--- title: "Section 20 Works: A Leaseholder's Guide to Major Works Consultation" url: https://manage.management/blog/section-20-works-a-leaseholder-s-guide-to-major-works-consultation description: "Understand Section 20 major works consultation in England: the £250 threshold, notices, leaseholder rights, tribunal challenges and how to keep an audit trail." author: "Franklin Baeza" published: 2026-09-12T07:32:56.726Z updated: 2026-10-29T12:29:12Z categories: ["Governance & Compliance","Service Charges"] publisher: Manage.Management language: en-GB --- # Section 20 Works: A Leaseholder's Guide to Major Works Consultation Understand Section 20 major works consultation in England: the £250 threshold, notices, leaseholder rights, tribunal challenges and how to keep an audit trail. Major works can create some of the largest service-charge bills a leaseholder will face. Section 20 consultation is intended to give leaseholders advance notice, a chance to comment and, in some circumstances, an opportunity to nominate contractors before substantial costs are incurred. ## Key takeaways - Section 20 consultation gives leaseholders notice, a chance to comment and, often, to nominate a contractor before major works. - The usual process has three stages: notice of intention, statement of estimates, and notice of reasons where required. - Each observation period lasts 30 days. - A defective consultation can limit what the landlord recovers unless the tribunal grants dispensation. This guide explains when the process applies in England, the notices you may receive, what leaseholders can do at each stage, and how resident directors and managing agents can run a defensible process. > This is general information, not legal advice. The lease remains important: it determines what costs may be recovered and how they are apportioned between leaseholders. ## What is Section 20? Section 20 refers to section 20 of the Landlord and Tenant Act 1985. It restricts the amount a landlord can recover through service charges for certain major works or long-term contracts unless prescribed consultation requirements have been met or dispensed with by the First-tier Tribunal. For **qualifying works**, consultation is normally required where the contribution of any one leaseholder is expected to exceed **£250**. For a **qualifying long-term agreement**, consultation is normally required where the agreement lasts for more than 12 months and any leaseholder’s contribution is expected to exceed **£100 in any accounting period**. “Landlord” in this context can include the party responsible for management. That may be a freeholder, a managing agent acting for the landlord, an RMC, or an RTM company after the right to manage has been acquired. ## What are qualifying works? Qualifying works are works to a building or other premises for which service-charge costs may be passed to leaseholders. The £250 test is assessed by reference to the contribution expected from an individual leaseholder, not simply the project’s total headline cost. Typical examples include: - Roof repairs, renewal or replacement - External repairs and redecoration - Replacement of communal windows, entrance doors or balconies - Lift refurbishment or replacement - Structural repairs - Renewal of shared heating, hot-water or electrical systems - Major repairs to communal drainage, car parks or estate infrastructure The process is not limited to projects commonly labelled “major works”. A relatively small project can still require consultation if one leaseholder’s expected contribution is more than £250. ## When does the process apply? The need to consult depends on the anticipated service-charge contribution, the nature of the expenditure and the relevant statutory rules. It is sensible to consider the issue early, before contracts are signed or irreversible commitments are made. The consultation process can also apply where major works are proposed under a qualifying long-term agreement. Those cases may have different consultation requirements, so it is important not to assume that every project follows exactly the same three-stage route. Urgent work does not create a general automatic exemption. If waiting for consultation would be unreasonable—for example, because immediate action is needed to address serious damage or risk—the landlord may seek dispensation from some or all consultation requirements from the First-tier Tribunal. ## The usual three stages For qualifying works that are not being carried out under a qualifying long-term agreement, the usual consultation route has three stages. ## Stage one: Notice of Intention The process begins with a Notice of Intention served on leaseholders and any recognised tenants’ association. It should describe the proposed works in general terms, explain why they are necessary, invite written observations and tell leaseholders how to nominate a contractor from whom the landlord should try to obtain an estimate. Leaseholders normally have **30 days** to make observations or submit a nomination. Keep a copy of anything you send, including the date and method of delivery. A landlord must have regard to observations received during