Section 20: Can Leaseholders Refuse to Pay Major Works Costs?

Under UK property law, Section 20 of the Landlord and Tenant Act 1985 requires landlords to consult leaseholders before carrying out major works or long-term service contracts that cost any individual leaseholder more than £250. However, leaseholders do not have to accept these charges without question and may have legal grounds to challenge them.

What Is a Section 20 Notice?

A Section 20 notice is a formal consultation process that freeholders or managing agents must follow when planning significant building works or services that will be charged to leaseholders. This includes:

• Roof repairs or replacement
• Structural renovations
• Lift replacements
• Major external decorations
• Long-term maintenance contracts (over 12 months)

The consultation process allows leaseholders to:

• Review the proposed works
• Comment on the necessity and cost
• Nominate alternative contractors

Can You Refuse to Pay a Section 20 Charge?

Leaseholders cannot simply refuse to pay a Section 20 charge, but they can legally challenge it if:

1. The Costs Are Unreasonably High

   • If the charges seem excessive compared to market rates, leaseholders can dispute them.

2. The Works Are Unnecessary or Poorly Justified

   • If the freeholder cannot prove the works are essential, leaseholders may challenge the demand.

3. The Section 20 Consultation Process Was Not Followed

   • If the landlord fails to consult properly, leaseholders may not be legally obligated to pay.

4. Alternative Quotes Were Not Considered

   • If leaseholders nominated contractors but they were ignored without explanation, this can be grounds for challenge.

5. Service Charges Are Unfair or Unreasonable

   • The First-tier Tribunal (Property Chamber) can assess whether charges are excessive.

How to Challenge a Section 20 Charge

1. Review the Notice Carefully – Check if the landlord followed the correct process.
2. Request a Breakdown of Costs – Ask for itemized pricing and compare with market rates.
3. Consult Other Leaseholders – A group challenge may strengthen your case.
4. Submit Formal Objections – Raise concerns in writing during the consultation period.
5. Apply to the First-tier Tribunal (Property Chamber) – If negotiations fail, leaseholders can seek a legal ruling on whether charges are fair.

Final Thoughts

Leaseholders have legal rights to challenge unfair or excessive Section 20 charges. While outright refusal to pay may lead to legal action, there are proper procedures to dispute the costs through the consultation process and the First-tier Tribunal. If you believe your charges are unreasonable, seek legal advice or consult a property expert before making a decision.