Quick Answers
Who pays for structural repairs in a block?
The managing party — freeholder, management company, or RTM company — is responsible for structural repairs under most leases. The cost is recovered from leaseholders through the service charge. The lease defines exactly what is included in the managed structure and what falls to individual leaseholders.
What is the Section 20 threshold?
Section 20 consultation is required whenever any single leaseholder would contribute more than £250 through the service charge to a qualifying works contract. On a block of 20 flats, that means any contract over approximately £5,000 triggers the consultation requirement.
What happens if Section 20 is not followed?
The maximum recoverable from each leaseholder is capped at £250 for the relevant works — regardless of actual cost. The managing party absorbs the shortfall. On large works this can mean tens of thousands of pounds of unrecoverable expenditure that the RTM company must fund from elsewhere.
The short answer: Structural repairs to the building fabric — roof, structure, external walls, communal plant — are the managing party's responsibility under most residential leases, recoverable from leaseholders through the service charge. Any contract where a single leaseholder's contribution would exceed £250 requires the full Section 20 consultation process under the Landlord and Tenant Act 1985. Failure to consult correctly caps recovery at £250 per leaseholder — a potentially catastrophic gap on major works.
For RTM directors specifically: Section 20 is not optional, it is not a technicality, and the Tribunal does not give credit for good intentions. The process has three prescribed stages and specific timelines — and skipping or shortcutting any of them has the same financial consequence as skipping the whole thing.
Key Takeaways
The lease determines liability — not assumptions about what seems reasonable
Every decision about who is responsible for a repair begins with the lease. What is defined as the "structure"? What is the leaseholder's demise? Where does the managed common part end and the individual flat begin? These definitions vary between leases and must be checked — do not assume.
Section 20 applies to the contract value — not the individual leaseholder's share
The test is whether any leaseholder would pay more than £250. On a ten-flat block, a contract of £2,600 triggers Section 20 (£260 per flat). On a thirty-flat block, a contract of £7,800 triggers it (£260 per flat). The per-leaseholder contribution is the metric — not the total contract value alone.
The penalty for getting Section 20 wrong falls on the RTM company — not the contractor
If the consultation is defective, the RTM company cannot recover the excess from leaseholders — but it still owes the contractor the full works cost. The RTM company must either absorb the loss from the service charge fund or pursue leaseholders in other ways. Either outcome is damaging.
Emergency dispensation exists — but it is not a retrospective fix
In a genuine emergency, the Tribunal can grant dispensation from the Section 20 process to allow immediate works to proceed. This must be applied for in advance — or at least concurrently with the works. It cannot be used to rescue a consultation that was simply omitted or conducted incorrectly.
Leaseholders have a right to nominate contractors at the estimate stage
At the Notice of Intention stage, leaseholders can nominate contractors they would like to be invited to tender. The managing party must obtain a quote from any nominated contractor who is willing and able to tender — unless there is a good reason not to. This is a frequently overlooked leaseholder right.
A well-maintained reserve fund changes everything about structural repair planning
Blocks with adequate reserve funds can plan and execute major structural works without emergency levies, last-minute service charge increases, or the leaseholder anxiety that comes with unexpected bills. Reserve fund planning is not a nice-to-have — it is the foundation of responsible RTM governance.
Who Is Responsible for Structural Repairs
In the vast majority of residential long leases, the managing party — whether freeholder, management company, or RTM company — is responsible for repairing and maintaining the structure and exterior of the building and the common parts. This obligation is typically framed as a covenant in the lease, often reading something like "to repair and maintain the structure, exterior, roof, foundations, and common parts of the building."
The cost of discharging that obligation is then recovered from leaseholders through the service charge — also defined in the lease, typically as a percentage share of the total expenditure allocated to each flat based on floor area or some other equitable basis.
For RTM companies, this obligation transfers from the freeholder at the point the RTM takes effect. The RTM company takes on the same repair and maintenance obligations the freeholder held — and the same liability consequences if those obligations are not met. A leaseholder who suffers damage because the RTM company failed to repair the roof in a reasonable timeframe has a claim against the RTM company, not the freeholder.
