First-tier Tribunal Appoints New Manager for Mismanaged Property

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL [NAME] ([NAME]) Case reference : LON/00BJ/LAM/2025/0014 Property : [NAME], 140 [ADDRESS] [POSTCODE]

Applicants

Representative

:

(1) Mr [COUNSEL] (2) Mr [COUNSEL](1) & (2) Jointly

I/P Respondents

Representatives : (1) [COMPANY] (2) [NAME] (No 1) [COMPANY] (3) [COMPANY] (4) [COMPANY] (5) [COMPANY]

(1) N/A (2) N/A (3) N/A (4) N/A (5) Mr [NAME] (Property Manager)

Type of application : s.24 of the Landlord and Tenant Act 1987 – Appointment of Manager Tribunal members :

Judge Tagliavini Mr Kevin Ridgeway MRICS

Date of hearing Date of decision : 29 September 2025 29 October 2025 (amended 7 November 2025 – r.50 of the Tribunal Procedure (first-tier Tribunal) ([NAME]) Rules 2013

DECISION AND ORDER

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The tribunal’s decision

(1) The tribunal appoints [NAME] [APPELLANT] (Hons) FRICS as the manager for the premises at [NAME], 140 [ADDRESS] [POSTCODE] in accordance with the terms of the Order attached to this decision.

The application

1. This is an application made pursuant to s.24 of the Landlord and Tenant Act 1987 seeking the appointment of a manager for the premises known as [NAME], 140 [ADDRESS] [POSTCODE] (‘the property’) in place of the current Manager, the [NAME] respondent [NAME] (No.1) [RESPONDENT].

Background

2. The subject property comprises a mixed-use building with 75 [NAME] [NAME] one of which is retained by the first respondent; an Aparthotel; a private car park (leased by an individual under an underlease dated 29 September 2026; a commercial unit on the ground floor (part of which is currently used as a creche) and a shared car park with defined car parking spaces . The applicants are the long leaseholders of flat 57 and flat 71 respectively. The first respondent is the [NAME]. The [NAME] respondent is the current property manager and is a party to 54 private [NAME] leases and the 2 commercial headleases. The Manager is not a party to the fifth respondent’s headlease granted by the [NAME] but manages their properties on its behalf. The third respondent is the head lessor of the hotel on the [NAME]. The fourth respondent is the head lessor of 3 [NAME] in addition to the commercial space currently used as a creche as well as a number of spaces in the car park. The fifth respondent is a [COMPANY] an underlessee for 18 [NAME] which are in turn let on shared ownership sub-leases.

3. On 26 February 2025 the applicants served a s.22 Notice on the first and [NAME] respondents, setting out the grounds for the appointment of a manager. No objections to the proposed appointment of a manager were received from the first, [NAME] or any of the other respondents. In their Statement of Case the applicant asserted that:

The Applicants’ case is that the property has been mismanaged by the

current manager, with the key issues being the existing Manager’s

failure to properly apportion the service charges, unreasonably high

service charge items (in particular, management charges), and failure

to appoint staff with relevant qualifications and experience.

4. The applicants asserted that it is just and convenient for the Tribunal to appoint the proposed manager, [NAME] [APPELLANT] (Hons) FRICS to manage

3 not only the [NAME] parts of the [NAME] but for the Order to include the Whole of the [NAME] including the commercial parts.

5. In support of the application the applicants also stated in their Statement of Claim that:

In August 2023, [NAME] tenants of [NAME] made a Section 27A

application to the Tribunal for a determination on the reasonableness

of the service charges demanded by the Manager. That application

culminated in a Decision from the Tribunal on 23 February 2025. In

advance of the Hearing, the [NAME] tenants secured major benefits,

including the agreement of the Manager to fairly apportion the

Buildings Insurance for the [NAME]. Previously, the [NAME]

tenants were paying an unfairly high proportion, subsidising the

commercial tenants.

