They apply to Landlords and Management Companies (as appropriate) who intend to (a) enter into a qualifying long term agreement - that is an agreement for more than 12 months or (b) carry out qualifying works – works on a building that result in each tenant contributing being more than £250.
The purpose of the two sections is to make provision for the Landlord to consult leaseholders in respect of certain items of service charge expenditure and, as a result of any failure to consult, to impose a cap on the sums recoverable. In limited circumstances the Landlord may apply to a Tribunal for dispensation from the consultation requirements, dispensation can be sought both before and after the works have been carried out.
It is therefore important Landlords consult their tenants properly before entering into any qualifying long term agreements or carry out any qualifying works. With our extensive knowledge of leasehold law, we are able to advise Landlords on all aspects of sections 20 and 20ZA LTA 1985.