The description above reflects the most common lease structure — but leases vary significantly. Some leases make individual leaseholders responsible for certain structural elements within their flat (such as the internal structure of their own floor). Some define "structure" more narrowly than others. Before making any decision about liability for a repair, read the relevant clause in the actual lease for the property in question.
The Repair Boundary: Structure vs Flat Interior
The most frequent dispute in block repair liability is the boundary between what the managing party is obliged to repair and what falls to the individual leaseholder.
Structure & Exterior
Roof, roof covering, parapets, foundations, external walls (including render and cladding), structural frame, floor slabs between flats, external windows and doors to common parts
Common Parts
Entrance hall, staircases, lifts, communal corridors, communal plant rooms, bin stores, bike stores, communal gardens, car parks, and all mechanical and electrical services serving the building generally
Flat Windows & Front Door
Windows serving individual flats and flat entrance doors are handled differently across leases — some make them the leaseholder's responsibility, others the block's. Check the lease: do not assume.
Internal Flat Fixtures
Kitchen and bathroom fittings, internal non-structural walls, floor coverings, ceilings (lower surfaces), internal decorations, and all fixtures and fittings within the demise of the flat
Services Within the Flat
Pipework, wiring, boilers, and services serving only that flat once they branch off from the main building services. Services serving multiple flats or the building generally remain the block's responsibility.
Escape of Water Damage
Water ingress from the roof or external walls is the block's responsibility. Escape of water from a flat's internal plumbing is the leaseholder's. Damage to a lower flat caused by the upper flat's leak is recoverable from the upper leaseholder (or their insurer) — not automatically the block's liability.
What Is Section 20?
Section 20 of the Landlord and Tenant Act 1985 is the statutory protection that prevents managing parties from committing leaseholders to large, unconsulted expenditures through the service charge. It requires a formal consultation process before entering into a "qualifying long-term agreement" or a "qualifying works" contract where any leaseholder's contribution would exceed the threshold.
The threshold has been £250 per leaseholder for qualifying works since 2003. This is not indexed — £250 in 2003 is worth significantly less today, which means Section 20 is triggered by increasingly modest works relative to modern construction costs. A competent managing agent or RTM director should assume Section 20 applies to almost any substantive repair contract and proceed accordingly, rather than trying to calculate whether it just falls under the threshold.
Section 20 applies to:
- Qualifying works — any works on a building or any other premises where any leaseholder's contribution through the service charge would exceed £250
- Qualifying long-term agreements — contracts lasting more than 12 months (such as a maintenance or cleaning contract) where any leaseholder's contribution exceeds £100 per year
This post focuses on qualifying works — the most common scenario for structural repairs. The long-term agreement process has additional requirements not covered here.
The Section 20 Process: Three Stages
The Section 20 consultation for qualifying works has three prescribed stages, each with mandatory content and time limits. There is no flexibility on the structure — the Regulations define exactly what each notice must contain and how long leaseholders have to respond.
Notice of Intention
A written notice served on all leaseholders and any recognised tenants' association (RTA) that describes the works proposed and why they are considered necessary. The notice must invite observations from leaseholders and nominate an address to which observations should be sent. It must state that observations must be made within 30 days. Leaseholders may, within the 30-day period, nominate a contractor they would like to be invited to tender.
Statement of Estimates
After the observation period closes, the managing party must obtain at least two estimates for the works — one of which must be from a contractor wholly unconnected to the managing party or freeholder. If any contractor was nominated by leaseholders during Stage 1, an estimate must be sought from that contractor (if willing). The estimates are shared with leaseholders in a Statement of Estimates, accompanied by a further 30-day observation period. Leaseholders may make observations on the estimates during this period.
Notice of Reasons
If the managing party does not award the contract to the lowest-cost tenderer, or to the contractor nominated by leaseholders (if any was nominated), a Notice of Reasons must be given explaining why. This notice is served after the contract is awarded. It is not always required — only where the cheapest or nominated contractor is not selected.
Section 20 notices must be served on every leaseholder individually — not posted on a notice board or sent to the managing agent's general contact list. The Regulations require service on each leaseholder at the address stated in the lease (often the flat itself). Keep a dated record of service for every notice — this is your evidence if the process is challenged at Tribunal.