On 23 February 2025, the Tribunal issued its Decision, a copy of which

is presented in Exhibit 5. The Tribunal Decision found that the

[NAME] tenants were paying an unfairly high proportion of the

total service charges, that some services were not delivered to an

adequate standard, and that the charges for various service charge

items were unreasonably high. In the opinion of the applicants, the

Tribunal’s Decision is clear evidence to support the grounds for the

appointment of a Manager as set out in the application.

Of most critical importance is the fact that the Tribunal identified a

significant undercharging to the commercial elements of the

[NAME] vis a vis the [NAME], offering clear directions as to the

apportionments that should have applied both historically and going

forward. The current Manager appears unable or unwilling to apply

this judgement leaving no clear resolution to the issues identified by

the court. A court appointed manager would be critical to have the role

and legal powers to properly apply the judgement of the court, in

particular with respect to the apportionment between [NAME] and

commercial elements.

The hearing

6. An oral hearing of the application was held on 29 September 2025 at which the applicants represented themselves. On the first respondent was represented by Mr [RESPONDENT] who informed the tribunal he was there as more of an observer and to take notes rather than play any substantive role in the hearing.

7. Although none of the respondents objected to the appointment of a manager there was some objection to the precise terms of any appointment. This included objections made by the [NAME] respondent in a letter dated 25 September 2025 in which it was denied that service charge accounts had not been provided to leaseholders. The [NAME] respondent however accepted reapportionment of service charges had not been undertaken in accordance with the tribunal’s previous s.27A decision in LON/00BJ/LSC/2023/0323 and indicated it did not intend to do so. The tribunal was also informed that Ms [RESPONDENT], the sole director of the [NAME] respondent company actively indicated she no longer wished to manage the property.

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8. The tribunal also received a letter from the first respondent dated 26 September 2025 in which it was stated:

[NAME] has had sight of the letter dated 25 September 2025 from Mrs

[NAME] as the Director of [NAME] (No.1) [COMPANY]

(the Manager) in which she alleges monies being outstanding from

certain leaseholders including [NAME] with no supporting

documentation. [NAME] wishes to put on record that they have no

confidence in the manner in which the Manager has prepared any

accounts in relation to the [NAME] and does not agree with the

allegation that there is any debt owed to the service charge fund from

[NAME] in the sum of £17,007.61 or at all. [NAME] also confirms

that they have had no communication from the Manager or any

demands for payment.

9. In addition, in a letter date 25 September 2025 the first respondent stated:

BPIL continues to insure the [NAME] on behalf of the Tenants and

the commercial tenants on the [NAME].

In the circumstances, [NAME] opposes any application to vary the

Draft Management Order and allow the Manager to undertake

dealing with licences to assign and licences to alter as proposed at

paragraph 12.4 in place of BPIL.

As to paragraph 13 of the Applicant’s Skeleton, the Applicant seeks to

empower the Manager to issue proceedings against leaseholders, and

primarily the commercial leaseholders for allegedly “substantial

arrears accrued over the past years”. BPIL is not aware of what

arrears exist and its position has always been that all the service

charges collected have been applied by [NAME] in the

management of the [NAME].

As far as BPIL is aware no reserve fund was maintained by [NAME] and all the service charge collected from the tenants have

been applied towards the provision of services in the past. Any

restrictions placed on BPIL to perform its duties under the [APPELLANT] and

with regard to the [NAME] would potentially prejudice the

tenants, including the commercial tenants. The management of the

commercial units do not fall within the remit of section 24 of the

Landlord & Tenant Act 1987

In summary, we request on behalf of BPIL that the duties of the

Manager appointed by the Tribunal be limited to those duties as set

out in the [APPELLANT] which are undertaken by [NAME] and that they

should not limit or restrict the right of BPIL as the [NAME] and

Landlord to act and take any steps required under the terms of the

[APPELLANT]

5 10. At the hearing the tribunal was provided with a hearing bundle of 257 digital pages and also heard oral evidence from Mr [APPELLANT] the proposed manager as well as provided with his written statement and Management Plan dated 15 August 2025.

