SECTION 20 NOTICES explained

A number of people when they are offered the chance to purchase the property they have been living in for a substantial time, on a right to buy scheme, by the government which is at a discounted price, generally take the opportunity to do so. You have to remain in the property for a further 3 years after this date and most people remain there for a number of years after. However what most people fail to realise is that you may be one of the unlucky ones. What this means is you may find yourself receiving a section 20 notice especially if you purchased a leasehold property.

For those who are unaware of what a section 20 notice is, it is simply the council’s way of distributing the cost for carrying out major works such as a communal hallway repair, roof, windows,…….. etc there is an endless list, to buildings where some properties are still owned by the council.

The section 20 law in the United Kingdom gives the council the right to charge leaseholders (the people who privately own their own property) of a council owned block of flats or house for their contribution towards renovation works to the building or any common areas. So although you have purchased your property from the council, you still have to pay a percentage towards the refurbishment works whether they benefit you or not. The refurbishment costs are sent to you before the work is carried out and you have the right to contest the cost of the works that has been supplied to you and the quotes can range from a couple of thousand pounds to as much as £20,000, or if you are really unlucky even higher than that.

Section 20 notices only hold leaseholders liable, when the works that are such as lifts, hallways, gardens, lighting, security entry systems, the roof, unfortunately there is an endless list. The cost of such refurbishments of any parts of the building are covered under the section 20 notice property legislation, when “essential renovation” is really needed, not when the council wants to.

A section 20 notice or section 20 works which are being carried out, not only have a high financial burden for you, which a high percentage of people find themselves in a situation where they are unable to pay these costs, but it can also cause serious problems when trying to sell your property. Solicitors involved in acting for your purchaser have to follow strict guide lines in most cases and especially when receiving information regarding section 20 works. Solicitors are legally bound to inform your potential purchasers if a section 20 notice has been served on your property. This leaves any prospective buyers with the distinct probability that they will be living on a building site for a considerable length of time. Knowing that there is nothing swift or discreet about construction, it could take months and generally this scares buyers away from the property. You are legally obligated to inform potential buyers if you have received a section 20 notice as a homeowner.

When you really sit down and really seriously think about it, who would really want to buy a property that , either has a debt or a future debt looming above there head before they even move in.

The work, mess and noise that generally accompany the renovation and construction works don’t make pleasant living for anyone. Unfortunately people don’t realise even if when you sit back and look at it, it is actually going to improve the property and its value, but you have to make a decision to either pay for the work and try and get this back or pass a reduction on to a prospective purchaser but they may not want the hassle and headache.

All you need to do is.

• Contact us either by telephone or apply online for a quick property sale

• A member of the Quick Purchase team will contact you and discuss you requirements and take all the relevant information from you.

• Research will be carried out to establish a realistic market value in today’s present market place .

• You will be given a indicative offer subject to seeing the property

• Once you accept the offer you are days or weeks away, depending or your circumstances, from not having to worry about the future bill that may land on your doorstep

We purchase properties in any condition providing a fast property sale with a stress free solution even if you have pending section 20 works that are due to be carried out. We are not put off of purchasing your property just because there is future section 20 works that need to be carried out. 

Also see:

Quick property sale
Fast Flat Sale

Contact us or apply online to see how Quick Purchase can help.