As a leaseholder, you have the right to be consulted if your landlord wants to carry out major works funded by your service charge.
The requirements for this this consultation are set out in Section 20 of the Landlord and Tenant Act 1985 and come in 2 or sometimes 3 stages. The detailed procedures can be found in the regulations, Service Charges (Consultation Requirements) (England) Regulations 2003 (‘the Regulations’). Similar regulations have been enacted in Wales.
Stage 1: notice of intention
First, the landlord has to tell you about the work they intend to do and the reasons for it, and give you the option of a reasonable place and time to go over the details.
They have to invite you to give your opinions in writing within 30 days, and tell you if you have a right to suggest (nominate) a contractor that they should ask for an estimate.
Stage 2: notice of estimates
Next, they must give you details of two estimates they have obtained for the works. One estimate must be from a contractor with no connections to the landlord. Again, they have to invite your comments which you should give in writing within 30 days.
Stage 3: notice of who won the contract
The landlord has to tell you who won the contract within 21 days of its award – unless a leaseholder nominated the contractor or the contract is for the lowest tender.
The notice should explain why the landlord chose that contractor and give a summary of the leaseholders’ comments about the estimates, and give you a reasonable place to inspect them.
More information you might find useful:
- Section 20 Consultation for Private Landlords, Resident Management Companies and their Agents: advice guide
- Section 20 Consultation for Council and other public sector landlords: advice guide
- More Frequently Asked Questions on Section 20 Consultation
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