Section 20
Section 20 of the Landlord and Tenant Act requires NHG to consult with leaseholders and other qualifying tenants who pay a variable service charge, when the costs of works or services may breach the S20 threshold.
Section 20 of the Landlord and Tenant Act 1985, as amended by the Commonhold and Leasehold Reform Act 2002, requires NHG, as a landlord of leasehold properties (including shared ownership), to consult with leaseholders in two circumstances:
- For Qualifying Works: a set of works for which a qualifying tenant is required to pay £250.00 or more.
- For a Qualifying Long-Term Agreement (QLTA): services for which any leaseholder is required to pay £100.00 or more in a single service charge period of the contract for those services lasts more than a year.
Consultation usually takes the form of two separate letters, with a third required if we do not use the cheapest quote:
- Notice of intention, which outlines the proposed works and invites customers to nominate contractors.
- A notice of estimates (or notice of proposals for a QLTA), which outlines the costs with at least two quotes.
- A notice of reasons is only necessary if we are not choosing the lowest-priced quote.
N.B Section 20 is completely different to Section 20B (the eighteen-month rule).
Section 21
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Service charge dispute steps
