What is a leasehold extension?

A leasehold extension is the process of extending the lease term of a property held on a leasehold basis. It helps maintain the property's value and desirability. Leasehold extension legislation allows leaseholders to extend their lease, ensuring the property remains attractive for sale or mortgage purposes.

How long is a leasehold extension ?

The length of a leasehold extension can vary depending on the jurisdiction and specific circumstances. In some countries, such as the United Kingdom, leasehold extensions are typically granted for an additional 90 years beyond the remaining term of the existing lease. However, it's important to note that leasehold extension regulations can differ, and it's advisable to consult local laws or seek professional advice like leasehold valuations for accurate information regarding leasehold extensions in a specific jurisdiction.

What are the benefits of lease extension ?

Extending the leasehold of a property offers benefits such as increased property value, improved marketability, easier access to mortgage financing, peace of mind and security, the avoidance of escalating costs, and more control over property management.

What happens to leasehold property after 99 years ?

After 99 years, the leasehold property typically reverts back to the freeholder, unless the lease is extended by the leaseholder. The ownership of the property, along with the land it is built on, returns to the freeholder once the lease expires. As a lease approaches its expiration, the property’s value may decrease, making it more challenging to sell or mortgage. It is advisable for leaseholders to consider extending their lease well before it reaches the 99-year mark to maintain the property’s value and their ownership rights.

Why choose leasehold Valuations for Lease extension or Buying Freehold ?

1. Fair Price: A leasehold valuation ensures you pay a fair price for a lease extension or freehold purchase.2. Increased Property Value: Extending the lease or buying the freehold can potentially increase your property’s value.3. Cost Savings: Accurate valuation helps minimise future costs like ground rent.4. Stronger Negotiation: A valuation report strengthens your position during negotiations with landlords.5. Legal Compliance: Valuations ensure you meet legal requirements for lease extensions or freehold purchases.6. Future Planning: Valuations help you plan for selling or passing on the property to future generations.7. Expert Advice: Engaging a valuer provides access to their expertise and guidance.8. Mortgage Support: Valuation reports improve your mortgage opportunities for lease extensions or freehold purchases.

How much does it cost to renew a leasehold ?

The cost of renewing a leasehold in the UK can vary depending on various factors, such as the property value, the length of the renewal term, and any negotiations between the leaseholder and the freeholder. Unlike extending a lease, which typically involves paying a premium to the freeholder, renewing a lease generally involves paying a nominal fee known as a “peppercorn rent” or a small percentage of the property value.The exact cost of renewing a leasehold will depend on the specific terms agreed upon between the parties involved. It is advisable to consult with a solicitor or a licenced conveyancer who specialises in leasehold matters to get an accurate estimate of the costs involved based on your particular situation.

Q. How much does it cost to extend a leasehold in uk ?

The cost of extending a leasehold in the UK can range from a few thousand pounds to tens of thousands of pounds, depending on factors such as the remaining lease length, property value, and negotiated terms with the freeholder. Additional costs include legal fees, valuation fees, and disbursements such as Land Registry fees. It’s recommended to seek professional advice for an accurate estimate based on your specific situation.

What Is a Section 20 Notice? Full UK Leaseholder Guide

January 20, 2026

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If you own a leasehold property in England or Wales, understanding the Section 20 process is essential. Whether you live in a flat, own a buy-to-let apartment, or manage a block of residential units, you are likely to encounter a Section 20 Notice at some point.

The notice relates to service charges, major works, and long-term agreements. It ensures leaseholders are consulted and treated fairly before being asked to contribute to significant costs. But what is a Section 20 Notice exactly, and how does it affect leaseholders?

This detailed UK guide explains everything you need to know.

1. What Is a Section 20 Notice?

A Section 20 Notice is a formal consultation notice issued by a landlord, freeholder, or property management company under Section 20 of the Landlord and Tenant Act 1985. It must be served when:

The landlord plans to carry out major works costing any leaseholder over £250, or
The landlord wants to enter into a long-term agreement costing any leaseholder over £100 per year.

This notice ensures leaseholders are informed, consulted, and given the opportunity to comment before costs are finalised.

2. Why Is a Section 20 Notice Required?

The purpose of the Section 20 process is to:

Protect leaseholders from unexpected or unreasonable costs
Ensure transparency between freeholders and residents
Allow leaseholders to propose contractors or challenge decisions
Provide a structured consultation before major spending

Without this consultation, landlords may be unable to recover costs through service charges.

3. When Is a Section 20 Notice Issued?

The notice is issued in two main situations:

1. Major Works

Examples include:

Roof replacement
External wall repairs
Lift refurbishment
Plumbing upgrades
Fire safety improvements
Window replacement
Structural repairs
Car park resurfacing

If the cost per leaseholder is more than £250, a Section 20 Notice is legally required.

