Complete guide to section 20 consultation rights for major building works. Learn the two-stage consultation process, £250 spending cap, Daejan dispensation rules, and your observation rights.
For major works costing over £250 per leaseholder (or £5,000+ total building cost), landlords must consult leaseholders under section 20 in two stages: (1) notify of proposed works, request bids, and allow objection, (2) share contractor estimates, allow 30-day comment period, then award. If landlord skips consultation, leaseholders can only be charged £250 per unit maximum. If consultation is breached, you can challenge the full charge at tribunal. Daejan v Benson allows dispensation if leaseholders aren't prejudiced, but this is hard to prove. You also have observation rights: right to see contractor progress, verify work quality, and withhold payment if work is defective.
Landlord must issue formal notice of intention (s.20 notice) at least 30 days before works begin. Notice must describe work, estimated cost, and contractors involved. Leaseholders can nominate contractors. Landlord must obtain a minimum of 2-3 competitive bids. Save this notice; it's key evidence if landlord later breaches consultation. Your right: to object and nominate preferred contractors. Request written confirmation of contractors chosen.
Landlord shares final contractor estimates 21 days before awarding contract. You have 30 days to provide written comments. Key: challenge inflated quotes, request re-tendering if quotes seem excessive. The landlord must consider your comments before awarding the contract. Get copies of all estimates to compare prices. This is your main leverage to reduce costs.
Once work begins, you have the right to observe progress and verify quality. If landlord skipped proper consultation (no 30-day comment period), the charge cap is £250 per unit - you only pay that. Challenge any charge above £250 at tribunal. If consultation happened but was flawed, you can still challenge at tribunal citing Daejan (lack of prejudice argues for refund). Document all breaches in writing to landlord during consultation period.
Landlord announced work but never sent formal s.20 notice or allowed 30-day comment period. Charge is capped at £250 per unit regardless of actual cost. Challenge any charge above £250 at tribunal. This is the strongest breach - most tribunals rule in leaseholder favour.
Landlord obtained only one quote instead of minimum 2-3 bids. Request re-tendering in writing during comment period. If landlord proceeds without additional quotes, tribunal can reduce charge based on market rates or order re-tendering.
Landlord gave only 7 days for comments instead of 30-day requirement. This breaches Regs 2003. Challenge the charge citing procedural breach. Tribunal will either reduce it or order re-tendering with proper notice.
Contractors quote £100,000 for work comparable buildings do for £60,000. You raised objection during comment period but landlord ignored it and awarded contract. Document your objection. Tribunal can reduce charge to market rate.
Landlord splits £15,000 roof repair into three £5,000 projects to avoid s.20 consultation (under £250/unit). This is unlawful "splitting" and defeats consultation purpose. Challenge combined total: all three works should have been consulted as one project.
Landlord breached consultation but obtained Daejan dispensation. However, you can prove prejudice: inflated quote, poor quality work, no competitive tendering. Courts often overturn dispensation if prejudice is shown. Challenge at tribunal citing lack of fairness.
Use FightingBack's Leasehold Tool to assess your consultation rights and prepare a tribunal challenge.
Check Your Section 20 Rights