Overview
Deacon Asset Management : Property S.20 ConsultationSection 20 of the Landlord & Tenant Act 1985 sets out a code of practise for landlords to follow if they intend to carry out any works to their building where a tenant/lessees contributions would exceed £250.00.
Or if a tenant/lessees qualifies for a long term agreement and the amount required for contribution exceeds £100 in a financial year. It also covers any Residents Management Company which may be looking to carry out works. In brief there are 3 parts to the procedure:
Step 1
For any work cover by that criteria you are required to serve a “Notice of Intention to Carry Out Works” for all tenants/lessees. This notice must be describe the intended works and give tenants/lessees 30 days in which to send in any responses to the notice. Your full contact details should be in this notice and the tenant/lessees have the right to propose a contractor to carry out the proposed works.
Step 2
When the 30 day period has elapsed two estimates need to be obtained where 0ne of the estimates must be totally independent of the Landlord /RMC. If there any contractors have been proposed by the tenant/lessees one of these contractors must be considered when obtaining an estimate.
Once the estimates have been gathered a “Statement of Estimates” showing where the estimates have been obtained and a description of any reports with the contents available for view. A “Notice” will need to be sent with the “Statement of Estimates” this will outline how the estimates were carried out going into details of who carried out the building inspections and at what time. Again the tenant/Lessees will be allowed to submit any queries or questions about the provided reports.
Step 3
If at the end of the period designated for estimates has expired the elected contractor is unable to provide the lowest estimate then a “Notice of Reasons” must be sent to the tenant/lessees.
This will state why the landord/RMC has awarded the estimate to the chosen contractor.
The landlord /RMC must be aware that the estimate could be called to answer to the Leasehold Valuation Tribunal if the tenant/lessees do not fond the reasons laid out in the “Notice of Reasons”.
It may well be that the contractor chosen did not submit the lowest quote and the reasons for this must be laid out in the “Notice of Reasons”. The tenant/Lessees can be awarded compensation or refunds if the Landlord/RMC is found not to have followed procedure and given a valid “Notice of Reasons”.