First-tier Tribunal Appoints Property Manager to Address Sub-standard Conditions

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL [APPELLANT] CHAMBER ([APPELLANT]) Case reference : LON/00AU/LAM/2025/0008 [APPELLANT] : 9 Highbury Grange, London [POSTCODE] Applicants : [redacted] [NAME] [RESPONDENT] : [RESPONDENT] Respondent : [redacted] : [NAME] [NAME] & [NAME] [NAME] [NAME] [NAME] & [NAME] of application : Appointment of Manager Proposed Manager : [APPELLANT] Tribunal : [APPELLANT] [NAME] and venue of Hearing : 19th [ADDRESS] [POSTCODE] Date of order : 1st October 2025

DECISION

(1) The Tribunal appoints [APPELLANT] as the manager of the subject [APPELLANT] from 6th October 2025 until 5th October 2030 on the terms of the order attached to this decision. (2) In accordance with section 20C of the Landlord and Tenant Act 1985, any of the costs incurred by the Respondent in connection with the proceedings are not to be regarded as relevant costs to be taken into account in determining the amount of any service charge payable by the Applicants.

2 Reasons 1. The subject [APPELLANT] is a 4-storey building containing 7 residential flats. The freehold is owned by the Respondent. The Applicants are the lessees of Flat 1. [NAME] are the other lessees.

2. The Applicants have applied for a management order under section 24 of the Landlord and Tenant Act 1987 (the “Act”) to appoint Mr [APPELLANT] as the manager of the [APPELLANT].

3. The application was heard on 19th September 2025. The attendees at the hearing were: (a) Mr [COUNSEL], counsel for the Applicants; (b) The Applicants; (c) [NAME]; and (d) [NAME].

4. The documents before the Tribunal consisted of a bundle of 303 pages from the Applicant and Additional comments from the lessees of Flat 4. Proceed in absence 5. The Respondent did not appear and was not represented at the hearing and so the Tribunal had to decide whether to proceed in their absence. Under rule 34 of the Tribunal Procedure (First-tier Tribunal) ([APPELLANT] Chamber) Rules 2013, the Tribunal may proceed with the hearing in their absence if satisfied that they had sufficient notice of the hearing and it is in the interests of justice to proceed.

6. By letter to the Tribunal dated 10th September 2025, [NAME] made the following points on behalf of the Respondent: [redacted] for Mr [NAME] to be the appointee, given which they are not attending the hearing. (b) However, the Respondent queries the level of his annual fees. (c) Urgent works need to be completed at reasonable cost and a single [NAME] cannot be permitted to thwart this, as allegedly happened in the past. (d) The Respondent also objects to the term of the proposed management order requiring them and each [NAME] to make a large upfront payment to the manager.

7. The Respondent was aware of the hearing and chose not to attend. The Tribunal took into account the points raised in the aforementioned letter. In the circumstances, it was clearly in the interests of justice to proceed in the Respondent’s absence. Grounds for appointing a manager

3 8. The parties do not dispute that the [APPELLANT] is in a sub-standard condition and has not been successfully managed for some time, although they may have alternate arguments as to who is to blame. There have been two previous management orders, made on 7th October 2015 (Tribunal case reference: LON/00AU/LAM/2015/0007) and 14th October 2019 (LON/00AU/LAM/2019/0015) but neither achieved its objectives.

