Does section 20 apply to work required under the lease?

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  • Jon66
    replied
    Originally posted by AndrewDod View Post

    Exactly that. It is another useless bit of legislation that provides a sham appearance of protection for lessees, but in reality provides nothing more than an opportunity for money-making. Instead of urgently needed legislative protection that is upheld by the courts wqe have layers and layers of sham.
    There was an interesting documentary on tonight about shared ownership which was making the very same point, about service charges. Worth a look. Plus always nice to see the lovely Giles P.

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  • flyingfreehold
    replied
    It is a very unsatisfactory bit of legislation. Sometimes there can be works of repair the cost of which cannot possibly be established without stripping out part of a roof, it might be a four hundred pound job or it might be quite a lot more. Its not a complete refurbishment. You cant really get competitive quote for work to cure a leak of unknown cause. IN small blocks where there are as few as two flats that means the total budget for investigation/minor repair is £500 which doesn't get you very far if access equipment has to be hired.

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  • Macromia
    replied
    Section 20 consultation should be followed, if only because it allows leaseholders to put forward their opinions on planned work.

    It may be that you find that the majority of leaseholders, perhaps even all leaseholders, would like to see certain things done when work is carried out.

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  • PJF Eastbourne
    replied
    Thanks for the useful advice I think it is best all round to follow the section 20 process to prevent any problems.

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  • scot22
    replied
    #7 second paragraph is correct. People need to work to make things work. Follow correct procedure and not indulge in complaining how unfair everything is.

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  • AndrewDod
    replied
    Originally posted by Macromia View Post
    Actually, even if no attempt is made to carry out S20 consultation, all that leaseholders can do is challenge the 'reasonableness' of costs.
    Exactly that. It is another useless bit of legislation that provides a sham appearance of protection for lessees, but in reality provides nothing more than an opportunity for money-making. Instead of urgently needed legislative protection that is upheld by the courts wqe have layers and layers of sham.

    Leave a comment:


  • Gordon999
    replied
    The money paid upfront into the service charge account belongs to the leaseholders and they are entitle to be consulted on any proposed expenditure exceeding £250 per flat. Some managing agents have been found dishonest handling the service charge money in their custody.

    The Directors of the RMC have responsibility to the leaseholders in their block for honest conduct and for ensuring the " manager" complies to the legal requirements under L & T Act 1985.

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  • Macromia
    replied
    Originally posted by flyingfreehold View Post
    Otherwise the amount recoverable for an item of work required is limited to £250/flat
    Actually, even if no attempt is made to carry out S20 consultation, all that leaseholders can do is challenge the 'reasonableness' of costs.

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  • flyingfreehold
    replied
    It is possible for every leaseholder to sign a bit of paper to say that s20 rights are waived so that a quote that has been received can be implemented urgently. Otherwise the amount recoverable for an item of work required is limited to £250/flat

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  • scot22
    replied
    Section20z that would not be following the process and open to challenge. It reality S20 usually makes little difference but......

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  • scot22
    replied
    Yes. It gives all leaseholder s the right to comment on the proposed works.

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  • Section20z
    replied
    Yep, any works over the qualifying amounts, but if you are all in the RMC you are of course free to sort it out amongst yourselves....

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  • Does section 20 apply to work required under the lease?

    I am Chairman of our RMC and have a question relating to the section 20 process, I have read the guidance but am unsure about when it applies.

    Under the lease there are certain works that have to be carried out i.e. external painting every 3 years and internal every 5 years.

    Do we need to follow the section 20 consultation for these works?

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  • Reply to Value of freehold
    by Section20z
    It's only value is insurance commissions and management charges, licences etc but we would need to know what lease says, but definitely more than £300 as it would bring that in annually purely on insurance commision.
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    by Gordon999
    The value of the freehold title is based on the ground rent income and may only be a "nominal amount" if all are on peppercorn ground rent. The 3 flat owners should contribute £100 each and buy the freehold from you.

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