Section 20 advice - what is a leaseholder?

conval

I'm really hoping someone can help! Does anyone know if for Section 20 it depends on the number of leaseholders or the number of flats? We have 10 flats in our building, but 2 are owned by the same person (ie 1 leaseholder). The freeholder wants to do some work that is just under the £2500 threshold if it's based on 10 flats x £250. But if it is based on the number of leaseholders, ie 9, then it would be over the threshold of 9 x £250, and they would need to do the section 20 consulation. We think the work isn't necessary but we can't get them to stop as they say that section 20 isn't required.
Any help or advice would be much appreciated!

G_M

My understanding is that if the cost of major works will exceed the sum of £250 for any one leaseholder, then the landlord is required to consul.

In your situation, it appears there are 10 flats. And the works are to cost 'just under' £2500.

So (assuming the cost is divided equally), the leaseholder of each flat will pay just under £250.

The fact that one leaseholder owns two leases simply means he will pay twice - ie just under £500.

If you believe the freeholder/management company is managing the property poorly, doing neccesary work etc, perhaps the solution is to take over the management?

http://www.lease-advice.org/advice-guide/right-to-manage/

AdrianC

If one person owns two flats, he holds two leases. For the purposes of this, he's two leaseholders.

Freecall

As AdrianC says.

The word 'leasholder' is not very helpful in the context, the important legal relationship is defined by the lease and it is this relationship to which the Act refers not the parties themselves.

So one person could buy up 9 of the leases, S20 would still relate to £250 per flat.

scotty2013uk

just curious which way this went?