Section 20 consultation: a step-by-step guide for self-managed blocks

Does it apply?

Works. Section 20 applies to "qualifying works" (repairs, maintenance or improvements) when any one leaseholder's contribution would be more than £250 (reg 6). It's tested against the leaseholder with the largest share.

At Maple Court, each flat pays 12.5%, so consultation is needed once a job's total cost is more than eight times £250.

Don't split one job into smaller ones to get under the threshold: the tribunal looks at what the works really are.

Long-term agreements. It also applies to any agreement for more than 12 months (such as a managing agent's contract, lift maintenance or cleaning) if any one leaseholder would pay more than £100 towards it in an accounting period (reg 4). See qualifying long-term agreementQualifying long-term agreementA contract made by or for the landlord (or the company managing the block) for a term of more than 12 months, which needs Section 20 consultation if any leaseholder would pay more than the set amount a year towards it..

The steps for works

This is the usual procedure, for works that aren't under a long-term agreement and don't need public notice (Schedule 4, Part 2).

1. Notice of intention

   Write to every leaseholder (and any recognised tenants' association) describing the works, or saying where and when a description can be inspected, explaining why the works are needed, and inviting written observations and nominations of contractors. Give the address for responses and the end date of the relevant period: 30 days from the date of the notice.

2. Get estimates

   Obtain estimates, including from a contractor nominated by leaseholders where the regulations require it. At least one estimate must be from someone wholly unconnected with the company. That rules out, for example, a business owned by a director or their close relative.

3. Statement of estimates

   Send leaseholders a statement setting out at least two of the estimates, with a summary of any observations you received and your response. Make all the estimates available to inspect, and invite observations within another 30 days.

4. Consider the observations

   You must have regard to every observation received in time. Record what you considered and why you decided as you did.

5. Award the contract

   If you choose a contractor who wasn't nominated by a leaseholder and didn't give the lowest estimate, send a notice of reasons within 21 days of signing the contract, summarising any observations on the estimates and your response.

Keep copies of every notice, proof of how and when it was served, and every response. Serve the notices the way your lease's notices clause allows.

If you don't consult

Each leaseholder's contribution is capped at the threshold (£250 for works, or £100 a year for long-term agreements). The company has to find the rest itself, unless the First-tier TribunalFirst-tier Tribunal (Property Chamber)The tribunal in England that decides most leasehold disputes, including right to manage claims, whether service charges are payable or reasonable, and applications for dispensation from Section 20 consultation. grants dispensationDispensationAn order by the First-tier Tribunal excusing a landlord or management company from some or all of the Section 20 consultation requirements, where it is reasonable to do so..

The tribunal can dispense with some or all of the requirements if it's reasonable (s.20ZA). Since Daejan v Benson (2013), the key question is whether leaseholders suffered real prejudice from the failure. Dispensation can come with conditions, and costs time and a fee, so consulting properly is almost always better.

Practical tips for small blocks

• Plan ahead. Consultation adds two to three months. Start well before scaffolding season.
• Talk first. In a small block, an informal chat with every leaseholder before the formal notices avoids surprises.
• Watch for connections. Directors are often neighbours with local contacts. Declare any connection with a contractor and make sure an unconnected estimate is included.
• Short contracts. Keeping service contracts to 12 months or less avoids long-term agreement consultation.

---

This is general information, not legal advice. Every building and lease is different. For free initial advice, contact LEASE (The Leasehold Advisory Service): https://www.lease-advice.org/