Leaseholder Section 20

cromercrab

HI, hope someone can advise please.

I have a leasehold flat (block of 43, lived here for 5 years) and have just been served a section 20 for "Urgent" works from the management company. OK I understand that I get 30 days consultation but three days later I receive an invoice (based on estimate) for payment within 15 days.
Is this correct? I find most research on the internet sets out this format:

1. Notice of Intention: You receive a formal notice informing you of the proposed major works. 
2. Consultation Period: This is a minimum 30-day period where you can make written observations about the proposed works. 
3. Nomination of Contractors: You have the opportunity to nominate contractors to be asked for quotes. 
4. Estimates are Obtained: The landlord provides at least two estimates for the works, at least one of which must be from a contractor unconnected to the landlord. 
5. Award of Contract: Once the consultation is complete and the relevant stages have been followed, the landlord can award the contract for the works. 
6. Final Demands: After the work is complete and the final costs are known, the landlord will then issue a formal demand for payment, detailing your contribution.

Is this a guideline or does the Management company (member of The Property Institute) have to stick to this format.

This sounds more like what I would expect. My lease is a copy from 1988 (building is 1930's) and does not specify such detail. In the last 5 years I have not signed anything to change the leasehold.

Advice would be appreciated.



Best.

eddddy

In general, the law requires that a section 20 consultation is done - if the works cost more than £250 per leaseholder.

You've accurately described the section 20 process.


But.. a section 20 consultation takes about 3 months. If the work is urgent, and can't wait 3 months, the management co can do the work and apply to a tribunal for dispensation.

So I guess that key questions are:

Do you disagree that the work is urgent?

Do you think the cost is unreasonable? e.g. because the work isn't required, or a different contractor would do it more cheaply, etc?

Would you have wanted more time to investigated the work / problems / repairs etc?


Alternatively, if you agree that... the work is required, it's urgent, and it's a reasonable cost for the work required - I guess there would be no problem.

cromercrab

My thanks Eddddy for your helpful response.
Is there any way that I may find out if they have applied to the tribunal for dispensation before responding to the Management company?

Best

tacpot12

I doubt there is a way to find out if they have applied for a dispensation, but this shouldn't matter. You should object if you have grounds to do so. Work that is urgent enough to not allow the normal consultation period would have to be pretty urgent, e.g. damage to a roof or supplies of water, gas or electric. Fire stopping work, fire door installation, renewal of worn items, etc. can all wait for a consultation, and a tribunal wouldn't normally grant a dispensation for such non-urgent work. 

If they have got a dispensation and you think the dispensation was improperly awarded, you can complaint to the First Tier Tribunal that granted the exemption. Ask to see a copy of the dispensation to check which tribunal granted it.

However, if you know the work needed doing, and the cost is reasonable it may be worth just paying, but I wouldn't pay without something in writing to confirm that the eventual cost of the work will be confirmed to you and a refund paid if the work costs less than the estimate. Going ahead with work based on an estimate might support the idea that it is urgent work that needs doing. 
 

cromercrab

I think it's the speed at which they have requested the monies. Not so much myself but we have elderly and families that just cannot magic up monies in such a short time. 
I am retired but have been in the construction industry, the building is sound imo and the areas that the consultation has flagged up have been in that condition for over 10 years. Unfortunately the Management company has not been proactive or placed a plan to cover these repairs over the years.
I would just like to get the consultation out of the way before they start requiring monies and a long term plan put in place rather than putting out fires.

eddddy

cromercrab said:

Is there any way that I may find out if they have applied to the tribunal for dispensation before responding to the Management company?

They will probably apply for dispensation after the work is done. It can take many months to get a tribunal hearing, so if the work is urgent, it's not viable to to wait for a hearing first.

Unfortunately, if you don't pay, the management company co do things like:

• Charge you late fees
• Instruct a solicitor to take action against you, and charge you the solicitor's fee
• And/or instruct a debt collector, and charge you the debt collector's fee

• They can also start a process to forfeit your lease (repossess your flat)

These things could add thousands of pounds to you bill.

If you challenge the original bill at tribunal and win, you won't have to pay the additional fees.

But if you challenge the original bill at tribunal and lose, you will have to pay the additional fees.


So it's typically recommended that you pay the bill - to avoid extra charges - then challenge the bill at a tribunal. If you win, you'll get some/all of the bill payment back.