Commonhold and Leasehold Reform Act 2002

The Law regarding Section 20 of the Common Leasehold Reform Act 2002 requires that the leaseholder must be consulted before the landlord carries out works above a certain value or enters into a long-term agreement for the provision of services.

The Commonhold and Leasehold Reform Act 2002 has introduced requirements for this statutory consultations.  Section 151 of the Act replaces the original provisions, Section 20 of the landlord and Tenant Act 1985, and introduces a new section 20ZA, all with effect from the 31st October 2003 (not Wales).  The existing Sections 20A, 20B and 20C are not affected.  The new provisions introduce different, more complicated procedures and extend the consultation requirements to include long-term contract for services.

There are new requirements for the landlord to state why he considers the works or the agreement to be necessary and for further statements setting out his response to observations received and his reasons for selection of the successful contractor.

Consultation  notices must be sent both to individual leaseholders and to any recognised tenants' associations; both the leaseholder and the RTA have the right to nominate an alternative contractor and the landlord is bound to invite an estimate from such nominees.

The new procedures provide for two separate 30-day periods for the leaseholders to make observations and landlords would be prudent to allow a minimum of three to four months for the whole process.

Click links below to Download

Commonhold and Leasehold Reform Act 2002

Back to General Management Company Information