Section 20 Notice of Intention Advise

JustADrone

Hi

I am after a little bit of advise regarding my wife's flat. Sorry it's a slightly long read i just wanted to get any relevant details in(apologies if some isn't). She has owned the flat for 7 years.

She has always paid the Service charge by SO and never had any issues.

Last year the Managing agents changed. She carried on paying as before, about 6 months ago the service charge was returned. She contacted the managing agent who informed her that they had changed banks and would be sending letters out shortly. (Not very well organised)

A few months passed and no paperwork, she phoned a couple of times each month to chase them up as had heard nothing.
Eventually it transpires that they had all the details for her flat wrong. They had it down that an estate agent was managing the flat which was incorrect. This all got resolved, new correspondence details were sent and a few weeks ago we finally received the statement. She had been overpaying the service charge from when they took over so was in credit from the previous period so now only owed about 50% of the new charging period October 2019- March 2020. As soon as she received this invoice she paid it in full as she doesn't like owing anyone.

She have today received her October 2019 statement and a Section 20 Notice of Intention.

The Section 20 is regarding replacing all the roofs. There are 54 flats spread between 4 separate 3 storey blocks. The roof has had quite a few leaks over the years so we aren't doubting that it needs doing.

What I am wondering is firstly who is responsible for the costs of this. Reading the email & the section 20 it doesn't seem to shed any light on the issue. I will be digging out the lease when I get home tonight.

I am assuming that it probably will be down to the leaseholders to fork the bill. I have quickly read up on Section 20 and it looks like they have to follow certain timelines etc.

What i am concerned about it the Section 20 is dated 5/08/2019 and the consultation period to end on 09/09/2019. After only receiving this today i'm a bit worried.

Their email states that estimates are still being sought.

I'm just after a bit of advise on what we should do next as this is outside of my area of expertise.

Thanks for any help you can give.:)

hb2

Your wife's lease is a good place to start as that will tell you how external repairs are to be funded.

JustADrone

The previous repairs had always been paid by the Service charge. Below is what was in the section 20 if that helps.

2. The works to be carried out under the agreement are as follows:
Repair and/or replacement of the roof to all blocks
(See Note 2 below).
3.We consider it necessary to carry out the works because:
Due to the age and wear of the existing roofing, multiple leaks are now being suffered on a regular
basis. As a result we have had minor repairs take place at cost to the service charge. While these have
taken place it has been determined by multiple independent contracts that this is likely to continue to
the aging roof that is in place. Additionally, multiple independent contractors have confirmed that it
will be is more financially sustainable to carry out large scale replacement works to ensure future value
to the service charge.
4.We invite you to make written observations in relation to the proposed agreement by sending them
to: [insert address]. Observations must be received within the consultation period of 30 days from the
date of this notice, and the consultation period will end on: 09/09/19

need_an_answer

In relation to the section 20 in a nutshell they are issued when work required will mean an outlay of greater than £250 per property.

Your wife will be responsible for a portion of the costs and that percentage should be defined within the lease.

I assume that as you state you were aware that the roof needed some work doing on it that even if the consultation period had not elapsed your wife would not be objecting to the work being carried out?
(Ideally no one likes a big bill but sometimes they go with the territory of owning any property not just leasehold)

As estimates and quotes are still being obtained the process to decide the costs has not yet been made so as such your wife wont know what her liability is in relation to the amount of the bill until the costs are found out and tenders put in from roofing contractors.

Once costs are known bills are usually sent to each leaseholder with a projected payment date...you may find that she is also advised of the total cost,but don't be too spooked by a large figure it will be shared between all the other leaseholders.

There will be a tender process where contractors are invited to quote for the work,usually a shortlist of 3 will then be drawn up and unless there are specifics about going with a particular quote the cheapest/most cost effective is usually progressed.

A property I own is currently going through a similar type of section 20 process...80 flats,2 roofs and the bill for each leaseholder is around the £2500 mark...our section 20 has been ongoing for almost a year and work is not expected to start until next year...so the process can be slow.

Some of the money could also already be budgeted for within a sinking fund,but until the costs are established its quite difficult to judge what an individual leaseholder would be expected to pay.

What you may find is there could be a meeting with leaseholders to discuss any concerns or it could be an item in the AGM...so your wife want to find out from the managing agent if there are any plans for either in the foreseeable future.