Court of Appeal on time of demands and legal costs in service charges – Nearly Legal

Posted December 1st, 2021 in appeals, costs, housing, landlord & tenant, leases, news, service charges, tribunals by sally

‘A second appeal to the Court of Appeal from the Upper Tribunal on a service charge dispute – a decision we briefly noted as Kensquare Ltd v Adwoa & Anor here. There were two main issues, both of some significance, but the one on the recovery of freeholder’s costs of FTT proceedings through the service charge is likely to be of the broader importance.’

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Nearly Legal, 30th November 2021

Source: nearlylegal.co.uk

Late service charge demands and the importance of contemplating forfeiture for recovering legal costs – Nearly Legal

Posted September 6th, 2021 in appeals, costs, housing, landlord & tenant, leases, news, service charges by tracey

‘This was a second appeal to the Court of Appeal from the Upper Tribunal on two issues arising from long running litigation between the freeholder, West India Quay and the head lessee, East Tower Apartments (ETAL) on the arrangements for and charging for utilities for the residential parts of the building (a 33 storey tower, including a hotel). The initial proceedings brought by ETAL had gone through the FTT and the Upper Tribunal and had resulted in a significant reduction in charges. For our purposes, the relevant part of these decisions where that ‘Switch 2) – the utility provider – had levied “standing charges” (actually costs for reading meters and preparing bills) from 2008 onwards. The freeholder had included these charges in the utility charge to the lessee. The FTT had found that they were not recoverable, as there had never been “a contractually valid demand for them as service charges, and it was not open to the Landlord to “re-allocate” them as general service charge.”’

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Nearly Legal, 5th September 2021

Source: nearlylegal.co.uk

Who manages the managers? – Tribunal appointed manager behaving badly – Nearly Legal

Posted August 31st, 2021 in agency, fiduciary duty, landlord & tenant, news, service charges, tribunals by sally

‘A cautionary tale of a Tribunal appointed manager behaving badly and a reminder that the appointed manager’s duty is to carry out what is in the order appointing them, and that they answer to the Tribunal as an officer of the Tribunal.’

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Nearly Legal, 30th August 2021

Source: nearlylegal.co.uk

No defence, no reasonableness – service charges and referral to the Tribunal. – Nearly Legal

Posted June 11th, 2021 in appeals, housing, landlord & tenant, news, service charges, striking out, tribunals by tracey

‘Gell v 32 St John’s Road (Eastbourne) Management Company Ltd (2021) EWCA Civ 789. This is one of those cases where the Court of Appeal says “It is perhaps surprising that in the 35 years since the Landlord and Tenant Act 1985 was enacted the effect on a claim for service charges of the striking out of a defence has not been determined”, and my first reaction is that really, it is rather surprising that it has come up at all. Nonetheless, it has, and if you have spent 35 years waiting for clarity on this point, you are in luck. However, the judgment does have some significant things to say about referrals to the First Tier Tribunal (PC) from the courts, and the position after a struck out defence.’

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Nearly Legal, 6th June 2021

Source: nearlylegal.co.uk

Aster Communities v Chapman & Others [2021] EWCA Civ 660 – Tanfield Chambers

‘In Aster Communities v Chapman & Others [2021] EWCA Civ 660 (“Aster”) the Court of Appeal considered the circumstances in which the First-tier Tribunal (“the FTT”) may grant a landlord dispensation from the service charge consultation requirements prescribed by s. 20 of the Landlord and Tenant Act 1985 (“the 1985 Act”).’

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Tanfield Chambers, 10th May 2021

Source: www.tanfieldchambers.co.uk

Between repairs and structural defects – Nearly Legal

Posted April 6th, 2021 in leases, news, repairs, service charges by sally

‘This was the Court of Appeal judgment on an appeal from the Upper Tribunal … where the issue was whether the leaseholders were liable under their service charge for the costs of works by City of London, the freeholder, to remedy structural defects.’

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Nearly Legal, 4th April 2021

Source: nearlylegal.co.uk

Leaseholders win battle with City of London over service charges – Local Government Lawyer

Posted March 31st, 2021 in leases, local government, London, news, repairs, service charges by tracey

‘Leaseholders have won a Court of Appeal case against the City of London Corporation over whether certain repairs to their homes are chargeable to them.’

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Local Government Lawyer, 31st March 2021

Source: www.localgovernmentlawyer.co.uk

Leasehold miscellany – Nearly Legal

Posted March 8th, 2021 in appeals, costs, housing, landlord & tenant, leases, news, service charges, tribunals by tracey

‘Some brief notes on Upper Tribunal and Court of Appeal judgments on leasehold matters.’

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Nearly Legal, 6th March 2021

Source: nearlylegal.co.uk

Repairs, renewals and ‘like for like’ – Nearly Legal

Posted October 1st, 2020 in landlord & tenant, local government, news, repairs, service charges by sally

‘A rather odd Upper Tribunal appeal of an FTT decision as to whether the costs of a new roof to parts of a block of flats would be recoverable under the service charge.. which takes us into the nature of a repair or renewal and how far it needs to be ‘like for like’ or whether it simply needs to be such as to make the property ‘reasonably fit for occupation’.’

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Nearly Legal, 30th September 2020

Source: nearlylegal.co.uk

Dispensing with section 20 – requirements on landlord – Nearly Legal

Posted July 6th, 2020 in consultations, housing, landlord & tenant, news, service charges, tribunals by sally

‘Where a landlord is looking to do works that would cost residential leaseholders more than £250 each under the service charge, they have to follow the section 20 Landlord and Tenant Act 1985 consultation requirements. If they don’t, then they can only recover £250 from each leaseholder, unless they apply to the First Tier Tribunal for dispensation from s.20.’

