First-tier Tribunal Appoints New Property Manager to Resolve Leaseholder Disputes

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00AG/LVM/2025/0010 Property : 33 [ADDRESS] [POSTCODE] Applicant/ Leaseholders : 1. [APPELLANT] [NAME] and [APPELLANT] [NAME] [NAME] (Flat 1) 2. [NAME] [NAME] and [NAME] [NAME] [NAME] [NAME] (Flat 2) 3. [COMPANY] (Flat 5) Representative : [COMPANY] Respondents/ Leaseholders :

1. [NAME] (Flat 3) 2. [NAME] and [COUNSEL] (Flat 4)

Representative : In person Type of [NAME] : Variation of Order for appointment of manager Interested Party : Rosbury Properties Limited Tribunal members : Judge Robert Latham Susan Coughlin MCIEH The Manager : [NAME] [NAME] and Venue of Hearing : 8 October and 11 November 2025 Date of Decision : 11 November 2025 Date of Revised Decision : 17 December 2025

REVISED DECISION

2 The Tribunal is exercising our powers under Rule 50 of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 to correct a number of clerical mistakes. The changes are highlighted in red.

The [NAME]

1. On 17 November 2022, a Tribunal (Judge Dutton and [NAME]) appointed [NAME] to manage the property at 33 [ADDRESS] [POSTCODE] (“the Property”) pursuant to Part II of the Landlord and Tenant Act 1987 (“the Act”). The Order was made for the period of three years from 1 December 2022.

2. On 24 July 2025, [NAME] [NAME] applied for the Management Order to be extended for a period of three years ("the [NAME] [NAME]") . On 14 August 2025, the Tribunal gave Directions which were amended on 1 September and 1 October. Pursuant to these Directions, the Applicant had filed two Bundles of Documents extending to 499 and 13 pages, respectively.

3. The property at [ADDRESS] is a detached building which has been converted to create five self-contained flats, each of which are held under 999 year leases. The freehold interest is held by [COMPANY] in respect of which each leaseholder owns one share.

4. The flats are occupied as follows: (i) Flat 1: [NAME] [NAME] [NAME] and [NAME] [RESPONDENT] [NAME] [RESPONDENT], his wife (the First Respondent);

(ii) Flat 2: [NAME] [RESPONDENT] [NAME] and [NAME] [RESPONDENT] [NAME], his mother (the Second First Respondent);

(iii) Flat 3: [NAME] [RESPONDENT] (the Third Respondent);

(iv) Flat 4: [NAME] [RESPONDENT] and [NAME] [RESPONDENT] [NAME] [RESPONDENT] (the Fourth Respondent);

(v) Flat 5: [RESPONDENT], a company in which [NAME] [RESPONDENT] is the sole director and shareholder (the Fifth Respondent).

5. The Tribunal made the management order because the [NAME] (Flats 1, 2 and 5) and the minority leaseholders (Flats 3 and 4) could not agree on how the property should be managed. As a consequence, there was disrepair and substantial works were required. Over the past three years, significant works have been executed. However, further works are required.

3 The Hearing (8 October 2025) 6. [NAME] [NAME], attended and was represented by [NAME] [COUNSEL] (Counsel) instructed by [NAME]. He was accompanied by [NAME] [COUNSEL] from his instructing solicitor.

7. The First, Second and Third Respondents ("the [NAME]") were represented by [NAME] [COUNSEL] (Counsel) instructed by [COMPANY]. She was accompanied by [NAME] [COUNSEL] [NAME] from her instructing Solicitor. [NAME] [COUNSEL] [NAME] and [NAME] [COUNSEL] [NAME] attended the hearing. They were accompanied by [NAME] [NAME] who the [NAME] contended should replace [NAME] [NAME] as Tribunal appointed Manager. 8. [NAME] [NAME] and [NAME] [NAME] ("the minority leaseholders") appeared in person.

9. It was agreed that [COMPANY] should be joined as an interested party. It was not represented, but all the relevant officers were present.

10. Having regard to the overriding objectives, the Tribunal determined that we should consider the informal [NAME] made by the [NAME] to appoint [NAME] [NAME] as a Tribunal-appointed manager upon the conclusion of the Applicant’s tenure as Manager on 30 November 2025 (“the [NAME]”). [NAME] [NAME] had provided a Management Plan and Fee Structure (at p.489). He has acted as a Tribunal-appointed manager on a number of occasions.

11. All the parties confirmed that they wished for the Property to continue to be managed by a Tribunal-appointed manager. The position of the parties at the commencement of the hearing was as follows: (i) The [NAME] [NAME]: This was supported by the [NAME]. It was opposed by the [NAME]. (ii) The [NAME]: This was supported by the [NAME]. The [NAME] had not met [NAME] [NAME]. 12. [NAME] [NAME] gave evidence and was cross-examined at length by [NAME] [COUNSEL]. At 15.40, Counsel asked for an adjournment. They returned at 16.30 to inform the Tribunal that the parties had agreed that the [NAME] [NAME] will be dismissed. The Tribunal dismissed this [NAME], as agreed by the parties. We have made no findings on this [NAME].

