You may have recently received a letter from us called a Section 20B notice, and you might be wondering what it’s all about.
We’ve created this article to guide you through what a Section 20B notice is, why you've received one, and what happens next. We’ve also included a handy FAQ section at the bottom to help answer any other questions you may have.
Pic
What is a Section 20B Notice?
A Section 20B notice is a legal letter we’re required to send under the Landlord and Tenant Act 1985. It’s our way of letting you know that costs have been incurred for services provided to your building or estate over the past financial year (April 2024 to March 2025).
Even though we don’t yet have the final figures ready, this notice ensures we’ve officially informed you that some costs were incurred and that you will be asked to contribute to them later through your service charges.
Why am I receiving this now?
We’re still finalising the year-end accounts for 2024/25. While we work through this, the law requires us to let you know that costs have been paid out, even if the final totals haven’t been calculated yet. That’s what the Section 20B notice is for - it's about transparency and timing, not requesting payment.
Are you asking me to pay anything now?
No - this notice is for information only. There’s nothing you need to pay at this stage.
Once the accounts are complete, we’ll write to you again to let you know:
Why the delay?
We’ve recently upgraded our internal service charge system to better serve you in the long run. But like many system changes, it came with a few teething problems, especially around how costs are processed. This caused a delay in finalising some of the accounts.
We understand this may be frustrating, and we really appreciate your patience while our team works through things as quickly and carefully as possible.
What happens next?
Once the final accounts are complete, we’ll:
Thanks for your patience
We understand this kind of notice can raise questions and concerns. Please know we’re doing everything we can to complete the final accounts and get accurate information to you as soon as possible. If you’ve any questions, feel free to contact our customer support team - we’re here to help. In the meantime, we’ve answered some common questions below.
It’s a legal notice under the Landlord and Tenant Act 1985. It tells you that costs have been incurred for services provided to your building or estate - and that you may need to contribute through your service charge. Even if the final total isn’t ready yet, we’re legally required to inform you now.
No, this notice is purely for your information. You’re not being asked to make a payment at this time.
These are expenses we’ve already paid for services like maintenance, repairs, or cleaning in your estate/block. You may see these in your final service charge statement.
We’re still reviewing and finalising the year-end accounts. This delay is partly due to system changes that affected how costs were recorded. Once the review is complete, we’ll confirm your individual share.
If you’ve already made regular service charge payments, those will be factored into your final account. We’ll let you know if you’ve overpaid (and are due a refund) or if there’s a balance still outstanding.
Yes. If the final accounts show that you paid more than your share, we’ll refund the difference, either as a credit to your rent/service charge account or it will be carried forward and used to reduce your charges from April 2026, depending on the terms of your agreement with us.
If the accounts show that your contributions didn’t fully cover your share of the costs, we’ll let you know how much is still due and how to pay.
We’re working hard to finalise the accounts and will notify you as soon as they’re ready. While we can’t give a firm date yet, we’ll keep you updated.
They typically include services like general maintenance, cleaning, repairs, and upkeep of communal areas. You’ll receive a full breakdown in the final accounts.
Yes, absolutely. Once you receive your final statement, you can contact us if something doesn’t look right. We’re happy to go over the details with you.
Yes. Once you receive your final account, you can make a formal request under Section 22 of the Landlord and Tenant Act 1985 to view the supporting invoices.
Because we’re still working on the final accounts, the Section 20B notice is a way of ensuring you’re officially informed about the costs incurred in the meantime, as required by law.
Your lease or tenancy agreement outlines how service charges are divided. Your share is based on that agreement and the total cost of services provided to your estate/block.
We’re aware of the delay and are actively working to clear the backlog. You’ll receive those statements before the one for 2024/25.
