What is the purpose of a Section 20 Notice?

The purpose of a Section 20 Notice is to formally notify leaseholders of significant changes to service charges, particularly when the landlord intends to carry out major works or services that will incur costs which need to be recouped through adjustment to service charges. This notice is a legal requirement under the Landlord and Tenant Act 1985, ensuring that leaseholders are informed and can respond to proposed expenditure that will directly affect their financial contributions to the building's maintenance and management costs.

Properly serving a Section 20 Notice allows leaseholders a chance to understand the nature of the works, ask questions, and even challenge costs if necessary. This process promotes transparency and accountability in leasehold management, making leaseholders aware of their rights and the obligations of their landlords with respect to charges that may be incurred.

In the context provided, the other options do not align with the main function of the Section 20 Notice. Minor repairs or meetings of the management company would not typically require such a formal notification, as they do not involve significant costs or changes to service charges that necessitate input from leaseholders. Similarly, imposing additional lease restrictions would fall under different legal frameworks and not be addressed through a Section 20 Notice.