Section 20 consultation: the £250 cap and the two 30-day windows.

Before a block spends more than £250 of any one flat’s money on works, it consults the leaseholders in two stages. Here is who it applies to, the steps in order, and what a missed step costs.

In short

When: Works costing any one flat more than £250, or an agreement of more than a year costing any one flat more than £100 in an accounting period.
What: Two notices, each followed by 30 days for the leaseholders’ observations. Reasons, and a reply to the stage 2 observations, within 21 days if you do not pick the cheapest or a nominee.
If a step is missed: The block can recover no more than £250 from each flat, whatever the works cost, unless the tribunal dispenses with the requirement.

When: works costing any flat over £250, or a contract over a year costing any flat over £100 in an accounting period.

What: two notices, each followed by 30 days. Reasons and a reply to the observations within 21 days if needed.

If a step is missed: £250 a flat, unless the tribunal dispenses.

LTA 1985 s.20; SI 2003/1987 regs 2, 4 and 6, Sch 4 Pt 2

LTA 1985 s.20; SI 2003/1987 regs 2, 4, 6, Sch 4 Pt 2

When it applies

Before the block spends more than £250 of any one flat’s money on a set of works, it has to consult. The test is per flat: a £2,000 job shared equally by ten flats (£200 each) does not need it; the same job shared by four flats (£500 each) does. Agreements for services lasting more than twelve months, such as a cleaning or lift contract, need it when any flat pays more than £100 in an accounting period.

It applies to resident-run companies. For these rules the landlord includes anyone who can enforce the service charge, so a residents’ management company or RTM company that sends the demands must consult.

LTA 1985 ss.20, 30; SI 2003/1987 regs 4 and 6

Before the block spends more than £250 of any one flat’s money on a set of works, it has to consult. The test is per flat: a £2,000 job shared by ten flats does not need it; shared by four, it does.

LTA 1985 ss.20, 30; SI 2003/1987 regs 4, 6

The five steps, in order

This is the usual route for works, where the contract is not a public-procurement one. Each 30-day window is counted from the date the notice is given. Ending a window a day early counts as a missed step.

Day 1
Serve the notice of intention
To every leaseholder and any recognised tenants’ association. Describe the works, or say where a description can be inspected. Say why they are needed, and invite observations and the names of contractors the leaseholders would like asked for an estimate.
SI 2003/1987 Sch 4 Pt 2 para 1 (opens in new tab)
Day 30
The first window closes
Thirty days for observations and nominations. Have regard to every observation, and try to get an estimate from a nominated contractor.
Sch 4 Pt 2 paras 3–4 (opens in new tab)
Next
Serve the statement of estimates
At least two estimates, one of them from someone unconnected with the landlord, and the nominee’s estimate if there is one. Summarise the observations and your response, and say where the estimates can be inspected.
Sch 4 Pt 2 para 4 (opens in new tab)
30 days later
The second window closes
Thirty more days for observations on the estimates. Have regard to them before choosing.
Sch 4 Pt 2 paras 4(10), 5 (opens in new tab)
Within 21 days of the contract
Give reasons, if needed
If the contractor chosen is not the cheapest or a leaseholders’ nominee, give every leaseholder the reasons, or say where they can be inspected, and summarise and answer any observations on the estimates.
Sch 4 Pt 2 para 6 (opens in new tab)

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Contractors the leaseholders nominate

In the first window any leaseholder, or the tenants’ association, can name a contractor. The block must try to get an estimate from them and include it in the statement of estimates. If more than one is named, the rules say which to approach.

SI 2003/1987 Sch 4 Pt 2 paras 1(3), 4

What a missed step costs

Take a £60,000 roof for a block of ten flats, with the costs shared equally, and the second window cut short by a week.

Recoverable

£250 from each of ten flats.

Not recoverable

The rest of a £60,000 roof, unless the tribunal dispenses.

The contractor is still owed the full price. The cap limits what the block can collect from the leaseholders. In 23 Dollis Avenue v Vejdani, a four-flat management company’s estimates covered work that was not in its notice of intention. The Upper Tribunal held that the cap applied to the cost of the works carried out, and not to demands made on account.

LTA 1985 s.20(1); SI 2003/1987 reg. 6; 23 Dollis Avenue v Vejdani [2016] UKUT 365 (LC)

Dispensation

The tribunal can dispense with any of the requirements if it is reasonable to do so. Since Daejan v Benson the question is whether the leaseholders were prejudiced by the failure. Dispensation is often granted on terms, such as the block paying the leaseholders’ costs of the application.

LTA 1985 s.20ZA; Daejan Investments v Benson [2013] UKSC 14

Before works that disturb the building

In a building from before 2000, arrange a refurbishment asbestos survey before the works start, so every estimate is for the same job.

Control of Asbestos Regulations 2012 regs 4 and 5

What may change

The 2025 consultation on service charges asked about raising the thresholds. The government’s response on 15 July 2026 put Section 20 off to a separate response “in due course”. Until then the 2003 Regulations apply as written, and this page will change when they do.

Government response, Strengthening leaseholder protections over charges and services, 15 Jul 2026

Run it as a file

The Section 20 pack prepares each notice, keeps the proof of service, tracks both windows, logs the observations and exports a file the tribunal can read. £149 per consultation.

The Section 20 pack prepares each notice, keeps the proof, tracks both windows and exports a file the tribunal can read. £149.

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Part of: The law for self-managed blocks.
Last reviewed: 24 Sep 2026.

Written by Resident Led from the legislation as published on legislation.gov.uk and from the government’s own guidance. We cite the law; we do not give legal advice.