Section 20

ahfat41

In a block of flats with two council tenants. If major works are needed, are the council tenants exempt from not contributing. Found this online.Friends son is buying a flat and the seller has been served with section 20 and she said she will pay. One shop on ground floor and two council tenants.Will the cost be shared among 4. If he will be the only served with section 20, how can he object if it is too costly.
Thanks
Yes, under Section 20 of the Landlord and Tenant Act 1985, Islington Council tenants are generally required to pay their share of the costs for major works and repairs to communal areas of their block or estate. 

Bigphil1474

It's usually the owner of the property. If the council is the owner, they'd cover the cost for their tenants and others will contribute a share.

eddddy

ahfat41 said:

In a block of flats with two council tenants. If major works are needed, are the council tenants exempt from not contributing. 

It doesn't really work like that.

The friend's son's lease will specify the percentage of building repair and maintenance costs that the son has to pay.

The lease might say 25% (or it might say 20% or it might say 30%).

• Let's say the lease says 25%, and a roof repair is required that costs £20k.

• The friend's son will have to pay 25% of £20k = £5k

The friend's son doesn't really need to worry about where the other 75% / £15k comes from.

(The shop owner might pay some of it, and the council might pay the rest.)

ahfat41

Would you advise buying a flat where you are the only private leaseholder? I understand the lease will indicate his percentage contributions? It is £6000 estimate so could be much more when work is completed. I guess the commercial property is leased by the council or could it be privately owned as it says it’s a family run business.Thanks

gwynlas

There are always added complications where LA is the freeholder as all repairs maintenance etc companies have to be compliant with council protocols rather than being sole traders etc. 
Additionally I would not buy in a part tenanted block as council could house problem tenants there

Bookworm225

ahfat41 said:

Would you advise buying a flat where you are the only private leaseholder? I understand the lease will indicate his percentage contributions? It is £6000 estimate so could be much more when work is completed. I guess the commercial property is leased by the council or could it be privately owned as it says it’s a family run business.Thanks

it simply comes down to what % of the bill will the private leaseholder be faced with,

as others have said, how the remaining balance is funded is of no concern to the private leaseholder except in so far as if that is a council then there is greater assurance they will pay it compared to another private leaseholder.

ahfat41

My friend is not very keen and EA and seller do not know whether there will be more major work soon. Solicitor said wait till he gets the lease pack. LA as freeholder is know for expensive repairs. Survey due next week. Friends son wants to go ahead unless there are issues with the survey.  It was sold before but fell through due to section 20, just wondering whether there are more issues seller is not disclosing now. It does look like money will need to be spent to get these info and his son can decide whether to go ahead or not. Thanks