Under the Landlord and Tenant Act 1987, resident landlords are exempt from offering the Right of First Refusal, so long as they meet the following conditions: The building is not a purpose-built block of flats, that is, it must be a property, a house for example, which has been converted into flats since its original construction; and The landlord genuinely lives in the building as his only or principle residence and has done so for the past twelve months
A creeping freehold is a freehold property where a section of that property underlies a different freehold at ground level, such as a basement or cellar
The Section 20 Notice forms part of a three-stage consultation procedure. This enables leaseholders to provide their observations, any objections to the works, and to nominate contractors from whom the freeholder should obtain estimates. If leaseholders feel that the freeholder is requesting excessive or unreasonable sums for the works, they can apply to the First-Tier Tribunal for a determination of liability to pay and the reasonableness of any service charges demanded.
Section 20 Notices must be served in accordance with what is stated in the lease for the property. This is typically 1st class mail or recorded delivery. It is advisable to only send Section 20 Notices via email as an additional form of service.
The process for issuing Section 20 Notices is typically dictated by the lease for the property. However, the common requirement is for Section 20 Notices to be served via 1st class mail to the leaseholder’s property. Alternatively, the lease may require service of Section 20 Notices via recorded delivery.
Technically, a Section 20 Notice cannot expire. Although there is no specified time limit for the service of a Section 20 Notice, the relevant works should not be delayed as there is a risk that changes can take place, amounting to a breach of the consultation requirements.
A Section 20 Notice of Intention informs leaseholders that the freeholder of the building in which they own a property wishes to carry out major works. As leaseholders are typically required to cover the cost for works, the Section 20 Notice procedure provides them with an opportunity to decide how their money is spent.
Qualifying works under Section 20 are any maintenance or repairs to a residential freehold property where the contribution from any one leaseholder will exceed £250.
In most cases you will not be able to prevent your tenants from purchasing the freehold unless they are not eligible to do so. Once you are served with a notice of enfranchisement, you will have two-months to issue your counter notice. Learn more here.
If a leaseholder or group of leaseholders wish to purchase their freehold, they could approach the landlord informally. However, if they are unsuccessful they are able to serve their landlord with an enfranchisement notice. Leaseholders can only collectively enfranchise if they qualify to do so. Learn more about enfranchisement here.
Tenants qualify for Collective Enfranchisment if at least two-thirds of the flats are owned by qualifying tenants and their leases were granted with an original term of more than 21 years. If tenants own more than two flats in the building, they will not be eligible. Find out more.
Collective Enfranchisement is the right outlined in the Leasehold Reform Housing & Urban Development Act 1993 for leaseholders of a building containing flats to collectively purchase the freehold. Learn more here.
Enfranchisement refers to the purchase of the freehold of leasehold houses, whereas collective enfranchisement refers to the purchase of the freehold of a building containing multiple flats/apartments.
If you use our free Section 3 Notice template you will only have to pay for posting the notices to your tenants. However, if you employ the services of professional such as a solicitor, your costs will inevitably be higher.
No you do not need a solicitor as you can easily prepare and serve Section 3 Notices yourself, using our professional Section 3 Notice template, which you can which you can download from our website here.
It is considered a summary offence if you fail to serve tenants with a Section 3 Notice in the prescribed format. This can lead to a criminal conviction and a fine. You may also have to undo the sales transaction. Learn more about Section 3 Notices here.
You must serve tenants a Section 3 Notice to inform them that you are their new landlord within two months of purchasing the freehold or before the next rent due date.
A Section 3 Notice informs leaseholders of a change of landlord/freehold owner and provides the new landlords details. The new landlord is obliged to notify the tenants of their details within two months or no later than the next rent due date.
The leases usually dictate that it is the leaseholder’s responsbility to pay for major works to the building. Learn more about organising repairs and major works here.
If you fail to serve Section 20 Notices and you go ahead with works, you will only be entitled to recover £250 from each leaseholder after the event. Learn more about organising major works here.
Section 20 Notices can be served for mimimal cost if handled by the landlord. However, if you seek assistance from a professional service provider, they may charge by the hour. We would advise you to seek a quote in order to help with your decision.
Yes, we provide a template for each stage of the Section 20 consultation procedure. You will receive all three templates directly to your email inbox by completing a simple contact form. Get your templates here.
The Section 20 Consultation procedure can take several months to complete. This is because there are two compulsory stages that require the person responsible for arranging major works, to send a different Section 20 Notice to leaseholders. On receipt of these notices, leaseholders must be provided with 30-days in which to respond. The person responsible for arranging major works will also be required to obtain estimates for the works, which could take some time. .
No, you do not need a solicitor to prepare and serve Section 20 Notices to leaseholders so long as you feel confident in doing it yourself. To help you, we have created free Section 20 Notice templates that you can download directly from our website.
A Section 20 notice is issued by the landlord to the tenants (leaseholders) for one of two reasons; to notify tenants of their intention to carry out works; or to notify the tenants of their intention to enter into a long-term agreement for services at the property.
Section 20 Notices require careful attention to detail and if served incorrectly, could prevent the landlord from collecting contributions from the leaseholders for major works. We recommend seeking assistance from industry professionals or a qualified solicitor if you do not know how to serve Section 20 Notices. Request our free Section 20 templates here.
Without specialist knowledge it would be extremely difficult to carry out an accurate valuation or even to know where to begin. There are many variables to consider and each must be assessed accurately. Furthermore, if a crucial detail is missed your valuation could be off by thousands of pounds. Freeholders can obtain a free appraisal of their freehold ground rents here.
We can provide you with a valuation of your freehold interest in under 24-hours but in most cases, you’ll hear from us on the same day that you enquire.
Our freehold valuations are market appraisals based on the sale potential of the freehold. This service is provided for free for freeholders wishing to sell their freehold interest.
Our freehold valuation calculator has been formulated using current market data to provide you with the most accurate estimations possible. Although the results will help you to understand the potential value of your freehold ground rents, they should not be used in place of a formal valuation. The results should not be relied upon and cannot be used in a tribunal or court proceedings.
