How to Run a Section 20 Consultation Without the Stress (5 Steps for Freeholders)

A Section 20 consultation can feel like a mountain of notices, estimates and deadlines. With a clear plan, though, it becomes a manageable process: leaseholders understand what is proposed, freeholders can make informed decisions, and the building gets the work it needs.

This practical guide focuses on qualifying works in England. Section 20 requirements can depend on the lease, the project and who the landlord is, so take professional advice where the position is uncertain.

First, when does Section 20 apply?

Section 20 of the Landlord and Tenant Act 1985 sets out consultation requirements for certain works and long-term agreements where costs will be recovered through service charges.

For qualifying works, consultation is generally required if any leaseholder may have to contribute more than £250. For a qualifying long-term agreement, usually one lasting more than 12 months, the threshold is more than £100 per leaseholder per year.

If the required consultation is not completed, the amount recoverable from each leaseholder may be capped at the relevant threshold unless a tribunal grants dispensation. That does not automatically mean the works cannot go ahead, but it can have a significant effect on cost recovery.

For example, if a planned roof replacement is estimated to cost £18,000 and a leaseholder’s share is expected to be £1,200, the works may trigger consultation. The key is to assess the likely contribution for each flat, rather than relying on the total project cost alone.

Step 1: Define the project and check the figures

Start by getting clear on what the building needs and why. Is the proposal one-off qualifying work, a long-term agreement for services, or potentially both? What is included in the scope, and how have the costs been estimated?

Review the lease and service-charge apportionments, then estimate each leaseholder’s likely contribution. Include relevant VAT and professional fees in your calculations. Check whether a reserve fund may contribute, but don’t assume it removes the need to consult.

Avoid dividing a single project into smaller jobs simply to try to stay below the threshold. Instead, document the full proposed scope and the reasoning behind it.

A short project summary helps keep everyone aligned:

• What work is being considered, and why?

• Which parts of the building are affected?

• What is the estimated cost and each flat’s likely share?

• What is the expected timetable?

• What alternatives or funding options have been considered?

Step 2: Prepare and serve the Notice of Intention

For qualifying works, the first formal stage is generally a Notice of Intention. It tells leaseholders what work is being proposed, why it is considered necessary and how they can take part in the consultation.

The notice should clearly explain how to send observations and, where applicable, nominate a contractor to be invited to tender. Leaseholders must generally be given at least 30 days to respond.

Before sending it, check the recipient list, response address and dates. Explain where a fuller description of the proposed work can be inspected if it is not included with the notice. Keep a copy of the notice and a record of how and when it was served.

A clear notice reduces uncertainty. For instance, “repairs to the roof” may leave residents wondering what is actually planned. A more useful description might explain which roof sections are involved, the nature of the proposed work and where the supporting scope can be reviewed.

Step 3: Track observations and contractor nominations

Treat the consultation period as a genuine opportunity for leaseholders to raise relevant points, not simply a countdown to the next notice.

Use a response log to record observations, nomination details and follow-up questions. Consider the points received within the consultation period and keep a short note of how they were taken into account. Where several residents raise the same concern, one clear response can help everyone understand the issue.

Questions might cover the proposed scope, timing, cost, access arrangements or alternatives. A leaseholder or recognised tenants’ association may also nominate a contractor where the rules allow. The relevant nominated estimate may need to be included in the later consultation stage, so record nominations carefully and follow them up promptly.

For a busy block in Essex, a shared project timeline can make the process easier to follow. It gives the freeholder, managing agent and contractors a common reference point, and helps residents see what happens next.

Step 4: Compare estimates and share the information

Once the first consultation stage closes, obtain estimates for the work. The consultation rules generally require at least two estimates, including one from a contractor wholly unconnected with the landlord. Any estimate that must be obtained following a valid nomination should also be dealt with in line with the requirements.

The next notice, often called a Statement of Estimates, sets out the estimates and explains where they can be inspected. It should also summarise the earlier observations and the landlord’s responses, and invite further written observations. Leaseholders generally have at least 30 days to comment on this stage.

Price matters, but it is not the only factor worth considering. Compare what each contractor has included, along with relevant experience, proposed timings, warranties and exclusions. An apparently lower estimate may omit work included in another contractor’s price.

Be straightforward about what estimates do and don’t cover. If a figure is provisional, or excludes particular fees or work, explain that in plain English. A transparent comparison helps leaseholders understand the decision and gives the freeholder a clearer record of the procurement process.

Step 5: Make the decision and close the loop

After the final observation period, review the responses and select a contractor. If the chosen estimate is not the lowest, the consultation requirements may call for a notice explaining why. The explanation should set out the reasons clearly, for example, differences in scope, relevant experience or the proposed programme, rather than relying on a general statement that one contractor offered better value.

Keep the full project record together: notices, proof of service, estimates, observations, nomination details, responses and the decision. Once the contractor is appointed, let leaseholders know what happens next, including the expected timetable and how any changes will be communicated.

A professional process benefits both sides. Freeholders have a documented basis for their decision; residents gain a clearer picture of how their service-charge contributions are being considered. That is a more positive foundation for the work itself.

Keep the process clear, not complicated

A practical Section 20 consultation is built on preparation, clear communication and proper records. Allow enough time for each consultation window, explain the proposal in accessible language and make sure leaseholders know how to comment.

If your block needs support with contractor management, budgeting or resident communications, explore Pensar Property Management’s block management services and financial management services. For cost information, See our block management fees.

For further guidance, see the Landlord and Tenant Act 1985 and the Leasehold Advisory Service’s information on Section 20 consultation. A well-organised consultation can turn a daunting project into a shared, manageable process, and help set a brighter standard for managing your building.