QUESTION
A question that I have, concerns the dreaded section 20 consultation (major works).
When it refers to consultation being required when a leaseholder has to contribute more than £250, what happens when a leaseholder owns 2 flats in a block of four and all pay the same percentage. I.e 25% . Is the amount of expenditure £1000 or £750 to trigger the consultation?
In other words is it £250 per flat or person?
ANSWER
The simple answer to your question is that the cost is per flat. Another way of defining it is that it is the cost per lease. If you own 2 leases then you are responsible for the service charge expenditure as per the provisions under each individual lease. Therefore any cost for works that amount to over £1,000 at your block would trigger the need for consultation. As you are aware, S20 of the Landlord and Tenant Act 1985 limits the relevant contribution for major works unless the correct consultation process has been carried out.
Laura Severn, Director at LMP Law
