Section 20 of the landlord and tenants act 1985 essentially states that the responsible parties must consult with leaseholders who contribute to the service charge where the cost per leaseholder exceeds £250. The responsible party is either the landlord, Right to Manage company or Residents Management Company in charge of overseeing the maintenance of the development. 

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This consultation will consist of: 

- A specification being given to leaseholders, detailing the upcoming works.

 

-An opportunity for leaseholder to provide any observations they may have on works they feel are needed at the development. 

 

- The opportunity to nominate a contractor to quote for the works based on the specification provided. 

 

- A detailed notice informing leaseholders of the final details for the contract of works, which contractor was awarded the works and why. 

 

In emergency situations the Section 20 can be waived in the form of a dispensation. However, this is only in cases where the work is urgent and it cannot wait.  

 

If there is a reserve or sinking fund, this will be used to cover the costs of the major works. However, if the costs exceed the amount held in the fund, no fund has been built up, a cash call could be issued to leaseholder for the cost. Please check your lease for information on whether a cash call can be issued as this does vary. 

 

Further information on the section 20 process please see the link below 

 

Leaseholder Knowledge – Section 20 

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If you would like to view the current legislation, it can be found using the link below

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Section 20 Landlord and Tenants Act 1985 

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