As indicated to leaseholders when copies of the PPM schedule were sent to all leaseholders during April 2005, most of the large projects within the PPM schedule are qualifying works that are subject to statutory consultation with all leaseholders.

In view of previous confusion among some leaseholders in respect of the Section 20 consultation process, this website offers an outline of the various stages of the Section 20 consultation process applicable to proposed qualifying works at Castle Court and an overview of how the consultation process is normally dealt with at Castle Court.

The following text is not intended to provide exhaustive guidance to Section 20 consultation. Leaseholders may wish to undertake their own research &/or obtain independent advice.

Background information

Statutory consultation for qualifying works is under Section 20 of the Landlord & Tenant Act 1985, as amended by the Commonhold & Leasehold Reform Act 2002 and The Service Charges (Consultation Requirements (Wales) Regulations 2004.

In simple terms, qualifying works are works of maintenance, repair, renewal, redecoration etc carried out to the building whereby the contract placed by the Landlord for these works would require at least one leaseholder to contribute more than £250 to the works.

If the Landlord does not comply with the consultation procedures then the landlord would not be able to recover the amount exceeding £250 from any leaseholder whose service charge % in their lease would otherwise have required them to contribute more than £250 to those works.

Notice of Intention to carry out qualifying works

Outline

Landlords are required to issue all leaseholders with a notice of intention to carry out qualifying works, and to include in that notice:

1. A general description of the works

2. The Landlord’s reasons for considering it necessary to carry out the proposed works

3. An invitation to leaseholders to send written observations relating to the proposed works

4. An invitation to leaseholders to propose a contractor for the landlord to try to obtain an estimate from

Overview

1. General description of the works

At Castle Court, this general description would normally be along the lines of the general description within the PPM schedule issued to all leaseholders during April 2005.

2. Landlord’s reasons for considering it necessary to carry out the proposed works.

As a Landlord, Castle Court Freehold Limited has legal obligations to all 148 leaseholders to comply with the Landlord repairing covenants in the various leases at Castle Court to keep the structure of the building, including the roof, parapets and other parts of the building, and fixtures such as the lifts, in a good state of repair, redecoration and condition rather than constantly patch repairing as and when new or recurring leaks or problems are reported by leaseholders, site staff, visitors etc.

The PPM schedule has been prepared on the basis of the condition of the building and the Landlord’s obligations to repair, maintain, redecorate etc.

It would be normal for a Section 20 Notice of Intention to carry out qualifying works at Castle Court to refer to the inclusion of the proposed works in the appropriate year of the PPM schedule already issued to leaseholders.

If appropriate, the Notice might refer to recent repairs / problems which indicate that the proposed works should not be deferred.

Cooke & Arkwright Chartered Surveyors, the Managing Agents of Castle Court, keep the PPM Schedule and physical condition of Castle Court under ongoing review to ensure that all PPM projects are carried out during the most appropriate years.

Within a PPM schedule it is always a possibility that some works may be deferred while others may need to be undertaken earlier than originally envisaged.

3. Leaseholders’ written observations in relation to the proposed works

The Notice would invite leaseholders to send their written observations within 30 days of the notice date. The Notice would confirm the exact address to send written observations to and the deadline for written observations.

To avoid any confusion, omissions or duplications the Notice would also remind leaseholders that all written observations in relation to these proposed works must be sent to the address given in the Notice and not referred to individual directors of Castle Court Freehold Limited or to the on-site staff at Castle Court.

4. Proposal of a contractor for the Landlord to try to obtain an estimate from

The Notice would invite leaseholders to send their written proposal of the name of a person / company from whom they wish the Landlord to try to obtain an estimate for the proposed work within 30 days of the notice date. The Notice would confirm the exact address to send contractor nominations to and the deadline.

For most qualifying works at Castle Court, the Notice would state that any nominated contractor should be capable of acting as a Principal Contractor under the Construction (Design and Management) Regulations 2007.

To avoid any confusion, omissions or duplications the Notice would also remind leaseholders that all written observations in relation to these proposed works must be sent to the address given in the Notice and not referred to individual directors of Castle Court Freehold Limited or to the on-site staff at Castle Court.

