Section 20 – What is it?
Section20 - What is it? Your lease might make reference to a variety of terms that you will need to understand before you purchase a leasehold property. Here we explain what is meant by one of them, so;
What is a Section 20 (S20)?
The S20 is a clause within the Landlord and Tenant Act 1985 which was passed to ensure fair procedures and costs are followed in relation to works being undertaken in your building.
Why is a Section 20 Necessary?
If a landlord (Including Residents Management Companies and Right to Manage Companies) wishes to carry out work to a building that would result in any individual leaseholder’s contribution being over £250.00 for a single piece of work or over £150.00 per annum if the work will last longer, then the landlord must consult with the leaseholders by issuing a Section 20 (S20) notice.
What is the Section 20 Process?
There are 3 stages to the S20 procedure…
Stage 1 : Notice of Intention
The notice must be served detailing what work is being proposed and the reasons why it needs to be undertaken. Comments are invited from leaseholders as well as suggestions for possible contractors who could carry out the work. At least 30 days must be allowed for comments to be received.
Stage 2 : Statement of Estimates
Estimates are obtained from at least 2 contractors and these are shared with the leaseholders for comment. At least 30 days must be allowed for comments to be received.
Stage 3 : Notice of Reasons
If the cheapest estimate or a leaseholder nominated contractor was not chosen, then the landlord must inform the leaseholders of the reasons for this decision.
BW Residential Ltd
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