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LEASE 2012/13 training programme
For training on residential leasehold law.
Section 20 Consultation
Service charges for residential leaseholders
Tackling bad management
Courses can be fully tailored to your requirements.
- LEASE Conference 2013
- Gathering information on service charges - ways to enforce your rights
- When are service charge costs incurred? Court of Appeal decision in OM Property Management v Burr
- 2012-13 Performance summary
- Enterprise and Regulatory Reform Bill - implications for managing agents
- Podcast - Lease Extension
- I am in dispute with my landlord but I do not want to go to Court or Tribunal. Is there an alternative?
- How can I find out what my service charge is being used for?
- My neighbours are very noisy and it is affecting the enjoyment of my property. What can I do?
- I own the freehold of a leasehold house. The leaseholder wants to buy the freehold. Do I have to sell it to them?
- My landlord has carried out Section 20 consultation but I am still unhappy about the service charges I'm being asked to pay. What can I do?
- What happens when my lease runs out?
- What happens if I breach the terms of my lease?
- My landlord has not demanded ground rent for several years. Can he still demand it?
What to do before repairing the roof (or other major works)
By Nicholas Kissen, Senior Legal Adviser
This article originally appeared in an edited form in News on the Block in March 2012
The roof needs repairing. It is many years since this was done and the law has changed so much since then. The same goes for painting the outside walls and the interior common parts. The lease says this should be done every seven years and the deadline is looming.
So what to do to ensure you keep within the law and do not find yourself out of pocket?
Hopefully you foresaw that these works were coming and over the years you have accumulated a sinking fund to cover all the costs.
But maybe this is over-optimistic. The lease may be ancient and may not provide for such a fund. Or money was set aside each year to go into the fund but it is still not enough to pay for the works.
If the money is not there then follow the basic drill:
- Check that the lease entitles you to ask for payment in advance of the work being done. Without such a provision you will be left having to do the works and trying to recover the costs from the flatowners afterwards.
- Ensure that any demands for payment are accompanied by a summary of rights and obligations in the required format, with the prescribed wording. Until this has been done, the flat owner can withhold payment even if they have received the demand.
- Do not on any account overlook the requirement to consult under Section 20 of the Landlord and Tenant Act 1985 (as amended) even if there is enough money available in the sinking fund.
The consultation process requires that before entering into an agreement with a contractor for the works, at least two notices must be served on the flat owners (and where relevant, any recognised tenants’ association). The first notice must advise what works are intended, state why the works are considered necessary, and give flatowners a chance to comment on the works and nominate contractors. If any contractors are nominated then you must obtain an estimate from them.
You must also have regard to any written observations received within the 30 day time limit.
When the estimates are in, a second notice must be sent out, giving flat owners a chance to inspect and comment on them. Again you should have regard to any observations received.
A final notice should be served on flatowners, notifying them of who the contract has been awarded to and why. This notice does not have to be served if the contract goes to a nominee of the leaseholders or the lowest estimate.
An application can be made to the Leasehold Valuation Tribunal to dispense with the requirement to consult, if the consultation process is not followed. However this is at the tribunal’s discretion and the watchword is to get it right first time.
Failure to stick to the consultation process can have devastating financial results. Unless the tribunal grants a dispensation order you will not be able to recover more than £250 per leaseholder. For example if the project costs £30,000 and there are 10 leaseholders you would find yourself short by a staggering £27,500.
- Section 20 Consultation for Private Landlords, Resident Management Companies and their Agents
- Frequently Asked Questions on S20 Consultation