We will issue a Section 20 notice to leaseholders for one of two reasons:
- to notify tenants of their intention to carry out works (where costs for one leaseholder will exceed £250)
- or to notify the tenants of their intention to enter into a long-term agreement for services at the property (Where costs for one leaseholder will exceed £100)
What are the Stages of Consultation?
We usually carry out a consultation in three stages:
Stage 1: Notice of Intention (NOI)
The first step in section 20 consultation is the Notice of Intention. We must tell you about the repairs or improvements we intend to make and the reasons for them.
We will invite you to give your opinions in writing (called observations) within 30 days (however, we will sometimes allow additional days for postage, which will be specified in the letter) and tell you if you have a right to suggest (nominate) a contractor from whom we should ask for an estimate.
Stage 2: Notice of Proposal (NOP)
Next, following the Notice of intention, we must give you details of two or more estimates we have obtained for the repairs or improvements. One estimate must be from a contractor with no connections to the landlord. Again, we invite you to make observations if you would like. Please provide this feedback within 30 days of the end date of the letter.
Stage 3: Notice of Estimate (NOE)
We will write to you within 21 days about who won the contract. This letter will also provide you with how much your contribution to the repairs or improvements will be, as well as any other final details.
What are observations and reserve funds?
Observations
Observations are your opportunity as a leaseholder to ask questions and make comments. We must receive and respond to observations in writing unless in extenuating circumstances.
We have 21 days from receipt to respond to your observations. Please bear with us, as sometimes we receive a high number of observations.
Reserve Funds
You may pay into a reserve fund as part of your service charges.
This pot will accumulate money to be used for large repairs and improvements, such as those that would take place during the section 20 consultation. If your reserve fund has sufficient funds to cover the cost, you will not be charged any further amount