Got a Section 20 notice? What to do next if you own a flat

A Section 20 notice tells you that your landlord or management company plans major works, or a long-term contract, that will cost you more than £250, or more than £100 a year. It starts a consultation in which you get at least 30 days to comment and to nominate a contractor. Work out which stage the notice is, check your share, reply in writing before the deadline, and start budgeting, because the bill usually follows within months.

This guide is for landlords who own a leasehold flat in England or Wales, whether they live in it or let it. The legal process itself, including the thresholds and the four statutory stages, is set out in our Section 20 consultation entry.

Work out which notice you have

A notice of intention is the first stage. It describes the proposed works and why they are needed, and invites your observations and a contractor nomination within at least 30 days. This is your best chance to influence what is done.

A statement of estimates is the second notice. It sets out at least two quotes, summarises what leaseholders said at stage one, and gives you at least 30 days to comment on the estimates.

A notice of reasons arrives after the contract is signed, only if the landlord chose a contractor who was neither nominated by a leaseholder nor the cheapest. It must arrive within 21 days of the contract.

A tribunal notice about dispensation means the landlord has asked the tribunal to excuse it from some or all of the consultation, usually because the works are urgent or a step was missed.

Check your lease and work out your share

Before replying, check two things in your lease. First, that it allows the landlord to recover this kind of work through the service charge at all. Second, what percentage of the cost your flat pays. Your share is the total estimate multiplied by that percentage. A £60,000 roof replacement split equally across 12 flats costs each leaseholder £5,000. If your lease uses unequal percentages, a larger flat can pay much more than its neighbours.

Respond to the notice of intention

Send your observations in writing to the address on the notice, before the deadline. Useful questions include whether a survey or specification backs up the need for the works, whether the work could be phased or deferred, and whether the scope includes anything that is an improvement rather than a repair your lease covers. The landlord must have regard to what you say.

You can also nominate a contractor. The landlord must try to obtain an estimate from them, so a nomination is the most direct way to test the price. Coordinate with the other leaseholders if you can. A single, consistent set of observations from most of the block, or from a recognised tenants’ association, carries more weight than scattered emails.

Scrutinise the estimates

When the statement of estimates arrives, ask to inspect every quote, not just the two summarised. Check that they price the same specification, so you are comparing like with like, and that at least one comes from a contractor unconnected with the landlord. Look separately at professional fees, such as a surveyor’s contract administration fee and the managing agent’s charge for handling the works, and at VAT and contingency sums, because these can add a large slice to the total. Comment in writing within the 30 days.

Work out how much you could owe and when

Ask whether the sinking fund will cover part of the cost, and when the demand will be issued. Some landlords collect in advance, others after the work. The landlord must demand costs within 18 months of incurring them, or warn you in writing within that time, or it loses the right to recover them. Ask early whether instalments are possible. There is no statutory right to a payment plan, but many landlords agree one when asked before the demand goes out.

If you let the flat, how you treat the bill for tax depends on the work. A contribution to repairs, such as re-roofing like for like, is normally an allowable expense against your rental income in the year it is incurred. A contribution to an improvement that adds something new is usually capital, which you cannot deduct from rental income but may count against capital gains when you sell. August’s expenses tracking lets you categorise the payment correctly and keep the demand and invoices with it.

If you let the flat

The bill is yours, not your tenant’s. Under the Tenant Fees Act 2019, you cannot charge your tenant for service charge costs on top of the rent. Tell your tenant early about scaffolding, noise and any work inside the flat, such as window replacement, and give proper notice when access is needed, as our entry on access for repairs explains.

From working with self-managing landlords across the UK, the leaseholder-landlords who come through major works best are the ones who keep every notice, reply and demand in one place. Disputes about Section 20 often turn on dates, and August’s document storage keeps them against the property. If you are planning to sell, expect the buyer’s solicitor to ask about pending works, because they appear in the leasehold management pack.

If the consultation was skipped or rushed

If the landlord did not consult properly, it can recover no more than £250 from you for the works unless the tribunal grants dispensation. If you receive notice of a dispensation application, respond. The tribunal asks whether leaseholders suffered real prejudice from the failure, such as losing the chance to nominate a cheaper contractor. Set out specifically what you would have done differently and what it would have saved, and ask for conditions, such as the landlord paying your reasonable costs of responding.

Challenging the cost later

Consultation and cost are separate questions. Even where the landlord followed every step, you can still ask the tribunal to decide whether the cost was reasonably incurred and the work was done to a reasonable standard. Our guide to challenging a service charge at the First-tier Tribunal covers how to apply, the fees and how to stop the landlord adding its legal costs to the service charge.

Frequently asked questions

How long do I have to respond to a Section 20 notice?

At least 30 days from the date of the notice, and the notice must state the end date. Send your observations and any nomination in writing before that date, and keep proof of when you sent them.

Can I refuse to pay for Section 20 major works?

Refusing outright puts you at risk of a court claim and, ultimately, action against your lease. If you think the cost is too high or the consultation was flawed, pay what is undisputed and apply to the tribunal to decide what is payable.

Can my tenant be charged for major works?

No. In England the Tenant Fees Act 2019 stops you charging a tenant for service charge contributions on top of rent. The cost of major works falls on you as the leaseholder.

What if I cannot afford my share of the major works?

Talk to the landlord or managing agent before the demand is issued, and ask for instalments. Check whether the sinking fund can cover part of the cost. Also check whether the government’s proposed reforms to Section 20, which remain under review, affect the timetable.