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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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LEASEHOLDER MAJOR WORK BILLin 2009, the Council served

Customer Question


in 2009, the Council served Leaseholders with Section 20 Notice. My contribution was put at £7,810.87. Now, early this year, the Council brought the final account which has increased by about 55%. The bulk of this increase is as a result of the work not starting at the time originally stipulated in Section 20 Notice

According to them, the Section 20 Notice was based on the contract commencing on 04/12/2009; The work actually commenced 08/03/2010, with the 5 years limited cost I am entitled to under Section 125 of the Housing Act running from 25/10/2004 - 31/03/2010.

Now the Final account bill of £4,281.53 has arrived.

According to their estimated bill, I was limited on cost for 16.71 weeks of the 40 weeks contract

In the Final account Bill, I was limited on cost for only 3.29 weeks out of the 45 weeks ( 5 weeks more than time stipulated in the Section 20 Notice).

These are my questions:
1) Is it legal for the Council to base the calculation on the contract start date or the time stipulated in the Section 20 notice?
2) Since the 5 years period under Section 125 notice of the Housing Act expired during the contact, am I liable to pay toward this work at all? If I do, what percentage?
Submitted: 4 years ago.
Category: Law
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Expert:  Ash replied 4 years ago.
Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return.

During this five-year period, the council cannot charge the leaseholder more than the amounts it has estimated in the notice plus an allowance for inflation. The five-year period runs to the end of the fifth financial year since the lease was sold - that is up to the end of the March following the fifth anniversary of the date the lease was granted.

The estimates given by the council for the costs of work will vary over time. Because of this, a leaseholder who buys a flat in the same block at different time may have a different limit quoted in their notice.

Therefore it applies from the financial year and you need to work out the costs according to that. Alex