landlords
Section 20 Notices for London Landlords: Major Works and Your Obligations
What Is a Section 20 Notice?
Section 20 of the Landlord and Tenant Act 1985 (as amended by the Commonhold and Leasehold Reform Act 2002) requires freeholders and landlords of leasehold properties to formally consult leaseholders before carrying out qualifying works or entering into qualifying long-term agreements.
When Is Section 20 Consultation Required?
Section 20 is triggered when:
- The cost of major works to any leaseholder will exceed £250, or
- A qualifying long-term agreement (e.g. a maintenance contract) is entered into where any leaseholder's contribution will exceed £100 per year
Common examples in London leasehold blocks: roof replacement, external redecoration, lift replacement, communal boiler replacement, electrical rewiring of communal areas.
The Three-Stage Section 20 Process
- Notice of Intention (NOI): Notify all leaseholders of the proposed works, describe them, and invite nominations of contractors and observations within 30 days.
- Notice of Proposals (NOP): After obtaining at least two estimates, notify all leaseholders of the proposals, including estimates, and invite observations within 30 days.
- Notification of Reasons (if applicable): If the chosen contractor is not the cheapest or was nominated by a leaseholder, provide reasons within 21 days of awarding the contract.
Frequently asked questions
What happens if a London landlord fails to comply with Section 20?
A landlord who fails to follow the Section 20 consultation process cannot recover more than £250 per leaseholder for the works, regardless of their actual cost. This can result in significant losses on major works. Leaseholders can apply to the First-tier Tribunal (Property Chamber) to challenge costs and dispensation with consultation must be applied for before works begin if urgent.
Does Section 20 apply to London HMOs where the landlord owns the freehold?
Section 20 applies to leasehold properties where the leaseholders are responsible for contributing to service charges. A landlord-owned freehold HMO with assured shorthold tenants does not have leaseholders and is not subject to Section 20. The section specifically applies to leasehold relationships and long residential leases.
Can a London landlord get dispensation from Section 20 consultation?
Yes — a landlord can apply to the First-tier Tribunal (Property Chamber) for dispensation from the consultation requirements where urgency makes it impractical to follow the process. Dispensation applications should be made before works begin. Emergency repairs (such as a failing lift presenting a safety risk) are more likely to obtain dispensation than planned maintenance works.