9. In the circumstances, the Tribunal is satisfied that it is just and convenient to make an order, subject to the right terms being included. The Tribunal agrees with the Applicants that the management order should be drafted to try and ensure that this one does not fail. This involves consideration of the following issues: (a) The parties are concerned that the apportionment of the service charges between the flats should be fair, particularly in the light of the fact that the Respondent has retained four of the 7 flats which are rented out. The Applicants have proposed retaining the current proportions and they are set out expressly in the management order. (b) There are no funds to be transferred to the appointed manager from the [NAME]. However, the manager needs funds immediately to start work. The Tribunal understands the Respondent’s concern on this issue due to the unusually large size of the sums sought by Mr [NAME]. However, the lack of any existing funds is also unusual. There is also a consensus that there is much work to be done. Mr [NAME] told the Tribunal that he expects to spend the money he has sought but, even if that were not the case, the money never ceases to belong to the payers and will operate as a credit against any further service charge liabilities. (c) Similarly, the annual fees Mr [NAME] seeks are considerably higher than the market rate for annual residential management fees. However, this is not a normal management job. Mr [NAME] can reasonably expect to spend more time on this [APPELLANT] than would be average for this type of building in order to compensate for past neglect. He has committed to reviewing his fees regularly during the term of his appointment in order to check that they reflect the amount of work he is required to do and to lower them for later years, if possible – this is reflected in the order. (d) The Tribunal was concerned that the 3-year term originally proposed by the Applicants may be too short, both to carry out the work which needs to be done and due to the lack of a suitable alternative to management by the Tribunal’s appointee, and would necessitate an application to extend the period of appointment. Mr [NAME] conceded that this was a genuine possibility. On hearing that the Tribunal would be prepared to consider a longer term, both sought an appointment for 5 years. The Tribunal feels that this is more realistic in this case. (e) The Applicants proposed that the manager should collect the rents from the Respondent’s tenants which could be used to offset any non- payment of service charges by the Respondent, subject to the manager accounting annually to the Respondent for rents received. The Respondent has not objected to this proposal. The Tribunal accepts that it is a sensible provision which should not cause any prejudice to the Respondent.

4 10. The Applicants sought to use a previous Tribunal decision to support the fees and payments sought in their case. However, there was no point of principle on which the decision on these issues turned. The fees set in this case do not establish any kind of precedent. Rather, the Tribunal feels, on the evidence in front of it, that they are appropriate for this particular case.

11. The Manager is the Tribunal’s appointee, answerable only to the Tribunal, not to the parties, and so the Tribunal needs to satisfy itself that the proposed manager is suitable as its appointee. The Tribunal had read Mr [NAME] comprehensive management plan and relevant other information he provided, including about his professional indemnity insurance and experience as a Tribunal appointee. Mr [NAME] expanded on this and answered questions from the Tribunal. Taking these matters into account, the Tribunal is satisfied that he is a suitable appointee.

12. In the circumstances, the Tribunal makes the Management Order attached hereto. Name: [APPELLANT]: 1st October 2025

Rights of appeal By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) ([APPELLANT] 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 ([NAME]), then a written application for permission must be made to the First-tier Tribunal at the regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office 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 [APPELLANT] 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 ([NAME]).

5

FIRST-TIER TRIBUNAL [APPELLANT] CHAMBER [APPELLANT]) Case reference : LON/00AU/LAM/2025/0008 [APPELLANT] : 9 Highbury Grange, London [POSTCODE] Applicants : [redacted] : [RESPONDENT] Respondent : [redacted] [RESPONDENT] : Osbornes Tribunal : [APPELLANT] [NAME] of order : 1st October 2025

MANAGEMENT ORDER

Interpretation

1. In this Order: “The [APPELLANT]” means the flats and other premises known as 9 Highbury Grange, London [POSTCODE] and registered at HM Land Registry under title number NGL383069 and shall include the building, outhouses, gardens, amenity space, drives, pathways landscaped areas, flower beds, passages, bin-stores, common parts, storage rooms, basements, electricity and power rooms; and all other parts of the [APPELLANT].

6 “The Landlord” shall mean [APPELLANT] (company registration number 01128306) and any 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 [NAME] or under-[NAME] and “Tenant” shall be construed accordingly. “The Leases” shall mean the following leases of flats in the [APPELLANT]: (a) The lease of [ADDRESS] [POSTCODE] dated 31 March 2014 and made between (1) the Landlord of the first part as landlord and (2) [NAME] [RESPONDENT] and [NAME] [RESPONDENT] of the second part as [NAME] for a term of 189 years from 25 March 1981 as the same is registered at HM Land Registry under title number AGL310794; (b) The lease of [ADDRESS] [POSTCODE] dated 1 November 2016 and made between (1) the Landlord of the first part as landlord and (2) [RESPONDENT] of the second part as [NAME] for a term from 1 November 2016 until 24 December 2114 as the same is registered at HM Land Registry under title number AGL399846; and (c) The lease of [ADDRESS] [POSTCODE] dated 14 July 1995 and made between (1) the Landlord of the first part as landlord and (2) [RESPONDENT] [NAME] of the second part as [NAME] for a term of 125 years from 25 March 1995 as the same is registered at HM Land Registry under title number NGL730627. “The Flats” shall mean the 7 self-contained flats (including the flats demised under the Leases) in the [APPELLANT] and “Flat” shall be interpreted accordingly. “The Proportions” shall mean the percentage proportions of the total expenditure incurred or to be incurred by the Manager in complying with the Landlord’s covenants in the Leases and the terms of this Order which is payable by the Tenants in accordance with their respective Leases and shall be payable by the Landlord in respect of the Retained Flats in the [APPELLANT], as follows: Flat A

