Has anyone sold a house with a section 20 notice?

RLM79

Hi,

We have been served a "section 20" notice on our leaseholder property earlier this year to cover 'major work' costs, however we do not know how much these costs will be!

We now have a chance to relocate to a different part of the country (due to work) but I am concerned that we won't be able to sell our house.

Has anyone been in a similar position and sold their house? Or can anyone offer any tips?? It would be very frustrating if we were unable to move because of this!! :mad:

This is my first post by the way!

Fire_Fox

Welcome! You can sell with a major works notice pending, you should simply expect to reduce the asking price/ market value by the amount that the works are likely to cost. If consultation has been started you should have some idea of the magnitude? Did you submit an objection or name of your preferred contractor to the freeholder at the time? Have you written to them since to ask what progress has been made?

RLM79

The consultation has started, and we are receiving a lot of correspondence about choosing contractors (e.g. energy providers, insulation, asbestos removal etc etc) - I am attending leaseholder meetings but finding it all a bit confusing. I don't think we have an idea as to the cost of the works, apart from the fact that it going to be A LOT!

But thanks for your response - not sure how we can play it if the cost has not been worked out yet......

Fire_Fox

Uncertainty is not good for selling, but it's great everyone is getting involved! Could you get consent to lease from your lender and let for six months or a year until the costs are known? How do you feel about being an accidental landlord? There is loads of legislation to comply with, not ideal.

RLM79

It may come to that, but if possible I would rather avoid that scenario! I just want an easy life!!!
Some feedback - I have been told that the housing association responsible for maintaining our property would be able to offer us an estimate quote for the overall work costs. May be useful to other people in the same situation?
I wonder, would we able to part exchange a property with a 'section 20' notice as part of a housing sale?

propertyman

Contact the people who served the notice. While they may not, the better organised firms will have started with a broad budget for the work from trades and specialist advisor's.

As long as you and the buyer understand that it is a budget, and can still vary significantly......

Contrary to the earlier post, most focus on how much it will cost to do, and not so much on how it costs not to do.

While they are behind on Asbestos, insulation and energy efficiency and knowing that there is plan for future expenditure also add vlaue to property by removing uncertainty and benefiting from energy efficiency.

blckbrd

Don't worry too much OP - lots of people have and do sell with s20s in place.

In really overly simplistic terms there are 2 kinds of notices - ones that will cost you money for a specific thing now or soon and ones where contracts lasting more than a year are being put in place.

What you have written leads me to think it's the latter. Have a look at your notices and see if they refer entering into long term agreements (LTAs).

Things like insurance and utilities are annual charges that are most often collected through the service charges you pay year in, year out. Insulation and asbestos removal may require specialist contractors so could lead to additional 'major works' bills. Remember though that if any 1 leaseholder would have to pay over £100 under an LTA or £250 for works, all leaseholders under the contract have to be consulted. You may pay way more or a lot less.

If there are no costs then you're simply being advised of the landlord's intentions. Lots of these contracts are procured/come up for renewal at the same time so I can understand why it would be confusing. You may want to ask for details of the programme for any physical works as bills could be years away.