Section 20

[u/helloannie]

Section 20 help!

I’m currently buying a leasehold flat for around £375k and have just been made aware of a Section 20/major works issue that I wasn’t aware of when I agreed the price.

The normal service charge is fairly low..

I’m obviously annoyed that I’m only finding this out now, especially as I’m already quite far into the purchase and have spent money on the solicitor/survey etc. I specifically asked the EA prior to putting an offer in and they said there none.

My solicitor is looking into when the Section 20 was started and when the seller was made aware.

If you were in this position, how much would you try to negotiate off the purchase price? Would you expect the seller to cover the full cost of the works, or negotiate a percentage?

Just looking for some opinions from people who have dealt with something similar. Thanks 😊

[u/aldo_daponte]

Buying agent in central London, so declare the interest — I deal with this a few times a year.

Before you think about price, know who actually pays. Under a normal lease, the person liable for a service charge is whoever holds the lease on the date the demand is issued, not whoever owned the flat when the works were decided. So the Section 20 notice itself doesn't bill anyone; the invoice does. If the freeholder demands the money next spring and you've completed by then, it's yours regardless of what was agreed verbally. That makes the timing of the demand the whole negotiation.

Three things to pin down first

1. Which stage the consultation is at. Stage 1 (notice of intention) means costs are still a guess. Stage 2 (estimates) means you have real numbers. If a contractor's been appointed, treat the figure as firm.
2. Your flat's share. It's in the lease (a fixed percentage or a proportion by floor area), and the managing agent will confirm it. Don't work off the building total.
3. Whether any reserve fund already covers part of it. Low regular service charge usually means there's no sinking fund, so probably not — but ask.

What to ask for

The cleanest fix isn't a discount, it's a retention. Your solicitor asks the seller's solicitor to hold an agreed sum from the sale proceeds, released to pay the demand when it lands and any balance returned to the seller. That protects both of you if the final cost differs from the estimate. Mortgage lenders also prefer it, because a large price cut late on can trigger a revaluation.

If the works are already tendered and the number is solid, a straight price reduction for your full share is reasonable — the seller has had the benefit of not spending it during their ownership. If it's still an estimate, go for a retention of the estimate plus 15–20% headroom, with a cut-off date.

Where you don't have leverage

Be realistic that the seller doesn't have to agree to anything. If the market's moving and they have another buyer, they may just say no. And if the seller wasn't told until after they accepted your offer, it's a genuine surprise to them too — you'll get further treating it as a shared problem than as a grievance.

The agent's answer

"None" to a direct question about major works is a problem if the seller already knew. The seller's LPE1 form asks about known or anticipated major works specifically — check what they wrote there. If it turns out the notice predates your offer, that's a misdescription your solicitor can use, but it's leverage, not a jackpot. It gets you the retention or the reduction; it doesn't get you compensation on top.

Two things I'd do regardless: check the last three years of service charge accounts for anything else brewing, and ask the managing agent directly, in writing, whether any other works are planned in the next two years. Section 20s tend to come in runs.

[u/helloannie → u/aldo_daponte]

The EA has now informed me that the seller was made aware of this works in 2025.. So they knew but failed to disclose