15.5% Flat B

9.05% Flat 1

19.77% Flat 3 (also known as Flat C) 10.14% Flat 4 (also known as Flat D) 17.18% Flat 5 (also known as Flat E) 11.18% Flat 6 (also known as Flat F) 17.18% 100% “The Landlord’s Proportion” shall mean 55.68%, being the aggregate of the Proportions payable by the Landlord in respect the Retained Flats for the time being. “The Retained Flats” shall mean Flats 3, 4, 5 and 6 (otherwise known as

7 Flats C, D, E and F) in the [APPELLANT] or such of those Flats as are retained by the Landlord for the time being. “The Manager” means [RESPONDENT], of [COMPANY] of 200 [ADDRESS] [POSTCODE] “The Tribunal” means the First-tier Tribunal ([APPELLANT] Chamber)

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

3. The Manager’s appointment shall start on 6th October 2025 (“the start date”) and shall end on 5th October 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 [APPELLANT] which includes taking steps to resolve the following problems of inadequate management identified by the Tribunal: (a) Investigation into and such remedial works or action as may be required to ensure the [APPELLANT]’s compliance with all applicable health and safety legislation and/or regulations, including (but not limited to) legislation and/or regulations in relation to gas safety, electrical safety, fire safety and asbestos. (b) Investigation into the rebuilding cost of the [APPELLANT] for insurance purposes. (c) Investigation into and the maintenance, repair, renewal, replacement and/or decoration (as required) of such parts of the main structure of the [APPELLANT] and such of the boundary walls as belong to the Landlord as are in disrepair and which the Landlord has covenanted to maintain in good and substantial repair, condition, order and decoration in the Leases. (d) Investigation into and the maintenance, repair, renewal, replacement or decoration (as required) of the halls, steps, passages, landings and staircases of the [APPELLANT] used or enjoyed or capable of being used or enjoyed by the Tenants in common with the owners lessees and occupiers of other parts of the [APPELLANT] and also all walls separating a Flat from such hall, passage, landing, and staircase or from any other internal common part of the [APPELLANT]. (e) Investigation into and the preparation and redecoration (as required) of such parts of the exterior of the

8 [APPELLANT] and the common parts of the interior of the [APPELLANT] as are usually painted, varnished or distempered. (f) Investigation into and the maintenance, repair, renewal or repair (as required) of the water and electricity pipes, cables, wires, conduits and ducts in, upon or under the Building other than such as exclusively serve the Flats and which the Landlord has covenanted to maintain in good and substantial repair, condition, order and decoration in the Leases. (g) Investigation into and the maintenance, renewal, replacement, repair and decoration (as required) of the outbuilding at the [APPELLANT] in which the meters for the electricity and water supplies for the Flats and the common parts of the [APPELLANT] are situated and which the Landlord has covenanted to maintain in good and substantial repair, condition, order and decoration in the Leases. (h) Investigation into and the renewal, replacement or repair (as required) of the electricity and water supplies to the [APPELLANT] and the Flats which the Landlord has covenanted to maintain in good and substantial repair, condition, order and decoration in the Leases. (i) Ensuring that the service charges which the Tenants are liable to pay under the Leases and the Landlord’s Proportion which the Landlord is liable to pay under the terms of this Order are properly calculated and demanded and that proper accounts are kept of the same in accordance with the Leases (subject to the provisions of this Order below).

