Section 20 notice of reasons template
A section 20 notice of reasons is the notice a landlord in England gives leaseholders, within 21 days of signing the contract, to explain why the work was awarded to a contractor other than the one with the lowest estimate or one nominated by a leaseholder or association. It is the last written step in the consultation for major works. The building, the contract, the reasons and the comments change every time.
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What changes each time
20 values. Everything else is your wording, kept exactly.
Who it goes to and from
- Leaseholders: each of the building or a named leaseholder
- Recognised tenants' association and secretary's address
- Landlord's name or company name
- Managing agent's name, address, phone and email
- Building or estate name and address
- Date of the notice
The contract
- Short description of the works
- Date of the stage 1 notice and the stage 2 statement
- Date the contract was entered into
- Contractor's name
- Contract sum and VAT
- Lowest estimate and the difference
Reasons and comments
- Reasons for choosing the contractor
- Place, times and dates to inspect the statement of reasons
- Number of leaseholders who commented
- Summary of each comment and the response
What happens next
- Expected start date and length of works
- Point of contact for the works
- When demands for the contribution are expected
- Signatory name and position
The rules it usually needs
Written in plain English when the template is set up.
- One of several wordings
“Address the notice to each leaseholder of the building, or to one named leaseholder.”
Only the chosen addressee appears.
- One of several wordings
“Either give the reasons in the notice, or say where the statement of reasons can be inspected.”
The list of reasons appears on the first form. The inspection place, times and dates appear on the second.
- One of several wordings
“If the statement can be inspected, either provide copying facilities or send a free copy on request.”
Only the chosen wording appears.
- One of several wordings
“Say either that no written comments were received on the estimates, or summarise those that were.”
The table of comments and responses appears only when comments were received.
- One of several wordings
“Sign as the landlord, for the landlord, or as the managing agent for the landlord.”
Only the chosen sign-off appears.
- Only when…
“Include the tenants' association line only when there is a recognised tenants' association.”
The association and its secretary appear.
- Only when…
“Include the managing agent only when one acts for the landlord.”
Their business details appear.
- Only when…
“Include the lowest estimate comparison only when helpful.”
The lowest estimate, its contractor and the extra cost appear.
- Only when…
“Include the start date and point of contact, and the expected date of demands, only when known.”
They appear in the section on what happens next.
- Once for each item
“One row for each reason given and one row for each comment received.”
Two comments give two rows, each with a summary and the landlord's response.
Questions people ask
What is a section 20 notice of reasons?
A notice, required under section 20 of the Landlord and Tenant Act 1985 and the 2003 consultation regulations, explaining why a landlord did not choose the lowest estimate or a leaseholder's nominated contractor for qualifying works.
When must it be given?
Within 21 days of entering into the contract.
Is it always needed?
Only if the contract was not awarded to the contractor with the lowest estimate, or to a nominated contractor.
What happens if the consultation steps are missed?
If a landlord does not follow the consultation requirements, the amount it can recover from each leaseholder for the works may be limited unless a tribunal dispenses with them.
Does it have to summarise comments?
Yes. It summarises any written comments received on the estimates and gives the landlord's response to each.
Use this template
It opens in DocuWeave as a template you can check, change and publish. Nothing is used until you do.