When a communal roof leaks or a stairwell needs redecorating, the first question from residents is rarely about the work. It is who is paying for it. The answer almost always sits in the lease, and the managing agents who read it before instructing a contractor spend far less time defending the bill afterwards.
Start with the lease
Most residential leases split the building into two parts: the flat itself, which the leaseholder repairs, and everything else, which the freeholder or management company repairs and recovers through the service charge. Structure, roof, external walls, foundations and shared areas usually sit on the freeholder's side.
Leases vary more than people expect. Windows, balconies and flat entrance doors are the usual grey areas. Some leases put them with the flat, some with the building, and some split them. Check the demise clause and the repairing covenants before you price anything.
How the service charge works
Where the repair is the landlord's responsibility, the cost is normally recovered from all leaseholders through the service charge, in the shares the lease sets out. The charge has to be reasonable and the work has to be done to a reasonable standard, which is why clear scopes, photographs and completion records matter so much.
A well run reserve fund smooths this out. Cyclical work such as external decoration, roof repairs and lift refurbishment can be planned years ahead, so a large bill does not land on leaseholders all at once.
When Section 20 consultation applies
If any one leaseholder's share of a set of qualifying works will be more than £250, the landlord has to consult before the work goes ahead. Skipping it can cap what is recoverable at £250 per flat, whatever the work actually cost.
The same applies to long term agreements over 12 months where any leaseholder would pay more than £100 a year. Build the consultation time into the programme from the start rather than discovering it when the contractor is ready to begin.
The grey areas that cause disputes
- Leaks from a flat above: usually the responsibility of whoever owns the pipe or fitting that failed
- Windows and frames: depends entirely on the demise clause
- Flat entrance fire doors: often the leaseholder's, but fire safety duties can still sit with the responsible person
- Insured damage: may be claimed on the building policy, with the excess recovered through the service charge
- Damage caused by a contractor: should be on the contractor's insurance, not the service charge
How a contractor can help
A good contractor will separate the quote into communal items and items that fall within individual flats, so the agent can charge each correctly. We price and report this way as standard, with photographs per item, because it is the simplest way to keep the service charge defensible.