Section 20 for mixed management co.

by Readers Question

9:24 AM, 15th March 2019
About 6 days ago

Section 20 for mixed management co.

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Section 20 for mixed management co.

Can any members help with these questions concerning sec 20? We own three apartments in a block of 36 apartments, the Amenity Land Management Company take care of the private roads and car parks and is proposing to spend approx £20k on repairs. The amenity land company members are the 36 leaseholders and another 27 freehold property owners.

The cost is to be split between all 63 members and will be more than the £250 limit for section 20 notices.

Is the freeholder required to serve a section 20 notice on the leaseholders and then simply notify the freeholders with a bill for their proportion?

As all the leaseholders are members of the amenity land management company and have covenanted to pay a 1/63 share of maintenance costs, can the section 20 procedure be bypassed as the work is not directly on the apartment blocks but the external land?

Many thanks

Tom



Comments

Neil Patterson

9:34 AM, 15th March 2019
About 6 days ago

I can only see that the Leasehold Advisory service mentions giving notice to Leaseholders. Normally the costs are split equally between leaseholders and I have not seen this split with Freeholders like this before, but I am not an expert and only seen other readers questions.

Can I ask if the Freeholders are also leaseholders?

Gary Nock

15:08 PM, 15th March 2019
About 6 days ago

The 27 freeholders should also have clauses in their title deeds relating to the maintenence of the shared land amenity. It is this which will govern how their share of the Section 20 costs will be apportioned. Section 20 is a bureaucratic and time limited and defined exercise in notification and tendering which if not done correctly renders the freeholder of the shared amenity area unable to recover the Section 20 costs. See the lease.org website for full details.


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