A Section 20 Notice is a document that must be served to all leaseholders when carrying out qualifying works. Such works can include repairs or maintenance to any building containing flats. However, the works will only qualify under Section 20 when the financial contribution from any one leaseholder will exceed £250. As such, this type of maintenance or repair work would be defined as ‘major works’ and will require a consultation process to be followed.
This formal Section 20 consultation procedure is prescribed by the Landlord and Tenant Act 1985. As a result of this law, leaseholders are provided with an opportunity to decide how their money is spent, while freeholders gain reassurance that they can recover the cost of the works.
To obtain a free, Section 20 Notice template, simply complete the required information in the contact form on this page. Then, you will instantly receive an email containing three, downloadable templates for each stage of the Section 20 consultation process.
Section 20 consists of a three-stage consultation process, with each stage requiring a different notice to be served to leaseholders. If freeholders fail to follow this formal process, they may not be able to collect funds to cover the entire cost of the major works. It is therefore critical to follow the three-stage consultation process outlined below.
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You will need to confirm the names of the appointed contractors and the date that the works will start by writing to the leaseholders.
If this procedure is not followed correctly, freeholders will only be entitled to recover £250 from each leaseholder in respect of the works.
Therefore, if you are unsure about any element of the Section 20 process, it is advisable to seek independent legal advice. It can certainly be a very challenging and time-consuming task, particularly when there are a number of items of work required and multiple leaseholders to correspond with.
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