2. Long-Term Agreements

This applies to contracts lasting over 12 months, such as:

Cleaning contracts
Maintenance contracts
Managing agent agreements
Security services
Gardening and landscaping services

If the cost exceeds £100 per leaseholder per year, consultation is mandatory.

4. Types of Section 20 Notices

The Section 20 process includes three key stages, depending on the type of works:

1. Notice of Intention (Stage 1)

This is the first step. It must include:

The reason for the proposed works
The type of work or service planned
An invitation for leaseholders to make observations
A 30-day consultation period
The right for leaseholders to nominate contractors

This ensures leaseholders are aware early in the process.

2. Notice of Estimates (Stage 2)

After collecting contractor estimates, the landlord must issue:

At least two different estimates
A summary of leaseholder observations
Contractor details
A 30-day consultation period to review details

Leaseholders may inspect related documents and challenge any concerns.

3. Notice of Award of Contract (Stage 3)

Finally, the landlord announces the chosen contractor and rationale. This is required:

If the chosen contractor was not the lowest quote
If the contractor was not nominated by leaseholders

This stage provides transparency and accountability.

5. What Happens After a Section 20 Notice Is Issued?

Once the notice is served:

Leaseholders have 30 days to respond with comments.
All feedback must be considered and summarised.
Works or agreements can only proceed after consultation is complete.
Costs will be added to future service charge demands.

The process must be completed correctly; otherwise, landlords risk losing the ability to recover charges.

Also, learn more about The Ultimate Guide to Issuing a Section 20 Notice

6. How Much Can Leaseholders Be Charged Under Section 20?

There is no legal maximum for major works charges. Costs depend on:

Building size
Type of repairs
Contractor rates
Urgency of the work

However, leaseholders must only be charged reasonable costs, and every decision must be transparent.

7. When Is a Section 20 Notice Not Required?

A Section 20 Notice may not be needed if:

Works are urgent (for example, health or safety risks)
Costs fall below £250 per leaseholder
The agreement is shorter than 12 months
A tribunal dispensation has been granted

Dispensation allows landlords to skip consultation in specific circumstances.

8. Leaseholder Rights Under Section 20

Leaseholders have important rights, including:

1. The Right to Be Consulted

They must be informed and allowed to participate at all stages.

2. The Right to See Estimates

Leaseholders can view contractor quotes and related documents.

3. The Right to Nominate Contractors

During Stage 1, any leaseholder may suggest their preferred contractor.

4. The Right to Make Observations

Feedback must be considered and recorded.

5. The Right to Challenge Unreasonable Costs

If charges are not fair, leaseholders can take the matter to the tribunal.

9. Common Issues with Section 20 Notices

Leaseholders sometimes face challenges such as:

1. High Service Charges

Major works can be expensive, especially in older buildings.

2. Lack of Transparency

Some managing agents fail to provide clear cost breakdowns.

3. Poor Contractor Performance

The cheapest quote may not always produce the best results.

4. Short Consultation Time

Although 30 days is the legal minimum, it can feel rushed.

5. Inadequate Response to Observations

Not all landlords properly summarise or consider leaseholder feedback.

Being aware of these issues helps leaseholders challenge unfair practices.

10. What If a Landlord Fails to Serve a Section 20 Notice?

If the landlord does not follow the Section 20 consultation process correctly:

They may only recover up to £250 per leaseholder, even if the works cost much more.
Leaseholders can refuse to pay any additional charges.
A tribunal may rule costs as unreasonable.

This is why landlords and managing agents are careful to comply with all stages.

11. How to Challenge a Section 20 Charge

If you believe the works are unnecessary, overpriced, or poorly managed, you can:

Submit written observations
Ask for documentation
Attend residents’ meetings
Request detailed cost breakdowns
Apply to the First-tier Tribunal (Property Chamber)

The tribunal can investigate and reduce or remove unreasonable charges.

12. How Section 20 Notices Protect Leaseholders

Although they may feel inconvenient, Section 20 Notices provide essential protections by ensuring:

Transparency in costs
Prevention of financial abuse
Fair selection of contractors
Proper recording of decisions
Reasonable service charges

Without this process, leaseholders would have far less control over significant building expenses.

Conclusion

A Section 20 Notice is a crucial part of leasehold property management in the UK. It ensures landlords consult leaseholders before carrying out major works or entering long-term agreements that affect service charges. Understanding what is a Section 20 Notice, your rights, and the full consultation process helps you avoid unexpected costs and ensures you remain informed about building maintenance decisions.

Whether you are a leaseholder, landlord, property manager, or investor, Section 20 compliance is essential for fair and lawful property management.