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Last updated: 26 April 2026
For directors · Building management

Section 20 consultation. When it triggers, what to send, what happens if you skip it.

A 60-day process that protects your right to recover the cost of major works through the service charge. Trigger calculator, draft notices, and damage-limitation steps if you missed it.

Civil duty
Not a criminal offence. But under Section 20 of the Landlord and Tenant Act 1985, if you instruct qualifying works costing more than £250 per leaseholder without consulting first, you cannot recover any amount above £250 per leaseholder through the service charge. The work still has to happen. You will just be short of money. In context: But the cost of compliance is £0; only your time and postage. The penalty for skipping is recoverable damage (capped recovery), not a criminal record.
What this means Do I need to consult? Your situation The 60-day process Draft notices If you skip it FAQ
What this actually means

Two months of postage and meetings. That is the whole job.

Section 20 sounds like a legal minefield. It is mostly a paperwork exercise with strict deadlines. The cost of complying is your time and a few stamps. The cost of skipping it is permanent loss of the right to recover anything above £250 per leaseholder.

Trigger threshold

£250 / lh

For one-off qualifying works. Or £100 per leaseholder per year for any long-term agreement (over 12 months) such as a lift contract or grounds maintenance.

Process length

60 days min

Two notices, 30 days each. Add another 30 if leaseholders nominate a contractor for you to obtain estimates from. Plan for 90 days end to end.

Cost to comply

£0

Other than your time and postage. The notice templates are below. Send by recorded delivery to each leaseholder at their flat address (and any nominated address).

Section 20 applies to two situations. Qualifying works: any one-off works (repairs, decoration, surveys, planned maintenance) where the cost to any single leaseholder will exceed £250. Qualifying long-term agreements: any contract over 12 months (managing agent, lift maintenance, cleaning, gardening, insurance brokerage) where the cost to any single leaseholder will exceed £100 in any single year of the agreement.

Do I need to consult?

Enter the cost and your unit count. Find out in two seconds.

A clear yes or no, with the rule that triggered it. Use this before you instruct anything where the total cost is uncertain.

Pounds. Total expected cost across all leaseholders combined.
Each flat owner who pays service charges counts as one.
Long-term agreements use a lower £100/leaseholder/year threshold.
Only used for long-term agreements. Cost is averaged across years.
Per-leaseholder cost
All figures exclude VAT. Most UK property suppliers are VAT-registered and will add 20%; residential RMC/RTM companies usually cannot reclaim it, so factor it into the budget.
Where do these figures come from?
  • Section 20 thresholds and consultation procedures: Service Charges (Consultation Requirements) (England) Regulations 2003. View source →
  • £250 per leaseholder threshold: Landlord and Tenant Act 1985, section 20. View source →
  • Tribunal applications to dispense with consultation: Landlord and Tenant Act 1985, section 20ZA. View source →

All figures are indicative ranges based on published rates checked April–May 2026. Always compare three written quotes for your specific building. Last reviewed for accuracy on the page legal-check date shown above.

£375
Total £3,000 split across 8 leaseholders.
Section 20 consultation required
Per-leaseholder cost (£375) exceeds the £250 threshold for qualifying works. Run the long consultation (two notices, 30 days each) before instructing.
Your situation

Three versions of this gap.

Pick the card that matches you. Each one has a different next action.

1. I have not started, and the cost is over the threshold

60 to 90 days

You know roughly what the works will cost. The calculator above tells you consultation is required. Now you need to do it before you commit to any contractor.

What to do. Issue Stage 1 (Notice of Intention) using the template below. Allow 30 days for observations. Obtain estimates from at least two contractors plus any nominated by leaseholders. Issue Stage 2 (Notice of Estimates) with the estimates. Allow another 30 days. Then you can instruct.

2. I am part-way through

Stay on track

You have issued at least Stage 1. You may have received observations or contractor nominations. The clock is running.

What to do.
  • Log every observation received in writing. You must consider them and respond in writing.
  • If a leaseholder nominated a contractor, you must obtain a written estimate from them (or document a reasonable attempt to).
  • Issue Stage 2 once estimates are in. The 30-day clock restarts.
  • Hold a meeting if requested and minute it.

3. I instructed without consulting

Damage limitation

You commissioned the works and the per-leaseholder cost is now over £250. By default, you can only recover £250 per leaseholder. This is the most expensive mistake in leasehold management.

What to do.
  • Apply to the First-tier Tribunal (Property Chamber) for dispensation from the consultation requirement under section 20ZA. The tribunal can grant retrospective dispensation if the works were genuinely urgent or if leaseholders were not actually prejudiced by the lack of consultation.
  • Be honest about why you did not consult. The tribunal grants dispensation more readily where the failure was inadvertent and the leaseholders did not lose out on a better price or contractor.
  • If dispensation is refused, you absorb the loss above £250 per leaseholder. The work still has to be paid for.
The 60-day process

From first notice to instruction. Step by step.

This is the long consultation procedure for qualifying works under Schedule 4 of the Service Charges (Consultation Requirements) (England) Regulations 2003. Same shape applies, with minor variations, for long-term agreements.

0Day
Stage 1

Issue Notice of Intention

Send to every leaseholder at their flat address (and any other address they have nominated for service of notices). Recorded delivery is recommended. Also send to any recognised tenants' association.

