Section 20 Consultation Requirements: A Checklist for RTM Directors

The Section 20 consultation process has specific legal requirements at each stage. Miss one and you cap your cost recovery at £250 per leaseholder — regardless of what the work actually costs.

This is a checklist, not a guide. Print it, keep it visible during your consultation, and check off each requirement as you complete it. For detailed explanations of each stage, see our Section 20 consultation guide and step-by-step flowchart.

Before you start

• Confirm the proposed works will cost more than £250 per contributing leaseholder (the Section 20 threshold)
• Confirm these are "qualifying works" (building repair, maintenance, improvement, or renewal) — not a long-term qualifying agreement (which has different consultation requirements under Schedule 2 of the 2003 Regulations)
• Identify every leaseholder who pays service charges and will contribute to the cost
• Check whether a recognised tenants' association exists for the building (they have separate consultation rights)
• Prepare a clear description of the proposed works and why they are necessary
• Calculate your timeline — use the free Section 20 Timeline Calculator to map every deadline from your target start date

Stage 1: Notice of Intention

Purpose: Inform leaseholders about the proposed works and invite observations and contractor nominations.

Requirements:

• Prepare a written Notice of Intention containing:
  • A general description of the proposed works
  • The reasons why the works are considered necessary
  • An invitation for leaseholders to make written observations within the consultation period
  • An invitation for leaseholders to nominate a contractor
  • The address to which observations and nominations should be sent
  • The deadline for observations (at least 30 days from receipt of the notice)
• Send the notice to every contributing leaseholder, individually, in writing
• Send the notice to any recognised tenants' association
• Keep proof of posting (certificate of posting or recorded delivery) for every notice sent
• Allow a minimum of 30 days from receipt for observations — add 2-3 days for postal delivery
• Log every observation received, with the date received and the leaseholder's name
• Log every contractor nomination received

After the 30-day period:

• Have regard to all observations received — genuinely consider them, even if you disagree
• Prepare written responses to observations if any raised substantive points
• If any leaseholder nominated a contractor, add them to your estimate list for Stage 2 (unless it is genuinely unreasonable — e.g., the contractor doesn't do that type of work)

Stage 2: Statement of Estimates

Purpose: Share the estimates you've obtained and invite further observations before choosing a contractor.

Requirements:

• Obtain at least two written estimates for the proposed works
• If any leaseholder nominated a contractor in Stage 1, one of your estimates must be from that nominated contractor (where reasonably practicable)
• Prepare a Statement of Estimates containing:
  • A summary of each estimate received (contractor name, price, key terms — but not necessarily the full detailed estimates)
  • A summary of all observations received during Stage 1
  • Your responses to those observations
  • An invitation for leaseholders to make written observations on the estimates within the consultation period
  • The address to which observations should be sent
  • Where and when the full estimates can be inspected (you must make them available — typically at the company secretary's address, or by appointment)
  • The deadline for observations (at least 30 days from receipt)
• Send the Statement of Estimates to every contributing leaseholder, individually, in writing
• Send the Statement of Estimates to any recognised tenants' association
• Keep proof of posting for every statement sent
• Make the full estimates available for inspection at the stated location during the stated period
• Allow a minimum of 30 days from receipt for observations
• Log every observation received, with date and name

After the 30-day period:

• Have regard to all observations received
• Prepare written responses to observations
• Determine which contractor to appoint

Decision: does Stage 3 apply?

• If your chosen contractor submitted the lowest estimate → Stage 3 is not required
• If your chosen contractor was nominated by a leaseholder → Stage 3 is not required
• If your chosen contractor is neither the lowest nor leaseholder-nominated → Stage 3 is required before entering into a contract

Stage 3: Award Notification (if required)

Purpose: Explain why you chose a contractor who was not the lowest bidder and not leaseholder-nominated.

Requirements:

• Prepare a written notice (within 21 days of entering the contract, or before entering it) containing:
  • Which contractor you are appointing
  • The reasons for choosing this contractor over the lowest estimate or a leaseholder-nominated contractor
  • A summary of observations received during Stage 2
  • Your responses to those observations
• Send the notice to every contributing leaseholder
• Send the notice to any recognised tenants' association
• Keep proof of posting

Important: The reasons must be genuine and specific. "We preferred this contractor" is insufficient. Valid reasons include: better warranty terms, relevant experience with similar buildings, insurance cover, completion timeline, quality of previous work.

After consultation is complete

• Document everything. Create a consultation file containing: all notices sent (with proof of posting), all observations received (with dates), all responses sent, all estimates, the decision rationale, and the final contract
• Keep the file for at least 6 years. Leaseholders can challenge service charge reasonableness at the First-tier Tribunal years after the work is done. Your consultation file is your evidence
• Issue service charge demands for the works — include the RMC's name and address on every demand (Sections 47–48, Landlord and Tenant Act 1987) and a summary of rights and obligations (Section 21B)
• Remember the 18-month rule. You must demand costs within 18 months of incurring them, or notify leaseholders within that period that costs will be demanded later. See our guide on the 18-month rule

Emergency and dispensation

If the work is genuinely urgent (burst pipe, structural danger, fire safety risk), you can apply to the First-tier Tribunal for dispensation from consultation requirements under Section 20ZA.

• Apply as early as possible — ideally before starting emergency work
• The tribunal can grant dispensation retrospectively, but it is not automatic
• Even in emergencies, inform leaseholders informally as soon as possible
• Document why the work could not wait for full consultation

Quick reference: minimum timelines

Step	Duration
Stage 1 consultation period	30 days minimum
Obtaining estimates (between Stages 1 and 2)	2-4 weeks typically
Stage 2 consultation period	30 days minimum
Evaluation and decision (between Stages 2 and 3)	1-2 weeks
Stage 3 notification (if required)	Within 21 days of contract
Total minimum elapsed time	10-14 weeks

For a personalised timeline with exact dates, use the free Section 20 Timeline Calculator.

The legislation

The requirements come from two sources:

• Section 20 of the Landlord and Tenant Act 1985 — establishes the consultation requirement and the £250/leaseholder cap for non-compliance
• Service Charges (Consultation Requirements) (England) Regulations 2003 — sets out the detailed procedural requirements (notice content, timelines, estimate requirements) in Schedule 4 Part 2

For a detailed guide to the Act itself, see our post on Section 20 under the Landlord and Tenant Act 1985.

LevyBoard is building guided Section 20 compliance workflows — automated notices, deadline alerts, observation tracking, and a complete audit trail — so volunteer directors can run a compliant consultation without a solicitor.

This checklist covers the Section 20 consultation process for qualifying works in England. This is general guidance, not legal advice — for complex or disputed consultations, consult a solicitor specialising in leasehold law.

Sources

• Section 20, Landlord and Tenant Act 1985 — consultation requirements
• Section 20ZA, Landlord and Tenant Act 1985 — dispensation from consultation
• Section 21B, Landlord and Tenant Act 1985 — service charge demand requirements
• Service Charges (Consultation Requirements) (England) Regulations 2003 — detailed procedural requirements
• First-tier Tribunal (Property Chamber) — tribunal for service charge disputes and dispensation applications