Section 20 Notices Explained

What “Section 20” actually refers to

If you own a long lease on a flat or house in England and pay a variable service charge to a landlord, freeholder, or managing agent, you’ve almost certainly heard the term “Section 20” - often shorthand for the whole consultation process, not just one section of law. It comes from the Landlord and Tenant Act 1985, which sets out when a landlord has to consult leaseholders before charging them for major works or entering a long-term service contract, and the standard leaseholders’ costs are generally expected to meet.

The specific consultation mechanics are set out in the Service Charges (Consultation Requirements) (England) Regulations 2003. This guide, and this product, only covers England - Wales has its own, separately issued 2004 Regulations, and Scotland and Northern Ireland aren’t within this framework at all.

Why leaseholders get a Section 20 notice at all

A landlord is generally expected to consult leaseholders before carrying out “qualifying works” above a certain cost, or before entering a “qualifying long-term agreement” (generally an agreement entered into by or on behalf of the landlord or a superior landlord for a term of more than 12 months, subject to statutory exclusions - commonly a lift maintenance or cleaning contract) above a certain annual cost per leaseholder. Roof repairs, external redecoration, lift replacement, and large-scale block-wide maintenance programmes are all common triggers. For a fuller breakdown of when consultation is expected, see our guide to qualifying works and the £250 threshold.

How the consultation process usually works

The precise consultation procedure depends on the type of works or agreement and, in some cases, the procurement rules applying to the landlord. For many privately procured qualifying works, it generally involves a Notice of Intention, a Statement of Estimates followed by a further observation period, and, in specified circumstances, a notice explaining why a particular contractor was selected. Different documents and requirements can apply to qualifying long-term agreements, works carried out under an existing agreement, and contracts subject to a public-notice procurement process. We cover this in full, stage by stage, in our dedicated consultation process guide.

The £250 and £100 statutory consultation thresholds

The statutory consultation thresholds are £250 (including VAT) for a single qualifying-works project, and £100 (including VAT) per leaseholder in any accounting period for a qualifying long-term agreement. If any one leaseholder would contribute more than the relevant amount, the landlord will normally have to follow the consultation requirements. These figures aren’t absolute limits on what you might ultimately have to pay: if a landlord fails to comply with the consultation requirements, the amount it can normally recover is limited to £250 (or £100 per accounting period) - but it can apply to the First-tier Tribunal for dispensation from some or all of the requirements. See our guide on dispensation applications for what that actually means in practice.

What a Section 20 notice does and doesn’t tell you

A notice will usually tell you what works are proposed, roughly why, and how to submit observations or nominate a contractor. It won’t usually tell you whether the costs are reasonable, whether the consultation itself was done correctly, or what your options are if something looks off - that’s the gap this service exists to help you close. It also won’t tell you about statutory protections that might apply specifically to you, such as the Right to Buy initial-period protection if you bought your home from a council.

If this isn’t the first time

Many leaseholders, particularly in ex-council blocks, find that Section 20 notices arrive more than once over the years they own their home. If that sounds familiar, our guide on ex-council leaseholders and repeat Section 20 bills covers why this pattern is so common and how to start keeping a record.

What to do next

Start by reading the notice in full and noting every date it mentions - see our practical first-steps checklist. From there, organising your evidence against each issue area that could apply is exactly what a Defence Pack does for you, specifically for your own notice and your own documents.