Section 20 consultation, with the record to prove it
Section 20 consultation software keeps the record a landlord, RMC or RTM company needs to show it consulted leaseholders before charging for major works: which notice went to which flat, when and how, the 30-day observation periods, the estimates and every observation received. Marklet does this for blocks in England.
What section 20 asks of you
Section 20 of the Landlord and Tenant Act 1985 and the Service Charges (Consultation Requirements) (England) Regulations 2003, in brief.
Qualifying works
Where works will cost any one leaseholder more than £250, the landlord has to consult before the cost can be recovered in full. "Landlord" includes anyone with a right to enforce payment of a service charge, which can include an RMC. Once an RTM company has acquired the right to manage, references to the landlord are to the RTM company.
Long term agreements
An agreement for more than 12 months, such as a cleaning, lift or management contract, needs consultation where it will cost any one leaseholder more than £100 in an accounting period.
Thirty days for observations
Each notice that invites observations gives leaseholders 30 days, beginning with the date of the notice, to make them in writing, and the landlord has to have regard to what they say.
Getting it wrong
If the procedure is not followed and the First-tier Tribunal does not grant dispensation, the landlord can recover no more than £250 from each leaseholder for the works.
Not sure whether a job needs consulting on? Try the free section 20 checker. No sign-up.
What Marklet keeps at each stage
One proceeding per consultation, for works, for a long term agreement, or for works under an agreement you already have.
- 1
Notice of intention
Served on each flat and on any recognised tenants' association, each with the date it was given and how: by post, by hand, or electronically where the leaseholder has agreed to that. Observations, and nominated contractors where the procedure invites them, come back against this stage.
- 2
Estimates
The estimates obtained and the stage 2 notice, served and dated per flat like the first. Observations on the estimates are kept apart from those on the intention.
- 3
Award
The notice that follows the contract, where the procedure requires one, recorded in the same way.
- 4
Dispensation
Where an application is made to the tribunal to dispense with all or any of the requirements, the application and its outcome are recorded on the same proceeding.
Four questions to ask of any section 20 software
Whether it is Marklet, your managing agent's system or a spreadsheet.
Does it record service flat by flat?
"We posted them" is not a record a tribunal can check. Look for the date and method of service for every leaseholder and for the recognised tenants' association.
Does it cover long term agreements as well as works?
A cleaning or lift contract can need consultation just as a roof can, and works carried out under an existing agreement follow a shorter procedure of their own.
Where do observations go?
An observation that sits in one director's inbox cannot be summarised or answered. It belongs against the stage it responds to, whether it arrived in the app, by email or by post.
Does it catch a job before it crosses the threshold?
The time to find out a job needs consulting on is before the quote is accepted, not when the demand goes out.
Where Marklet fits
- RMC and RTM directors in England who run their own consultations
- Managing agents consulting on works and long term agreements across several blocks
- Boards that want each notice, service date and observation kept with the works it relates to
Where it does not
- Marklet is software, not legal advice. It does not decide whether a cost is reasonable or whether your lease lets you recover it.
- Marklet does not hold service charge money. It records demands and payments.
- Section 20 tracking is on the Management plan, not the free or Oversight plans.
Everything else on the Management plan is on the features page. Plans and per-unit prices are on the pricing page.
Frequently asked questions
What is section 20 consultation software?
Software that keeps the record a landlord, RMC or RTM company needs to show it consulted leaseholders before charging for major works or a long term agreement: which notice went to which flat, when and how, the 30-day observation periods, the estimates and the observations received.
When is section 20 consultation required?
In England, consultation is needed to recover more than £250 from any one leaseholder for works, or more than £100 from any one leaseholder in an accounting period under an agreement of more than 12 months. The free section 20 checker works through the tests for a particular job.
What happens if we do not consult?
Unless the First-tier Tribunal grants dispensation, what the landlord can recover is capped at £250 for each leaseholder for the works, or £100 for each leaseholder in each accounting period for a long term agreement.
Does Marklet warn us before a job needs consulting on?
Yes. Accepting a contractor's quote checks whether the job crosses the consultation threshold. You can still go ahead, but what was outstanding is recorded.
Run your next consultation in Marklet
Section 20 is on the Management plan.
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