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Joshua
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 25433
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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Could you please find out if we need to serve a Notice under

Resolved Question:

Could you please find out if we need to serve a Notice under Section 20 of the Landlord 1985 Act on the residents if we take out the below lease.

The total value for the lease is £47568.79 for 5 years.
Per annum equates to £9513.76 divided by 150 apartments = £72.15.

Therefore as the cost is below £100.00 per apartment its understand that we don’t have to service a Section 20 or as we are entering a 5 year lease contract we do have to service the notice.

A breakdown of the costs are as follows: (all inclusive of VAT)



The service contract cover is over a 5 year period. During the contract period 2 preventative maintenance visits are conducted each year, as well as parts and labour in years 3 – 5 after the warranty period has expired. By taking out the service contact from the date of installation, we provide the 2 preventative maintenance visits during years 1 and 2 which would not be covered by the warranty.
Submitted: 3 years ago.
Category: Property Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I clarify if you are the landlord of the building please and are considering entering into the contract you refer to with a third party?

Customer:

We are an in house managing agent for a block of 150 apartments. Some residents own the share of the freehold and others are leaseholders.

Joshua :

Thanks. You mention entering into a lease for a little under £50K. Is this a service contract please propoed with a third party company or something else?

Customer:

Its a contract to lease gym equipment for 5 years which included the service agreement.

Joshua :

Thanks. You are correct that where the landlord proposes to agree a contract for provision of a service for a period of more than 12 months which results in an apportioned cost to any leaseholder of more than £100 a year s20 notices must be served and formal consultation followed.

Joshua :

If the apportioned cost is demonstrated to be less than £100 then no consultation need be followed but the usual requirements of obtaining value for money and reasonable provision of service must still be complied with and so ideally at least a couple of quotes or tenders should be received in order to be able to demonstrate you have complied with this in case any resident complains the contract is overpriced.

Joshua :

Is there anything above I can clarify for you any further?

Joshua :

Does the above answer all your questions or is there anything I can clarify or help with any further?

Customer:

Thank you for the advise.

Customer:

Do we need to add in refurbisment works to the cost..... i.e relaying a new floor and replacing the electrics to the quote / lease.

Joshua :

Are these refurbishment works to be carried out under the terms of the service contract you mention or would this be a separate arrangement with another contractor?

Joshua and 2 other Property Law Specialists are ready to help you
Customer: replied 3 years ago.
It will be refurbishment works in the gym inorder to accommodation the new gym equipment which we want to lease. A separate contractor will carry out these works.
Expert:  Joshua replied 3 years ago.
Thanks. In that case these refurbishment works should not be treated as part of the service contractand would fall under the £250 per tenant consultation rule

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