11. During the hearing it became apparent the applicants were very much focused on the retrospective reallocation of service charge percentages and the collection of service charge arrears. In contrast Mr [APPELLANT] told the tribunal he would primarily be concerned with current and future issues in view of the difficulties of reapportionment and the likelihood of ‘time-barred’ defences being raised in respect of arrears accrued since at least 2016. In any event, he asserted that were powers to address these ‘past’ issues to be given by the tribunal they would necessarily attract a distinct set of fees and would be likely to require the assistance of a forensic accountant.

12. Mr [APPELLANT] also told the tribunal he was seeking power to invoice individual tenants directly rather than go through the landlord. Further, he would like the power to request an initial sum of £500 from every leaseholder in order to provide a fund for future costs.

The tribunal’s reasons

13. In the absence of any responses to the s.22 Notice or objections to the application as well as the tribunal’s comprehensive decision in LON/00BJ/LSC/2023/0323, the tribunal is satisfied there have been past and continuing breaches of the applicants’ [APPELLANT] in connection with the provision of services and the demand for payment of unreasonable service charges.

14. The relevant parts of section 24 of the Landlord and Tenant Act 1987 states:

(1) The appropriate tribunal may, on an application for an order

under this section, by order (whether interlocutory or final) appoint a

manager to carry out in relation to any premises to which this Part

applies—

(a)such functions in connection with the management of the premises,

or

(b)such functions of a [NAME],

or both, as the tribunal thinks fit.

(2) The appropriate tribunal may only make an order under this

section in the following circumstances, namely—

(a)where the tribunal is satisfied—

(i)that any relevant person either is in breach of any obligation owed

by him to the tenant under his tenancy and relating to the

management of the premises in question or any part of them or (in the

case of an obligation dependent on notice) would be in breach of any

such obligation but for the fact that it has not been reasonably

practicable for the tenant to give him the appropriate notice, and

(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii)that it is just and convenient to make the order in all the

circumstances of the case;

(ab)where the tribunal is satisfied—

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(i)that unreasonable service charges have been made, or are proposed

or likely to be made, and

(ii)that it is just and convenient to make the order in all the

circumstances of the case;

…

15. In considering the terms of the Management Order, the tribunal was not persuaded, it was necessary or reasonable for the [NAME]’s power to grant permissions/assignment of leases to be given to the Manager. Therefore, the tribunal declines to do so.

16. The tribunal considers that the complexity and the inter-linked nature of the [NAME] and the ongoing need to reapportion the percentage of service charges payable by both [NAME] and commercial leaseholders, is likely to leave the commercial units with an increase to their service charge contributions. Therefore, the tribunal considers it is preferable for the Manager to have the power to manage the entirety of the [NAME] and to collect service charges (including insurance) directly from all of the leaseholders (both [NAME] and commercial in their respective reapportioned amounts. This may reduce the need for further potential disputes as to the amount of service charges that are payable.

17. The tribunal, however, reserves its position in respect of ordering the [NAME] respondent to recalculate and reissue service charge accounts from 2016 to date, given the likelihood of resistance to such an order. Further, the tribunal considers that if Mr [APPELLANT] is given powers to retrospectively recalculate service charges and collect arrears, this should be subject to a further specific application in which the mechanisms of how this can be achieved can be further scrutinised by the tribunal and the parties concerned.

18. The tribunal considers that in the absence of the collection of a reserve fund, it is prudent to collect an initial sum of £500 from each leaseholder as requested by [APPELLANT]

19. In conclusion the tribunal appoints [NAME] [APPELLANT] as the Manager of [NAME], [ADDRESS] [POSTCODE] for a period of 5 years commencing on 1 December 2025 in accordance with terms of the Management Order attached to this decision.

Name: Judge Tagliavini

Date: 29 October 2025

Rights of appeal

By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) ([NAME]) Rules 2013, the Tribunal is required to notify the parties about any right of appeal they may have.

