Consulting leaseholders and shared owners about major work

We have a legal duty to consult leaseholders and shared owners before carrying out major works or services that cost more than set legal limits. This is called a Section 20 consultation.

When we must consult

We will carry out a Section 20 consultation if we plan to:

• spend more than £250 per home on any one set of works to your block or estate, or
• provide a service that costs you more than £100 in any one year, and lasts longer than 12 months (this is called a Qualifying Long-Term Agreement or QLTA)

If consultation is required, we must also send notices to any registered tenants’ association linked to your building or estate.

Types of work that may require consultation

Work that requires a consultation is usually a large scale or planned maintenance project, often planned several years in advance.

Examples of works that may cost more than £250 per home include:

• external decoration
• internal decoration of landings and corridors
• roof works

We also consult on some longer term services, such as:

• window cleaning
• buildings insurance

Not all works require consultation. We will tell you if a Section 20 consultation applies.

How we consult leaseholders and shared owners

When consultation is required, we follow a formal legal process called a Section 20 (S20) consultation.

This makes sure you are informed about major works or services and can comment before any costs are confirmed.

The S20 consultation is only one part of how we communicate with residents about major works, but it is the part required by law.

The S20 process has 3 stages. You will receive a separate notice at each stage:

1. Notice of intention: before we ask contractors to provide estimates for the work or the QLTA
2. Tender stage: after we receive estimates for the work or the QLTA
3. Award of contract: when we award the contract

Stages in the consultation process

Stage 1: Notice of intention

Before we ask contractors to provide estimates for the work or service, we must send you a Section 20 notice of intention.

This notice must:

• describe the proposed works or agreement and explain why they are needed
• explain where and when you can view the information and get copies
• invite you to comment in writing and tell you where to send your comments
• invite you to nominate a contractor we should try and get an estimate from
• give the deadline for the consultation period 

The consultation period will always be at least 30 days from the date of the notice. We allow a few extra days for the notice to reach you by post.

At this stage, we can't tell you how much you will need to pay, as we have not yet received estimates.

We must consider all comments and suggestions we receive before moving to the next stage.

Nominating a contractor

In some cases, you may not be able to suggest a contractor. This is because we are a public sector landlord and must follow the rules for public sector procurement. If a contract is above a certain value, we must advertise it using the government’s Find a Tender service. This is called giving a public notice.

If this applies:

• you will not be able to nominate a contractor
• you can still comment on the proposed work or service

We will tell you if this applies.

Stage 2: Notice of proposal

After we receive estimates from the contractors or QLTA service providers, we must prepare at least 2 proposals.

One proposal must be from a contractor not connected to the Council. Where possible, we must also include estimates from any contractor nominated by a leaseholder or registered tenants’ association (RTA).

We will then send you a second Section 20 notice, called a notice of proposal.

This notice will:

• include copies of the proposals, or explain where and when you can view them and get copies
• describe the proposed works or services and explain how long the service will last if it is a QLTA
• invite you to comment in writing and tell you where to send your comments
• include an estimated cost, where possible
• summarise the comments received at Stage 1 and our responses
• give the deadline for the consultation period (with at least 30 days to respond)
• give details of the successful contractor (usually the one with the lowest estimate)

Stage 3: Award of contract

We only carry out this stage in certain situations.

We must send you a Section 20 award of contract notice if we:

• do not choose the lowest-priced contractor
• do not appoint a contractor nominated by a leaseholder or a RTA

This notice will:

• explain why we chose that contractor
• summarise the comments received at Stage 2 and our responses
• explain where and when you can view more information and get copies, if this is not included in the notice

In most cases, we will appoint the contractor with the lowest estimate. If we do not, we must clearly explain our decision.

Works carried out under a Qualifying Long-Term Agreement (QLTA)

Some long-term agreements include both:

• routine servicing or maintenance
• major works (large one-off projects)

If works are to be carried out under a Qualifying Long-Term Agreement and cost more than £250 per leaseholder or shared owner, then we will carry out a further statutory consultation.

The consultation has one stage only. 

We will send you a notice of intention, which will:

• describe the proposed works or explain where you can view the details
• explain why the works are needed
• give an estimated cost for your share, where possible, and name the contractor
• refer to the framework that has already been established
• invite you to comment and tell you where to send your comments
• give the deadline for the consultation period

You will not be able to nominate a contractor for this type of consultation.

The consultation period will always be at least 30 days from the date of the notice. 

Situations where we may not carry out full consultation

In some cases, we do not need to carry out the full Section 20 consultation process.

These include:

• emergencies, where urgent work is needed to prevent serious risk, such as immediate structural collapse. We will tell you if this happens
• contracts that require a public notice, where the value means we must follow public procurement rules and advertise the contract through the government’s Find a Tender service

A public notice is required for both work contracts and contracts for goods or services above certain value limits

In these cases, leaseholders do not have the right to nominate a contractor. However, we will still consider your views.

Other ways we consult residents

In addition to the Section 20 consultation, we may also ask for your views through:

• resident meetings
• drop-in sessions
• door-to-door consultations

Paying for major works

If we carry out major works to your block or estate, your lease requires you to contribute to the cost. 

Refer to Charging leaseholders and shared owners for major work to find out when you will be charged and the repayment options available.

10-year repair protection for new model shared ownership leases

If you have a new model shared ownership lease, your lease states that during the first 10 years after the first lease is granted we are responsible for the cost of the following types of repairs:

• the load bearing framework of the building
• the external fabric of the building
• all other structural parts of the building such as the roof, foundations, joists and external walls of the building
• the service media and machinery and plant within (but not exclusively serving) the premises and all parts of the building which are not the responsibility of the leaseholder under the lease or of any other leaseholder under a similar lease of other premises in the building

This means you will not be charged for these types of repairs during the first 10 years from when the first lease was granted. Your lease will confirm exactly what is included.

Not sure which type of shared ownership you have? Check your lease and the Types of shared ownership page.

Estate improvements and deeds of variation

Sometimes we carry out communal estate improvements that are funded by Oxford City Council. These works are not charged to leaseholders.

Sometimes we carry out improvements to communal areas on your estate. These works are funded by Oxford City Council and are not charged to leaseholders.

Examples of estate improvements include:

• redesigning garden areas
• installing cycle racks
• renewing or relocating sheds

Before carrying out these works, we will consult with leaseholders and shared owners, whether they live on the estate or not.

Deeds of variation

Estate improvements can sometimes change the layout or facilities on your estate. If this means your lease no longer reflects what is on site, we may need to update it.

We do this using a deed of variation. A deed of variation is a standard legal document that updates the terms of your lease so it reflects any changes made. It is agreed by the Council and the leaseholder, and sometimes other parties, such as lenders.
This makes sure your lease, including any plans it contains, reflects the current layout and arrangements.

For example:

• your lease states that you have the right to use a particular shed and the plan in the lease shows this
• as a result of an estate improvement, that shed is relocated
• a deed of variation makes sure your lease reflects this change

We will explain this as part of the consultation before any work is agreed. We will pay the cost of making these changes.