SELL YOUR HOME QUICKLYBeen issued with a section 20 notice?
There are more and more section 20 notices being served as councils are using this authority to renovate their property portfolios.
Any further questions about section 20 notices?
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You got served a section 20 notice by the council, confirming that they intend to refurbish or renovate the common parts of the property, and you are now liable for your share of the costs.
First of all, what exactly is a section 20 Notice?
Basically, a section 20 notice is a legal document which, under UK property law, entitles the council to charge the leaseholders of a council block or house for their share of essential renovation costs to the building or common parts thereof. This means that homeowners who originally purchased their home or flat from the council, is held liable for a proportionate percentage of their entire building’s refurbishment costs if and when this becomes necessary.
In other words, leaseholders are expected to contribute their share towards fixing or refurbishing their building’s “common parts”. But what exactly does the term “common parts” refer to? And can the council play the section 20 card to claim cash from leaseholders when it fancies a new paintjob, even though the current coat of paint is still perfect?
The answer is “no”. Crucial qualifiers here, are the words “common” and “essential”. A section 20 notice can only hold leaseholders liable when something truly communal – such as the building’s lifts or roof – are involved. Secondly, the refurbishment costs of these parts are only covered under the section 20 notice property legislation when “essential renovation” is involved – not when the council wants a different colour paint on the walls.
Take note that refurbishment costs under section 20 notices can range from a couple of thousand pounds to as much as £20 000!
The drawbacks of section 20 notices
Understandably, a section 20 notice can cause a traumatic backlash of problems. Some of these are highlighted below:
Firstly, the cost of refurbishment will be charged back to each leaseholder on a proportionate basis. This means that if there are 10 flats in the building, each leaseholder will be liable for approximately £2 000 – not the kind of money the average homeowner has lying around!
In fact, statistics show that many homeowners who have been served with section 20 notices have actually been forced to sell their homes and downscale in order to settle this debt! Whether or not the situation escalates to this point, it goes without saying that such a bill would undeniably affect any homeowner’s budget.
Secondly, a section 20 notice can have devastating repercussions for homeowners who are trying to sell their property, if they have put their homes up for sale. This is for two main reasons: Firstly – and most obviously – almost any and every buyer will be deterred by the section 20 debt that they will be acquiring together with the house. Think about it: who in their right mind would want to buy a property that has debt imposed on it before they have even moved in!
Secondly, the mess and noise that necessarily accompanies renovation and construction does not make for a pleasant living – or home-viewing – environment. Everybody knows that there is nothing swift or discreet about construction – in fact, it could take months! Prospective buyers will very likely be put off by the piercing sound of drills and the sight of scaffolding everywhere.
It would, after all, be so much easier for the prospective buyer to look for another property without these inconveniences, and one that does not require the repayment of debt he or she has nothing to with!
Take note that all solicitors are bound to inform potential purchasers if a section 20 notice has been served on any property they might be interested in. In fact, for most ex-council properties, this is one of the first questions a prospective buyer will ask. Even with ethical concerns aside, homeowners are legally obligated to inform potential buyers if a section 20 notice has been imposed on the property, and are thus not allowed to hide this fact in order to increase their prospects of a sale.
How MPG Investments can help
MPG Investments is not deterred by section 20 notices, and hence, we can provide an authentic solution to anyone in this position. Because we are specialist investors in all residential property, we understand section 20 issues and can always make an offer to buy. We don't need mortgage company approvals and can complete any sale in 7 days if required.
What’s more, you don’t have to concern yourself with delays, underhandedness, broken chains or any of the other risks that are commonly associated with selling through estate agents.
It’s so easy – Simply give us a call on 0800 634 9231 today and a professional consultant will answer every one of your questions and offer all the assistance you need. If you so wish, we could schedule an appointment with a professional to valuate your property within just 24 hours of your call. Within a mere 48 hours, we will approach you with a written cash offer for your property – section 20 notice or not. If you agree with the terms, the deal can be sealed – and the cash deposited into your bank account – in a mere week!
Contact us now to turn your section 20 problem into an opportunity!
Have any further questions about section 20 notices? Click here for our FAQs on section 20.
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