Are You A Landlord Initiating Major Works? Get Expert Help

What Are ‘Major Works’?

Major works (sometimes known as ‘qualifying works’) refer to works on a building or premises where the cost to each leaseholder is £250 or more.

If there is a ‘reserve fund’, you may use this to cover some of the cost. This will depend on the type of works and the wording of the lease. If you are able to use the reserve fund but there is still a sum outstanding, this will need to be recovered from the leaseholders.

The terms of the lease will detail how and when service charges can be demanded together with what types of work can be carried out at the property

The party responsible for major works will depend on the lease. If there is a Right to Manage Company or Tribunal Appointed Manager in place, major works may be their responsibility, as opposed to that of the landlord.

What Are The Requirements To Consult?

Sections 20 – 20ZA of the Landlord and Tenant 1985 Act provides that landlord (or whoever is responsible for such works) must consult the leaseholders before:

carrying out qualifying works (‘major works’) which would result in the contribution from any leaseholder to be more than £250; and
entering into a qualifying long term agreement which would result in the contribution from any leaseholder to be more than £100 in any 12 month accounting period.

The consultation requirements are written within regulations referred to by the 1985 Act.

They involve a three-stage process:

A notice of intention should be sent, illustrating the proposed works (in general terms).
A notification of proposals/estimates should be sent.
A Notification of the award of contract.

The notices should allow the leaseholders to make observations and the landlord should have regard to these.

The notices must also be sent within certain time periods.

Is Consultation Always Necessary?

Consultation can take some time to complete. If the works on your property are urgent, you can apply to the First-tier Tribunal (Property Chamber) (FTT) for dispensation from the need to consult.

You can apply in advance of the work being carried out or retrospectively.

If a landlord (or whoever is responsible for such works) fails to follow the consultation process, they may not be able to recover service charges above the level of the statutory minimum amounts (£250 and £100 respectively).

For Amy-Paige Gregory, Chartered Legal Executive:

“Amy and her team dealt with the renewal of our commercial lease. They handled dealing with our tenant professionally and we were always kept well informed. The pricing for services was very fair. Thank you.”