Leaseholders
Major works and Section 20
When significant works or services are planned that could lead to higher charges, the law requires us to consult leaseholders before a contract is awarded. This is known as a Section 20 consultation. The purpose is to ensure leaseholders are told what is being proposed, why it is necessary, likely costs, and how to make comments before decisions are made.
Consultation is required for qualifying works where any one leaseholder may be charged more than £250 for the works, and for qualifying for long-term agreements where a contract will last more than 12 months and any one leaseholder may pay more than £100 in a year for that agreement. Qualifying long‑term agreements commonly cover services such as cleaning, grounds maintenance, lift or fire alarm service and communal electricity supply.
A notice does not mean a final decision has been made. It means we are proposing works or a service contract that could affect your home and service charges, and we must consider your views. Each notice explains what is proposed, why it is needed, how long it may last and the estimated cost. The key information, including how and when to respond, is highlighted on the first page.
You normally have at least 30 days at each stage to send written observations. You can ask questions, raise concerns, suggest alternatives and, in many cases where no public tender rules apply, nominate a contractor. All observations received in time are recorded and considered before a decision is taken.
Stages for qualifying works when no long‑term contract exists
We describe the proposed works and reasons and invite observations before tender. This has a 30-day period. You are invited to propose a contractor for the work during this time.
We provide estimates received, our summary of observations and responses, you have a further 30 days to comment before the award of the contract.
Once the consultation closes, all observations are reviewed and considered alongside technical, cost and procurement requirements. We then make a decision and confirm the outcome. If the works or agreement proceeds, any costs payable by you are confirmed in line with your lease. A notice must be issued explaining the decision if the lowest priced tender is not chosen.
Long‑term agreements
A long‑term agreement is a contract over 12 months for services such as cleaning, grounds maintenance, servicing and similar. Where the annual cost to any leaseholder will exceed the legal threshold of £100 per year to each leaseholder, we consult as per the steps above before entering or renewing the agreement.
If consultation is not followed where the law requires Section 20 consultation and it was not correctly carried out, the amount that can be recovered from leaseholders may be limited unless a tribunal grants dispensation. This protection exists to ensure transparency and fairness in large costs.
In rare cases, urgent health and safety works may be necessary before consultation can be completed. In such cases we may apply to the first tier tribunal for dispensation from some or all consultation requirements and will still share information with affected leaseholders as soon as possible.
