Section 20
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.
1. 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.
2. 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.
3. 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.
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.
Even with efficient planning, the Section 20 process typically takes 2–3 months minimum, due to the statutory consultation periods.
- 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.
- 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.