Section 20 notice for major works carried out by freeholder -costs, liability to pay?

Sarfaraz

Hi there,

Not sure if this is the right forum area to discuss this (apologies if it isn't).

I'm a homeowner of a flat in a shared Victorian house. 2 of us are leasholders and 2 are council tenants. Myself and the other leaseholder received notice from the local council (who are the freeholders) of their intention to carry out major works, The cost of this to myself and the other leaseholder runs into the thousands of pounds.

Unfortunately neither myself nor the other leaseholder submitted our comments during the 30 day consultation period (I was on holiday).

I was reading somewhere that if the freeholder does not provide 2 quotes (one of which is wholly independent) then the leaseholder's costs are capped at £250. What I am not sure about is whether this independent quote needs to be provided by the leaseholder to the freeholder during the consultation period or if the freeholder needs to do it of their own volition. Would be great to see if any property experts can help!

S

eddddy

You're kind of correct. If the freeholder wants to do major works, and the cost to each leaseholder will be more than £250, the freeholder was follow a Section 20 consultation process.

If the freeholder doesn't follow the section 20 process (or does it wrong), they can only claim £250 from each leaseholder.

The freeholder will normally get estimates - of which at least one must be from a wholly unconnected contractor. Your suggestion that the leaseholder has to obtain the "unconnected" estimate is incorrect.

But if a leaseholder proposes a contractor at the "notice of intention" stage, the freeholder should attempt to get a quote from them as well. But it sounds like you may be too late now.

Sarfaraz

Hi Eddddy,

Many thanks for your useful post. Just to set out some more detail of the events (if it helps) -

- The council/freeholder (London Borough of Hammersmith and Fulham) served a "consultation notice" dated 8/1/15. This notice included a "table of proposed works" and that I had 30 days (i.e. until 7/2/2015) to sbmit comments and observations regarding the proposed works (and as indicated above I failed to submit any observations during this consultation period as I was on holiday).

- The works are to be carried out under an existing long term agreement with a contractor, MITIE Property Services UK Ltd.

- MITIE's estimate is attached to the letter.

- The works are now due to start tomorrow (27 April 2015) with the scaffolding being erected.

The above referenced letter is the only letter I have received from them on this matter. The council's own rules are set out here: http://www.lbhf.gov.uk/Directory/Housing/Council_leaseholders/Major_works/156781_Major_works_consultation.asp

Just to say that we were not informed about the details of any second placed contractors.

Is there anything you (or indeed anyone else reading this) which can point to the council erring in their legal duties thereby capping my costs at £250?

With thanks,

Sarfaraz

patman99

The section 20 was served correctly. The fact you were away for the entire 30 days and did not respond is not their fault.

eddddy

The rules are very different if there is already an existing long term agreement in place.

Here's an extract from lease-advice.org:

Schedule 3 to the Regulations:
Consultation requirements for qualifying works under a qualifying long-term agreement.

Leaseholders are not invited to nominate a contractor. There is one stage of consultation.
If qualifying works are undertaken under a qualifying long-term agreement, then competitive tendering is not required in that the
contractor is already in place.

link: http://www.lease-advice.org/publications/documents/document.asp?item=19#28

If you haven't already read through it, lease-advice.org is generally a good source of info. You can also phone them for advice.