We know that getting this information late can make it harder to plan your finances, and we’re really sorry for the inconvenience this may have caused.
These questions explain more about the Section 20B notice you've received.
What is a Section 20B notice?
It lets you know about service charge costs before we’ve finished your final accounts.
Normally, we need to either send you your final service charge account or tell you about any costs we may need to charge you for within 18 months of those costs being incurred.
We haven’t finished your final account yet, so we’re sending you a Section 20B notice to let you know about these costs in the meantime.
The amount shown isn’t necessarily what you’ll have to pay. Once we’ve finished checking the accounts, we’ll send you your final figures and let you know if you need to pay anything more or if you’re due a credit.
Do I need to pay anything now?
No, you don’t need to pay anything at this stage.
The amount shown on your Section 20B notice isn’t a bill. We’ll send you your final service charge account once we’ve finished checking the costs. That will tell you if you need to pay anything more or if you’re due a credit.
Why do the costs look so high?
The amount shown is for your whole building or estate – it isn’t the amount you’ll have to pay.
It includes all the costs we’ve recorded so far for your building or estate. We’re still checking these costs, and some may not apply to your block or property.
Once we’ve finished these checks, we’ll send you your final service charge account. This will show the costs that apply to you and how much, if anything, you need to pay.
Could the final amount increase when the accounts are finished?
No, the amount in your Section 20B notice is the maximum we can ask you to pay your share towards.
Your final amount may be lower, but it won’t be higher than the amount shown in the notice.
Can I stop paying my service charges?
No, you have to carry on paying your usual service charges.
You don’t need to pay the amount shown on your Section 20B notice now, but you should continue paying your usual service charges as normal.
If you’re struggling to make your payments, we can offer free, confidential advice and support with benefits, debt and reducing your bills. You can also call us on 0300 123 3456.
Why has there been a delay in issuing the accounts?
We’re sorry we haven’t been able to send your final account on time.
We appreciate this is frustrating. We need more time to check the service charge costs and make sure your final account is accurate. We’re also improving our service charge processes to help us provide clearer, more reliable accounts in future.
Can I see the invoices for these costs?
Yes, once we’ve sent you your final service charge account.
You’ll then have six months to ask to see the invoices and other information explaining the costs in your account. Depending on how much information there is, we might ask you to come in and view it at one of our offices.
I was told this wouldn't happen, why does this keep happening?
We’re sorry for the repeated delays.
We apologise for the ongoing delays in issuing year-end accounts. We’re overhauling our processes to improve accuracy and reliability, which takes time but will lead to better outcomes in the future.
Can I make a complaint about getting this notice?
You can complain about the service you’ve had, including the delay in getting your final account.
However, sending you a Section 20B notice isn’t itself a service failure. The notice lets you know about costs while we finish your final service charge account.
What if I sell my property before the final accounts are issued?
You can still sell your property, but make sure your solicitor knows about the Section 20B notice.
They’ll make sure the notice is taken into account as part of the sale and discuss with the buyer’s solicitor how any future service charge payment or credit will be dealt with.
In some cases, they may agree to hold back some money from the sale until the final account is ready.
What’s the legal background to this notice?
Section 20B is part of the Landlord and Tenant Act 1985.
To find out more, please visit Landlord and Tenant Act 1985.