4 13. On 10 October 2025, the Tribunal issued a Preliminary Decision and Directions for a half day hearing on 11 November 2025, to consider whether to appoint a replacement manager and if so, the identity of that manager and the terms of the appointment. Subsequent Developments 14. Pursuant to these Directions, the parties confirmed that they agreed that [NAME] [NAME] should be appointed as a Tribunal appointed Manager in place of [NAME] [NAME].

15. On 15 October 2025, [NAME] [NAME] has raised three issues relating to (i) the grab rail to the main front door; (ii) her right of access to the rear garden to enable her to clean her windows; and (iii) the [NAME] good of internal damage to her flat when the exterior works are completed. The issue of [NAME] good internal damage potentially extended to [NAME] and [NAME] [NAME] flat. It was unclear whether the [NAME] were willing to accommodate these issues.

16. On 22 October 2025, [NAME], who are acting for the [NAME], provided a draft Management Order. The Tribunal had a number of concerns about this. The Tribunal therefore issued further Directions, dated 31 October 2025.

17. On 30 October, [NAME] [NAME] raised two further issues: (i) Paragraph 13 of the Order which makes provision for rights of access. The Tribunal notes that by paragraph 6 of Schedule 6 of the Lease, the [NAME] is obliged to afford the landlord access "at reasonable times and except in the case of an emergency on reasonable notice". This covenant applies regardless of whether not a [NAME] has decided to sublet their flat. (ii) A term should be added requiring the Manager to enforce paragraph 13 of the Seventh Schedule of her lease. The Tribunal has heard no submissions on the terms of the leases. It is apparent that they are not in the same terms. Further Directions (31 October 2025)

18. On 31 October 2025, the Tribunal issued further Directions. The only outstanding issue was the terms of [NAME] [NAME] appointment.

19. The Tribunal raised the following concerns about the draft Management Order:

5 (i) The Management Order should make provision for the Manager to be able to contact the lessees and the landlord by email. This had been a problem for [NAME] [RESPONDENT]. (ii) The Management Order did not specify the desired objectives to be achieved by the Order (paragraph 5 of the draft). (iii) Paragraph 12 of the draft referred to variations to the lease which were specified in Appendix 1. This Appendix had not been provided. (iv) The Tribunal suggested a proviso (paragraph 45 of the draft) that in drawing up the planned maintenance programme, the Manager should have regard to the existing reports on the condition of the property. The intention of this is to save time and money. (v) The Tribunal had a number of concerns about the proposed fees.

20. On 6 November 2025, [NAME] served a revised Management Order with the alterations highlighted in track change. Email addresses were provided (paragraph 5). The Object of the Management Order was set out (paragraph 6). Amendments were made to the right of access, as requested by [NAME] [NAME] (paragraph 14). [NAME] [NAME] provided a revised fee structure.

21. On 10 November 2025, [NAME] [NAME] (Flat 3) and [NAME] and [NAME] [NAME] (Flat 4) made a number of comments on the terms of the management order, how the property should be managed and the proposed fee structure. The Hearing (11 November 2025)

22. The Tribunal conducted a video hearing. The following attended: (i) [NAME] [NAME], the proposed Manager. (ii) [NAME] and [NAME] [NAME]. They were represented by [NAME] [NAME] ([NAME]). (iii) [NAME] [NAME]; (iv) [NAME] [NAME].

23. All the parties were content with the proposed terms of the Management Order. Their concern rather related to the proposed fee structure. The Tribunal attaches the following:

6 (i) Appendix 1: This records (in red) the amendments which the Tribunal has made to the proposed fee structure. These were agreed by [NAME] [NAME]. Where the minority tenants contended that the fees were too high, the Tribunal has recorded our conclusions in the footnotes. (ii) Appendix 2: The Approved Fee Structure. 24. [NAME] [NAME] has not yet met the minority leaseholders. [NAME] [NAME] and [NAME] [NAME] raised a number of concerns as to how [NAME] [NAME] will manage the Property. It is not the role for this Tribunal to micromanage how [NAME] [NAME] will manage the Property. These are matters for the leaseholders to discuss with the Manager. 25. [NAME] [NAME] confirmed that he is familiar with the Practice Statement on the Appointment of Managers (Revised July 2023). He recognised that it is essential that he acts fairly and impartially in the performance of his duties, having due regard to the views of all the leaseholders. He has been appointed on the initiative of the [NAME]. He must gain the trust of the minority leaseholders.

26. The Tribunal pointed out that the management costs will inevitably be higher where there is a Tribunal appointed Manager. Such an appointment is only made where there are serious management issues that need to be addressed. At the end of the three year appointment, the Tribunal would hope that no further extension will be required. It would always be open to the leaseholders to appoint [NAME] [NAME] to manage the Property on his normal terms. The Tribunal would urge the parties to look to the future. If the past problems are resolved, it is always open to the parties to apply for the management order to be discharged.

