If your building needs a new roof, a replacement lift or the outside redecorated, the bill goes through the service charge. Before any of that money is spent, the law says the people who will pay must be told what is planned, given the chance to comment and shown the quotes. That process is called Section 20 consultation, and the letters sent at each step are Section 20 notices.
What is a Section 20 notice?
The rules come from section 20 of the Landlord and Tenant Act 1985 and a set of regulations made in 2003. A Section 20 notice is a formal letter from the landlord, the residents’ company or the managing agent to every leaseholder. Each one covers a different step: what the work is, what it will cost, and why a particular contractor was picked.
When does it apply?
Consultation is needed when any one leaseholder would pay more than £250 towards a piece of work. VAT and professional fees count towards that figure, so it is easier to reach than it sounds. A separate rule covers long contracts for services, such as lift maintenance, that run for more than 12 months and cost any one leaseholder more than £100 a year.
The regulations set out five different routes depending on what is being bought. For most building work there are three stages.
The three stages
1. Notice of intention. The landlord explains what work is planned and why it is needed. Leaseholders can send comments and suggest contractors, and they must be given at least 30 days.
2. Statement of estimates. Once quotes are in, every leaseholder is sent the costs, told where the quotes can be looked at and invited to comment. Again, at least 30 days.
3. Notice of reasons. If the landlord does not go with the cheapest quote, or with a contractor a leaseholder suggested, it has to explain why.
Because each of the first two stages has a 30-day window, a well-run process still usually takes at least two to three months. Leave a few extra days for the post.
What happens if the process is skipped?
As a rule, the most a landlord can charge each leaseholder for the job is £250, whatever the final bill comes to. Take a block of ten flats where everyone pays an equal share: the whole project could only be recovered up to £2,500. The rest may land on the landlord, and in a residents’ company the directors can be exposed to claims.
That £250 is a cap, not a charge. Each leaseholder still pays only the share set by their own lease.
Does it apply to residents’ companies and right to manage companies?
Yes. For Section 20 purposes the “landlord” is whoever is arranging the work, and that includes residents’ companies and right to manage companies. Even if every owner votes for the work at a meeting, consultation still has to be done. It also applies when the money comes out of a reserve fund.
What about urgent work?
The regulations have no exception for urgency. A landlord who has to start at once can ask the First-tier Tribunal to waive some or all of the steps, before or after the work, but only with a good reason. Tribunals take the rules seriously, and an honest mistake alone will not get a landlord off. The leading case is Daejan v Benson (Supreme Court, 2013), where the main question is whether leaseholders were genuinely harmed by the missing consultation.
Could the rules change?
In 2025 the government asked for views on reforming the Section 20 process. Ideas in the consultation include raising the £250 and £100 limits to £600 and £300, requiring asset management plans and making reserve funds compulsory for new leases. In July 2026 the government said it would respond on the major works proposals separately, without giving a date. None of this is law yet, so the £250 and £100 limits still apply today.
Doing more than the law requires
The RICS code for managing agents treats the legal steps as the minimum, not the goal. In practice, the best way to avoid disputes is to keep leaseholders informed from the start, explain why the work is needed and show what it will cost.
How we help
Darcy Residential manages major works for leasehold buildings and runs the consultation process transparently, with clear cost breakdowns. If you are weighing up a project for your building, get in touch.
This guide is general information, not legal advice. Sources: The Property Institute, advice note on Section 20 consultation and major works (2025); RICS, Service Charge Residential Management Code, 4th edition (2026); UK Government, Strengthening leaseholder protections over fees, charges and services: consultation (2025) and government response (updated 15 July 2026).
Is your current management meeting the Darcy standard?
Contact us now:
Phone: +44 20 3727 2618
Email: info@darcyresidential.co.uk