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Nearly Legal, 4th July 2020

Source: nearlylegal.co.uk

Landlord’s certification conclusive and binding on issues of law? – Hardwicke Chambers

Posted June 11th, 2020 in covenants, landlord & tenant, news, rent, repairs, service charges, set-off by sally

‘This appeal was against the Deputy Master’s refusal in [2019] EWHC 3414 (Ch) to dismiss Blacks, the tenant’s counterclaim or to grant a summary money judgement in relation to S&H, the landlord’s claim for rent for over £400,000. It raised complicated issues concerning the construction and inter-relation between a set-off clause and a certification provision.’

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Hardwicke Chambers, 10th June 2020

Source: hardwicke.co.uk

No.1 West India Quay (Residential) Ltd v East Tower Apartments Ltd [2020] UKUT 163 (LC) Martin Rodger QC, Deputy President – Landmark Chambers

‘The Landlord and Tenant Act 1985 makes detailed provision for the regulation of residential service charges payable by long leaseholders. In particular, s.20B(1), 1985 Act provides that a tenant is not liable to pay service charges which were incurred more than 18 months before a demand for payment was served on the tenant. That provision does not apply if, within the same 18 month period, the tenant is notified in writing that the costs have been incurred and that he will subsequently be required under the terms of his lease to contribute to them by payment of a service charge (s.20B(2)). In Brent LBC v Shulem B Association Ltd [2011] 1 WLR 3014, the High Court held that the “demand” for the purposes of s.20B(1) had to be a contractually valid demand. That decision was approved – without argument to the contrary – in Skelton v DBS Homes (Kings Hill) Ltd [2017] EWCA Civ 1139.’

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Landmark Chambers, 2nd June 2020

Source: www.landmarkchambers.co.uk

Residential Service Charge – Time for Reform? – Becket Chambers

‘On Halloween in 2003, the Service Charge (Consultation Requirements) (England) Regulations 2003 (the “Regulations”) came into force, amending section 20 of the Landlord and Tenant Act 1985 (“LTA 1985”). This amendment set a financial limit to works carried out on a residential building, beyond which a landlord would have to consult with tenants. That threshold is £250 per tenant. The nature of the consultation is prescribed by section 20 LTA 1985.’

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Becket Chambers, 27th May 2020

Source: becket-chambers.co.uk

Distinguishing a Crock from a Gater – Hardwicke Chambers

Posted June 2nd, 2020 in covenants, landlord & tenant, news, service charges by sally

‘[Landlord & Tenant Act 1985] s.27A(6) provides that:

An agreement by the tenant of a dwelling (other than a post-dispute arbitration agreement) is void in so far as it purports to provide for a determination—(a) in a particular manner, or (b) on particular evidence,
of any question which may be the subject of an application under subsection (1) …’

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Hardwicke Chambers, 28th May 2020

Source: hardwicke.co.uk

Service Charges and Management during the Covid-19 Pandemic: Legal Issues – Tanfield Chambers

Posted May 5th, 2020 in coronavirus, landlord & tenant, leases, news, service charges by sally

‘Leaseholders and landlords of residential leasehold properties face difficulties without any direct precedent in modern times. In particular, the sudden collapse in leaseholder incomes has had a dramatic effect on service charge receipts. The challenges pose numerous legal questions.’

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Tanfield Chambers, 1st May 2020

Source: www.tanfieldchambers.co.uk

Oung Lin Chaun-Hui & Ors v K Group Holdings Inc & Ors – Tanfield Chambers

Posted April 20th, 2020 in chambers articles, housing, landlord & tenant, news, service charges, tribunals by sally

‘The Upper Tribunal considered the status of service charges recovered by a manager appointed under section 24 of the Landlord and Tenant Act 1987.’

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Tanfield Chambers, 2nd April 2020

Source: www.tanfieldchambers.co.uk

Martha Timbo v The Mayor and Burgess of the London Borough of Lambeth [2019] EWHC 1396 (Ch) – Tanfield Chambers

‘In a claim for relief from forfeiture the High Court refused to order relief where there was no good reason for delay beyond 6 months from re-entry, whether this resulted in a windfall for the landlord was irrelevant to the question of promptness.’

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Tanfield Chambers, 25th February 2020

Source: www.tanfieldchambers.co.uk

Certainty of delivery of notices – Upper Tribunal on the burden of proof – Nearly Legal

‘A quick note on a Upper Tribunal (LC) appeal concerning whether services charge demands had been delivered. At first instance, the FTT had reached a decision about the reasonableness of the service charge demands, but in respect of the respondent, it held that the charges were not payable by the respondent because she had not received the demands.’

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Nearly Legal, 22nd February 2020

Source: nearlylegal.co.uk

London Borough of Southwark v Royce & Nicoue [2019] UKUT 331 (LC) – Tanfield Chambers

‘The First Tier Tribunal had been entitled to reach the conclusions it had as to the degree of separation between two heating systems on adjoining estates. On that basis, the interpretation they had reached of the service charge provisions in the relevant leases was correct, as costs incurred replacing pipes on one estate were not costs “incidental” to the provision of services on the other.’

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Tanfield Chambers, 21st January 2020

Source: www.tanfieldchambers.co.uk

Adriatic Land 1 (GR3) Limited v Miller & Others – Tanfield Chambers

Posted January 28th, 2020 in insolvency, landlord & tenant, leases, news, service charges by sally

‘On an appeal against a determination of the First-Tier Tribunal (FTT) as to the reasonableness and payability of service charges, the Upper Tribunal found that the FTT had erred in its construction of the residential leases.’

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Tanfield Chambers, 21st January 2020

Source: www.tanfieldchambers.co.uk