• Menu
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • Home
  • What is LKP
  • Contact
Donate

Leasehold Knowledge Management Logo

Secretariat of the All Party Parliamentary Group on leasehold reform

Mobile Menu

  • Home
  • What is LKP
  • Contact
  • Advice
  • News
    • APPG
    • ARMA
    • Bellway
    • Benjamin Mire
    • Brixton Hill Court
    • Canary Riverside
    • Charter Quay
    • Chelsea Bridge Wharf
    • Commonhold
    • Communities Select Committee
    • Conveyancing Association
    • Countrywide
    • DCLG
    • E&J Capital Partners
    • Exit fees
    • Fleecehold
    • FPRA
    • Gleeson Homes
    • Ground rent scandal
    • Grenfell cladding
    • Hanover
    • House managers flat
    • House of Lords
    • Informal lease extension
    • Insurance scams
    • IRPM
    • Jim Fitzpatrick MP
    • John Christodoulou
    • Justin Bates
    • Justin Madders MP
    • Law Commission
    • LEASE
    • Local authority leasehold
    • London Assembly
    • Louie Burns
    • Martin Paine
    • McCarthy and Stone
    • Moskovitz / Gurvits
    • Mulberry Mews
    • National Leasehold Campaign
    • Oakland Court
    • OFT / CMA
    • Park Homes
    • Persimmon
    • Philip Rainey QC
    • Plantation Wharf
    • Peverel
    • Prostitutes
    • Quadrangle House
    • Redrow
    • Retirement
    • RICS
    • Right To Manage Federation
    • Roger Southam
    • Sean Powell
    • RTM
    • SFO
    • Sinclair Gardens Investments
    • Sir Ed Davey
    • Sir Peter Bottomley
    • St George’s Wharf
    • Taylor Wimpey
    • Tchenguiz
    • West India Quay
    • William Waldorf Astor
    • Windrush Court
  • Parliament
  • Accreditation
Menu
  • Advice
  • News
      • APPG
      • ARMA
      • Bellway
      • Benjamin Mire
      • Brixton Hill Court
      • Canary Riverside
      • Charter Quay
      • Chelsea Bridge Wharf
      • Commonhold
      • Communities Select Committee
      • Conveyancing Association
      • Countrywide
      • DCLG
      • E&J Capital Partners
      • Exit fees
      • Fleecehold
      • FPRA
      • Gleeson Homes
      • Ground rent scandal
      • Grenfell cladding
      • Hanover
      • House managers flat
      • House of Lords
      • Informal lease extension
      • Insurance scams
      • IRPM
      • Jim Fitzpatrick MP
      • John Christodoulou
      • Justin Bates
      • Justin Madders MP
      • Law Commission
      • LEASE
      • Local authority leasehold
      • London Assembly
      • Louie Burns
      • Martin Paine
      • McCarthy and Stone
      • Moskovitz / Gurvits
      • Mulberry Mews
      • National Leasehold Campaign
      • Oakland Court
      • OFT / CMA
      • Park Homes
      • Persimmon
      • Philip Rainey QC
      • Plantation Wharf
      • Peverel
      • Prostitutes
      • Quadrangle House
      • Redrow
      • Retirement
      • RICS
      • Right To Manage Federation
      • Roger Southam
      • Sean Powell
      • RTM
      • SFO
      • Sinclair Gardens Investments
      • Sir Ed Davey
      • Sir Peter Bottomley
      • St George’s Wharf
      • Taylor Wimpey
      • Tchenguiz
      • West India Quay
      • William Waldorf Astor
      • Windrush Court
  • Parliament
  • Accreditation

Section 20: when social landlords reduce costs

There are concerns at the consequences of eye-watering Section 20 bills on leaseholders.

After all, they can create homelessness and destitution, and simply dump Right to Buy leaseholder owners back into social housing.

Eric Pickles, when Communities Secretary, tried to reduce councils’ ability to dump high bills on leaseholders, capping costs at £15,000 in London and £10,000 outside. The problem is it only applies if central funding is involved. If it is council money, they want the full whack from leaseholders.

But social landlords can reduce costs, and can spread costs. 

LKP would advise leaseholders to press every political button available to them in order to council’s cash calls are publicly scrutinised.

Pickles to stop councils charging leasehold owners more than £10,000 for major block repairs. But will it help many?

Florrie’s Law won’t help me with £43,000 demand from Haringey council


The Social Landlords Discretionary Reduction of Service Charges (England) Directions 2014 (PDF)


The Directions apply to service charges for works of repair, maintenance or improvement payable by leaseholders of houses and flats within England whose landlord is a Social Landlord.

A social landlord means a Local Authority or Registered Social Landlord (usually a Housing Association).

The social landlord may waive or reduce service charges by an amount the landlord considers to be reasonable. This also applies to service charges already demanded or already paid so as to permit a refund.

The landlord should have regard to criteria set out in the Directions such as:

  • whether the leaseholder or previous owner was notified of any estimate for the repair, maintenance or improvement before the purchase of the lease of the dwelling;
  • whether the purchase price took account of the costs of the works;
  • any benefit the leaseholder has received or will receive as a result of the works. This includes an increase in value of the property, energy efficiency, improvement in security and improvement in services or facilities;
  • whether the purchase price paid by the leaseholder took account of the costs of the works;
  • whether the landlord considers the lessee would suffer exceptional hardship in paying the service charge; or
  • any other circumstance which the landlord considers relevant.
  • When considering an application to reduce service charges due to exceptional hardship the landlord should have regard to circumstances including:
  • whether the dwelling is the leaseholder’s only or principal home;
  • the total amount of service charges paid/payable by the leaseholder since they purchased the property;
  • the financial resources available to the leaseholder;
  • the leaseholder’s ability to pay over an extended period;
  • the leaseholder’s ability to raise funds; and
  • any other relevant considerations.

This gives social landlords wide discretion when considering an application for waiver or reduction of service charges related to repair, maintenance or improvement. Waivers or reductions can be made under these Directions in addition to any other waivers or reductions made.

You should also consider whether apples

The Social Landlords Mandatory Reductions of Service Charges (England) Directions 2014 (PDF) 

Further information:
Mandatory capping of major works service charges for leaseholders of social landlords in England

Above Footer

Advising leaseholders. Avoiding disasters.
Stopping forfeiture. Exposing abuses. Urging reform.

We depend on individuals for the majority of our funding.

Support Us and Donate

LKP Managing Agents

Become an LKP Managing Agent

Stay in Touch

To achieve victory in the leasehold game where you are playing against professionals and with rules that they know all too well - stay informed with the LKP newsletter.
Sign Up for Newsletter

Professional Directory

The following advertisements are from firms that seek business from leaseholders.
Click on the logos for company profiles.

Leasehold Law logo

Footer

About LKP

  • What is LKP
  • Privacy and data
  • LKP Site Map

Categories

  • News
  • Grenfell cladding
  • Commonhold
  • Law Commission
  • Fleecehold
  • Parliament
  • Press

Contact

Leasehold Knowledge Partnership
Open Data Institute
3rd Floor
65 Clifton Street
London EC2A 4JE

sok@leaseholdknowledge.com

martin.boyd@leaseholdknowledge.com

Copyright © 2021 Leasehold Knowledge Partnership | All rights reserved
Leasehold Knowledge Partnership Limited (company number: 08999652) is a company limited by guarantee that is a registered charity (number: 1162584) with the Charities Commission.
Website by Callia Web