Section 20 of the 1985 Landlord & Tenant Act was created to protect leaseholders from Freeholders or Managing Agents proceeding with largescale works without consultation, in addition to which it also seeks to protect leaseholders from anyone, who may be refusing to agree to required works, thus putting themselves and indirectly everyone else in breach of their lease.
Any works, whether scheduled or emergency, costing £250 or more for anyone leaseholder, this being the highest contribution in a building where variable percentage contributions to the budget may be in place.
Unless in the event of emergency works, there should be no surprises within the Section 20, as most matters will have been discussed and agreed at the previous AGM, or at the very least through other communications during the course of the year.
The first part of the Section 20 is the Notice of Intention, where we write formally to leaseholders to advise them that we will be going out to tender for forthcoming largescale works, part of this process also gives leaseholders the right to put their own preferred contractors forward and we will include these within the tender process.
After 30 days a Notice/Statement of Estimates will be provided, together with our recommendations, within which there will be a further 30-day consultation period, during which we will have regard to any of your views.
Occasionally there is a third part to the process, which is the Notice of Reasons, this is in cases where the recommendation is not to go with the cheapest estimate, or a contractor recommended by a leaseholder ~ this is very unusual, as seldom is the most economic option not chosen, but in some cases, this may be because it is not felt that a particular contractor has the required experience, resources or insurance in place, or indeed, it may simply be because they are not able to undertake the work within required timescales.
Where Section 20’s are in place relating to structural works or large scale redecoration, we would require that a Surveyor is appointed to write the specification and to Project Manage and oversee works and we are able to offer these additional professional services through our own Chartered Surveyors, for which we would notify you of any associated charges ahead of their appointment.
Block & Estate Management Department
Call us on: Exeter 01392 285050 or Exmouth 01395 204144
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