Can payment be demanded before a section 20?

Baker2023

I live in a maisonette with a management company who I pay a small amount to. When I received my yearly service charge update there was a cost of £1,400 for window works. I had not been notified of this and when speaking to them they have simply said it is due. My question is, can they take payment before they have issued the Section 20? They’ve not got quotes so it seems strange to just add £1,400 to the account without knowing how much it will cost or even if the work actually needs doing.

EssexHebridean

If they haven't issued the Section 20 and followed process, or applied for permission to proceed without the S20, then I seem to recall that they can't charge you more than a set amount for any works carried out (£250 rings a bell?) 

Baker2023

EssexHebridean said:

If they haven't issued the Section 20 and followed process, or applied for permission to proceed without the S20, then I seem to recall that they can't charge you more than a set amount for any works carried out (£250 rings a bell?) 

I have said this to them (you’re correct it is £250) and they’ve said “ You are correct that Section 20 consultation is a legal requirement for this type and value of works. This consultation must be completed prior to the work commencing at your property. If the consultation has not been undertaken at the point the work commences then yes we are limited, as you detail below, what we can charge you for the work. The consultation does not need to have been concluded at the point that we add the in advance costs to your account.”

It just seems completely unreasonable to charge an amount that seems to have been taken from nowhere without a quote from a contractor and make me pay. 

 

eddddy

This kind of stuff is always a bit of a grey area.

The law says that you only have to pay Service Charges if they are 'reasonable'.

• On one hand, I suspect that your lease says that estimated service charges for the year can be demanded at the beginning of the year (which would tend to make the bill 'reasonable')

• But on the other hand, the section 20 consultation hasn't even been done yet (which tends to make the bill 'unreasonable')

So they key question is "Is a tribunal likely to decide the charges are reasonable or unreasonable?".

If you don't pay, the management company might add late fees, solicitor's fees, collection fees etc (which could add up to a few hundred pounds extra).  If you then lose at tribunal, you'll have to pay all those extra fees.

In your position, I might write something like this to the management company...


"Can you confirm whether you have taken legal advice on whether it is reasonable to demand payment for the window works before the Section 20 consultation has started? I understand it is more usual to demand payment once the section 20 consultation is complete. Consequently, I would prefer to pay once the consultation is complete. Can you confirm that this will be acceptable to you?"