the consultation period. That does not mean it must adopt every suggestion, but material issues should be genuinely considered and addressed. ## Nominating a contractor Nominating a contractor does not guarantee that they will be appointed. It can, however, require the landlord to try to obtain an estimate from that contractor where the statutory conditions are met and it is reasonably practicable to do so. A good nomination should include enough information for the landlord to identify and contact the contractor, such as their business name, address, email address and relevant trade or professional details. A recognised tenants’ association can also make nominations and coordinate leaseholder feedback across the building. ## Stage two: Notice of Proposals After obtaining estimates, the landlord serves a Notice of Proposals. This gives leaseholders an opportunity to inspect the estimates and make observations before a contract is awarded. Leaseholders usually have a further **30-day** observation period. The notice should explain where and when the relevant estimates may be inspected and how observations can be submitted. The precise content of the notice and estimates required can vary depending on the circumstances, including whether a contractor was nominated by a leaseholder or recognised tenants’ association. This is one reason to use the correct statutory templates and obtain professional advice where the procurement is complex. ## Stage three: Notice of Reasons A further notice is required in prescribed circumstances after the contract is awarded. Commonly, this applies where the chosen contractor was neither the lowest tenderer nor a contractor nominated by leaseholders or a recognised tenants’ association. This notice explains the reasons for the selection and should be served within the statutory timeframe. It is often called a **Notice of Reasons**, although you may also see it described informally as a notice of award. ## How long does Section 20 take? A standard qualifying-works consultation includes two separate 30-day observation periods. That makes the legal minimum around 60 days before allowing for preparation, tendering, inspection arrangements, consideration of observations and contract award. In practice, a well-run process often takes longer. The timetable should be planned around the actual scope of works, technical surveys, procurement needs, the availability of contractors and any lease requirements. Trying to compress the process unnecessarily can increase the risk of procedural mistakes. ## Leaseholder rights during consultation Section 20 is not a vote on whether the works can proceed. It is a consultation process. Leaseholders still have meaningful rights and should use them promptly. You can: - Make written observations at both consultation stages - Ask clear questions about the need, scope and specification of proposed works - Nominate a contractor at the Notice of Intention stage - Inspect estimates and specified supporting information during the consultation period - Ask why a particular contractor or specification represents value for money - Work collectively through a recognised tenants’ association - Challenge the reasonableness or payability of service charges at the First-tier Tribunal where appropriate Focus comments on evidence and outcomes. For example, ask whether repair options were properly assessed before replacement, whether the specification is proportionate, whether the tender scope is comparable between contractors, and whether professional fees are clearly explained. ## What makes a consultation defensible? For resident directors, RTM companies, RMCs and managing agents, compliance is not just about sending notices. The process should create a clear record showing that leaseholders were consulted properly and that their observations were considered. A defensible file should include: - The lease and service-charge provisions - Project scope, surveys and professional reports - A record of how the £250 threshold was assessed - Copies of every notice served - The addresses and service method used - Leaseholder observations and contractor nominations - Tender documents, estimates and evaluation notes - Reasons for the final decision - The final contract, programme and cost records Manage.Management helps resident-led buildings centralise documents, communications, tasks and financial information so that directors, homeowners and professional advisers can work from a shared record. For the specialist Section 20 workflow itself, Manage.Management is integrated with **Section20 Manager**, helping teams move from organised building records into a purpose-built consultation process for notices, responses, postal delivery and audit trails. The integration is particularly useful when major works need both structured statutory consultation and accessible, ongoing communication with leaseholders.section20manager ## What if the consultation is defective? If consultation requirements apply and they have not been complied with, the landlord’s recovery through the service charge is generally limited to the statutory cap—normally **£250 per leaseholder for qualifying