If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First-tier Tribunal at the [NAME] which has been dealing with the case. The application should be made on [APPELLANT] available at

7 https://www.gov.uk/government/publications/[APPELLANT]-rp-pta-application-for- permission-to-appeal-a-decision-to-the-upper-tribunal-lands-chamber

The application for permission to appeal must arrive at the [NAME] within 28 days after the Tribunal sends written reasons for the decision to the person making the application.

If the application is not made within the 28-day time limit, such application must include a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the application for permission to appeal to proceed, despite not being within the time limit.

The application for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party making the application is seeking.

If the Tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).

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FIRST-TIER TRIBUNAL [NAME] ([NAME])

Case Reference:

LON/00BJ/LAM/2025/0014

Property:

[NAME], [ADDRESS] [POSTCODE]

Applicants:

[redacted]

the Tribunal order dated 24th June 2025

Respondents:

[redacted]

(2) [NAME] (No 1) [COMPANY]

(3) [COMPANY]

(4) [COMPANY]

(5) [ADDRESS]

Tribunal appointed Manager: [NAME] [APPELLANT] (Hons) FRICS

Date of Order:

29 October 2025

__________________________________________________________

MANAGEMENT ORDER

_____________________________________________________

Interpretation

1. In this Order:

‘The Property’ means the [NAME], hotel, car park and other commercial premises known as [NAME], 140 [ADDRESS] [POSTCODE] and registered at HM Land Registry under title number LN52585 and shall include the building, outhouses, gardens, amenity space, drives, courtyard, pathways landscaped areas, flower beds, passages, bin-stores, common parts, storage rooms, basements, car park, electricity and power rooms; and all other parts of the property.

‘The Landlord’ shall mean [RESPONDENT] or their successors in title to the reversion immediately expectant upon the Leases.

‘The Tenants’ shall mean the proprietors for the time being of the Leases whether as lessee or under-lessee and "Tenant” shall be construed accordingly.

‘The Leases’ shall mean all leases and/or underleases of [NAME], hotel, car park and commercial premises in the Property.

‘The Manager’ means [NAME] [APPELLANT] (Hons) FRICS

‘The Tribunal’ means the First-tier Tribunal ([NAME])

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ORDER

2. In accordance with section 24(1) of the Landlord and Tenant Act 1987 (“the Act”) [NAME] [APPELLANT] (Hons) FRICS of [APPELLANT] is appointed as Manager of the Property.

3. The Manager’s appointment shall start on 1 December 2026 2025 (‘the start date’) and shall end on 30 November 2031 2030 (‘the end date’).

4. For the avoidance of doubt this Order supplements but does not displace covenants under the Leases and the Tenants remain bound by them. Where there is a conflict between the provisions of the Order and the Leases, the provisions of the Order take precedence.

5. The purpose of this Management Order is to provide for the management of the

Property which includes taking steps to resolve the following problems of inadequate management including:

(a) Failure to manage the property in accordance with the terms of the

leases.

(b) Failure to prepare an accurate and reasonable Service Charge budget,

apportionments and to account for service charge monies expended and

demanded from leaseholders, and failure to prepare Service Charge

Accounts in accordance with the Code of Practice. This is subject to

a further application being made by the Manager with specific

proposals as to how this is going to be achieved in respect of

service charges pre-dating this Management Order.

(c) Failure to repair maintain and redecorate the property in accordance

with the terms of the leases.

(d) Failure to ensure statutory compliance with Fire and Health & Safety

legislation and best practice.

(e) Failure to adequately insure the property.

(f) Failure of the Respondent to perform its covenants and functions under

the terms of the Leases

6. Subject to the reapportionment of future service charges in accordance with any reasonable method identified by the tribunal in its decision LON/00BJ/LSC/2023/0323 and in order to address the steps identified in the previous paragraph, the Manager is empowered to:

(a) Prepare a Service Charge Budget and demand sums on account from

the [NAME] and commercial Tenants.

