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Section 20 Consultation: What Flat Owners and Overseas Buyers Should Know About Major Works Bills
UK Property Insights · Leasehold

Section 20 Consultation: What Flat Owners and Overseas Buyers Should Know About Major Works Bills

If you own a leasehold flat in England, you may be asked to contribute to major works on the building, such as a new roof, lift replacement or external redecoration. Before the landlord can charge you more than a set amount, it must follow a formal process called Section 20 consultation.

This Banke UK guide explains how that process works and what an overseas buyer should ask about before buying a flat in a building that may need major works.

The Short Answer

Section 20 of the Landlord and Tenant Act 1985 limits what a landlord can recover from leaseholders for qualifying works and long-term agreements unless it has consulted them properly. Under the current rules the limits are £250 per leaseholder for qualifying works and £100 per leaseholder per year for a qualifying long-term agreement. If the landlord skips the consultation, the amount it can recover is capped at those figures.

Consultation does not stop the works or the bill. It gives leaseholders the right to see the proposals, comment and suggest contractors. Costs must also be reasonable, and leaseholders can challenge service charges at the First-tier Tribunal (Property Chamber).

How the Process Works

  • Notice of intention. The landlord tells leaseholders it plans to carry out works, describes them and invites comments and nominations for contractors.
  • Estimates. The landlord obtains estimates and must share them with leaseholders and invite observations.
  • Notice of reasons. After the consultation, the landlord must explain why it chose the contractor it did, in certain cases.
  • Works. Once the process is followed, the landlord can recover the reasonable cost through the service charge.

Each stage has a consultation period, usually of 30 days. Ask a solicitor to confirm the current timings, because the rules are set out in regulations and can be amended.

Why It Matters When Buying a Flat

Major works are one of the biggest hidden costs of owning a leasehold flat. A buyer who completes just before a large bill arrives may be liable for it, depending on the lease and the timing. That is why the pre-purchase enquiries matter.

Questions to Ask Before You Buy

  • Have any major works been carried out in the last five years, and what did they cost per flat?
  • Is any Section 20 notice outstanding, or are works planned?
  • Is there a reserve or sinking fund, and how much is in it? See our guide to reserve and sinking funds in UK leasehold flats.
  • Has the building been surveyed for cladding or fire-safety issues?
  • Who is the managing agent, and how are service charges set and collected?
  • Are there any disputes with the landlord or the tribunal?

Your conveyancing solicitor should raise these enquiries with the seller's solicitor. For the wider process, read our guide to UK conveyancing for overseas buyers.

If You Already Own the Flat

  • Read every notice. A notice of intention is your chance to comment and to nominate a contractor.
  • Respond in writing, within the period. Keep copies.
  • Ask for the specification and estimates. You are entitled to see them.
  • Challenge unreasonable costs. If you believe the cost is unreasonable, take advice. The First-tier Tribunal can decide whether a charge is reasonable.
  • Ask about payment options. Some landlords agree instalments.

Overseas Owners: Do Not Miss the Post

Notices are normally sent to the address the lease requires, which is often the flat itself. If you live abroad and rent the flat out, make sure your managing agent or letting agent forwards every notice promptly, and give the landlord an address for service. Missing a consultation window can cost you the chance to comment.

Why Choose Banke UK?

Banke UK helps overseas buyers compare flats, ask the right enquiries and work with UK solicitors and surveyors. We do not provide legal advice. To talk about a specific building, contact the Banke UK team.

Conclusion

Section 20 protects leaseholders by requiring consultation before large charges, but it does not remove the cost. Before you buy a leasehold flat, ask about past and planned major works, the reserve fund and the managing agent. After you buy, read every notice and respond within the consultation period.

This is general information, not legal, tax or financial advice. Rules, fees and procedures change, so confirm current details with the relevant authority or a qualified professional before you commit money. Property returns are examples only and are never guaranteed.