Freeholder charging for major works done 7 years ago

Landlord Discussion
1

CAN MY FREEHOLDER CHARGE ME FOR WORKS THEY CLAIM WERE DONE MORE THAN 7 YEARS AGO?

I have owned a flat since 2014 and rent it out. It is leasehold and the freeholder is the local Council. The building is a purpose-built council block - possibly 1950s? - in a pretty shoddy state of repair. Some flats are still council flats, some were sold under right to buy (I guess). I don’t think the building has ever been redecorated. The council fixes things when they break but there is no maintenance or upkeep of common areas. For a few years after I bought the place I pestered the council to come and do things like paint the stairwells, replace the tatty flooring, fix back the name of the building which has fallen off the front, but nothing was ever done so eventually I gave up.

Then in 2018 I received notification that they were putting redecoration work out to tender. I was relieved and thought finally something would be done. But I received no further information and observed no improvements in the building when I visited. Then Covid happened and I assumed nothing would ever be done.

This week, I received an invoice for my share of major works for about £900. The letter says this is for ‘renewal of internal and external communal redecorations, clearing of gutters, downpipes, wash down UPVC accessible component items, repairs to external and internal walls fascia and soffits as necessary.’

Again, I was excited! Finally I’m thinking the stairwells will be redecorated! I rang the council to find out more details of what works will be done and they tell me no, this isn’t for upcoming works, this is for work that was done in 2019 that they never billed me for - ‘further to the statutory consultation notice issued to you on 16/1/18’. I was astounded! That was SEVEN years ago! And I have seen no evidence of work being carried out (though again, I don’t go round that often). But certainly the stairwells and front entrance have not been touched.

So my questions are:

1/ Can they invoice me for works that happened 7 years ago?

2/ Is there not a statue of limitations?

I did receive a consultation letter in 2018 saying they were putting the works out to tender but as far as I can remember there was no other communication to say the works were going ahead or how much they would cost. I would definitely remember if there had been a letter about the cost).

3/ Can I dispute this charge? Especially since the works that I flagged for years have still not been done and I have seen no evidence of any improvements in all the time I have owned the flat. To the extent that even though it’s in a popular area where prices have gone up overall and I have maintained the internal decorations well, the valuation has gone DOWN and the flat is now worth LESS than I paid for it 12 years ago!

Thank you

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I think the Limitation Act applies ss its more than 6 years since the work was done.

3

@pepperviolet

So my questions are:

1/ Can they invoice me for works that happened 7 years ago?

Why not? They can invoice you for anything they like. Whether you pay is up to you but if they did the work why wouldnt you pay up? Other works you asked to be done are irrelevant.

However you can reasonably demand evidence the work was actually done (inc the invoice paid to a contractor and photographic evidence).

2/ Is there not a statue of limitations?

(From Google ai “is there a statute of limitations for paying for works done by freeholder”)

Under the Limitation Act 1980, freeholders have either 6 or 12 years to take legal action to recover unpaid work costs. However, under Section 20B of the Landlord and Tenant Act 1985, freeholders are strictly barred from recovering costs if they do not demand payment within 18 months of incurring them, unless they send a special warning notice

Navigating historic charges involves specific rules depending on the exact circumstances of your lease: [1]

1. The 18-Month Rule (Section 20B)

  • The Rule: A freeholder must issue a valid demand or an invoice for major works within 18 months of the date the costs were incurred (i.e., when they received the invoice or paid the contractor). [1, 2]
  • The Exception: If the works are ongoing or the final bill isn’t known, the freeholder can still recover the costs if they notify you in writing within that 18-month window stating that the costs have been incurred and you will eventually be billed. [1]
  • Impact: If no demand or Section 20B notice is sent within 18 months, those costs are legally unrecoverable. [1]

2. Time Limits for Debt Recovery (Statute of Limitations)

If the freeholder did issue the demands correctly within the 18-month window, the time they have to pursue you for the debt in court depends on the wording of your lease: [1, 2]

  • 6-Year Limit: Applies if the service charges are explicitly “reserved as rent” in your lease, or if the lease was signed as a simple contract. [1, 2]
  • 12-Year Limit: Applies to the vast majority of long residential leases because they are executed as a deed (“specialty”) and the charges are not reserved as rent. The clock starts from the date the payment was formally due under the demand. [1, 2]

3. Historical Incurrence and Section 20 Consultation

So reads that if you didn’t get an invoice within 18 months of the works or a suitable notice saying costs not finalised then they cant.recover

Get proper legal advice tho…

Of course if a freeholder pays for works and didn’t recover through proper invoicing at the time they will seek to recoup losses through higher management charges in future.

Good luck

4

@ps @pepperviolet if the claimed works don’t appear in the accounts for the year then you have some evidence they weren’t done - or that the accounts weren’t done properly. There are then potentially further steps you can take.. (based on Google ai):-

"If your freeholder fails to provide accurate or timely service charges accounts, they are in breach of statutory obligations. You can legally withhold payment for disputed demands, request a formal financial summary under the Landlord and Tenant Act 1985, or escalate the issue to the First-tier Tribunal (Property Chamber) to challenge the charges. [1, 2, 3, 4]

When a freeholder fails to provide accurate accounts, use these concrete steps to protect your rights: [1, 2]

1. Request a Statutory Summary

  • Action: Write a formal request asking for a written summary of service charge costs under Section 21 of the Landlord and Tenant Act 1985. [1, 2, 3]
  • Timeline: They must provide this within 1 month or within 6 months of the end of the accounting period (whichever is later). If the building has more than 4 flats, it must be certified by a qualified accountant. [1]
  • Penalty: Failure to comply without a reasonable excuse is a summary offence subject to a fine up to £2,500. [1]

2. Inspect Invoices and Receipts

  • Action: Within 6 months of receiving the summary, send a written request to inspect the supporting accounts, receipts, and invoices.
  • Timeline: The freeholder must provide facilities for inspection within 1 month, and they must remain available for 2 months. Read the Lease Advice Guide to Service Charges for template letters. [1, 2, 3]

3. Challenge Demands at the Tribunal

  • Withhold Payment: You are legally not required to pay service charges if demands do not meet basic legislative requirements or if accounts are not properly certified according to your specific lease terms. [1, 2]
  • Application: If the freeholder refuses to adjust inaccurate figures, apply to the First-tier Tribunal (Property Chamber) to determine your payability and reasonableness. The Leasehold and Freehold Reform Act strengthens these rights to scrutinize costs and removes presumptions to pay landlord legal fees in disputes. [1, 2, 3, 4]

"