6. To address the steps identified in the previous paragraph the Manager is empowered to: (a) Demand the Proportions payable by the Tenants under the Leases. (b) Demand the Landlord’s Proportion from the Landlord in the same manner as the Manager demands the Proportions from the Tenants and for the avoidance of doubt if any Retained Flat is at any time unlet, the Landlord shall nevertheless remain liable to pay such part or parts of the Landlord’s Proportion as is attributable to such unlet Retained Flat. (c) If during the term of this Order the Landlord grants a lease of a Retained Flat under which the [NAME] (“the [NAME]”) is liable to pay a service charge to the Landlord, then immediately upon completion of that lease the Landlord shall provide a copy of this Order to the [NAME] and the Manager shall be entitled to collect from the [NAME] and the [NAME] shall be required to pay that Proportion attributable to that Flat and the Landlord’s Proportion shall be reduced accordingly. (d) Receive any rents which would otherwise be payable to the Landlord in respect of the Retained Flats and the Manager shall be entitled to deduct from those rents any unpaid

9 Landlord’s Proportion PROVIDED THAT the Manager shall account annually to the Landlord in respect of those rents. (e) If a Tenant who has sublet a Flat fails to pay its Proportion payable under this Order in respect of that Flat then upon giving not less than 14 days’ written notice to the Tenant, the Manager shall be entitled to receive any rents which would otherwise be payable to the Tenant in respect of that Flat and to deduct from those rents any Proportion unpaid by the Tenant in respect of that Flat PROVIDED THAT the Manager shall account annually to that Tenant in respect of those rents. (f) The Manager shall within a reasonable time of the start date of his appointment commission a report on the boundaries of the [APPELLANT] from a suitable qualified professional to establish the full extent of the [APPELLANT] and shall provide a copy of that report to the Landlord and the Tenants. (g) As soon as reasonably practicable after the start date the Manager shall cause to be carried out a full and up-to- date structural and other surveys of the [APPELLANT] (“the Surveys”) to the extent not already completed. (h) The Manager shall instruct properly qualified professionals including quantity surveyors, mechanical and electrical engineers and Party Wall surveyors to carry out any works identified in the Survey (“the Works”) as soon as reasonably practicable on receipt of funds to enable the Works to be undertaken. (i) The Manager shall liaise with such of the professionals who have previously been involved in dealing with the work required to the [APPELLANT] as he shall consider appropriate and if satisfied with their understanding of the issues within the building, and their profession competence, will retain their services. (j) The Manager shall not unreasonably duplicate work already undertaken by professionals in relation to or in preparation for the Works provided he is satisfied with the standard of their performance to date. (k) The Manager shall carry out a historic review of the works referred to and/or specified in the prior Tribunal determinations and ensure that where relevant, these align with proposed works moving forward and on completion of that review shall put in place a programme to carry out the Works, paying due regard to the architectural heritage of a building using his best endeavours to restore the [APPELLANT] to a standard commensurate with its heritage provided the cost of doing so is reasonable. (l) The Manager shall ensure that any professionals whom he appoints to assist him in preparing the Survey and carrying out the Works: (i) sign a letter of engagement detailing their role and the renumeration to which they are entitled; and

10 (ii) are given a copy of this Order, within 21 days of their appointment.

7. The Manager shall manage the [APPELLANT] 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 [APPELLANT] is demised by the Landlord (save where modified by this Order); (c) the duties of a Manager set out in the Service Charge Residential Management Code (“the Code”) (3rd Edition) or such other replacement code published by the [NAME] (“[NAME]”) and approved by the Secretary of State pursuant to section 87 Leasehold Reform Housing and Urban Development Act 1993; 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 [APPELLANT] 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 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 [APPELLANT] 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 [APPELLANT] necessary to achieve the purposes of this Order. If the Manager is unable to decide what course to

11 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: (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. Contracts 14. Rights and liabilities arising under contracts, including any contract of insurance and/or any contract for the provision of any services to the [APPELLANT], to which the Manager is not a party, but which are relevant to the management of the [APPELLANT], 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.

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 [APPELLANT]. Licences to assign, approvals and pre-contract enquiries 16. The Manager shall be responsible for carrying out those functions in the residential Leases concerning approvals and permissions, including those for sublettings, assignments, alterations and improvements, that the Leases provide should be carried out by the Landlord.

