A Section 20 Notice is a legal requirement for landlords (including Resident Management Companies and Right to Manage Companies) to consult Leaseholders before undertaking qualifying works or entering into long-term agreements that exceed £250 per Leaseholder.

The Three-Stage Consultation Process

Notice of Intention

Purpose: Inform Leaseholders of proposed works and reasons.

Content:

  • Description of the works.
  • Reason for the works.
  • Invitation to make observations.
  • Invitation to nominate contractors.

 

Timeline: Leaseholders have 30 days to respond.

Notice of Estimates

Purpose: Share cost estimates and allow feedback.

Content:

  • At least two estimates (one must be from an independent contractor).
  • Summary of leaseholder observations from Stage 1.
  • Details of how to inspect the estimates.

Timeline: Leaseholders have 30 days to respond.

Notice of Reasons

Purpose: Inform Leaseholders of the chosen contractor.

Content:

  • Name of the selected contractor.
  • Summary of Leaseholder feedback.
  • Reasons for contractor selection (especially if not the cheapest).

 

Timeline: Must be issued within 21 days of awarding the contract.

When Is It Required?

Major Works: Repairs, maintenance, or improvements costing over £250 per Leaseholder.
Long-Term Agreements: Contracts lasting more than 12 months and costing over £100 per Leaseholder annually.

How Long Does It Take?

Even with efficient planning, the Section 20 process typically takes 2–3 months minimum, due to the statutory consultation periods.

What If the Process Isn’t Followed?

  • Leaseholders’ contributions may be capped at £250, regardless of actual costs.
  • Landlords risk legal challenges and potential claims for negligence.
  • Tribunals may dispense with the consultation requirement in exceptional cases, but this is rare and must be justified.

Key Tips for Leaseholders

  • Always read each notice carefully.
  • Submit observations or contractor nominations within the deadlines.
  • Engage with any Recognised Tenants Association (RTA) if you have one available.