Guide to Section 20 Works

If you own a leasehold property, you might be asked to contribute to the cost of major building repairs or maintenance. Your landlord must follow a consultation process if your share of the cost exceeds £250. This is known as Section 20 of the Landlord and Tenant Act 1985.

This guide explains what Section 20 works are, why they matter, and what you need to know about the process, to help you avoid disputes and unexpected costs.

What is Section 20 works?

Section 20 works are major repairs or maintenance carried out on a residential freehold property, where you and other leaseholders are required to contribute. If your share of the cost exceeds £250, your landlord must follow a formal consultation process under Section 20 of the Landlord and Tenant Act 1985.

These works can include:

  • Roof repairs
  • External decorations
  • Lift replacements
  • Structural work
  • Health and safety improvements

The law ensures you’re not hit with large, unexpected costs without being properly informed and given a chance to have your say. If your landlord doesn’t follow the correct process, they may not be able to recover the full cost from you.

What should a Section 20 notice include?

The Section 20 consultation process involves three key notices that your landlord must send before any major works begin. These notices ensure transparency and fairness, giving you a chance to review and comment on the plans before they go ahead.

Notice of intention

The first step is the Notice of Intention, which must be sent to you and all other leaseholders. It must include:

  • Details of the proposed works: What the landlord plans to do and why.
  • The reason for the work: Whether it’s for repairs, improvements, or to meet safety regulations.
  • A 30-day period for observations: You have the right to submit comments or concerns.

Notice of estimates

Once the landlord has received estimates for the work, they must send you a Notice of Estimates. This should include:

  • At least two estimates, showing different options for carrying out the work.
  • Where and when you can inspect the estimates to give transparency in the selection process.
  • A deadline for your observations, giving you time to raise concerns or suggest alternatives.

Notice of who won the contract

After selecting a contractor, your landlord must issue a final notice within 21 days of signing the contract—but only if they didn’t choose the cheapest option.

The notice must include:

  • The name of the chosen contractor and details of their quote.
  • A summary of leaseholders’ thoughts on the estimates.
  • The reason for selecting this contractor over cheaper alternatives.

What are the requirements to consult under Section 20?

When a landlord plans major works that costs any leaseholder more than £250, they must follow the Section 20 consultation process. This process ensures you’re informed, have a chance to review the plans, and can provide feedback before any contracts are signed.

In most cases, landlords must carry out a full consultation before starting work. This means:

  • Leaseholders must receive formal notices at each stage of the process.
  • Leaseholders have the right to make observations on the proposed works and costs.
  • Landlords must consider any comments before proceeding.

The goal is to prevent unfair or excessive charges, ensuring you have a say in how your money is spent. If the landlord fails to consult properly, they may be restricted in how much they can recover from you and any other leaseholders.

There are some exceptions, such as emergency works. However, in most cases, Section 20 rules must be followed to ensure transparency and fairness.

Leaseholders’ rights under Section 20

As a leaseholder, you have several rights under the Section 20 major works process. These rules are in place to protect you from unfair or excessive charges while ensuring landlords can carry out necessary work.

Your right to submit observations

You can raise concerns or submit observations at two key stages:

  • Stage one (Notice of Intention): Before estimates are obtained, so you can challenge whether the work is necessary.
  • Stage two (Notice of Estimates): After estimates are received, allowing you to review the proposed costs and give feedback.

Your right to inspect estimates and documents

You have the right to:

  • Request and inspect the estimates your landlord has obtained.
  • Review other relevant documents, like work specifications and contractor details.
  • See how the contractor was chosen, especially if the most expensive option was selected.

Your right to challenge unreasonable costs

If you think the costs are too high or the work isn’t necessary, you can:

  • Challenge the charges at the First-tier Tribunal (Property Chamber).
  • Dispute whether the costs and work are reasonable.
  • Question if the landlord followed the correct consultation process.

Can a leaseholder object to a Section 20 notice?

Yes, as a leaseholder, you can object to a Section 20 notice by raising concerns during the consultation process. You can challenge the scope, necessity, or cost of the proposed work before any contracts are signed.

How to object

  • During stage one (Notice of Intention): You can submit observations about whether the work is necessary or if there are alternative solutions.
  • During stage two (Notice of Estimates): You can object to the cost of the works and suggest other contractors if you believe the quotes are too high.

Your landlord must consider all objections before proceeding. If you believe your concerns have been ignored or the costs are unreasonable, you can challenge the charges at the First-tier Tribunal (Property Chamber).

While you can’t stop essential works from going ahead, your objections may influence the scope, cost, or contractor selection.

FAQs

The landlord or managing agent is responsible for arranging major works on the building. This includes essential maintenance, repairs, and improvements. However, as a leaseholder, you’ll usually share the costs through service charges. If the total contribution per leaseholder exceeds £250, the landlord must follow the Section 20 consultation process. This ensures transparency and gives you a chance to review the work and costs before anything is finalised.

If you’re a landlord or managing agent, you must serve three formal notices to leaseholders:

  1. Notice of Intention: Informs leaseholders about the proposed works and allows them to comment.
  2. Notice of Estimates: Provides at least two estimates and invites further feedback.
  3. Notice of Award of Contract: Required if the chosen contractor didn’t submit the lowest bid, explaining why they were selected.

There’s no fixed expiry date for a Section 20 notice, but the consultation must be meaningful and timely. If there’s a long delay between the notice and the work starting, leaseholders could argue that the consultation is outdated and challenge the costs. Landlords should ensure work begins reasonably soon after completing the process to avoid disputes.

If a landlord fails to serve Section 20 notices, they may not be able to recover more than £250 per leaseholder—even if the actual cost is much higher. Leaseholders can challenge the charges at the First-tier Tribunal (Property Chamber), and the tribunal may limit the recoverable costs. To avoid financial loss and legal disputes, landlords must follow the consultation process correctly.

Disclaimer:

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

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