The Complete Guide to Section 20 Consultation for RTM Directors

You've just been told the roof needs replacing. The quotes are coming in at £40,000+. As a volunteer director of an RTM company, you now need to run a Section 20 consultation — a statutory process most property professionals find complicated, let alone someone who volunteered to help manage the block.

Get it wrong and you could void the entire consultation. That means costs are capped at £250 per leaseholder regardless of what you actually spent — and the shortfall comes from somewhere.

This guide walks you through the entire Section 20 consultation process, stage by stage, with the deadlines, notice requirements, and practical steps you need to follow.

What is a Section 20 consultation?

A Section 20 consultation is a statutory process required under Section 20 of the Landlord and Tenant Act 1985 (as amended by Section 151 of the Commonhold and Leasehold Reform Act 2002). It requires the landlord — which includes RTM companies and RMCs acting in the landlord's role — to consult with leaseholders before:

Carrying out qualifying works where the cost to any single leaseholder exceeds £250
Entering into a qualifying long-term agreement (any contract over 12 months) where the cost to any single leaseholder exceeds £100 per year

The consultation must follow a prescribed sequence of notices and response periods. Skipping any stage, or failing to allow the minimum consultation periods, can invalidate the process.

When does Section 20 apply to your block?

The £250 threshold applies per leaseholder, not per block. In a block of 12 flats, qualifying works costing more than £3,000 total (12 × £250) would trigger the consultation requirement — assuming equal lease percentage splits.

Common triggers for RTM/RMC directors:

Roof repairs or replacement — almost always above the threshold for blocks of 4+ flats
External redecoration — scaffolding costs alone often push past the limit
Lift refurbishment — specialist work with high labour costs
Window replacement — particularly in conservation areas with planning requirements
Major plumbing or electrical works — communal systems serving multiple units

If you're unsure whether your planned works qualify, err on the side of consulting. Running the process unnecessarily costs time but no money. Failing to run it when required costs real money.

The three stages of Section 20 consultation

The Service Charges (Consultation Requirements) (England) Regulations 2003 set out the process in detail. Here is the practical sequence for qualifying works.

Stage 1: Notice of Intention

What you send: A written notice to every leaseholder (and any recognised tenants' association) stating:

A general description of the proposed works
The reasons the works are considered necessary
An invitation to make written observations within the consultation period
An invitation to nominate contractors from whom you should obtain an estimate
The address to which nominations and observations should be sent

Consultation period: At least 30 days from the date the notice is given.

What you do with responses:

Record all observations received
If any leaseholder nominates a contractor, you must obtain an estimate from at least one nominated contractor (in addition to your own estimates)
You must have regard to the observations — this means genuinely considering them, not just filing them

Practical tips:

Send notices by recorded delivery or hand-deliver with a signed receipt — you need proof of service
Keep a log of every notice sent, the date, and the method of delivery
Start gathering your own estimates during this period — the 30 days is for leaseholders, not for you to wait

Stage 2: Estimates and inspection

What you do: Obtain at least two estimates for the proposed works. If any leaseholder nominated a contractor in Stage 1, you must include at least one nominated contractor's estimate.

What leaseholders can do: Any leaseholder has the right to inspect the estimates and any related documents at a reasonable time and place. You must make these available for inspection.

Stage 3: Notice of Estimates (Statement of Estimates)

What you send: A written notice to every leaseholder (and any recognised tenants' association) containing:

At least two estimates for the works
A summary of the observations received in Stage 1 and your response to them
An invitation to make written observations on the estimates within the consultation period
The address to which observations should be sent

Consultation period: At least 30 days from the date the notice is given.

What you do with responses:

Record all observations received
You must have regard to these observations before making a final decision on which contractor to appoint
If you do not select the lowest estimate, you must provide written reasons within 21 days of entering into the contract

After Stage 3

Once the Stage 3 consultation period closes and you have considered all observations, you can proceed with the works. If you appoint a contractor other than the one who submitted the lowest estimate, you must explain why in writing within 21 days of entering the contract.

Timeline: how long does a Section 20 take?

The absolute minimum timeline from first notice to starting works:

Stage	Minimum Duration	Running Total
Stage 1: Notice of Intention	30 days	30 days
Obtaining estimates	Variable (typically 2-4 weeks)	~60 days
Stage 3: Notice of Estimates	30 days	~90 days
Consideration period + contractor appointment	1-2 weeks	~100 days

In practice, expect 3-5 months from the first notice to starting works. Use our free Section 20 timeline calculator to map out your statutory deadlines. Emergency repairs may be exempt (see below), but "we want to get started quickly" is not an emergency.

Can you avoid a Section 20?

In limited circumstances:

Emergency works: If works are urgently required to prevent danger or significant damage, you may be able to carry them out without full consultation. However, "urgent" has a high bar — a slow roof leak that has been developing for months is not urgent. A collapsed ceiling is.
Dispensation from the Tribunal: You can apply to the First-tier Tribunal (Property Chamber) for dispensation from all or part of the consultation requirements. The Tribunal will grant dispensation if it is reasonable to do so — but you need a strong justification, and the application costs time and money.
Works below the threshold: If total costs divided by the number of leaseholders come in at £250 or less per person, no consultation is required.

For most RTM companies running major works, the answer is: no, you cannot avoid it. Plan the timeline into your project from the start.

What happens if Section 20 is not followed?

If you carry out qualifying works without following the Section 20 process — or if you make errors in the process — the maximum recoverable cost from each leaseholder is capped at £250, regardless of the actual cost.

For a £40,000 roof repair on a 12-flat block, that means recovering a maximum of £3,000 instead of £40,000. The £37,000 shortfall has to come from the reserve fund — or if the reserve fund is insufficient, the RTM company faces a significant cashflow gap. The company may need to seek dispensation from the Tribunal, negotiate with contractors, or absorb the unrecoverable cost.

This is the single most common compliance failure for volunteer-run blocks. Professional managing agents build the S20 timeline into every major works project. Volunteer directors often don't know the process exists until they're already commissioning quotes.

Common mistakes RTM directors make

Starting works before the consultation is complete — the most expensive mistake. Even if leaseholders verbally agree, you must complete the statutory process.
Not keeping records of notices sent — if a leaseholder later challenges the service charge at the FTT, you need to prove every notice was served correctly.
Ignoring nominated contractors — if a leaseholder nominates a contractor and you don't obtain an estimate from them, the consultation may be invalid.
Not responding to observations — "having regard to" observations is a legal requirement, not a courtesy. Document how you considered each observation.
Forgetting the 21-day rule — if you don't choose the cheapest estimate, you must explain why in writing within 21 days of signing the contract.
Not consulting on long-term agreements — the £100/year threshold for contracts over 12 months catches many directors off guard. Insurance contracts, cleaning contracts, and grounds maintenance agreements may all require consultation.

Practical checklist for RTM directors

Sources

This guide is for general information only and does not constitute legal advice. The Section 20 process involves statutory obligations — if you are unsure about any step, seek advice from a qualified solicitor or the Leasehold Advisory Service (LEASE).