SECTION 20 NOTICES

A growing problem

For many people the first step on the housing market ladder was to take the government up on its offer of the right to buy their local authority home. Most of these people will have been living in these properties for a considerable number of years both before and after the purchase.

While those people living in ex council houses are generally fine, more and more people who bought ex council leasehold flats are now finding themselves subject to a section 20 notice.

For those who don’t already know a section 20 notice is the councils way of spreading the costs of a communal repair to a building where some properties remain in council ownership.

These essential repairs are generally associated with the common parts of the fabric of the building, roofs, lifts, stairwells etc. Property owners facing a section 20 notice will be charged retrospectively on a proportionate basis and could be left with a prospective bill of up to £20,000 or more.

Not only does this leave you with a high financial burden, many people find themselves unable to meet these costs, but it also has a major Impact on anyone trying to sell a property subject to a section 20 notice as many buyers will be put off from a purchase by the prospect of a large bill sometime in the future.

In many cases even a rumour that a section20 notice is about to be submitted is enough to cause serious problems with a sale. This is now one of the most commonly asked questions when buying or selling ex council flats. Recent legislation means that all solicitors must now inform any prospective buyers about a section 20 notice being served.

As well as the possibility of a large potential bill wasn’t enough to put buyers off there is also the prospect of a large works project which could take weeks or even months to complete, leaving any prospective buyers with the distinct probability that they will be living on a building site for a considerable length of time.

At HBFS we understand the complicated issues that a section 20 notice brings. As a cash buyer who specialises in residential properties we don’t rely on approval from a mortgage company in order to buy your home.

With a fast home buyer solution from HBFS we offer tailor made way out for anyone who finds themselves in this situation. We can even allow you to stay in your home with our sell and rent back option therefore removing the worries associated with the issue of a section 20 notice.

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0800 043 4133