If you’re a leaseholder or freeholder in the UK, you’ve probably heard of Section 20, but what does it actually mean for you? When significant repairs or improvements need to be made to your block, the Section 20 process is there to ensure everyone is kept in the loop and can voice their opinions. This guide will break it down so it’s easy to understand, without the legal jargon.
Section 20, as set out in the Landlord and Tenant Act 1985, is a legal requirement that ensures freeholders and property managers consult leaseholders before undertaking any significant building works. In practice, if any work is going to cost an individual leaseholder more than £250, the freeholder must consult with them before starting.
This process typically applies to significant projects like roof repairs, structural improvements, or external redecoration. Whether you’re a leaseholder in a small building or a freeholder managing a block of flats, Section 20 ensures that you’re involved in decisions that affect your property.
The Section 20 consultation process is required for what is known as “qualifying works.” Qualifying works are defined as any repairs, improvements, or maintenance that will cost any one leaseholder over £250. Examples of these works can include:
If any of these projects are planned, the freeholder must consult all leaseholders before work begins. This process is designed to ensure that leaseholders aren’t hit with unexpected bills and have an opportunity to voice any concerns.
If you own a freehold or share of the freehold (or you’re a property manager), you have a responsibility to maintain the building to a reasonable standard, ensuring that it meets block health and safety regulations.
Before any major works begin, you are legally required to consult with the leaseholders. This responsibility also extends to those managing Right to Manage (RTM) or Residents’ Management Companies (RMC).
As a leaseholder, you have the right to be consulted if the freeholder decides to undertake major works that will impact service charges. This process is designed to protect leaseholders and offer them a chance to contribute to the decision-making process. You have a right to receive all the relevant information, including cost estimates and details of the contractors who will carry out the work.
The consultation process under Section 20 is designed to be thorough and ensures that leaseholders have all the information they need before any work begins. The process follows three key stages:
The first stage in the Section 20 process is the Notice of Intention. This document must be sent to all leaseholders, outlining the type of work that is being planned, the address of the property, and who is managing the project.
The notice also includes the proposed start date for the work. Leaseholders are given an opportunity to raise any concerns, suggest alternative contractors, or request further details at this stage.
This step is crucial because it opens the door for communication between the freeholder and leaseholders and ensures that everyone knows what’s coming before anything begins.
The next stage is the Statement of Estimates. Once the freeholder or block management company has received estimates from contractors, they must send these to the leaseholders.
The estimates provide a breakdown of the expected costs, and leaseholders are given at least 21 days to review them. In some cases, multiple estimates from different contractors will be included, allowing leaseholders to compare and assess value for money.
This is the point at which leaseholders can raise concerns about costs, query specific items, or suggest alternative approaches to the works. The aim here is to make sure everyone understands the financial impact and agrees that the costs are reasonable.
Finally, the freeholder or block management company must issue a Notice of Reasons. This explains why a particular contractor was chosen for the job and confirms the date when the work will start. It also offers a final opportunity for leaseholders to provide feedback or raise any last-minute concerns before the project gets underway.
By this point, leaseholders will have had several chances to ask questions and provide input. The Notice of Reasons essentially ties everything together and sets the wheels in motion for the work to begin.
As with most things in life, preparation is key. To ensure the Section 20 process runs smoothly, it’s essential to have a long-term agreement with your leaseholders that outlines how the property will be maintained and how the costs for any major works will be shared.
You should also keep an up-to-date list of all the leaseholders in your building, including their contact details. If you don’t have this information, you can request it from the leaseholders directly or enlist the help of a professional block manager to assist with the process.
Once you’ve gathered all the necessary information, it’s time to appoint a qualified contractor to carry out the works. It’s important to note that under the terms of the Landlord and Tenant Act, you cannot carry out the work yourself or appoint a relative or friend to do it.
As a leaseholder, it’s essential to know your rights during the Section 20 process. You should be aware of when you will be consulted and what your right to object to the proposed works entails. In some cases, you may need to seek advice from a professional, like a solicitor or surveyor, if you feel the proposed works are unnecessary or too expensive.
You should also be familiar with the terms of your lease, as this will likely outline how you will be expected to contribute to the cost of the major works. The Section 20 process is designed to ensure fairness, so understanding your obligations under your lease is crucial.
The Section 20 major works process is an important part of block management in England. It ensures that leaseholders are kept informed, have a say in significant works, and are not surprised by unexpected costs. For freeholders and property managers, it’s about fulfilling your legal obligations while maintaining a good relationship with the people who live in your building.
When handled correctly, the Section 20 process can be straightforward and effective, ensuring that everyone is on the same page and that major works are carried out smoothly. Whether you’re a leaseholder trying to understand your rights or a freeholder looking to manage a property, knowing the ins and outs of Section 20 is essential.
If you need help managing the Section 20 process, working with a specialised block management company like Legacy Block Management can provide peace of mind and ensure everything runs as smoothly as possible.
Interested in learning more? Reach out here.