17. The Manager shall be responsible for responding to pre-contract enquiries regarding the sale of a residential flat at the [APPELLANT]. Legal Proceedings 18. The Manager may bring or defend any court or tribunal proceedings relating to management of the [APPELLANT] (whether contractual or tortious) and, subject to the approval of the Tribunal,

12 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 attributable to any of the flats in the [APPELLANT], 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 Tenants are responsible for payment of their respective Proportions of the Managers’ fees, which are to be payable under the provisions of this Order but which may be collected under the service charge mechanisms of their Leases and the Landlord is responsible for payment of the Landlord’s Proportion of those fees.

22. The sums payable are: (a) an annual fee of £8,500 for performing the duties set out in paragraph 3.4 of the [NAME] (so far as applicable); (b) any additional fees contained in a schedule to this Order for the duties set out in paragraph 3.5 of the [NAME] (so far as applicable); and (c) VAT on the above fees, PROVIDED THAT the Manager’s remuneration shall be subject to review as set out in paragraph 50 below and if the Manager would like to increase their fees, then they will have to apply back to the tribunal but no such application will be required if the Manager agrees to reduce their fees. Ground Rent and Service charge 23. The Manager shall collect the ground rents payable under the Leases.

24. Subject to paragraph 25 below, the Manager shall collect all service charges and insurance premium contributions payable under the Leases in accordance with the terms and mechanisms in the Leases PROVIDED THAT, unless altered by the

13 Manager pursuant to paragraph 25(d) below, the service charge year as provided for in the Leases runs from 26th March to 25th March in each year.

25. Whether or not the terms of any Lease so provide, 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 [NAME] 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 [NAME]; d. alter the accounting year; and e. collect arrears of service charge and insurance that have accrued before their appointment.

26. The Manager may set, demand and collect the Landlord’s Proportion to be paid by the Landlord (as if he were a [NAME]), in respect of any unused premises in part of the [APPELLANT] retained by the Landlord, or let on terms which do not require the payment of a service charge.

27. To ensure that the Manager has adequate funds to manage the [APPELLANT], the Manager may immediately collect £5,000 from each Tenant and £20,000 from the Landlord. Any sum demanded by the Manager shall be payable within 28 days.

28. 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 29. The Manager may recover administration charges from [NAME] for their costs incurred in collecting service charges and insurance which includes the costs of reminder letters, transfer of files to solicitors and 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 30. 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.

31. 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 Lease, the Manager or the Landlord may apply to the tribunal seeking a

14 determination as to whether the sum in dispute is payable and, if so, in what amount.

32. In the event of dispute regarding the conduct of the management of the [APPELLANT] 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.

33. 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 AND MANAGING AGENTS 34. The Landlord and their managing agents must comply with the terms of this Order and the Landlord shall not by itself, its servants or agents interfere with or obstruct the Manager’s management of the [APPELLANT] and shall within 2 weeks of the date of this Order provide details of where all communications from the Manager may be sent and ensure that any communications sent to this address are dealt with promptly and fully.

35. On any disposition other than a charge of the Landlord’s estate in the [APPELLANT], the Landlord will procure from the person to whom the [APPELLANT] 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 [APPELLANT] is to be conveyed.

36. 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.

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

38. Within 14 days from the date of this Order the Landlord and their managing agents must provide all necessary information to the Manager to provide for an orderly transfer of responsibilities, to include the transfer of: a. all accounts, books and records relating to the [APPELLANT], including a complete record of all unpaid service charges; and b. all funds relating to the [APPELLANT] including uncommitted

15 service charges and any monies standing to the credit of a reserve or [NAME]. DIRECTIONS TO MANAGER 39. The Manager must adhere to the terms of the Order above. Entry of a Form L Restriction in the Register of the Landlord’s Registered Estate 40. To protect the direction in paragraph 35 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 number NGL383069. “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 35 of an Order of the Tribunal dated 29th September 2025 have been complied with”

Registration 41. The Manager must make an application to HM Land Registry for entry of the restriction referred to in paragraph 40 within 14 days of the date of this Order.

