Section 20 Notice – It’s Part Of A Process

Getting a section 20 notice is often confusing and worrying for leaseholders, particularly where they don’t understand the process surrounding a major works consultation. In this video, a question is raised by one of Bernie’s Leasehold Lessons trainees who is concerned the managing agent and landlord have not completed the process properly. Bernie explains how the consultation is “a process” which must be followed correctly.

A section 20 notice should be sent by the landlord or managing agent when
> major works are going to cost any one leaseholder more than £250 in a service charge period
OR
> a long term contract (more than one year in duration) is going to cost any one leaseholder more than £100 in a service charge year.
If the process is not followed – or not followed correctly – the landlord can only legally claim a maximum of £250 for a major works project (or £100 for a long-term agreement) per leaseholder. It is therefore in the landlord’s interests to get the consultation correct – and equally in the leaseholder’s interests to ensure the process is adhered to correctly.

The process involves several notices, which must have specific content:
1) Notice of Intention
2) Statement of Estimates
3) Award of Contract Notice

At stages 1 and 2 the leaseholders have one month to submit their comments upon the proposals.
They also have the right to nominate a suitable contractor, at stage 1.
The landlord must “have regard” to comments made.

The full process surrounding a section 20 notice is covered in Leasehold Lesson 22, which forms part on Bernie’s online training. You can find out more You can find out more here.

Having watched the above video and LL22, if you’re still confused – book a consultation and Bernie will answer your specific questions in relation to your bespoke situation. Pick a date and time here.