(b) Demand from the Landlord any future shortfall or sums that are

irrecoverable from any Tenant of the hotel, car park or commercial

premises;

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(c) Review the adequacy of the Reinstatement Cost Assessment for the

Building.

(d) Arrange for the property to be insured for the usual risks, to recover the

premium from the Tenants and to provide adequate certification that

the property is insured.

(e) Arrange for Fire and Health & Safety Risk Assessments to be

undertaken.

(f) Within 6 months of the end of each calendar year to prepare service

charge accounts and to demand / repay any surplus/deficit from the

tenants. Any shortfall from the commercial tenant / premises to be

chargeable to the Landlord.

(g) Plan for all necessary repairs and maintenance to take place and for the

property to be redecorated in accordance with the terms of the Leases.

(h) Where not previously provided, demand and receive Service Charge

accounts from the Landlord and/or [NAME] (No 1) [RESPONDENT] for all

periods with which the property was under its/their management and

in the event that the Landlord/ [NAME] (No 1) [RESPONDENT] fails to

provide such accounts within a period of 3 months, to receive all monies

demanded and that remain unpaid to the Landlord/ [NAME]

(No 1) [RESPONDENT] which cannot be accounted for.

(i) Take over responsibility for any outstanding insurance claims made on

the property insurance.

7. The Manager shall manage the Property in accordance with:

(a) the terms of this Order and the Directions set out below;

(b) the respective obligations of the Landlord and the Tenants

under the Leases whereby the Property is demised by the Landlord

(save where modified by this Order);

(c) the duties of a Manager are set out in the Service [NAME]

Management Code (“the Code”) (3rd Edition) or such other

replacement code published by the Royal Institution of Chartered

Surveyors (“RICS”) and approved by the Secretary of State pursuant to

section 87 Leasehold Reform Housing and [NAME]

1993(whether the Manager is a Member of the RICS or not;

and

(d) the provisions of sections 18 to 30 of the Landlord and Tenant Act 1985.

8. From the date this Order comes into effect, no other party shall be entitled to exercise a management function in respect of the Property where the same is the

responsibility of the Manager under this Order.

9. The tribunal requires the Manager to act fairly and impartially in the performance of their functions under this Order and with the skill, care and

11 diligence to be reasonably expected of a Manager experienced in carrying out work of a similar scope and complexity to that required for the performance of the said functions.

10. The Manager or any other interested person may apply to vary or discharge this

Order pursuant to the provisions of section 24(9) of the Act.

11. The Tribunal may, upon receipt of information or notification of change of circumstances, issue directions to the parties, or any other interested person,

concerning the operation of this Order, both during its term, and after its expiry.

12. Any application to extend or renew this Order must be made before the end date,

preferably at least three months before that date and supported by a brief report of the management of the Property during the period of the appointment. Where an application for an extension or renewal is made prior to the end date, then the

Manager’s appointment will continue until that application has been finally determined.

13. The Manager is appointed to take all decisions about the management of the Property necessary to achieve the purposes of this Order. If the Manager is unable to decide what course to take, the Manager may apply to the Tribunal for further directions, in accordance with section 24(4), Landlord and Tenant Act 1987. Circumstances in which a request for such directions may be appropriate include, but are not limited to:

Contracts

(a) a serious or persistent failure by any party to comply with an obligation

imposed by this Order;

(b) circumstances where there are insufficient sums held by the Manager

to discharge their obligations under this Order and/or for the parties to

pay the Manager’s remuneration; and

(c) where the Manager is in doubt as to the proper construction and

meaning of this Order.

14. Rights and liabilities arising under contracts, including any contract of insurance and/or any contract for the provision of any services to the Property, to which the Manager is not a party, but which are relevant to the management of the Property, shall upon the date of appointment become rights and liabilities of the Manager, save that:

(a) the Landlord shall indemnify the Manager for any liabilities

arising before commencement of this Order; and

(b) the Manager has the right to decide, in their absolute discretion, the

contracts in respect of which they will assume such rights and liabilities,

with such decision to be communicated in writing to the relevant parties

within 56 days from the date this order.

