In short
Section 20 of the Landlord and Tenant Act 1985 requires the landlord (or the RMC or RTM company acting as landlord) to consult leaseholders before carrying out qualifying works costing any one leaseholder more than £250, or entering a long-term agreement costing any one leaseholder more than £100 a year. Without consultation or a tribunal dispensation, recovery is capped at those amounts.
Quick check: use our free Section 20 calculator to see whether your works or contract cross the threshold and the minimum timetable.
What Section 20 is
Section 20 is the part of the Landlord and Tenant Act 1985 that gives leaseholders a say before large sums are committed from the service charge. The detailed procedure is set out in the Service Charges (Consultation Requirements) (England) Regulations 2003, which came in under the Commonhold and Leasehold Reform Act 2002. You will sometimes read that Section 20 "moved" into the 2002 Act. It did not: the duty still sits in section 20 of the 1985 Act, and the 2002 Act changed how it works.
Consultation does not give leaseholders a veto. It gives them the right to know what is proposed and why, to put forward a contractor, to see the estimates and to have their comments taken into account. Done properly, it also protects the directors: a clear, documented consultation is the best defence if the cost is later challenged at the First-tier Tribunal.
The thresholds
| Qualifying works | Works on the building or other premises where the contribution of any one leaseholder exceeds £250 (including VAT). Typical examples: roof renewal, external redecoration, window replacement, lift refurbishment, fire safety upgrades. |
|---|---|
| Qualifying long-term agreement (QLTA) | A contract for services lasting more than 12 months where any one leaseholder's contribution exceeds £100 in any accounting year. Examples: cleaning, gardening, lift maintenance or fire alarm contracts, and sometimes a management agreement. |
| Who must consult | Whoever is the landlord under the lease. In practice that is often a residents' management company (RMC) or right to manage (RTM) company, with the managing agent running the process. |
| If you do not consult | Recovery from each leaseholder is capped at £250 for the works (or £100 a year for a QLTA), unless the tribunal grants dispensation. |
The test is per leaseholder, not per building. In a block where one flat pays a larger share, that flat can trip the threshold well before the total cost looks "major". We check the apportionment in every lease before deciding whether consultation is needed.
The four stages for qualifying works
Most residential blocks follow the procedure in Part 2 of Schedule 4 to the 2003 Regulations. The stages have to happen in this order:
- 30-day consultation periodNotice of intentionEvery leaseholder (and any recognised tenants' association) receives a notice describing the proposed works, explaining why they are necessary, and inviting written observations and nominations of a contractor within 30 days.
- TenderingObtaining estimatesAt least two estimates must be obtained, and at least one must come from a contractor wholly unconnected with the landlord. If leaseholders nominated a contractor, the landlord must try to obtain an estimate from them too (the rules say whose nomination takes priority).
- 30-day consultation periodStatement of estimatesLeaseholders receive a statement setting out at least two of the estimates, with a summary of the observations received at stage one and the landlord's response. All estimates must be available for inspection. Leaseholders get a further 30 days to comment.
- Within 21 days of contractNotice of reasons (where needed)If the contract is not awarded to the lowest estimate or to a leaseholder-nominated contractor, a notice explaining why must be sent within 21 days of entering into the contract.
Long-term agreements follow a similar pattern with a notice of intention, a notice of proposal and, where needed, a notice of reasons.
How long it takes
On paper the two 30-day periods mean the minimum is around two to three months. In reality, once you allow time to prepare a proper specification, run a fair tender and deal with questions, three to six months is normal for a straightforward project. Roofs and scaffold-heavy external works should be planned a year ahead so the works can happen in good weather and the money can be collected in stages.
Plan the money at the same time as the notices. Consultation tells leaseholders what is coming; it does not collect the funds. We line up the reserve fund position, the lease's rules on demanding for major works and a collection timetable so the contractor is not left waiting.
Where consultation usually goes wrong
- Notices served on the wrong address, or not served on every leaseholder.
- The notice of intention describes the works too vaguely, and the final scope ends up materially different.
- Only one real estimate is obtained, or the "independent" contractor is connected to the landlord or agent.
- Works start before the second 30-day period has ended.
- Contracts for cleaning or maintenance roll past 12 months without anyone noticing they have become long-term agreements.
Dispensation
If consultation cannot be completed, for example because urgent works are needed after storm damage, the landlord can apply to the First-tier Tribunal (Property Chamber) under section 20ZA for dispensation. Since the Supreme Court's decision in Daejan Investments Ltd v Benson (2013), the tribunal focuses on whether leaseholders suffered real prejudice from the failure to consult, and it can attach conditions such as costs. Dispensation is a safety net, not a strategy: it costs time and money and is never guaranteed.
Proposed reform
The government consulted in 2025 on reforming the major works regime, alongside wider service charge transparency measures. As of September 2026 the rules above still apply. We track the changes and will update this page, and our process, when new regulations are made.
How EKIN runs Section 20
Our construction and project management background means we treat a Section 20 as a project with a programme, not as a set of letters. For each consultation we:
- Confirm from the leases who pays what, and whether the threshold is actually met.
- Make sure the scope is properly defined, by a surveyor or other specialist where the works need one, so the notice of intention describes what will really be done.
- Run a documented tender, with a like-for-like comparison of every estimate.
- Track every notice, deadline, observation and response in the building's consultation log, shared with the directors.
- Work with external Section 20 and legal specialists where a project is complex or contested.
See how the project is coordinated on our major works page.
Frequently asked questions
Does Section 20 apply if the RMC is owned by the leaseholders?
Yes. If the RMC is the landlord under the lease, it must consult like any other landlord. Being leaseholder-owned does not remove the requirement.
Can leaseholders stop the works through consultation?
No. Consultation gives leaseholders the right to be informed, to nominate a contractor and to comment. The landlord must have regard to observations, but the decision remains the landlord's.
Is the £250 limit including VAT?
Yes. The £250 and £100 limits are measured against what each leaseholder actually pays, which includes VAT and fees charged to the service charge.
Do professional fees count towards the threshold?
Fees that form part of the cost of the works, such as surveyor or contract administration fees, are usually included when working out each leaseholder's contribution. We include them in the estimates so leaseholders see the full cost.
What if the lowest quote is not the best?
The landlord can choose another contractor for good reason, for example quality, programme or insurance. It must then explain the reasons in writing within 21 days of entering the contract.
Last reviewed 2026-09-23 against the sources listed. This page is general information about England and is not legal advice; the lease for your building always comes first.
Sources: Landlord and Tenant Act 1985, s.20; Service Charges (Consultation Requirements) (England) Regulations 2003.