Before embarking on significant renovations in your building, the freeholder is obligated to issue a Section 20 notice. This notification becomes necessary under two conditions:
- If the proposed work exceeds £250 for any leaseholder within the building.
- If the freeholder intends to establish a lengthy contract with a contractor that would surpass £100 for any leaseholder within the building.
Regardless of whether the expense impacts only one individual, all leaseholders within the block must be consulted in both of these scenarios.
Failing to conduct a Section 20 consultation prior to starting the work limits the freeholder's ability to recoup more than £250 or £100 (depending on the situation mentioned earlier) from each property owner.
If the freeholder has already committed to costly renovations, this limitation can lead to substantial financial challenges.