major works
📖 What is major works? Meaning and definition
In the context of UK tenancy law, particularly for leaseholders, 'major works' are substantial projects undertaken by a landlord or management company. These works can include significant repairs, such as fixing chiller equipment, or other large-scale improvements to the building or estate. Leaseholders are typically liable to pay a share of the costs for these works through their service charges.
Before undertaking major works, landlords are usually required to consult with leaseholders under Section 20 of the Landlord and Tenant Act 1985. This consultation process ensures transparency and allows leaseholders to comment on the proposed works and costs. However, in certain circumstances, a tribunal can grant dispensation from these consultation requirements, sometimes even retrospectively, if it deems it appropriate.
The reasonableness of service charges for major works can be challenged by leaseholders at a First-tier Tribunal. The tribunal will assess whether the proposed or actual costs are reasonable and whether the works themselves were necessary. Decisions from the tribunal can result in leaseholders being reimbursed for fees or having their contributions to service charges reduced.
These works are distinct from routine maintenance and often involve considerable expense, making the consultation process and the tribunal's oversight crucial for protecting leaseholders' interests.
📋 Requirements
- The works must be qualifying works under Section 20ZA of the Landlord and Tenant Act 1985.
- Leaseholders are typically liable to contribute to the costs through service charges.
- Landlords usually need to consult leaseholders about the proposed works and costs.
- A tribunal can grant dispensation from consultation requirements if necessary.
📝 Procedure
- Landlord proposes major works and initiates consultation with leaseholders.
- Leaseholders receive information about the proposed works and have an opportunity to provide comments or obtain alternative quotes.
- If consultation requirements are not met, the landlord may seek dispensation from the First-tier Tribunal.
- Leaseholders can apply to the First-tier Tribunal to determine the reasonableness of service charges for the proposed major works.
💡 Examples
- The tribunal granted retrospective dispensation for urgent repairs to chiller equipment servicing multiple buildings on an estate.
- Leaseholders sought a determination from the tribunal regarding the amount of service charges payable for proposed major works on their building.
- The tribunal ruled that charges for the estimated cost of major works were payable in full, but also dispensed with consultation requirements to the extent they hadn't been complied with.
- A landlord applied to dispense with the requirement to consult lessees about major works or a long-term agreement for a significant building project.
📚 Legal basis
- Landlord and Tenant Act 1985
❓ Frequently asked questions
What is considered 'major works'?
Major works are significant projects like substantial repairs, maintenance, or improvements to a building or estate, which are typically more extensive and costly than routine upkeep.
Do landlords have to consult leaseholders before doing major works?
Yes, landlords are generally required to consult leaseholders about major works under Section 20 of the Landlord and Tenant Act 1985, informing them of the proposed works and costs.
What happens if the landlord doesn't consult us?
If the landlord doesn't follow the consultation rules, they might have to apply to a tribunal for 'dispensation' from these requirements. Without dispensation, there might be limits on how much they can charge you.
Can I challenge the cost of major works?
Yes, leaseholders can apply to the First-tier Tribunal (Property Chamber) to determine if the service charges for major works are reasonable.
What is 'dispensation' in relation to major works?
Dispensation is when a tribunal allows a landlord to bypass the usual consultation requirements for major works, often granted in urgent situations or retrospectively.
Will I get my money back if the tribunal finds the charges unreasonable?
If the tribunal finds the service charges unreasonable, it can order reductions in your contributions or reimbursement of fees, as seen in some cases.