# Section 20 consultation

The legal process of consulting leaseholders before carrying out works, or signing a contract of more than 12 months, that will cost any one leaseholder more than the set threshold.

Also called: Section 20, s.20 consultation, major works consultation, section 20 notice.

It's named after section 20 of the Landlord and Tenant Act 1985. It applies to your RTM company or residents' management company just as it does to a landlord.

## When it applies

- **Works:** when any one leaseholder's contribution would be more than £250.
- **Long-term agreements:** when a contract lasting more than 12 months would cost any one leaseholder more than £100 a year. See [qualifying long-term agreement](https://runyourblock.co.uk/glossary/qualifying-long-term-agreement).

## The usual steps for works

1. **Notice of intention:** describe the works, say why they're needed, and invite comments and nominations of contractors within 30 days.
2. **Estimates:** get at least two, at least one from a contractor wholly unconnected with the company or its directors.
3. **Statement of estimates:** send the estimates and invite comments within another 30 days.
4. **Award:** if you don't choose a nominated contractor or the lowest estimate, send a notice of reasons within 21 days of signing the contract.

## If you don't consult

Each leaseholder's contribution is capped at the threshold unless the tribunal grants [dispensation](https://runyourblock.co.uk/glossary/dispensation).

## Related terms

- [Qualifying long-term agreement](https://runyourblock.co.uk/glossary/qualifying-long-term-agreement)
- [Dispensation](https://runyourblock.co.uk/glossary/dispensation)
- [Service charge](https://runyourblock.co.uk/glossary/service-charge)
- [Reserve fund](https://runyourblock.co.uk/glossary/reserve-fund)

## Sources

- [Landlord and Tenant Act 1985, s.20](https://www.legislation.gov.uk/ukpga/1985/70/section/20)
- [Service Charges (Consultation Requirements) (England) Regulations 2003](https://www.legislation.gov.uk/uksi/2003/1987/contents)
- [SI 2003/1987, Schedule 4 Part 2 (works consultation)](https://www.legislation.gov.uk/uksi/2003/1987/schedule/4/part/2)

---

Updated 22 October 2026. Source: https://runyourblock.co.uk/glossary/section-20-consultation