The notice must describe the works in general terms, give the reasons, invite written observations within 30 days, and invite leaseholders to nominate a contractor for you to seek an estimate from.

30Days
Observation period closes

Consider observations and obtain estimates

You must consider any observations received. Obtain at least two estimates: one from a contractor independent of you (no connection to the landlord, manager, or directors), plus any nominated by leaseholders.

If a leaseholder nominated a contractor, you must seek an estimate from them or make a reasonable documented attempt to.

30+Day
Stage 2

Issue Notice of Estimates (Statement of Estimates)

Send to every leaseholder. Include all the estimates obtained, a written summary of the observations received and your response, and at least the two lowest estimates in full. Invite further written observations within 30 days.

If you intend to award the contract to anyone other than the lowest bidder or a leaseholder-nominated contractor, you must explain why in the next stage.

60Days
Decision period closes

Consider observations and decide

Consider any further observations. Decide which contractor to award to. If you choose anything other than the lowest estimate or a leaseholder-nominated contractor, you must issue a Notice of Reasons within 21 days of awarding the contract.

60+Day
Instruct

Award the contract and start the works

Instruct your chosen contractor. Keep all the consultation paperwork, including signed proof of postage, every observation received, and copies of all notices. You will need this if a leaseholder challenges the recovery at the First-tier Tribunal.

Variations. Public notice (Schedule 1) applies if there is a tenants' association or the works are advertised on the public sector tender portal. Long-term agreements (Schedule 2) follow a similar shape with different timings. If your situation looks unusual, get specific advice. The Leasehold Advisory Service (LEASE) provides free guidance.

Draft notices

Two templates. Copy, fill the amber slots, post recorded delivery.

Both templates meet the prescribed content under the 2003 Regulations. Send to every leaseholder. Keep proof of postage. If you have a recognised tenants' association, send to them as well.

If you skip it

What happens to your recovery, and how to limit the damage.

The penalty for not consulting is statutory and automatic. The tribunal can dispense with the requirement, but only on its own terms.

The default rule

Under Section 20(1), if you fail to consult before instructing qualifying works over the threshold, your recovery from each leaseholder is capped at £250, regardless of the actual cost. If the per-leaseholder cost was £800, you can recover £250 and absorb the £550 yourself (or, in a director-managed company, the company absorbs it and the directors carry the cashflow problem).

The dispensation route (section 20ZA)

You can apply to the First-tier Tribunal (Property Chamber) for dispensation from the consultation requirements. The tribunal will consider whether leaseholders suffered any actual prejudice from the lack of consultation. Genuine emergencies (urgent safety repairs, a roof in immediate danger) and inadvertent oversights are most likely to be granted dispensation, often with conditions such as paying the leaseholders' tribunal costs. Cynical or negligent failures are less likely.

How to recover after a successful consultation

Include the cost in your annual service charge demands or as a separate one-off demand. Each demand must include the Section 21B summary of rights and obligations or the demand is not legally enforceable. Reference the Stage 2 notice and the contract award in the year-end accounts. Keep all consultation paperwork on file for at least six years (the limitation period for service charge disputes).

Where to check before you act

The full statutory text is in the Service Charges (Consultation Requirements) (England) Regulations 2003. Free advice is available from the Leasehold Advisory Service (LEASE). For tribunal applications and dispensation, the First-tier Tribunal (Property Chamber) publishes guidance and forms.

Common questions

Six things directors ask about Section 20.

These answers are extracted so search engines and AI assistants can cite them directly. If your question is not here, the answer is most likely in the sections above.

When does Section 20 consultation apply?
Section 20 of the Landlord and Tenant Act 1985 applies to two situations. Qualifying works: any one-off works where the cost to any single leaseholder will exceed £250. Qualifying long-term agreements: any contract over 12 months where the cost to any single leaseholder will exceed £100 in any single year.
What is the Section 20 threshold?
£250 per leaseholder for qualifying works (one-off costs). £100 per leaseholder per year for qualifying long-term agreements (over 12 months). The thresholds are per individual leaseholder, calculated on the share each pays under the lease.
How long does Section 20 consultation take?
Minimum 60 days for the long consultation procedure (two notices, 30 days each). In practice, allow 90 days end to end to account for obtaining estimates from contractors nominated by leaseholders. Public notice procedure (Schedule 1) and long-term agreement procedure (Schedule 2) follow similar timings.
What happens if I skip Section 20?
If you instruct qualifying works without consultation, you can only recover £250 per leaseholder through the service charge, regardless of actual cost. The work still has to be paid for; the freeholder, RTM, or RMC absorbs the difference. You can apply to the First-tier Tribunal for dispensation under section 20ZA, but it is granted on the tribunal's terms.
Can I get retrospective Section 20 dispensation?
Yes, under section 20ZA of the Landlord and Tenant Act 1985, the First-tier Tribunal can grant dispensation from the consultation requirements after the works have been carried out. The tribunal considers whether leaseholders suffered any actual prejudice. Genuine emergencies and inadvertent oversights are most likely to be granted dispensation, often with conditions such as paying leaseholders' tribunal costs.
Is the Section 20 threshold per leaseholder or in total?
Per leaseholder, not total. If 8 leaseholders each pay 12.5 percent of service charges and the works cost £3,000, the cost to each is £375, which exceeds the £250 threshold and triggers consultation. The threshold is calculated on each leaseholder's individual share under the lease.
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