A more-than-year-long investigation from Haringey Liberal Democrats has resulted in Haringey Council being forced to cancel bills of over £130,000 to leaseholders who were wrongly charged for works to their homes, including refunding tens of thousands of pounds which has already been paid.
Under government legislation (Landlord and Tenant Act 1985), leaseholders are protected from being charged for works where the costs were incurred more than 18 months ago – if a landlord (in this case the council) fails to either invoice the leaseholder or issue them with what is known as a Section 20b notice within this period. If the landlord fails to do so then they should bear the cost themselves.
An initial investigation commenced in February 2023 by Haringey Lib Dem Leader, Cllr Luke Cawley-Harrison, followed by months of data gathering, meetings and pressure on senior officers, revealed at least seven projects going back to 2015 where Haringey Council had failed to follow legislation, and not invoiced or issued a Section 20b notice within the legal 18 month period.
In six of these cases a loophole (tested in court in 2017) has allowed the council to avoid giving a refund because leaseholders were told in advance of works taking place that payment would be needed at some unspecified point in future; but in one case even this process was not followed, and leaseholders were unlawfully charged.
After sustained pressure on senior council officers, Haringey Council has now confirmed a total refund of £132,643 is owed to 23 leaseholders around the borough for this case, and will be refunded within weeks.
Cllr Luke Cawley-Harrison (LD-Crouch End), Leader of the Opposition in Haringey, said:
“I am proud of the fact that after considerable work and sustained pressure over an 18 month period, leaseholders in Haringey will receive thousands of pounds in refunds which they are rightly owed.
“The council’s processes for billing leaseholders are simply not fit for purpose, and is just another part of wide-ranging significant issues with the leasehold system we have in this country. Wrongly charging residents tens of thousands of pounds should never happen, and the worst part of this situation is that it took a lengthy and intensive investigation from a councillor for these failings to be identified and corrected.
“I hope that this outcome will lead to a complete overhaul of how the council manages leaseholder works in our borough, and puts an end to the use of Section 20b notices except in absolutely exceptional circumstances. I would encourage other Local Authorities, and leaseholders, to really scrutinise any works that have used a Section 20b notice to ensure that it has followed legislation, and if not whether refunds may be due.”
