Section 20 major works — a plain-English guide for RMCs and freeholders

If you sit on the board of a residents’ management company (RMC), act as freeholder, or manage a block for a client, you’ve probably felt the weight of Section 20. It sounds intimidating, and get it wrong and the RMC can recover only £250 per leaseholder from a job that might cost tens of thousands. But run properly it’s a genuinely useful piece of consumer protection, and it keeps everyone honest.

This is a plain-English walk-through of the process, when it applies, and the mistakes we see time and again.

What is Section 20?

Section 20 of the Landlord and Tenant Act 1985 (as amended by the Commonhold and Leasehold Reform Act 2002) requires a landlord — typically the freeholder or RMC — to consult with leaseholders before carrying out qualifying works or entering a qualifying long-term agreement (QLTA).

• Qualifying works apply when the contribution from any single leaseholder would exceed £250 (including VAT).
• Qualifying long-term agreements apply for contracts longer than 12 months where any leaseholder would contribute more than £100 per year.

If you don’t consult properly, the amount you can recover from each leaseholder is capped at £250 (or £100/year for QLTA), no matter what the actual cost was. That’s the enforcement teeth.

The three stages of consultation

Stage 1: Notice of Intention

A written notice served on every leaseholder describing the works or agreement in general terms, saying why they’re needed, and inviting leaseholders to make written observations (usually within 30 days) and to nominate a contractor for consideration.

Stage 2: Notice of Estimates

You must obtain at least two written estimates — one of which must be from a contractor entirely unconnected to the landlord. If any leaseholder nominated a contractor at Stage 1, you must obtain a quote from them too (unless they can’t be reached).

A statement of estimates is then sent to each leaseholder with the quotes attached, again with a 30-day consultation window for written observations.

Stage 3: Notice of Reasons (award notice)

If you don’t award the contract to the cheapest quote or a leaseholder-nominated contractor, you must within 21 days of awarding the contract explain in writing why. If you award to the cheapest or nominated contractor, no Stage 3 notice is required.

Common mistakes we see

• Serving the notice on the block noticeboard instead of on each leaseholder individually. Section 20 requires individual service.
• Not obtaining a truly independent estimate. The two quotes must not come from connected contractors.
• Starting the works before the consultation period ends. If the timeline is tight, apply to the First-tier Tribunal for dispensation — don’t just crack on.
• Ignoring nominated contractors from leaseholders. Even if the nomination feels awkward, you must approach them.
• Forgetting the QLTA rules. Long-term maintenance contracts (cleaning, gardening, lift servicing) often trigger Section 20 even though no single visit is expensive.

What if it’s an emergency?

The regulations recognise that some works can’t wait for a 90-day consultation. If a fire escape becomes unsafe, or a roof failure is causing water damage, you can apply to the First-tier Tribunal for dispensation from the consultation requirements. The tribunal will grant dispensation if leaseholders are not prejudiced by the shortened process. Do it early — don’t start the works and apply retrospectively.

How a good contractor helps

A contractor experienced with Section 20 will:

• Provide detailed, itemised written estimates suitable for including in the Stage 2 notice.
• Turn quotes around quickly to keep your consultation window on track.
• Be happy to attend an EGM or leaseholder meeting to explain the works.
• Provide references from previous block-level jobs.
• Have public liability and works insurance appropriate for the value.

A tidy Section 20 process is often more valuable than a lower price. Leaseholders forgive expensive works if they trust the process; they never forgive works imposed on them.

Speak to us early

If you’re planning major works for a block in the next 12 months, get in touch early. We can survey the block, help you scope the work, produce an itemised quote for Stage 2, and attend leaseholder meetings if you need us to. We deliver major works across the UK for freeholders, RMCs and managing agents.