D&S Property Management - Section 20 Consultation Proceedure

PROPERTY MANAGEMENT

D&S Property Management
85 Great Portland Street
FIRST FLOOR, London W1W 7LT
ph: 020 3475 9935
info@dandsproperty.com

Section 20 Consultation Proceedure

A brief explanation of these stages can be seen in the table below:

Section 20 Consultation Process

A Section 20 Consultation process is completed by a Landlord (or its agents) of a residential block building consisting of flats/units/apartments/houses, in order to undertake major works to a building which total cost will be over £250.00 per Leaseholder unit.

It is a legal process and consists of three stages, which are:

Stage one: A notice of intention

Stage two: Notification of estimates

Stage three: Notification of award of contract

The Process

Stage One

Stage Two

Stage Three

A notice of intention must be sent to each Leaseholder and the secretary of the recognised tenants association (RTA), if one is in place. The notice must describe in general terms the works proposed, or specify a 'reasonable' place and hours at which a description may be inspected.

The notice should also give the reasons why it is necessary to carry out the proposed works and invite observations in writing within 30 days. Where applicable it should also inform leaseholders of their right to nominate a contractor. The Landlord must have regard to any observation received by the due date and seek estimates from nominated contractors where applicable.

The notice of estimates must be sent to each Leaseholder and the recognised RTA if one is in place.

It must include details of at least two estimates.

The Landlord must invite observations in writing within 30 days and must have regard to any observations received.

This notice should be given within 21 days of entering into the contract. It must contain the reasons for the award of the contract and give a summary of the Leaseholders observations regarding the estimates or provide a place where these could be inspected.

This notice is not required where:

· The contract has been awarded to a contractor nominated by a leaseholder or recognised RTA

· The contract has been awarded to the contractor with the lowest tender

We can help and advise both Landlords (along with their agents) and Leaseholders of their rights and obligations when it come to complying with the Section 20 Consultation Process.

Landlords, have your notices been executed correctly? If not you may find yourself footing the cost of the major works yourself and only being able to recover for £250.00 per Leaseholder flat. If they have been executed correctly and Leaseholders are not paying the bill then contact us and we may be able to recover the outstanding payments for you, without you paying a penny.

Leaseholders, have you received the correct notices and had the opportunity to respond and put forward your observations and nominations? If not your proportion of your bill may get reduced to just £250.00 per Leaseholder flat

example

The Landlord undertakes major works to a block property consisting of 6 flats. The total for the works comes to £60,000, and there is an even 10% service charge appointed to each flat making each Leaseholder flat paying £10,000. However, the Landlord did not correctly execute the Section 20 Process. Which may mean that the Landlord can only recover £250 per Leaseholder flat totalling £1,500, thus leaving the Landlord to pay the outstanding £45,000.

D&S Management Services Ltd

T/A D&S Property Management

company registration number: 6920043

D&S Property Management
85 Great Portland Street
FIRST FLOOR, London W1W 7LT
ph: 020 3475 9935
info@dandsproperty.com