failure and you will be subject to the £250-per-leaseholder recovery cap. The only exception is genuine emergency works where delay would cause further damage or health/safety risk, in that case, start the works but notify all leaseholders immediately and apply to the First-tier Tribunal for retrospective dispensation as soon as possible.

A leaseholder nominated a contractor who quoted three times the market rate, do I have to use them?+

No. You are not obliged to select a nominated contractor. However, you must still invite the nominated contractor to tender and include their estimate in the Stage 2 notice. If you choose not to use the nominated contractor, you must provide written reasons (Stage 3 notice) explaining why a different contractor was selected, typically that their price was excessive or they lacked the required qualifications or insurance. Leaseholders can challenge the reasonableness of your choice at the Tribunal, but the Tribunal will take into account whether you had good commercial reasons for your selection.

We have a recognised tenants' association (RTA), how does Section 20 change for us?+

Where a recognised tenants' association (RTA) is established, you must serve both Stage 1 and Stage 2 notices on the RTA in addition to individual leaseholders. The RTA has the same right to make written observations and to nominate a contractor as individual leaseholders. If the RTA nominates a contractor, that contractor must be invited to tender. Consultation with the RTA is not a substitute for consulting individual leaseholders, both must receive the required notices.

Found a gap or disagree with something?

Reply to any LetSafe email or write to richard@letsafeuk.co.uk. We rewrite guides when we get something wrong, the sooner we hear, the sooner we fix it.

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