Cost Recovery for Landlords Under Leasehold Reform Act

OUTCOME: Allowed

© CROWN COPYRIGHT 2018

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : BIR/41UB/OC6/2018/0008 Property : 14 [ADDRESS], [POSTCODE]

Applicant: [redacted] : [NAME]

Respondents : [redacted] [COMPANY] (2) Representative :

Stevensons, Solicitors

Type of Application : Application under Section 21(1)(ba) of the Leasehold Reform Act 1967 (The Act) for a determination of the landlord’s reasonable costs payable pursuant to Section 9(4) of the Act. Tribunal Members : Judge S McClure Nick Wint FRICS Date of Decision : 13 December 2018

DECISION

2 Decision 1. The Tribunal determines that the reasonable legal costs of the Respondents in dealing with the matters in section 9(4) of the Leasehold Reform Act 1967 are £1192.50 (plus VAT), together with valuer’s fee of £525 (plus VAT), Land Registry Fee of £12 and postage of £6.40. Background 2. The Applicant holds the property at [ADDRESS] (the Property) by way of a lease dated 30 December 1970.

3. On 30 April 2018, following a determination by the Tribunal of the price payable by the Applicant for the freehold, the Applicant applied to the Tribunal for a determination of the Respondents’ costs payable by the Applicant under section 21(1)(ba) of the 1967 Act. Submissions 4. The Tribunal determined the matter on the basis of written submissions with supporting evidence, from the parties. The submissions of the Applicant were dated 19 October 2018, and of the Respondents, 24 October 2018.

5. The valuation fee of £525 plus VAT is agreed.

6. The Applicant did not challenge the hourly rate of £265.00, Land Registry costs, and postage. The amount of work incurred was challenged.

Reasons 7. The Applicant served two Notices of Claim upon the Respondent. It is accepted by the Applicant that the first Notice contained an error, in that the Respondent was named as [RESPONDENT] instead of [COMPANY]. The Tribunal finds that the first incorrect Notice required the Respondent to undertake work for which the Applicant must pay. The Applicant accepted a modest amount of additional work. The Tribunal found a higher amount of additional work than that proposed by the Applicant was reasonably incurred.

8. The Applicant submitted that service of a Notice in Reply (counter- notice) does not come with paragraphs (a) to (d) of section 9(4) of the Act, relying on the 5th edition of Hague, page 170. The Tribunal finds that service of a Notice in Reply does come within those paragraphs,

3 and relies upon the case cited by the Respondents of [COMPANY] v Wisbey [2016] UKUT 0203 (LC). The Applicant is responsible for the Respondents’ reasonable costs of the counter-notice.

9. The Respondents’ claimed costs and the Applicant’s proposed costs are set out in the table below, together with the Tribunal’s determinations. The Tribunal finds that the amount of work allowed by the Tribunal was reasonably incurred. Re Notice of Claim dated 16 November 2017 No. Date Item Claimed Offered Tribunal 1 29/11/2017 Attendances on client 5 3 5 2 04/12/2017 Notices re title and deposit 2 0 2 3 08/12/2017 Considering lease and OCE 3 0 2 4 22/12/2017 Considering Tenant’s notice 2 1 1 5 03/01/2018 Drafting counter notice 6 2 2 6

Letters out to client, valuer, etc 5 2 5 A Total

23 8 17

Re Notice of Claim dated 1 February 2018

7 01/02/2018 Attendances on client 3 2 2 8 02/02/2018 Considering lease and OCE 2 1 1 9 06/02/2018 Considering Tenant’s notice 2 1 1 10 06/03/2018 Drafting counter notice 6 2 2 11 Estimated Considering draft transfer 3 3 3 12 Estimated Negotiating terms 5 3 5 13 Estimated Further steps re transfer 3 2 3 14 Estimated Checking engrossments 1 1 1 15 Estimated Replying to requisitions 2 2 2 16 Estimated Steps to completion 3 3 3 17 Estimated Steps post completion 3 3 3 18

Letters out to client 4 2 2 B Total

37 26 28

4 10. The total amount payable by the Applicant to the Respondents is: A 17 units x £26.50 £450.50 B 28 units x £26.50 £742.00 Subtotal

£1192.50 VAT @ 20%

£238.50 Land Registry costs £12.00 Postage

£6.40 Total

£1449.40 11. The amount payable by the Applicant to the Respondents is £1449.40 plus the agreed valuer’s costs of £525.00 plus VAT. If either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber). Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this decision. Name: Judge S McClure

Date: 13 December 2018