Section 20 of the Landlord and Tenant Act 1985 requires landlords and management companies to consult with leaseholders before carrying out qualifying works where any leaseholder's contribution would exceed the threshold.
Current Threshold: £250 per leaseholder for qualifying works.
The landlord must serve written notice on all leaseholders describing the works and inviting observations. Leaseholders have 30 days to respond and may nominate a contractor.
The landlord must obtain at least two estimates and serve a Statement of Estimates. Leaseholders have a further 30 days to make observations.
If not awarding to the lowest or nominated contractor, a further notice must be served explaining reasons within 21 days of entering the contract.
Failure to comply means the landlord cannot recover more than £250 per leaseholder through the service charge regardless of actual cost.