Section 20 Consultation: A Managing Agent’s Complete Guide

Section 20 of the Landlord and Tenant Act 1985 requires landlords and managing agents to consult leaseholders before carrying out qualifying works costing more than £250 per leaseholder, or entering into qualifying long-term agreements costing more than £100 per leaseholder per year.

The consultation process involves three stages: a Notice of Intention, a Statement of Estimates, and a notification of the outcome. Each stage has prescribed timescales that must be followed.

Failure to comply means the landlord cannot recover more than £250 per leaseholder for the works unless a dispensation is granted by the First-tier Tribunal.

Common pitfalls include: failing to allow the full 30-day observation period, not considering leaseholder-nominated contractors, inadequate descriptions of proposed works, and not keeping proper records.

Custodia helps managing agents manage Section 20 consultations with template notices, timeline tracking, and a complete audit trail of the entire consultation process.