12 15. The Manager may place, supervise and administer contracts and check demands for payment of goods, services and equipment supplied for the benefit of the Property.

Pre-contract enquiries

17. The Manager shall be responsible for responding to pre-contract enquiries regarding the sale of a [NAME] flat at the Property.

18. The Manager may bring or defend any court or tribunal proceedings relating to

management of the Property (whether contractual or tortious) and subject to the

approval of the Tribunal, may continue to bring or defend proceedings relating to the appointment, after the end of their appointment.

19. Such entitlement includes bringing proceedings in respect of arrears of service charge and rent attributable to any of the [NAME], Hotel, [ADDRESS] or Commercial Premises in the Property, including, where appropriate, proceedings before this tribunal under section 27A of the Landlord and Tenant Act 1985 and in respect of administration charges under schedule 11 of the Commonhold and Leasehold Reform Act 2002 or under section 168(4) of that Act or before the courts and shall further include any appeal against any decision made in any such proceedings.

20. The Manager may instruct solicitors, counsel, and other professionals in seeking to bring or defend legal proceedings and is entitled to be reimbursed from the service charge account in respect of costs, disbursements or VAT reasonably incurred in doing so during, or after, this appointment. If costs paid from the service charge are subsequently recovered from another party, those costs must be refunded to the service charge account.

Remuneration

21. The [NAME] are responsible for payment of the Managers’ fees, which are payable under the provisions of this Order but which may be collected under the service charge mechanisms of their Leases and the Tenants of the shared car park and commercial premises are responsible for payment of those fees in the appropriate proportion. The Tenant of the private car parking space is responsible for the payment of the sum charged under the terms of that [APPELLANT].

23. The sums payable are:

(a) an annual fee of £400 per flat for performing the duties set out in

paragraph 3.4 of the RICS Code (so far as applicable);

(b) an annual fee of £19,760 in the appropriate proportions for the

hotel, shared car park and commercial premises for performing

the duties set out in paragraph 3.4 of the RICS Code (so far as

applicable);

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(c) any additional fees contained in a schedule to this Order for the

duties set out in paragraph 3.5 of the RICS Code (so far as

applicable); and

(d) VAT on the above fees.

(e) an annual indexation of the above fees by 4.0% per annum.

24. The Manager shall not collect the ground rents payable under the [NAME].

25. The Manager shall collect directly from all leaseholders, whether [NAME] or commercial, all service charges and insurance premium contributions payable under the Leases, in accordance with the terms and mechanisms in the Leases.

26. If appropriate:

whether or not the terms of any [APPELLANT] so provides, the Manager shall

have the authority to:

(a) demand payments in advance and balancing payments at the end of the

accounting year;

(b) establish a sinking fund to meet the Landlord’s obligations under the

Leases;

(c) allocate credits of service charge due to Tenants at the end of the

accounting year to the sinking fund;

(d) alter the accounting year and to collect arrears of service charge and

insurance that have accrued before their appointment.

27. The Manager may set, demand and collect a reasonable service charge to be paid by the hotel, car park and commercial Tenants and the Landlord (as if he were a lessee), in respect of any unused premises in part of the Property retained by the Landlord, or let on terms which do not require the payment of a service charge.

28. To ensure that the Manager has adequate funds to manage the Property, the Manager may immediately collect £500.00 from each Tenant and, as the case may be, £500.00 from the Landlord. Any sum demanded by the Manager shall be payable within 28 days.

29. The Manager is entitled to recover through the service charge the reasonable cost and fees of any surveyors, architects, solicitors, counsel, and other professional persons or firms incurred by them whilst carrying out their functions under the Order.

Administration Charges

30. The Manager may recover administration charges from individual Tenants for their costs incurred in collecting ground rent, service charges and insurance which includes the costs of reminder letters, transfer of files to solicitors and

14 letters before action. Such charges will be subject to legal requirements as set out in schedule 11 of the Commonhold and Leasehold Reform Act 2002. The Details of the fees charged are set out in the Appendix of additional fees.