42. 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 form). The application should confirm that: a. 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 to an order appointing a receiver or sequestrator of land. b. 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 Form L or N. Conflicts of Interest 43. 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

16 44. The Manager must operate a complaints procedure in accordance with, or substantially similar to, the requirements of the [NAME]. Insurance 45. The Manager must maintain appropriate building insurance for the [APPELLANT] and ensure that the Manager’s interest is noted on the insurance policy.

46. 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.

47. The Manager must: (a) prepare and submit to the Landlord and the Tenants an annual statement of account after the end of the service charge year and the Manager shall aim to prepare and submit those accounts within 6 months of the end of each service charge year detailing all monies receivable, received and expended. The accounts are to be certified by an 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. Repairs and maintenance 48. The Manager must: (a) by 1st December 2025 draw up a planned maintenance programme for the period of the appointment, allowing for the periodic re-decoration and repair of the exterior and interior common parts of the [APPELLANT], as well as any roads, accessways, mechanical, electrical and other installations serving the [APPELLANT], and shall send a copy to every Tenant and to the Landlord; (b) subject to receiving sufficient prior funds from the Tenants and the Landlord:

17 (i) carry out all required repair and maintenance required at the [APPELLANT], 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 [APPELLANT], 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 [APPELLANT] and to give proper regard to their views.

49. The Manager has the power to incur expenditure in respect of health and safety equipment reasonably required to comply with regulatory and statutory requirements. Reporting 50. 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 [APPELLANT] up to that date, providing a copy to the Tribunal at the same time. In the first and each subsequent annual report, the Manager shall provide a review and justification of the amount of his fees. End of Appointment 51. 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 [APPELLANT] up to that date (a “Final 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

18 (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.

Schedule of Additional Fees Appendix: Schedule of Additional Fees

Hourly charge out rates for non-standard block management activity e.g., court attendance, expert witness statements etc:

Director £250 + VAT per hour Team Leader £200 + VAT per hour Senior [APPELLANT]/Accounts Manager £200 + VAT per hour [APPELLANT] /Accounts manager £150 + VAT per hour Administrator £50 + VAT per hour

Other fees

License for alterations Fee met by the [NAME] concerned: Administration fee of between £150 to £750 (exclusive of VAT) depending on the complexity of the application and the degree of liaison required. Building surveyors fees and legal fees will be charged separately by the professionals concerned.

License to Assign/Notice of Transfer or Mortgage (if applicable): Fee met by the [NAME] concerned. Administration fee of £115.00 (exclusive of VAT) per notice. Legal fees for the preparation of the documentation will be charged separately by the solicitors concerned.

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Pre-sale enquiries Fees met by the [NAME] concerned: The standard fee for the provision of information relating to pre-sale enquiries is £300 (exclusive of VAT). There is an express service (replies within 24 hours) for an additional £175 (exclusive of VAT). The information packs are tailored to the flat in question and include replies to all the questions normally raised by solicitors along with all relevant documentation.

Credit Control Action (further than standard reminder process) Fee met by [NAME] concerned: charges on an hourly basis for any additional credit control work required where a leaseholder does not pay their due service charges or ground rental following the third reminder, including writing further letters, referral to legal action, and attendance at court or Tribunal as and where may be required.

License to sublet (If applicable) Fee met by the [NAME] concerned: Fee of £150 (exclusive of VAT) for the approval of references and the grant of a formal license. Renewals to the same tenant charged at £50 (exclusive of VAT). Works Supervision Services Administration of Major Building Works (this fee includes all relevant site meetings, attendance, inspections, assisting with preparation of specifications, tendering and general contract administration) not to exceed 12% of the contract sum (projects of over £50k) and 5% of the contract sum (projects under £50k). Compliance with CDM Regulations will be arranged via a separate contractor and a fixed fee (or percentage of the contract sum if appropriate). Major works are normally defined as those requiring formal consultation with lessees under section 20 of the Landlord and Tenant Act 1985 and are subject to a minimum fee of £500 + VAT. Should it be necessary to apply for a dispensation of all or any of the consultation requirements, a fee will be charged to include any disbursements such as legal costs and court fees.