What Happens If Section 20 Is Not Followed
The financial consequence of a defective Section 20 consultation is severe and automatic — it does not require a Tribunal application to trigger. Under the Landlord and Tenant Act 1985, where the required consultation has not been carried out, the amount that can be taken into account in determining the service charge payable by any leaseholder is limited to £250 in respect of the qualifying works.
To understand the practical impact:
| Scenario | Financial Consequence |
|---|---|
| 20 flats — £60,000 roof replacement — full S20 process followed | £3,000 per flat recoverable. Full cost recovered. No gap |
| 20 flats — £60,000 roof replacement — S20 not followed | Maximum £250 per flat = £5,000 total recoverable. Shortfall of £55,000 falls on the RTM company. £55,000 gap |
| 20 flats — £60,000 roof replacement — S20 Stage 1 served but Stage 2 omitted | The full process was not completed. Same cap applies — £250 per flat. Partial compliance is treated as non-compliance. £55,000 gap |
| 20 flats — £4,000 gutter clearance — S20 not followed | £200 per flat — below the £250 threshold. S20 not required. Full cost recoverable regardless. Below threshold |
| Emergency roof repair £20,000 — Tribunal dispensation granted in advance | Full cost recoverable despite absence of S20 consultation, subject to Tribunal dispensation conditions. Dispensation required |
The RTM company directors who authorise works above the threshold without following Section 20 are exposing the company — and potentially themselves personally, if the company lacks the funds to absorb the shortfall — to a significant financial loss. This is not a theoretical risk; it is a predictable consequence that has befallen numerous RTM companies and managing agents.
Emergency Works and Tribunal Dispensation
Genuine building emergencies — a sudden roof collapse, a burst main causing immediate water damage, a structural failure requiring immediate shoring — cannot wait 60 days for a Section 20 consultation process. The legislation provides for this through the Tribunal dispensation mechanism.
Where urgent works are required, the managing party can apply to the First-tier Tribunal for dispensation from the Section 20 consultation requirements. The Tribunal will grant dispensation where the urgency is genuine and the works are necessary — but it will consider whether leaseholders have been prejudiced by the absence of consultation when deciding on conditions.
The critical points about dispensation:
- Apply before or during the works — not after. The application should be made as soon as the emergency is identified, ideally before contracting for the works where possible
- Notify leaseholders immediately — even if Section 20 cannot be followed, inform leaseholders of the works, the reason for urgency, and the intention to apply for dispensation
- Dispensation is not guaranteed — the Tribunal may grant it subject to conditions, or may limit cost recovery if it considers some consultation was practicable and was not carried out
- It cannot retrospectively fix a defective process — dispensation is for genuine emergencies, not for cases where the managing party simply failed to plan or initiate consultation in time
The most common reason managing parties end up in emergency dispensation territory is not a sudden catastrophic failure — it is a maintenance issue that was identified months earlier, not actioned, and eventually escalated to a crisis. A live maintenance log and a structured inspection schedule are what separates an emergency from a foreseeable event that was mismanaged. We maintain both for every block we manage, specifically to identify repair needs before they bypass the consultation window.
Challenging the Cost of Major Works
Even where Section 20 consultation is properly conducted, leaseholders retain the right to challenge the reasonableness of the service charge — including the cost of the works and whether they were necessary.
The reasonableness test under the Landlord and Tenant Act 1985 applies to all service charge costs. Leaseholders can apply to the First-tier Tribunal to challenge:
- Whether the works were necessary at all
- Whether the specification was appropriate (was the roof replaced when repair would have sufficed?)
- Whether the cost was reasonable for the scope of works commissioned
- Whether the contractor selection process was properly conducted
- Whether the works were carried out to a satisfactory standard
The best defence against a successful Tribunal challenge is a well-documented Section 20 process — multiple competitive quotes, documented reasons for contractor selection, clear specification of works, and evidence that leaseholders had a genuine opportunity to observe and comment. A managing party that can show it followed a proper, documented process is in a far stronger position than one that simply has invoices.