works** or **£100 per leaseholder in an accounting period for a qualifying long-term agreement**—unless the tribunal grants dispensation. Dispensation is not automatic. The tribunal considers whether it is reasonable to dispense with the requirements, with a central focus on whether leaseholders suffered relevant prejudice because of the failure to consult. That means a procedural defect does not necessarily end the matter. The tribunal can grant dispensation, sometimes subject to conditions intended to address unfairness or prejudice to leaseholders. If you believe the process was not followed correctly, gather the notices, correspondence, estimates and dates before seeking advice or applying to the First-tier Tribunal. ## Service charges after the works Completing a Section 20 consultation does not make every eventual charge automatically payable. The costs must still be recoverable under the lease and reasonably incurred, and the works or services must be of a reasonable standard. Service-charge demands must also meet applicable statutory requirements. Where required information or summaries of rights and obligations are missing, this may affect when payment becomes due, though it does not necessarily extinguish the underlying liability. There is also an 18-month rule. In broad terms, a leaseholder cannot be required to contribute to relevant costs incurred more than 18 months earlier unless they were notified in writing within that period that the costs had been incurred and that they would be required to contribute. If a charge is disputed, take advice before simply withholding payment. Depending on the lease, non-payment can have consequences even where a challenge is being prepared. Leaseholders may instead consider paying under protest while pursuing a determination, where appropriate. ## Section 20 and leasehold reform The Leasehold and Freehold Reform Act 2024 contains provisions intended to change aspects of the Section 20 regime and service-charge transparency. However, not all of those provisions are in force. The current consultation framework for qualifying works in England remains rooted in section 20 of the Landlord and Tenant Act 1985 and the Service Charges (Consultation Requirements) (England) Regulations 2003. Anyone running a live consultation should use the rules currently in force, rather than relying on proposed reforms or commentary about future changes. ## Frequently asked questions ### What is the Section 20 threshold? For qualifying works, consultation is normally required if any individual leaseholder’s contribution is expected to exceed £250. For qualifying long-term agreements lasting more than 12 months, the usual threshold is £100 per leaseholder in any accounting period. ### Can a leaseholder stop the works? Section 20 consultation does not give individual leaseholders a veto. However, observations can influence the scope, specification, procurement approach and cost, and leaseholders can challenge the reasonableness or recoverability of charges where justified. ### Must the cheapest tender be accepted? No. The landlord is not always required to choose the lowest estimate, but it should be able to justify its decision. In prescribed circumstances, a Notice of Reasons must be served after the contract is awarded. ### Can the landlord do emergency work without consultation? Urgent circumstances may justify seeking dispensation from the tribunal, but there is no blanket emergency exemption. The facts, urgency and potential prejudice to leaseholders matter. ### Who runs the process in an RTM building? Once the right to manage has been acquired, the RTM company takes on relevant management functions. In practice, the RTM company and its appointed managing agent need to ensure that consultation responsibilities are handled correctly. ### Can I challenge a Section 20 bill? You may be able to apply to the First-tier Tribunal for a determination on whether a charge is payable, reasonable or recoverable. The facts, the lease, the notices and the timing will all matter. ## Make the process easier to evidence Section 20 works can be stressful because they combine substantial costs, technical decisions and strict procedural requirements. Leaseholders should read notices promptly, make evidence-based observations and retain every document. For RTM and RMC directors, the priority is to plan early, follow the applicable consultation route, keep a transparent decision record and use systems that give everyone a reliable view of the process. Manage.Management and its Section20 Manager integration give resident-led buildings a practical foundation for that work: organised property records, transparent communications and a clearer audit trail when it matters most. Last reviewed: 29 October 2026 by Franklin Baeza, Manage.Management. This article is general information for England and Wales, not legal advice. Check the current position with a qualified adviser before acting. --- Source: [Section 20 Works: A Leaseholder's Guide to Major Works Consultation](https://manage.management/blog/section-20-works-a-leaseholder-s-guide-to-major-works-consultation) on the Manage.Management blog.