What is a Section 20 notice for major works?

Section 20 is a procedural protection rather than a veto. It does not let leaseholders block works or set the price; it entitles them to be told, to comment, to nominate a contractor for a quotation, and to be given reasons where their observations are not followed. The sanction for skipping it is what gives it teeth.

Step by step

1. Check whether the threshold is engaged.Consultation is required where the works would cost any single leaseholder more than a prescribed contribution, or under a qualifying long-term agreement of more than twelve months costing any leaseholder more than a prescribed annual amount. The figures are set in regulations — check the current ones.
2. Expect a notice of intention first.It describes the proposed works or agreement, says why they are considered necessary, invites written observations within thirty days, and invites leaseholders to nominate a contractor from whom the landlord should try to obtain an estimate.
3. Make written observations, and make them specific.The landlord must have regard to observations made in the consultation period and must respond with reasons where they are not accepted. Specific points about scope, specification and timing carry far more weight than general objection.
4. Nominate a contractor if you have one.The landlord must try to obtain an estimate from a nominee. This is the most under-used part of the process and the most effective way to test whether a price is reasonable.
5. Expect a statement of estimates.A second notice setting out at least two estimates, at least one from a party unconnected with the landlord, where the leaseholders' nominee's estimate must be included if obtained. A further thirty days for observations follows.
6. Expect a notice of the award where required.Where the contract is not awarded to the lowest estimate or to a nominated contractor, the landlord must give notice of the reasons within a set period.
7. Understand the consequence of failure.Without proper consultation, the landlord can only recover a low statutory amount per leaseholder for the works, regardless of what they cost — unless the tribunal grants dispensation. Tribunals do grant dispensation, commonly where no leaseholder suffered actual prejudice, sometimes on conditions.
8. Check how the works are being funded.From a reserve fund, by a one-off demand, or by instalments. Where a demand will be large, ask early about payment terms and any hardship arrangements — many landlords will spread it, but few offer without being asked.
9. Watch for consultation on long-term agreements.Insurance, lift maintenance, cleaning contracts and managing agent appointments over twelve months can all be qualifying long-term agreements requiring consultation, and this is more often overlooked than the works case.

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