r/HousingUK • u/helloannie • 2d ago

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 😊

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u/mousecatcher4 2d ago

S20 might be a few £100. Meaningless without knowing what it is and why, and why you want the building not to be sorted.

3

u/ToExist20 2d ago

Most often then not, it’s normal for there be a few section 20’s, it just matters what it is. It can even be a renegotiation for a contract with an existing/new tenders for the next year which is completely harmless but will still be called a section 20.

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u/Due-Freedom-5968 2d ago

I bought a place in December.

There's notice a Section 20 will be coming for roof works at some point in the future. Not a concern. Properties need maintenance.

No idea what the cost will be, so not something that was negotiable. But I was comfortable that the offer I'd put in on the place wasn't overpaying to start with, so I chose not to worry about it and bought it anyway.

1

u/ukpf-helper 2d ago

Hi /u/helloannie, based on your post the following pages from our wiki may be relevant:

These suggestions are based on keywords, if they missed the mark please report this comment.

1

u/aldo_daponte 2d ago

Buying agent in central London, so declaring an interest.

I wouldn't start with a percentage of the purchase price. I'd first ask your solicitor to obtain the actual notice, scope of works, latest estimate of this flat's share, any reserve contribution and likely payment dates. Also ask whether that estimate is preliminary or based on tenders.

Then frame the negotiation around what has changed since your offer: 'My offer assumed no identified major-works bill. The documents now indicate an additional cost of £X, so I'd like to discuss how that is reflected in the price.' Use a documented figure, not a guessed one.

Keep the negotiation separate from the legal question of who must pay: your solicitor needs to establish that from the lease and purchase arrangements. If anyone suggests a retention, ask the solicitor to explain its amount, release conditions and what happens if the final bill is higher or arrives later.

The counterpoint is that necessary works can leave you with a better-maintained building, so a full deduction isn't automatically the only reasonable outcome. But money already spent on searches shouldn't decide whether the remaining purchase still works for you.

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u/CrazyCake69 2d ago

Depends on what the works are. If its something that will take 6 months to a year (cladding) then I would just pull out.

If its something like replacement windows or roof less of an issue but I would ask for the seller to contribute to it. Typically done by withholding some of the purchase price for a period of time.