Received a Section 20 Notice? Major Works, Service Charges and the £250 Limit Explained

Author: Richard Gedall MNAEA | AARLA, Director of MyEstate Luton Limited
Updated: August 2026
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Receiving a Section 20 notice can be unsettling, especially when it refers to expensive roof repairs, external decorations, fire-safety improvements or another major project affecting your block. For many leaseholders, the first questions are simple: What is this notice? Do I have to pay? Can I object? And does the frequently mentioned £250 limit mean that the managing agent cannot charge me more than £250?

The short answer is that Section 20 is a statutory consultation process. It is intended to give leaseholders information about proposed major works or certain long-term contracts before substantial costs are passed through the service charge. The £250 figure is normally the point at which consultation is required for qualifying works; it is not an automatic maximum bill where the correct process has been followed.

This guide explains the position in England for leaseholders, freeholders, Resident Management Company directors, Right to Manage companies and those involved in block management across Bedfordshire.

What is a Section 20 notice?

“Section 20” refers to the consultation requirements associated with Section 20 of the Landlord and Tenant Act 1985, as amended, with the detailed procedure set out in the Service Charges (Consultation Requirements) (England) Regulations 2003.

The process applies when a landlord—including a freeholder, Resident Management Company or Right to Manage company—intends to recover certain costs through the service charge. A managing agent may administer it on the landlord’s behalf.

Proper consultation should give leaseholders a meaningful opportunity to understand:

• Why the work is considered necessary.

• What work or services are proposed.

• The anticipated cost and how estimates will be obtained.

• How the contractor will be selected.

• How and when leaseholders can submit written observations.

• Whether leaseholders can nominate a contractor to provide an estimate.

Consultation does not give an individual leaseholder a veto over necessary work, but concerns and alternatives should be considered before the contract is awarded.

What counts as major works?

The legislation uses the term “qualifying works”. These are works to a building or estate for which leaseholders must contribute through their service charges. Common examples can include:

• Roof repairs or replacement.

• External or internal communal redecoration.

• Window or lift replacement where these are the landlord’s responsibility.

• Fire-alarm, emergency-lighting or other fire-safety works.

• Structural repairs.

• Repairs to brickwork, balconies or communal walkways.

• Replacement of communal doors or entry systems.

• Major drainage, electrical or communal-area works.

Recovery still depends on the lease. Consultation does not create a right to charge for something the lease does not permit, and the cost and standard must meet wider service-charge requirements.

What does the Section 20 £250 limit actually mean?

Consultation is normally required if qualifying works will cost any one leaseholder more than £250, including VAT. Where percentages differ, consider the flat paying the largest share.

This is frequently misunderstood. The £250 figure is not necessarily the most a leaseholder can ever be asked to pay for major works.

If consultation is correct, the lease permits recovery and the work and cost are reasonable, the contribution can exceed £250.

If consultation is defective, recovery may be limited to £250 per leaseholder unless the First-tier Tribunal grants dispensation from the requirements.

Even where dispensation is granted, the Tribunal may impose conditions. A central question is whether the failure caused “relevant prejudice”—for example, whether leaseholders lost the opportunity to propose a cheaper contractor or influence the scope.

Therefore, a bill over £250 is not automatically unlawful, but consultation should never be treated as optional.

How does the Section 20 consultation process work?

The precise procedure depends on the type of project, the contractual arrangements and whether public procurement requirements apply. For standard qualifying works in a privately managed block, there are usually three stages.

Stage one: Notice of Intention

The first notice should describe the proposed works in general terms, explain why they are considered necessary and invite written observations. It normally allows leaseholders 30 days to respond.

In appropriate cases, leaseholders and a recognised tenants’ association may also nominate a contractor from whom the landlord should try to obtain an estimate. This can be a valuable right, particularly if residents know reputable contractors with suitable experience, qualifications, insurance and capacity.

A useful response should be specific. A leaseholder might ask:

• What inspection or survey identified the need for the work?

• Can the supporting report and proposed specification be inspected?

• Have alternative repair options been assessed and are professional fees, scaffolding, VAT and contingency included?

• Is any part of the cost covered by a warranty, insurance claim or reserve fund?

Observations received within the period should be conscientiously considered.

Stage two: Statement of Estimates

After obtaining estimates, the landlord will normally provide a statement summarising them and explaining where they can be inspected. At least two estimates are generally required, and at least one should come from a contractor unconnected with the landlord where the applicable procedure requires it.

Leaseholders are usually given another 30 days for written observations. This is the time to compare the scope, exclusions, guarantees and total cost—not merely the headline price.

A lower quotation is not automatically better. It may exclude scaffolding, making good, waste removal or VAT. Quotations should be compared on a genuine like-for-like basis.

Stage three: Notice of Reasons

If the chosen contractor is not the lowest-priced estimate or was not nominated by a leaseholder or recognised tenants’ association, the landlord may need to give a notice explaining the reasons for the decision. The rules depend on the particular consultation route, but transparency should remain central.

There may be legitimate reasons for not selecting the cheapest proposal, including stronger warranties, proven experience, safer working methods or fewer exclusions. Those reasons should be recorded.

What should you do after receiving a Section 20 notice?