Planning Ahead: How Good Reserve Fund Management Prevents Crises
The blocks that handle major structural repairs best are not those with the fewest problems — they are the ones that planned for major expenditure before the problem arrived.
A professional assessment of the building's major components — roof, structure, lifts, communal M&E, external fabric — with an estimate of remaining design life and projected replacement cost for each. This is the basis for a meaningful reserve fund contribution schedule.
A reserve fund study tells you what will need replacing, when, and at what cost. Annual contributions should be set to accumulate sufficient funds for each major component before its end of life — not set arbitrarily or kept artificially low to suppress service charges in the short term.
If the reserve fund study shows a roof replacement is likely needed in three years, start the Section 20 process when the works are twelve to eighteen months out — not when the leaks start. Early initiation means time for proper specification, competitive tendering, leaseholder engagement, and award to the best-value contractor rather than the most available one.
Keep a complete file for every major works project: the stock condition survey, the Section 20 notices with service records, all estimates received, correspondence with leaseholders, the RTA (if any), the decision record for contractor selection, the contract, and post-works sign-off. If a Tribunal challenge comes, you need this file to be complete and contemporaneous.
For a detailed guide to reserve fund planning — including how much to set aside and how to structure contributions — see our post on Reserve Funds and Sinking Funds: How Much Should Your Block Be Saving?. For how service charges are structured and challenged more broadly, see Service Charges Explained.
Frequently Asked Questions
In most residential leases, the managing party — freeholder, management company, or RTM company — is responsible for repairing and maintaining the structure, exterior, and common parts of the building. This includes the roof, external walls, foundations, shared staircases, lifts, and communal plant.
Individual leaseholders are typically responsible for the interior of their own flats. However, the lease always governs — the exact scope of each party's obligation must be confirmed by reading the relevant clauses.
Section 20 of the Landlord and Tenant Act 1985 requires a landlord or management company to consult leaseholders before entering into a qualifying contract where any leaseholder would contribute more than £250 through the service charge.
The process has three stages: a Notice of Intention (inviting observations and contractor nominations), a Statement of Estimates (sharing at least two quotes and inviting further observations), and — where the cheapest contractor is not selected — a Notice of Reasons. Failure to complete all required stages caps recovery at £250 per leaseholder.
If the required Section 20 consultation is not carried out — or is carried out incorrectly — the maximum recoverable from each leaseholder is capped at £250 for the relevant works, regardless of actual cost. The managing party bears the shortfall.
For major structural works on a 20-flat block, this could limit recovery to £5,000 total against a works bill of £60,000 or more. The Tribunal can grant dispensation in genuine emergencies, but this cannot retrospectively fix a failure to consult.
Where a managing party has failed to carry out proper Section 20 consultation, leaseholders can apply to the Tribunal to have the service charge for those works limited to £250 per leaseholder. The correct approach is to pay under protest, apply to the Tribunal, and seek to have the excess declared irrecoverable.
Do not simply withhold service charges without taking advice — withholding payment without a Tribunal application or agreement can have legal consequences, including forfeiture proceedings.
Structural repairs typically involve the building's load-bearing elements — foundations, structural walls, roof structure, floor slabs — and are usually significant one-off expenditures. Routine maintenance includes recurring works such as redecorating common parts, cleaning, minor plumbing repairs, and gutter clearing.
The lease defines what the managing party is obliged to do in each category. The distinction also affects how works should be funded — reserve fund for major planned expenditure, revenue service charge account for routine maintenance.
Yes. All service charge costs — including those for structural repairs — are subject to the reasonableness test under the Landlord and Tenant Act 1985. Leaseholders can apply to the First-tier Tribunal to challenge whether the works were necessary, whether the specification was appropriate, and whether the cost was reasonable.
A well-run Section 20 process with competitive quotes and documented decision-making is the best protection against a successful Tribunal challenge on cost grounds.
Facing major structural works on your block?
Neon manages the Section 20 process for every qualifying works contract across the blocks we manage — from Notice of Intention to contractor selection and post-works sign-off. If your block has structural works coming up and you want the process done correctly, talk to us.
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