Disputes

31. In the event of a dispute regarding the payability of any sum payable under this Order by the lessees, additional to those under the Leases (including as to the remuneration payable to the Manager and litigation costs incurred by the Manager), a Tenant, or the Manager, may apply to the tribunal seeking a determination under section 27A of the Landlord and Tenant Act 1985 as to whether the sum in dispute is payable and, if so, in what amount.

32. In the event of a dispute regarding the payability of any sum payable under this Order by the landlord, other than a payment under a [APPELLANT], the Manager or the Landlord may apply to the tribunal seeking a determination as to whether the sum in dispute is payable and, if so, in what amount.

33. In the event of dispute regarding the conduct of the management of the property by the Manager, any person interested may apply to the Tribunal to vary or discharge the order in accordance with section 24(9) of the Landlord and Tenant Act 1987.

34. In the event of a dispute regarding the reimbursement of unexpended monies at the end of the Manager’s appointment, the Manager, a Tenant, or the Landlord may apply to the Tribunal for a determination as to what monies, if any, are payable, to whom, and in what amount.

DIRECTIONS TO LANDLORD

35. The Landlord must comply with the terms of this Order.

36. On any disposition, other than a charge of the Landlord’s estate in the Property, the Landlord will procure from the person to whom the Property is to be conveyed, a direct covenant with the Manager, that the said person will (a) comply with the terms of this Order; and (b) on any future disposition (other than a charge) procure a direct covenant in the same terms from the person to whom the Property is to be conveyed.

37. The Landlord shall give all reasonable assistance and co-operation to the Manager in pursuance of their functions, rights, duties and powers under this Order, and shall not interfere or attempt to interfere with the exercise of any of the Manager’s said rights, duties or powers except by due process of law.

38. The Landlord is to allow the Manager and their employees and agents access to all parts of the Property and must provide keys, passwords, and any other documents or information necessary for the practical management of the Property in order that the Manager might conveniently perform their functions and duties and exercise their powers under this Order.

39. Within 30 days from the date of this Order the Landlord must provide all necessary information to the Manager to provide for an orderly transfer of responsibilities, to include the transfer of:

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(a) all accounts, books and records relating to the Property, including a

complete record of all unpaid service charges and a list of debts and

debtors;

and

(b) all funds relating to the Property including uncommitted service

charges and any monies standing to the credit of a reserve or sinking

fund.

(c) A full claims history for the insurance policies held in respect of the

Property

DIRECTIONS TO MANAGER

40. The Manager must adhere to the terms of the Order above.

Entry of a [APPELLANT] L restriction in the Register of the Landlord’s Registered Estate

41. To protect the direction in paragraph 36 for procurement by the Landlord, of a direct covenant with the Manager, the Manager must apply for the entry of the following restriction in the register of the Landlord’s estate under title no(s) LN52585.

‘No disposition of the registered estate (other than a charge) by the proprietor of the registered estate, or by the proprietor of any registered charge, not being a charge registered before the entry of this restriction, is to be completed by registration without a certificate signed by the applicant for registration [or their conveyancer] that the provisions of paragraph 36 of an Order of the Tribunal dated ____.

Registration

42. The Manager must make an application to HM Land Registry for entry of the

restriction referred to in paragraph 41, within 14 days of the date of this Order.

Careful cross-check of the paragraph numbering of the Directions to the Manager above is essential

43. A copy of the Order should accompany the application (unless it is submitted by a solicitor able to make the necessary declaration at Box 8(c) of the RX1 application [APPELLANT]). The application should confirm that:

• this is an Order made under the Landlord and Tenant Act 1987, Part II

(Appointment of Managers by a Tribunal) and that pursuant to section

24(8) of the 1987 Act, the Land Registration Act 2002 shall apply in

relation to an Order made under this section as they apply in relation

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to an order appointing a [NAME] or sequestrator of land.

