Section 20 Notices

A legal requirement under the Landlord and Tenant Act 1985 that applies to residential leasehold properties. It sets out a process that landlords must follow when carrying out major works or entering into long-term agreements for services, such as maintenance or repairs, that will cost each leaseholder over a certain threshold. The purpose of the Section 20 process is to provide transparency and ensure that leaseholders have the opportunity to challenge the costs or proposals before any work or agreements are finalized.

A Section 20 Notice is required when the cost of the proposed works on a property is expected to exceed a certain threshold per leaseholder. For qualifying works, the threshold is £250 for each individual leaseholder, and for long-term agreements, it is £100 per year. The notice must be served regardless of whether the leaseholders have expressed an interest in the works.

The purpose of a Section 20 Notice is to ensure that leaseholders are aware of any proposed works that may impact them and have the opportunity to provide input into the works and the choice of contractor. It also ensures that the cost of the works is reasonable and in line with market rates.

A Section 20 Notice can be served by the landlord, the management company, or their authorised representative. It is the responsibility of the party carrying out the works to ensure that the notice is served in a timely and correct manner.

The process is designed to ensure that leaseholders are consulted and have the opportunity to provide input on the proposed works or services, and that the costs are reasonable. The process involves providing written notice to leaseholders of the proposed works or services, allowing them a period to provide feedback, obtaining multiple quotes for the works or services, and ultimately awarding the contract to the most suitable provider. If the costs of the works or services are over a certain threshold, the landlord or managing agent must also obtain formal approval from a First-tier Tribunal before proceeding.