Section 20 of the Landlord and Tenant Act 1985 requires landlords to consult leaseholders before carrying out qualifying works (costing more than £250 per leaseholder) or entering into long-term agreements (more than 12 months, costing more than £100 per leaseholder annually). Failure to comply can limit recovery to the statutory caps.
When Does Section 20 Apply?
- Qualifying works: Single contract > £250 per leaseholder
- Long-term agreements: > 12 months AND > £100 per leaseholder per year
- Both apply to service charge recoverable costs
The Three-Stage Consultation Process
Stage 1: Notice of Intention (Section 20A)
- Describe the proposed works/agreement
- Invite nominations for contractors (works only)
- Set deadline for observations (minimum 30 days)
- Send to all leaseholders and recognized tenants' associations
Stage 2: Notice of Estimates (Section 20B)
- Provide at least two estimates (one from nominated contractor if applicable)
- Include specification sufficient to compare estimates
- Set deadline for observations (minimum 30 days)
- Send to all leaseholders and recognized tenants' associations
Stage 3: Notice of Reasons (Section 20C)
- Required if not accepting the lowest estimate
- Explain reasons for selection
- Send within 21 days of awarding contract
Common Pitfalls to Avoid
- Missing deadlines: The 30-day observation periods are statutory minimums
- Inadequate specifications: Leaseholders must be able to compare estimates meaningfully
- Failing to consider observations: You must genuinely consider all responses received
- Not consulting recognized associations: RTA/RLA must be consulted alongside individual leaseholders
Atom Care's Section 20 Module
Our platform includes a dedicated Section 20 workflow that guides you through each stage, automatically generates compliant notices, tracks observation periods, and maintains a complete audit trail for every consultation.
Need help with Section 20 compliance? Book a demo to see how Atom Care simplifies the process.
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