Judge Robert Latham 11 November 2025

Judge Robert Latham 17 December 2025

Rights of appeal By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) 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 [NAME] for permission must be made to the First-tier Tribunal at the regional office which has been dealing with the case.

7 The [NAME] for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the [NAME]. If the [NAME] is not made within the 28-day time limit, such [NAME] 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 [NAME] for permission to appeal to proceed, despite not being within the time limit. The [NAME] 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 [NAME] the [NAME] is seeking. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).

8 Appendix 1 – Amendments to the Proposed Fee Structure

• Initial Set up Fee £500 plus vat 1 • Annual Management Fee £1,000 Plus VAT for each flat at the property. 2 • The sum of £300 plus VAT for each consultation notice under section 20 of the Landlord and Tenant Act 1985 as amended. For clarity usually 2 notices occasionally 3 are served for each consultation. Therefore the fee would be either £600 or £900 plus vat). The total fee will be capped at £150 plus VAT for a consultation where the cost of the qualifying works does not exceed £5,000. • An additional reasonable charge for dealing with solicitors’ enquiries payable by the [NAME] on a time spent basis. 3 • If an [NAME] is appointed to assist my duties. The Manager will charge the sum of 5% plus VAT of the contract sum in relation to the arrangement and overall responsibility and supervision of major works (requiring consultation under s20 of the Landlord and Tenant Act 1985). The Manager will charge a fee of 10% plus VAT of the contract sum plus VAT, if no [NAME] appointed. 4 • A charge for any initial work undertaken for major works in accordance with the Schedule of Agreed Fees below. Such a charge will only be made if the proposed works do not proceed. If the works do proceed, this will be included as part of the overall supervision fee. • The recovery of outstanding service charges shall give rise to an administration charge payable by the [NAME] of £25 for the second and any subsequent reminder letters. • An additional charge in relation to brokering insurance claims or valuations based on £300 plus VAT per claim4. • A charge for further tasks which fall outside the agreed duties in accordance with the Schedule of Agreed Fees below. • To be reimbursed in respect of reasonable costs disbursements and expenses to include fees of counsel, solicitors, and expert witnesses. • The Manager will decide both fairly and objectively should there be a dispute and will communicate any decision initially orally and/or by email. If a [NAME] requests a further response in writing in relation to such decision then a further reasonable charge will be made in accordance with the agreed Schedule of Charges below at the Manager’s discretion. • Annual sum of £60 per client account operated.5 Appendix 2 – The Approved Fee Structure

1 The Tribunal is satisfied that this is reasonable. 2 The Tribunal is satisfied that this is reasonable having regard to fees charged by [NAME] [NAME], namely £1,700 per flat for the first year and £1,500 thereafter. 3 [NAME] [NAME] stated that his normal charge is £400 + VAT. 4 The £300 fee for arranging a valuation is reasonable. It is important to ensure that the property is fully insured. A revaluation will only be required periodically. 5 This is a charge for a client account opened for the property.

9 • Initial Set up Fee £500 plus vat • Annual Management Fee £1,000 Plus VAT for each flat at the property. • The sum of £300 plus VAT for each consultation notice under section 20 of the Landlord and Tenant Act 1985 as amended. For clarity usually 2 notices occasionally 3 are served for each consultation. Therefore the fee would be either £600 or £900 plus vat). The total fee will be capped at £150 plus VAT for a consultation where the cost of the qualifying works does not exceed £5,000. • An additional reasonable charge for dealing with solicitors’ enquiries payable by the [NAME] on a time spent basis. • If an [NAME] is appointed to assist my duties. The Manager will charge the sum of 5% plus VAT of the contract sum in relation to the arrangement and overall responsibility and supervision of major works (requiring consultation under s20 of the Landlord and Tenant Act 1985). The Manager will charge a fee of 10% plus VAT of the contract sum plus VAT, if no [NAME] appointed. • A charge for any initial work undertaken for major works in accordance with the Schedule of Agreed Fees below. Such a charge will only be made if the proposed works do not proceed. If the works do proceed, this will be included as part of the overall supervision fee. • The recovery of outstanding service charges shall give rise to an administration charge payable by the [NAME] of £25 for the second and any subsequent reminder letters. • An additional charge in relation to brokering insurance claims or valuations based on £300 plus VAT per claim. • A charge for further tasks which fall outside the agreed duties in accordance with the Schedule of Agreed Fees below. • To be reimbursed in respect of reasonable costs disbursements and expenses to include fees of counsel, solicitors, and expert witnesses. • The Manager will decide both fairly and objectively should there be a dispute and will communicate any decision initially orally and/or by email. If a [NAME] requests a further response in writing in relation to such decision then a further reasonable charge will be made in accordance with the agreed Schedule of Charges below at the Manager’s discretion. • Annual sum of £60 per client account operated

Schedule of Agreed Hourly Rates Manager

£175 plus VAT Senior Property Manager

£125 plus VAT Property Manager

£100 plus VAT Office Administrators, junior staff £75 plus VAT