Shared owners Major works and potential shared owner charges

There may be occasions when we need to carry out major work to a block or  communal areas, which shared owners may be required to pay towards. 

This may be repair, replacement or renewal work, which normally apply to apartment blocks with a communal roof, or to shared areas such as car parks and access roads. Major work doesn't include maintenance or repair of houses or areas that are the resident's responsibility. 

Under Section 20 of the Landlord & Tenant Act 1985, we're required to consult with leaseholders if the works will cost any one leaseholder more than £250 (incl. VAT), or for any new service (for example grounds maintenance) that lasts longer than 12 months and will cost any one leaseholder more than £100. 

This is known as a Section 20 consultation, which is designed to protect service charge payers. 

The consultation process gives you the chance to comment on plans and, depending on the value of the contract, sometimes suggest contractors for the proposed work or service. 

A Section 20 notice tells you that we intend to carry out work or provide a service, which leaseholders will have to pay towards. We must send a Section 20 notice to every leaseholder who will be affected by the work or receive the service. 

• This notice explains what the proposed work is and the reasons for it.
• Leaseholders will be invited to give their opinions/observations, in writing, within 30 days.
• You'll also have the right to give us the name of contractor to quote for the works (if applicable).
• Any contractors will need to meet our criteria.

We'll get suitable estimates from contractors, taking into account any comments we’ve received. 

• This notification includes the details of two estimates for the proposed works.
• Leaseholders will be invited to give their observations on the estimates, in writing, within 30 days of the notice. 

We'll award the contract to a preferred supplier, taking into account any feedback from leaseholders. The notice will include: 

• the reasons for the award of the contract 
• a summary of the leaseholders’ observations on the estimates. 

This notification is not required if the contract has been awarded to: 

• a contractor nominated by a shared owner 
• the contractor with the lowest tender. 

If your scheme has a reserve or sinking fund (a small portion of your service charge that goes into a fund to cover unexpected costs and long-term replacements), this may cover some or all of the major work. 

If the amounts in the fund cover the entire costs of the work, no further contributions are charged. We will however still need to consult with you.

You can find out more about the Section 20 process on the Leasehold Advisory Service website. 

Go to Leasehold Advisory Service website