Section 20 Consultation

simagic

Hi,

I am one of 6 owners in a block of flats who own a share of the freehold and are directors on the management company. Each of the owners are leaseholders.

We need to get some major urgent work done to the roof which is likely to cost ~£10,000. It is likely that we'll have difficulty with the two of the owners contributing.

If we are all directors and owners of the freehold rather than just straight forward leaseholders, do we still need to go through the three stage Section 20 consultation process if the majority of directors have agreed on a quote and for the work go ahead?

My worry is that if we have to legal action against one of the owners and we haven't gone through the proper process then we won't be able to recover any more than £250.

Any advice greatly appreciated.

Regards,
Simon

AdrianC

6 leaseholders, 2 of whom are likely to be a problem. Bill of nearly £1,700 each.

And you're wondering if 3 directors can just go ahead and ignore s20...?

I think you know the answer, don't you?

G_M

AdrianC wrote: »

6 leaseholders, 2 of whom are likely to be a problem. Bill of nearly £1,700 each.

And you're wondering if 3 directors can just go ahead and ignore s20...?

I think you know the answer, don't you?

Please sir! Please sir! Me! Me! I know! Ask me!

simagic

4, perhaps 5, owners won't be a problem.

As day to day decisions are normally made based on a majority of directors does this apply to S20 works? I can see that a S20 process is needed in the case of straight forward leaseholders, but I'm not sure if this applies if the leaseholders are also owners of the freehold?

AdrianC

The fact that some leaseholders happen to be the same people as the freeholders is utterly irrelevant.

You take your leasehold hat off in order to put your freehold hat on, and vice-versa.

simagic

Thanks for confirming that Adrian. I wasn't sure if there was a distinction.