Section 20 consultations
If you are a leaseholder with us, you are responsible for paying a share of the costs for maintenance, repairs and improvements to your building. These costs will be recovered through your service charge.
Where we need to carry our major repairs and improvements, we will consult with you over any work that need to be completed, of which you are expected to bear the costs. The Commonhold and Leasehold Reform Act 2002 sets the financial limits for works which you must be consulted about. This process is referred to as Section 20 Consultation, outlined below.
If you require further information about the Section 20 process or about a specific consultation please contact us.
Section 20 Consultation process
When we are going to carry out major work or redecoration to your block or estate, you have a legal right to be consulted. We will send you a formal notice and details of the estimates for the work and your estimated share of the cost.
You will have 30 days under each stage of consultation to give us your comments. We will look carefully at your comments and will take them into account before making our decision on how to proceed. We have responsibility under the lease to repair and maintain the building and ultimately to decide what work needs to be done, taking into account the comments made.
Where there is a recognised residents’ association we will consult with them.
The Commonhold and Leasehold Reform Act 2002 states that we need to consult you on two areas of cost:
Qualifying long term agreements
This is an agreement or contract for a term of more than 12 months. These could include repairs, maintenance, cyclical work, servicing, improvement work, communal cleaning and gardening, contracts for lift or door entry/entry phone system maintenance, fire precaution equipment servicing, insurances and utilities (if tendered).
We will consult where the contribution by any one leaseholder or shared owner exceeds £100 (including VAT) in the accounting period of one year. Where residents pay proportional payments (i.e. buildings insurance), we will consult with all residents if one or more residents are required to pay over £100.
This is repair, maintenance, cyclical decoration or improvement work on a building or any other relevant premises. The inclusion of improvement in the definition of qualifying works does NOT allow a landlord to recover costs for improvements unless a liability for costs of improvements is included in the lease. When calculating the estimated cost, VAT on works must be included. We must consult if these works will cost over £250 for any one leaseholder.
For both types of consultation there are three main stages:
Stage 1. Notice of intent
We will write to you detailing the scope of the work. You will be given 30 days in which to submit any comments and nominate a contractor of your choice. Please note that any contractor nominated by a resident must meet all the conditions we set for our contractors.
Stage 2. Our proposal
We will tender the work and following receipt of the tenders, set out our proposals to you. You will be given a period of 30 days to comment on the proposal.
Stage 3. Instructing the work
If we instruct the work but do not select either a nominated contractor or the lowest estimate, we will tell you why. A summary of your written views will be included together with our responses.
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