First-tier Tribunal Approves Lease Variation for Service Charge Recovery

OUTCOME: Allowed

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference

:

CHI/00HN/LVT/2022/0001

Property

:

[ADDRESS], [POSTCODE]

Applicant

:

[redacted]

:

[COMPANY_2] ref. no 110604.0002/RJS

Respondent

:

[redacted]

Representative

:

Type of Application

:

Section 37 Landlord & Tenant Act 1987 - to vary two or more leases by a majority

Tribunal Member(s)

:

D [NAME_3] [NAME_5]

Date and venue of hearing

:

15 December 2022 at Havant Justice Centre

Date of Decision

:

4 January 2023

DECISION

2 Background

1. The Applicant seeks to vary the long leases of 96 Flats by enabling the landlord to recover through the service charge the costs of repair maintenance and replacement of the structural parts, exterior, roof and foundations of the building, the gardens, communal facilities and amenities and all other works the landlord considers appropriate or necessary for the maintenance and management of the property. The Applicant states that it has the requisite majority of leaseholders supporting the proposed variation pursuant to section 37(5)(b) of the 1987 Act: 82.4 per cent of leaseholders’ consent to it whilst 1.9 per cent of leaseholders’ object to it.

2. Under section 37 of the Landlord and Tenant Act 1987 the Tribunal can be asked to approve a lease variation if, where there are more than 8 leases, it is not opposed by more than 10% of the parties concerned, and at least 75% agree. The landlord also has a vote. So it is said that in this case 82.6% of the concerned parties have voted in favour (more than 75%) and less than 10% have voted against the change.

3. The Tribunal made Directions on 7 November 2022 requiring the Applicant to send copies to the Respondent Lessees and setting the hearing date as 15 December 2022. 4. The directions also invited the Respondents to send any objection to the proposals to the Tribunal and Applicant. Objections were received from the Lessees of Flats 1 and 47. The Law

5. Section 37 of the Act states:

(1) Subject to the following provisions of this section, an application may be made to [a leasehold valuation tribunal] in respect of two or more leases for an order varying each of those leases in such manner as is specified in the application.

(2) Those leases must be long leases of flats under which the landlord is the same person, but they need not be leases of flats, which are in the same building, nor leases, which are drafted, in identical terms.

(3) The grounds on which an application may be made under this section are that the object to be achieved by the variation cannot be satisfactorily achieved unless all leases are varied to the same effect.

(4) An application under this section in respect of any leases may be made by the landlord of any of the tenants under the leases.

3 (5) Any such application may only be made if-

(a) in a case where the application is in respect of less than nine leases, all or all but one, of the parties concerned consent to it; or

(b) in a case where the application is in respect of more than eight leases, it is not opposed for any reason by more than 10 per cent of the total number of the parties concerned and at least 75 per cent of that number consent to it.

(6) For the purposes of subsection (5)-

(a) in the case of each lease in respect of which the application is made, the tenant under the lease shall constitute one of the parties concerned (so that in determining the total number of the parties concerned a person who is the tenant under a number of such leases shall be regarded as constituting a corresponding number of the parties concerned); and

(b) the landlord shall also constitute one of the parties concerned.

Section 38 provides that:

(3) If on an application under section 37, the grounds set out in subsection (3) of that section are established to the satisfaction of the [tribunal] with respect to the leases specified in the application the tribunal may subject to subsection (6) and (7) make an order varying each of the leases in such manner as its specified in the order.

Section 38 provides;

(6) A tribunal shall not make an order under this section effecting any variation of a lease if it appears to the tribunal – (a) that any variation would be likely to substantially to prejudice- (i) any respondent to the application, or (ii) any person who is not a party to the application and that an award under subsection (10) would not afford him adequate compensation, or (b) that for any other reason it would not be reasonable in the circumstances for the variation to be effected

Evidence

4 6. The bundle submitted by the Applicant contained a copy of the pro- forma, covering letter and FAQ’s sent to the leaseholders [218] and the responses received [228].

7. The response from the Lessee of Flat 1 simply states that the application is opposed and that received from Flat 47 indicates that he votes against the proposed variations without giving reasons for so doing.

8. However, a letter from the lessee of Flat 47 to [NAME_453] dated 22 February 2022 [231] raised various concerns that may be summarised as; • The Directors would be given carte-blanche to make whatever improvements they see fit rather than remedying specific faults. • There should be some mechanism enabling lessees to provide their agreement before such work is undertaken. • There have been examples of wasteful and illogical expenditure such as the provision of CCTV. • The cost of updating the lease with the Land Registry seems excessive.

9. The Applicant responded by letter on 5 March 2022 [233].

10. The Applicant’s Statement of Case [322] explains that the property comprises a purpose built block with 96 flats, extensive gardens, car parking, underground garaging and a swimming pool. The Applicant is a lessee owned company incorporated to acquire the freehold on 24 June 2004.