Landlord’s duty to have regard to leaseholders’ written observations in relation to the proposed works

Outline

Section 20 requires the Landlord to have regard to whatever written observations in relation to the proposed works have been received from leaseholders during the specified 30 day period.

Overview

Castle Court Freehold Limited takes this duty very seriously and has regard to all written observations received from leaseholders during Section 20 consultations.

When having regard to Section 20 observations, Castle Court Freehold Limited also has to have regard to its wide-ranging statutory duties to keep the building in good repair, comply with legislation relating to passenger lifts etc as well as its detailed contractual obligations to all 148 leaseholders in respect of the maintenance, repair, redecoration etc of Castle Court.

Section 20 then requires the Landlord to provide all leaseholders with a summary of these observations, together with the Landlord’s response to the observations, at the same time as providing all leaseholders with a Statement of Estimates received from contractors.

Section 20 does not require Landlords to respond to written observations from leaseholders as and when the observations are received or at any stage prior to issuing all leaseholders with the Statement of Estimates received from contractors.

Statement of Estimates and Summary of leaseholders’ observations in relation to the proposed works and the Landlord’s response to leaseholders’ observations

Outline

In accordance with Section 20, a Statement of Estimates would then be sent to all leaseholders:

1. Setting out the estimated costs specified by contractors for the proposed works

2. Summarizing leaseholders’ observations in relation to the proposed works and the Landlord’s response to leaseholders’ observations

3. Specifying the place and hours at which the estimates (including the detailed specification of works) may be inspected

4. Inviting leaseholders to make written observations in relation to the estimates

Overview

1. Estimated costs specified by contractors for the proposed works

Landlords are required to obtain at least two estimates for the proposed works.

At Castle Court it is normal to seek three estimates for proposed qualifying works rather than the statutory minimum of two.

Therefore estimates are normally sought from one contractor nominated by leaseholders and two other contractors, to carry out works in accordance with a detailed specification issued to contractors after the Landlord has had regard to leaseholders’ written observations and received leaseholders’ nominations of contractors.

2. Leaseholders’ observations in relation to the proposed works and the Landlord’s response to leaseholders’ observations

This is provided to leaseholders in the summary format required by Section 20. Individual leaseholders are not identified within the summary.

3. Leaseholders’ inspection of Estimates

This would normally be at a specific office address during normal working hours subject to leaseholders making an appointment to view the documentation.

4. Leaseholders’ written observations in relation to the Estimates

Section 20 requires the Landlord to invite written observations from leaseholders within 30 days from the date of the Statement of Estimates.

The Notice would invite leaseholders to send their written observations to Castle Court Freehold Limited. The Notice would confirm the exact address and the deadline for written observations.

To avoid any confusion, omissions or duplications the Notice would also remind leaseholders that all written observations in relation to these proposed works must be sent to the address given in the Notice and not referred to individual directors of Castle Court Freehold Limited or to the on-site staff at Castle Court.

Landlord’s duty to have regard to leaseholders’ written observations in relation to the Estimates

Outline

Section 20 requires the Landlord to have regard to whatever written observations in relation to the estimates have been received from leaseholders during the specified period.

Overview

Castle Court Freehold Limited takes this duty very seriously and has regard to all written observations received from leaseholders during Section 20 consultations.

When having regard to Section 20 observations, Castle Court Freehold Limited also has to have regard to its wide-ranging statutory duties to keep the building in good repair, comply with legislation relating to passenger lifts etc as well as its detailed contractual obligations to all 148 leaseholders in respect of the maintenance, repair, redecoration etc of Castle Court.

Landlord’s duty to notify leaseholders on entering into contract to carry out the proposed works

Outline

Section 20 requires the Landlord to provide all leaseholders with a summary of leaseholders’ observations in relation to estimates, together with the Landlord’s response to the observations, within 21 days of entering a contract unless the contractor has given the lowest estimate or is a leaseholder nominated contractor.

Overview

This provision does not normally apply to Castle Court - all recent Section 20 contracts for qualifying works have been awarded to the contractor who has given the lowest estimate. Notwithstanding this, all Castle Court leaseholders are normally provided with a summary of observations relating to the estimates and Castle Court Freehold Limited’s response to the observations prior to awarding a contract for the proposed works.