How Section 20 Affects Leaseholders in Leeds

Section 20 of the Landlord and Tenant Act 1985 applies to leaseholders in Leeds who own properties subject to leasehold land terms. Under Section 20, any property improvement projects costing more than £250 per leaseholder must be presented to and approved by leaseholders. This requirement protects leaseholders from unnecessary expenses and disruptions.

Advance Notification

The property owner must provide a Notice of Intent to all leaseholders at least two months prior to the scheduled start of any proposed projects. This notice should specify the nature and scope of the work, include an estimated cost, and request leaseholder approval. Leaseholders then have an opportunity to approve or reject the proposed projects.

Approval Process

Leaseholders can approve the projects through majority support of those responding, provided those in support represent at least 50% of the total property ownership interests. If approval is not obtained, the property owner may petition the county court to approve the projects. The court will consider if the projects are necessary and reasonable before granting approval.

Cost Apportionment

The expenses of any approved projects are allocated among all leaseholders based on each property’s proportional ownership share, as detailed in the lease terms. Leaseholders are then responsible to pay their share of costs, even if they did not approve the projects. Failure to pay can result in legal action by the property owner to recover owed monies.

In summary, Section 20 provides leaseholders some input over property work but also makes them liable for a proportional share of expenses whether they approved the projects or not. Leaseholders should therefore actively participate in the consultation process to ensure only necessary projects are approved and costs are reasonable.

For professional property management services, please contact Valor Properties at 32 Park Cross Street, Leeds LS1 2QH, call 0113 222 4537, or email info@valorproperties.co.uk to discuss how we can assist you.