Our Leasehold Team Manager, Duncan Bird tells us about the Section 20 consultation, what it means for you and why it matters.
So, Duncan, what is the Section 20 consultation process?
Our Leasehold and Variable service charge customers regularly receive Section 20 notices, and the feedback we receive is that it can be very confusing to understand.
We follow set rules and keep residents informed at every step, sharing things like plans, designs and costs as the project progresses.
Section 20 is part of the Landlord and Tenant Act 1985, and it’s designed to protect customers who pay service charges from being charged too much for major works or long-term service contracts in their building.
It ensures that landlords like us follow a proper consultation process before starting expensive work or signing long term agreements.
When does Section 20 apply?
There are two main situations:
Major works
If any work on your building will cost you more than £250, it’s classed as ‘qualifying works’. This includes things like replacing a roof, fixing or replacing lifts, repairing external guttering or resurfacing pathways.
Long-term contracts
If a contract lasts more than 12 months and costs you over £100 a year, it’s a ‘qualifying long-term
agreement’. These might include cleaning services, fire safety checks, lift maintenance, grounds maintenance and buildings insurance.
If the cost of the work or contract goes above a government-set limit, the consultation process changes slightly, but you’ll still be kept informed.
What should leaseholders expect from the consultation process?
Before any work starts, we must follow a consultation process. This usually involves two or three stages. Stage one is the ‘notice of intention’ where we explain what work or contract is planned and why it’s
needed. You’ll have 30 days to share your thoughts and, in some cases, suggest a contractor you’d
like to be considered.
Stage two is the ‘notice of estimates’. After reviewing feedback and getting quotes, we’ll send you
the costs from different contractors, your estimated share of the cost and summary of feedback from stage one. You’ll again have 30 days to comment before we choose a contractor.
If needed, there’s also a third stage called the ‘notice of reasons’. This takes place If we choose a contractor who isn’t the cheapest or wasn’t nominated, we’ll explain why in writing.
It’s worth noting that if the work is publicly advertised, you won’t be able to nominate a contractor, but all qualified contractors can apply. Also, if we didn’t follow the correct process, your contribution to the cost may be capped - so it’s important we get it right.
Finally, why does Section 20 matter?
Section 20 is all about fairness and transparency. It gives you a voice in decisions that affect your home and ensures you’re not paying more than necessary.
If you ever receive a Section 20 notice, take a moment to read it and share your views, it’s your chance to be part of the process.
If you’re a leasehold customer and have any more questions about Section 20 or any other queries, please get in touch via email.
Our Leasehold Team Manager, Duncan Bird tells us about the Section 20 consultation, what it means for you and why it matters.
So, Duncan, what is the Section 20 consultation process?
Our Leasehold and Variable service charge customers regularly receive Section 20 notices, and the feedback we receive is that it can be very confusing to understand.
We follow set rules and keep residents informed at every step, sharing things like plans, designs and costs as the project progresses.
Section 20 is part of the Landlord and Tenant Act 1985, and it’s designed to protect customers who pay service charges from being charged too much for major works or long-term service contracts in their building.
It ensures that landlords like us follow a proper consultation process before starting expensive work or signing long term agreements.
When does Section 20 apply?
There are two main situations:
Major works
If any work on your building will cost you more than £250, it’s classed as ‘qualifying works’. This includes things like replacing a roof, fixing or replacing lifts, repairing external guttering or resurfacing pathways.
Long-term contracts
If a contract lasts more than 12 months and costs you over £100 a year, it’s a ‘qualifying long-term
agreement’. These might include cleaning services, fire safety checks, lift maintenance, grounds maintenance and buildings insurance.
If the cost of the work or contract goes above a government-set limit, the consultation process changes slightly, but you’ll still be kept informed.
What should leaseholders expect from the consultation process?
Before any work starts, we must follow a consultation process. This usually involves two or three stages. Stage one is the ‘notice of intention’ where we explain what work or contract is planned and why it’s
needed. You’ll have 30 days to share your thoughts and, in some cases, suggest a contractor you’d
like to be considered.
Stage two is the ‘notice of estimates’. After reviewing feedback and getting quotes, we’ll send you
the costs from different contractors, your estimated share of the cost and summary of feedback from stage one. You’ll again have 30 days to comment before we choose a contractor.
If needed, there’s also a third stage called the ‘notice of reasons’. This takes place If we choose a contractor who isn’t the cheapest or wasn’t nominated, we’ll explain why in writing.
It’s worth noting that if the work is publicly advertised, you won’t be able to nominate a contractor, but all qualified contractors can apply. Also, if we didn’t follow the correct process, your contribution to the cost may be capped - so it’s important we get it right.
Finally, why does Section 20 matter?
Section 20 is all about fairness and transparency. It gives you a voice in decisions that affect your home and ensures you’re not paying more than necessary.
If you ever receive a Section 20 notice, take a moment to read it and share your views, it’s your chance to be part of the process.
If you’re a leasehold customer and have any more questions about Section 20 or any other queries, please get in touch via email.
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