Do not ignore it. Consultation periods are important and a late response may have less influence. Keep the notice, envelope and any covering correspondence, and note the deadline immediately.

Then:

1. Read your lease. Check responsibility, whether the cost is recoverable and how your share is calculated.

2. Ask for supporting information. Request the survey, specification, photographs, estimates and any professional advice supporting the project.

3. Check the scope. Establish whether it is a repair, replacement or improvement and whether every element is necessary.

4. Submit observations in writing. Identify practical concerns, missing information and possible cost-saving alternatives.

5. Consider nominating a contractor capable of meeting the project, insurance and safety requirements.

6. Speak with other leaseholders. A coordinated, evidence-based response is often more effective than multiple conflicting emails.

7. Keep a complete record. Save notices, emails, estimates and minutes in case questions arise later.

Objecting does not necessarily remove the obligation to contribute, but it records your concerns and may improve the project’s cost and accountability.

Can leaseholders challenge major works service charges?

Leaseholders can question whether a charge is permitted and reasonable, whether work was necessary and of a reasonable standard, and whether consultation was followed.

The First-tier Tribunal can determine whether a service charge is payable and in what amount. Proceedings carry time, evidence and potential cost implications, so specialist advice should be considered.

Simply withholding payment can lead to recovery action and additional costs. Depending on the circumstances, paying under protest while preserving a challenge may be more appropriate. Obtain advice because the correct approach depends on the lease and facts.

Leaseholders also have information rights. A written request can be made for a summary of relevant service-charge costs under Section 21 of the Landlord and Tenant Act 1985. After receiving it, there may be a right to inspect supporting accounts and receipts, subject to the statutory procedure.

What if the work is urgent?

Some projects cannot safely wait several months. A serious roof leak, dangerous structure, failed fire-safety system or other immediate risk may require urgent action.

The landlord can apply to the First-tier Tribunal for dispensation. An application may be made before or after the work, although addressing the position promptly is preferable.

Urgency does not make every cost reasonable. Records should explain the danger, decisions, available procurement steps and why delay was unacceptable.

What are qualifying long-term agreements and the £100 rule?

Section 20 is not limited to one-off building projects. Consultation may also be required before entering a qualifying long-term agreement: broadly, an agreement lasting more than 12 months where any leaseholder will contribute more than £100 in a year through the service charge.

Examples may include certain cleaning, gardening, lift-maintenance, fire-alarm or waste-management contracts. The rules and exemptions can be technical.

The £100 threshold should not be confused with the £250 threshold. The £250 figure concerns qualifying works; the £100-per-year figure concerns qualifying long-term agreements.

Why professional block management matters

Major works expose weaknesses in block management very quickly. Poor records, an outdated maintenance plan, insufficient reserves or rushed procurement can turn a necessary repair into a dispute between neighbours, directors, freeholders and managing agents.

A well-managed block should ideally have:

• Regular inspections and clear maintenance records.

• A realistic long-term maintenance plan.

• Reserve-fund planning where the lease permits it.

• Clear budgets and service-charge accounts.

• Proper specifications and comparable quotations.

• Transparent disclosure of professional and contractor costs.

• Evidence that leaseholder observations were considered.

• Checks on contractor competence, insurance and safety.

• Communication before, during and after the work.

Section 20 is not merely paperwork. Used properly, it supports responsible planning and transparent decisions.

Section 20 frequently asked questions

Can a managing agent charge more than £250 for major works?

Potentially, yes. If the lease permits the charge, the consultation requirements have been met and the costs and work are reasonable, an individual contribution can exceed £250.

Does receiving a notice mean the contractor has already been appointed?

Not necessarily. The initial Notice of Intention should normally be served before tenders are invited and before the contract is entered into.

Can leaseholders stop the work?

A Section 20 objection does not automatically prevent necessary work. Leaseholders can make observations, question necessity and cost, and sometimes nominate a contractor.

What happens if the landlord failed to consult?

Recovery may be restricted to £250 per leaseholder for qualifying works unless the Tribunal grants dispensation. The outcome can depend on whether leaseholders suffered relevant prejudice.

Can reserve funds be used for the project?

Possibly, if the lease permits a reserve or sinking fund and the expenditure falls within its purpose. Consultation may still be required even if money has already been collected into a reserve fund.

Is Section 20 the same as Section 20B?

No. Section 20 concerns consultation over qualifying works and long-term agreements. Section 20B contains an 18-month rule affecting the recovery of certain service-charge costs, subject to the statutory notice provisions.

Need help with block management in Bedfordshire?

My Estate works with freeholders, Resident Management Companies, Right to Manage companies and leaseholders across Luton, Bedford and the wider Bedfordshire area. Our approach focuses on inspections, transparent communication, sensible maintenance planning and clear contractor costs.

If your block is approaching major works, struggling with service-charge communication or considering a change of managing agent, contact My Estate to discuss the management requirements of the building. For a dispute about liability or formal Tribunal proceedings, independent advice from a specialist leasehold solicitor should also be obtained.

This article provides general information about the law in England as at August 2026. It is not legal advice and should not be relied upon as a substitute for advice on a particular lease, notice, project or dispute