Property Management

Understanding the Section 20 process: What every leaseholder needs to know

If you own a flat in a residential block, chances are you’ve heard the term ‘Section 20’ thrown around – usually when major works or big-ticket repairs are on the horizon.

But what does it actually mean, and why is it important?

Let’s break it down in plain English.

What is a Section 20 Consultation?

Section 20 of the Landlord and Tenant Act 1985 is a legal process that comes into play when the cost of qualifying works or long-term agreements (more than 12 months) will result in any one leaseholder paying over £250. In short, it’s a safeguard that ensures leaseholders are consulted before they’re landed with hefty bills.

The Three Stages of the Section 20 Process

The process is split into three stages, designed to keep leaseholders informed and allow them to have their say:

1. Notice of Intention – This is the first heads-up you’ll get. It outlines the work being considered and invites leaseholders to provide observations or suggest contractors (if applicable). This stage usually runs for 30 days.
2. Statement of Estimates – Once contractor estimates are gathered, a second notice is issued detailing the costs and offering another 30-day period for leaseholders to provide feedback.
3. Notice of Award of Contract – The final stage announces which contractor has been chosen and explains why. If the cheapest quote wasn’t selected, the notice must justify the decision.

Why Does This Matter to You?

The Section 20 process is all about transparency. It ensures that leaseholders are kept in the loop about significant expenditure and have an opportunity to voice concerns. While it might feel bureaucratic, it’s a necessary step to prevent surprises and keep things fair.

Common Misconceptions

• “I can veto the works if I don’t agree.” Not quite—this isn’t a voting process, but your feedback must be considered.
• “The landlord or management company can pick any contractor they like.” They can, but if they don’t choose the lowest quote, they have to justify why.
• “Section 20 applies to all repairs.” No, only when the cost to any single leaseholder exceeds £250.

Need Help Navigating Section 20?

Understanding your rights and obligations as a leaseholder can be tricky, but we’re here to help. If you have concerns about a proposed Section 20 process in your building, get in touch – we can help you make sense of it all.

If you need more information, contact James McArthur on 07980 673531 or click here to email him.