# Section 20 consultation: a step-by-step guide for self-managed blocks > Section 20 consultation is needed before major works if any one leaseholder would pay more than £250, and before signing a contract of more than 12 months if any leaseholder would pay more than £100 a year towards it. For works there are usually two rounds: a notice of intention inviting comments and contractor nominations, then a statement of at least two estimates inviting comments, each open for comments for 30 days. If you don't consult properly, each leaseholder's contribution is capped at the threshold unless the tribunal grants dispensation. **Key facts** - Works: consult if any one leaseholder's contribution would be more than £250. - Long-term agreements (over 12 months): consult if any leaseholder would pay more than £100 a year. - Each consultation round gives leaseholders 30 days to comment. - Get at least two estimates, at least one from someone wholly unconnected with the company. - If you don't pick a nominated contractor or the lowest estimate, give reasons within 21 days of signing. - It applies to RTM companies and residents' management companies just as to landlords. ## Does it apply? **Works.** Section 20 applies to "qualifying works" (repairs, maintenance or improvements) when any one leaseholder's contribution would be **more than £250** (reg 6). It's tested against the leaseholder with the **largest share**. > At Maple Court, each flat pays 12.5%, so consultation is needed once a job's total cost is more than eight times £250. Don't split one job into smaller ones to get under the threshold: the tribunal looks at what the works really are. **Long-term agreements.** It also applies to any agreement for **more than 12 months** (such as a managing agent's contract, lift maintenance or cleaning) if any one leaseholder would pay **more than £100** towards it in an accounting period (reg 4). See [qualifying long-term agreement](https://runyourblock.co.uk/glossary/qualifying-long-term-agreement). ## The steps for works This is the usual procedure, for works that aren't under a long-term agreement and don't need public notice (Schedule 4, Part 2). 1. **Notice of intention** Write to every leaseholder (and any recognised tenants' association) describing the works, or saying where and when a description can be inspected, explaining **why** the works are needed, and inviting **written observations** and **nominations** of contractors. Give the address for responses and the end date of the **relevant period: 30 days** from the date of the notice. 2. **Get estimates** Obtain estimates, including from a contractor nominated by leaseholders where the regulations require it. At least one estimate must be from someone **wholly unconnected** with the company. That rules out, for example, a business owned by a director or their close relative. 3. **Statement of estimates** Send leaseholders a statement setting out at least two of the estimates, with a summary of any observations you received and your response. Make all the estimates available to inspect, and invite **observations within another 30 days**. 4. **Consider the observations** You must have regard to every observation received in time. Record what you considered and why you decided as you did. 5. **Award the contract** If you choose a contractor who wasn't nominated by a leaseholder and didn't give the lowest estimate, send a **notice of reasons within 21 days** of signing the contract, summarising any observations on the estimates and your response. Keep copies of every notice, proof of how and when it was served, and every response. Serve the notices the way your lease's notices clause allows. ## If you don't consult Each leaseholder's contribution is **capped at the threshold** (£250 for works, or £100 a year for long-term agreements). The company has to find the rest itself, unless the [First-tier Tribunal](https://runyourblock.co.uk/glossary/first-tier-tribunal) grants [dispensation](https://runyourblock.co.uk/glossary/dispensation). The tribunal can dispense with some or all of the requirements if it's reasonable (s.20ZA). Since _Daejan v Benson_ (2013), the key question is whether leaseholders suffered real prejudice from the failure. Dispensation can come with conditions, and costs time and a fee, so consulting properly is almost always better. ## Practical tips for small blocks - **Plan ahead.** Consultation adds two to three months. Start well before scaffolding season. - **Talk first.** In a small block, an informal chat with every leaseholder before the formal notices avoids surprises. - **Watch for connections.** Directors are often neighbours with local contacts. Declare any connection with a contractor and make sure an unconnected estimate is included. - **Short contracts.** Keeping service contracts to 12 months or less avoids long-term agreement consultation. --- This is general information, not legal advice. Every building and lease is different. For free initial advice, contact LEASE (The Leasehold Advisory Service): ## Frequently asked questions ### When is Section 20 consultation required? Before qualifying works where any one leaseholder's contribution would be more than £250, and before entering a contract for more than 12 months where any leaseholder would contribute more than £100 in a year. ### How long does Section 20 consultation take? For works, allow at least two to three months: 30 days for comments on the notice of intention, time to get estimates, then another 30 days for comments on the estimates. ### Does a Section 20 notice expire? The regulations don't set an expiry date. But if the works change significantly, or a long time passes and prices change, you may need to consult again. Take advice if in doubt. ### What if the works are an emergency? Do what's needed to make the building safe, keep leaseholders informed, and apply to the First-tier Tribunal for dispensation from the consultation requirements. You can apply before or after the works. ## Sources - [Landlord and Tenant Act 1985, s.20 (limitation of service charges: consultation requirements)](https://www.legislation.gov.uk/ukpga/1985/70/section/20) - [Landlord and Tenant Act 1985, s.20ZA (consultation requirements: supplementary)](https://www.legislation.gov.uk/ukpga/1985/70/section/20ZA) - [Service Charges (Consultation Requirements) (England) Regulations 2003, reg 6 (qualifying works threshold)](https://www.legislation.gov.uk/uksi/2003/1987/regulation/6) - [Service Charges (Consultation Requirements) (England) Regulations 2003, reg 4 (long-term agreements threshold)](https://www.legislation.gov.uk/uksi/2003/1987/regulation/4) - [SI 2003/1987, Schedule 4 Part 2 (consultation for works)](https://www.legislation.gov.uk/uksi/2003/1987/schedule/4/part/2) - [SI 2003/1987, Schedule 1 (consultation for qualifying long-term agreements)](https://www.legislation.gov.uk/uksi/2003/1987/schedule/1) - [Daejan Investments Ltd v Benson [2013] UKSC 14](https://caselaw.nationalarchives.gov.uk/uksc/2013/14) - [LEASE: Section 20 consultation](https://www.lease-advice.org/costs-and-charges/section-20-consultation/) ## Related guides - [Reserve funds and sinking funds for blocks of flats](https://runyourblock.co.uk/guides/running-your-block/reserve-funds) - [How to set a service charge budget for your block](https://runyourblock.co.uk/guides/running-your-block/budgets-and-service-charges) - [Managing agent or self-manage? When to hire help](https://runyourblock.co.uk/guides/running-your-block/managing-agent-or-self-manage) --- Last reviewed 22 October 2026 by Phil, founder. This is general information, not legal advice. For free, independent advice on leasehold law, contact LEASE: https://www.lease-advice.org/ Source: https://runyourblock.co.uk/guides/running-your-block/section-20-consultation