Leaseholder- paying for major works

Daniel_Angel

Hi

We have a leasehold flat in a small block. The freeholder wants major repair work to be done on the roof etc.

They are saying that the cost per leaseholder is £25,000.

What is the situation regarding our rights in terms of payment period. Do we have to pay in one go? What is the longest we can spread it over if you're allowed to do so?

Thanks in advance

G_M

search around on http://www.lease-advice.org/

or see

http://www.lease-advice.org/advice/find-the-right-information-for-you/?step-option=61

http://www.lease-advice.org/article/what-to-do-before-repairing-the-roof-or-other-major-works/

eddddy

Is your freeholder a private company (or individual)?

You could look at it this way...

Say there are 8 flats in your block - so it sounds like the builder's bill would be 8 x £25k = £200k.

The builder will want their £200k bill paying as soon as the work is done. If you (and the other leaseholders) haven't each paid your £25k, where will the money come from?

I doubt that...
- the builder will agree to be paid in future instalments
- the freeholder will risk paying the builder with their own cash

So my guess would be that the work won't start until everyone has paid their £25k.



Although if your freeholder is a council, they are sometimes prepared to risk their own cash on maintenance projects, and then let leaseholders pay in instalments.

moneyistooshorttomention

Presumably the leaseholder has to justify that figure? - ie provide details of work to be done and of 3 quotes obtained for the work?

Otherwise - how would the leaseholders have proof that that really was the amount of money necessary - rather than a figure plucked out of thin air?

eddddy

moneyistooshorttomention wrote: »

Presumably the [STRIKE]leaseholder[/STRIKE] freeholder has to justify that figure? - ie provide details of work to be done and of 3 quotes obtained for the work?

Otherwise - how would the leaseholders have proof that that really was the amount of money necessary - rather than a figure plucked out of thin air?

Yes.

There is lots of legislation designed to protect leaseholders from unreasonable charges made by freeholders.

In this case...

Any works that will cost an individual leaseholder more than £250 has to go through a 'Section 20 Consultation'.

See: http://www.lease-advice.org/faq/what-is-the-section-20-consultation-process-for-major-works/

And: http://www.lease-advice.org/advice-guide/section-20-consultation-for-private-landlords-resident-management-companies-and-their-agents/