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How fast is BTR expanding?

Build to Rent, is a rapidly expanding segment of the UK housing market. BTR is increasingly contributing to overall housing supply. The British Property Federation (BPF), in collaboration with Savills, has reported the sector is growing by 14%+ a year.

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What are the risks if we want to carry out an informal consultation process?

Clearly, you would fall foul of specific legislation put in place to protect service charge payers, this is inherently risky.    For emergency works you should start a formal consultation process and simultaneously apply to the Tribunal for a dispensation from the fu...

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What are the implications if the final price of the works exceeds the tender sum returned?

Best advice is to follow a formal specification and tender process, inviting owners to nominate contractors and to nominate a place where tenders can be inspected.   The Contract Administrator’s job is to try to bring the contract in on budget, he or she should make ...

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We served a Stage 1 notice covering a wider scope of works than we now intend, what are the risks?

What you as Client need to consider is would the lessees have responded differently to separate notices of intention for separate projects and are you now prejudicing their statutory rights.  A Tribunal may deem this to be too confusing to leaseholder and deemed non-...

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Time has elapsed, should we serve a new Section 20 Stage 1 notice or re-issue the old one?

It is always best practice to issue a new Section 20 notice, time tends to lead to a building dilapidating further and new works being required.  At the very least you should reissue the notice of intention with a letter of explanation.

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How long is section 20 valid for?

Although the legislation does not impose a “use-by” date on a section 20 notice case law indicates that the process should take months, not years.   As time passes tender prices will change and the scope of works may increase both of which may render the consultation...

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What are the risks of not doing Section 20 consultation properly?

You are at risk.  However, since 2014 the Daejan vs Benson case suggests that a dispensation from consultation might be granted if it is just and reasonable to do so, eg, emergency communal heating failure in winter, else what you can recover from service charge paye...

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What is the consultation period for Section 20?

Stages 1 and 2 each provide 30 days for consultation and invite service charge payers to provide observations.

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What are the 3 Notices called?

Stage 1 – Notice of intention. This notifies service charge payers of the planned works.Stage 2 – Notice of Estimates. This sets out quotations obtained for the work.Stage 3 – Notice of Reasons.  If the contractor chosen was not the cheapest or is more expensive than...

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What works does Section 20 cover?

Think practical works:  Examples could include:building repairs and maintenance and also maintenance to installed plant and equipment. Works would not include cleaning, gardening or legal advice.

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