• Consequently, pursuant to Rule 93(s) of the Land Registration Rules

2003, the Manager is a person regarded as having sufficient interest to

apply for a restriction in standard [APPELLANT] L or N.

Conflicts of Interest

44. The Manager must be astute to avoid any Conflict of Interest between their duties and obligations under this Order, and their contractual dealings. Where in doubt, the Manager should apply to the Tribunal for directions.

Complaints

45. The Manager must operate a complaints procedure in accordance with, or substantially similar to, the requirements of the Royal Institution of Chartered Surveyors.

Insurance

46. The Manager must maintain appropriate building insurance for the Property and

ensure that the Manager’s interest is noted on the insurance policy.

47. From the date of appointment, and throughout the appointment, the Manager must ensure that he has appropriate professional indemnity insurance cover in the sum of at least £2 million and shall provide copies of the certificate of liability insurance to the Tribunal, and, upon request, to any Tenant or the Landlord.

The Certificate should specifically state that it applies to the duties of a Tribunal

appointed Manager.

Accounts

48. The Manager must:

(a) prepare and submit to the Landlord and the Tenants an annual

statement of account detailing all monies receivable, received and

expended. The accounts are to be certified by the external auditor, if

required under the Leases;

(b) maintain efficient records and books of account and to produce for

these for inspection, to include receipts or other evidence of

expenditure, upon request by the Landlord or a Tenant under section

22 Landlord and Tenant Act 1985;

(c) maintain on trust in an interest-bearing account at such bank or

building society, as the Manager shall from time to time decide, into

which service charge contributions, Insurance Rent, and all other

monies arising under the Leases shall be paid; and

(d) hold all monies collected in accordance with the provisions of the Code.

17 Repairs and maintenance

49. The Manager must:

(a) By 30th June 2026 draw up a planned maintenance program for the

period of the appointment, allowing for the periodic re-decoration and

repair of the exterior and interior common parts of the Property, as well

as any roads, accessways, mechanical, electrical and other installations

serving the Property and shall send a copy to every Tenant and to the

Landlord;

(b) subject to receiving sufficient prior funds:

(i) carry out all required repair and maintenance required at the

Property, in accordance with the Landlord’s covenants in the

Leases, including instructing contractors to attend and rectify

problems, and is entitled to recover the cost of doing so as

service charge payable under the Leases or in accordance with

the Order.

(ii) arrange and supervise any required major works to the Property,

including preparing a specification of works and obtaining

competitive tenders.

(c) liaise with all relevant statutory bodies in the carrying out of

their management functions under the Order; and

(d) ensure that the Landlord, and the Tenants, are consulted on any

planned and major works to the Property and to give proper

regard to their views.

50. Manager has the power to incur expenditure in respect of health and safety

equipment reasonably required to comply with regulatory and statutory requirements.

Reporting

51. By no later than six months from the date of appointment (and then annually) the Manager must prepare and submit a brief written report to the Tenants, and the Landlord, on the progress of the management of the Property up to that date, providing a copy to the Tribunal at the same time.

End of Appointment

52. No later than 56 days before the end date, the Manager must:

(a) apply to the tribunal for directions as to the disposal of any unexpended

monies;

(b) include with that application a brief written report on the progress and

outcome of the management of the Property up to that date (a “Final

18

Report”); and

(c) seek a direction from the tribunal as to the mechanism for determining

any unresolved disputes arising from the Manager’s term of

appointment (whether through court or tribunal proceedings or

otherwise).

52. Unless the tribunal directs otherwise the Manager must within two months of the end date:

(a) prepare final closing accounts and send copies of the accounts and the

Final Report to the Landlord and Tenants, who may raise queries on

them within 14 days; and

(b) answer any such queries within a further 14 days.

53. The Manager must reimburse any unexpended monies to the paying parties, or, if it be the case, to any new Tribunal appointed Manager within three months of the end date or, in the case of a dispute, as decided by the Tribunal upon an application by any interested party.

19

Schedule of Additional Fees

As per the Schedule dated 1 July 2025 attached to this Order