Section 20 consultations explained: planning major works the right way.
Major works - a roof replacement, external redecoration, a lift overhaul - are among the biggest costs a building will face, and among the most heavily regulated. Get the Section 20 consultation process right, and works proceed smoothly with costs properly recoverable. Get it wrong, and recovery of costs above the statutory limit can be at risk. Here's how it actually works.
What is a Section 20 consultation?
Under Section 20 of the Landlord and Tenant Act 1985, freeholders and managing agents must consult leaseholders before carrying out qualifying works, or entering a qualifying long-term agreement, that would cost any individual leaseholder above a set statutory threshold. The process exists to give leaseholders visibility and a genuine opportunity to comment before costs are committed.
The key stages
Notice of Intention: setting out the works proposed and inviting observations and contractor nominations
Estimates stage: at least two estimates are obtained, including from any leaseholder-nominated contractor, and shared with leaseholders
Award of contract: a notice confirming which contractor has been chosen, and responding to observations raised
Common pitfalls to avoid
Starting works before the consultation period has properly concluded
Failing to genuinely consider leaseholder-nominated contractors or observations
Vague or incomplete notices that don't clearly describe the proposed works
Treating consultation as a formality rather than a genuine process
Why it matters for the building, not just compliance
Beyond the legal requirement, a properly run consultation tends to produce better outcomes - more competitive quotes, fewer disputes once the bill lands, and leaseholders who feel informed rather than presented with a fait accompli. Starting the process early, well ahead of when works need to begin, is the single biggest factor in a smooth consultation.
Frequently asked questions
What is the Section 20 cost threshold?
Consultation is required where any individual leaseholder's contribution to the works would exceed the statutory threshold, or where a long-term agreement would cost any leaseholder more than the relevant limit per year - these thresholds are set in regulations and can be checked with your managing agent.
Can leaseholders choose the contractor?
Leaseholders can nominate contractors to be invited to quote during the consultation, but the final decision on which contractor to appoint generally remains with the freeholder or managing agent, who must have proper regard to observations received.
What happens if the consultation process isn't followed correctly?
Costs above the statutory threshold may not be recoverable from leaseholders unless dispensation is obtained from the First-tier Tribunal, which is why following the process correctly from the outset matters.
Planning major works and want the consultation process handled properly from the start? Get in touch at hello@fortemproperty.co.uk or 020 3725 6755.