Understanding the Section 20 Process: A Leaseholder’s Guide

Section 20 exists to make major works transparent and fair. If any leaseholder will pay over £250 for qualifying works (or over £100 per 
year for a long-term contract), the freeholder/manager must consult leaseholders before appointing a contractor. It’s a clear, step-by-step process with set notice periods, the right to comment, and the right to nominate contractors. Read on to find out what you need to know.

Two things trigger a Section 20 consultation

Often it’s qualifying works, such as one-off projects, where any flat’s contribution will exceed £250. For instance external redecoration, roof repairs, or fire-door replacements.

Section 20 could also be triggered by Qualifying Long-Term Agreements (or QLTAs). These are service contracts, that are in place for longer than 12 months, where any flat will pay over £100 per year e.g., for lift maintenance or cleaning.

There are three formal stages, with 30 days at each step

1. Notice of Intention — sets out the proposed works or contract and invites comments and nominated contractors (you have 30 days).
2. Notice of Estimates — provides at least two estimates (including any valid nominations) and invites further comments (30 days).
3. Notice of Award/Reasons — explains which contractor is chosen and why, especially if it’s not the lowest estimate.

Your practical rights in consultation.
You can: submit observations in writing, nominate contractors for consideration, ask to inspect estimates and summaries, and expect a reasoned choice. Landlords must have “regard” to observations and record decisions.

If consultation isn’t done properly.
Recovery from leaseholders can be capped at £250 (works) or £100 per year (QLTA) unless the landlord obtains dispensation from the First-tier Tribunal. Dispensation is possible (for example, in emergencies) but landlords usually need to show fairness and keep costs reasonable.

Emergencies and urgent risk.
If there’s immediate risk (fire safety defect, major leak, collapse), works may proceed first with an application for dispensation and evidence of necessity. Leaseholders should still be kept informed, with costs and scope explained.

Design choices vs compliance.
Section 20 is about scope and cost, not taste. Colour schemes, carpets, fixtures

How to set yourself up for project success

1. Read the scope, not just the price.
   Check drawings/specs, access assumptions, allowances and exclusions. Like-for-like comparisons need like-for-like specifications.
2. Look for whole-life value.
   Cheapest isn’t always best. Factor warranties, supervision, H&S competence, and programme risk. Ask for references and relevant insurances.
3. Use your rights sensibly.
   Submit observations on scope (what’s missing/over-scoped) and logistics (access, quiet hours, protection). Nominate reputable contractors with the right credentials.
4. Expect transparency on numbers.
   Preliminaries, scaffolding, traffic management, protection, and provisional sums should be clear. VAT treatment and contingency should be explained.
5. Keep the building running.
   Agree communication channels, notice periods for access, and resident updates. Good logistics prevent cost creep.
6. Close out properly.
   At completion, make sure you receive completion certificates, warranties, manuals and a final account summary.