Landlord Planned Major Works & Qualifying Long-term Agreements
To keep the Council’s stock in good condition, at times significant repairs, maintenance or improvements are carried out. These are often known as ‘Major Works’ and could include works such as Roof Replacement, Window Replacement or Communal Redecoration. When the Council is planning to carry out Major Works, and the cost per Leaseholder will be £250.00 or more (including fees and VAT), Leaseholders will be informed via a Section 20 Consultation. At times, responsive repairs can also exceed this amount and would also be subject to a Section 20 Consultation.
It is a requirement for the Council to enter in to Long Term Agreements to provide services such as Buildings Insurance, Cleaning and Electricity. Like Major Works, the Council also must carry out Section 20 Consultation with Leaseholders for these services, but for Long Term Agreements, we must consult when the cost per Leaseholder is £100.00 or more (including VAT) per year.
If the Council fails to consult with the Leaseholders on any Major Works or Repairs that exceed the threshold, or Services that exceed the second threshold, the amount that can be recovered is capped.
In urgent cases such as emergency repairs or when there are health and safety risks, the Council can apply to the First-tier Tribunal for dispensation from the consultation requirements. Dispensation allows the Council to recover the full cost of Major Works or Long Term Agreements without completing the full Section 20 consultation, if permission is granted by the First-tier Tribunal.
To find out more about Major Works and Long-term Agreements, information can be found in the Leaseholder Handbook, or https://www.lease-advice.org/article/major-works-and-consultation-under-section-20-of-the-landlord-tenant-act-1985-a-brief-guide-to-your-rights/
Frequently Asked Questions
+ What is meant by planned major works?
When planned works are carried out at a block, the Council will consult with the Leaseholders - this is called a Section 20 Consultation.
+ What is covered by planned major works works?
• Communal decoration & flooring
• Replacement doors & windows (if the council owns the windows & doors as demised in the lease agreement)
• Roof renewal, replacement or repair
• Gutter renewal, replacement or repair
• External wall repairs
• Lift upgrades
+ What is meant by qualifying long-term agreements?
+ What is covered by qualifying long-term agreements?
• Buildings Insurance
• Cleaning contracts
• Communal electricity
• Lift maintenance
This process follows a Section 20 Consultation. The service will not commence before the end of the consultation period and is carried out in accordance with Section 20 of the Landlord and Tenant Act1985 whereby the Council is required to produce notices to the leaseholder – this process also allows leaseholders to make observations.
+ How do I know what planned works or qualifying long-term agreements are scheduled?
If purchasing the lease property on the open market typically your nominated solicitor will ask about possible future planned works, typically over the next 2 years. Any future planned works after these time frames will be reviewed on an ongoing basis.
+ Do I need to pay towards planned works or qualifying long-term agreements?
If you purchase a leased flat via the Right to Buy scheme, only the listed services (qualifying long-term agreements) and improvement works included in the ‘Estimated Service Charges’ document can be recharged throughout the reference period. Once the reference period ends, the planned works you could be liable to contribute towards will not be restricted by the Estimated Service Charges document.
+ Can I refuse planned works or qualifying long-term agreements?
Qualifying long-term agreements are contracts entered into to meet the need of maintaining the block, such as cleaning. In these instances, it is not possible to refuse the long-term agreement. This also applies to buildings insurance and electricity.
