What is Section 20 Consultation?

Full Definition

A Section 20 consultation is a statutory process, required under section 20 of the Landlord and Tenant Act 1985, that a landlord or managing agent must follow before carrying out qualifying works to a building where any individual leaseholder would be charged more than £250 towards the cost through the service charge (or where a long-term qualifying agreement, such as a maintenance contract, would cost any leaseholder more than £100 in any accounting year). The process has statutory stages: the landlord must first notify leaseholders of the intention to carry out works and invite observations, then typically obtain at least two estimates (one from a contractor unconnected to the landlord) and share these with leaseholders for further comment, before finally notifying leaseholders of the chosen contractor and reasons for the decision. If a landlord fails to follow the correct Section 20 consultation process, the amount it can recover from each leaseholder for the works is capped at the statutory minimum (£250 for major works, or £100 per year for long-term agreements) unless the First-tier Tribunal (Property Chamber) grants dispensation from the requirements, which it may do if the leaseholders were not substantially prejudiced by the landlord's failure to consult properly. Section 20 consultations are a frequent source of leasehold disputes, since major works such as roof repairs, external redecoration or lift replacement can run into many thousands of pounds per flat, making it important for leaseholders to respond within the consultation deadlines if they wish to challenge costs, propose alternative contractors, or query the necessity of works.

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