11. The application arises due to a need to carry out works to the brickwork where under the leases as drafted no party is liable to carry out the works and there is no mechanism to recover the cost incurred through the service charge.

12. It is considered that the service charge provisions are generally deficient, and the proposed variations seek to comprehensively bring them up to date.

13. The majority of leases are for 999 years and were granted following the Applicant’s acquisition of the freehold. Flats 6,12 and 45 are the remaining 99 year leases in their original form. The service charge provisions are similar in both;

• By the second schedule the main structural and external parts of the Block are part of the property reserved to [NAME_7], together with the gardens, swimming pool, lifts etc • By paragraph 21 of the sixth schedule the lessee is obliged to pay the service charge • The costs to which the lessee is obliged to contribute as part of the service charge are set out in the seventh schedule.

5 14. The Applicant’s responsibilities are limited by Paragraph 6 of the seventh schedule to “keep the halls stairs landings and passages forming part of the Reserved Property properly furnished carpeted cleaned and in good order and shall keep adequately lighted all such parts of the Reserved Property as are normally lighted or should be lighted and shall use its reasonable endeavours to keep in working order the lifts forming part of the Reserved Property”

15. The Leases do not contain any comprehensive provision requiring the Applicant to keep all of the reserved property in repair such as the external parts of the building or to recover the costs. There are also no obligations in respect of utilities, security, refuse areas, landscaping and the upkeep of the swimming pool.

16. The proposed variations [170] and [173] provide for a comprehensive regime of repair, maintenance and good estate management in respect of the common areas of the Block and curtilage including services in return for the payment of a service charge.

17. The variations sought would regularise the previously informal arrangements and through decisions taken at AGMs, to allow the Applicant to implement the urgent major works projects, and to ensure that future works and services that the Applicant may reasonably wish to carry out are provided for within the service charge regime without the costs involved in further Tribunal applications.

18. The objective cannot be achieved without variation because;

• The services are for the benefit of all lessees ensuring their properties are maintained and investment secure • The Applicant is a lessee owned company unable to raise funds except through the service charge • The 96 leases provide for 100% of service charges • Unless all leases are varied the Applicant will have to rely on individual agreements which may not allow 100% recovery potentially leading to insolvency

19. 79 of 96 flats agreed to the proposed variations, 2 objected and 15 did not respond. This meets the statutory tests.

20. No objections were received by 5 December 2022 as required in Directions. However, in answer to the concerns raised by [NAME_363] (Flat 47);

• Statute requires service charges to be reasonable, reasonably incurred and be directed to services and works of a reasonable standard in order to be recoverable • Statutory consultation will be required with large expenditure • Accordingly it is unlikely that lessees will have to contribute to “wasteful and illogical” costs

6 • The lessees are all members of the Applicant and able to make their views known at the AGM • The Directors owe a duty under Company Law to their shareholders(the lessees) • A great deal of the work is already being done and service charges recovered, albeit on an informal basis • The CCTV was installed as a deterrent against criminal activity after two incidents of violent crime in the vicinity and has proved useful in dealing with intruders

21. The Respondents will suffer little prejudice as; • The lessees have been contributing on an informal basis for many years • Before costs of major works are recoverable there will be a statutory consultation process • There is already a reserve of £480,000 in place to meet part of the brickwork costs • The service charge is the lowest in the area

22. Any prejudice will be outweighed by; • Ensuring the Applicant remains solvent • Having a modern lease under which the freeholder is responsible for maintaining the retained parts and is more likely to be compliant with lenders’ requirements • An enforceable direct covenant requiring the freeholder to carry out a wide range of obligations • Having a well run and maintained development

23. In the witness statement of [NAME_10] [236] it is explained that 99 year leases were granted in 2004 and following the purchase by the lessees of the freehold 999 year leases were offered. All lessees took up the offer except flats 6,12 and 45. The repairing and service charge terms contained in the original lease were replicated in the new lease.

24. A number of works have been identified as being required at some time in the future in order the implementation of which would be assisted by the variation requested.

The Hearing

25. The hearing was attended by [NAME_13] of Counsel, [NAME_14] her instructing Solicitor, [NAME_10], [NAME_17] and [NAME_20] of the Applicants.

26. The Tribunal indicated that it had read the bundle and asked [NAME_23] to highlight those areas she wished to emphasise.

27. We were taken through the requirements of sections 37 and 38 of the Landlord and Tenant Act 1987 which [NAME_23] said were satisfied.

7 28. [NAME_23] referred to the contents of the Statement of [NAME_371]’s witness statement and in answer to a question from the Tribunal said that some but not all of the works referred to by [NAME_371] were outstanding and needed to be addressed.

29. The Tribunal referred to the drafting of the proposed variations indicating that whilst they were said to be identical there were differences such as at (xv)

30. [NAME_23] proposed that her instructing Solicitor examined the drafts and provide copies, amended where necessary by 22 December 2022.

31. The amended drafts were received on 22 December 2022 and are referred to below.

Decision

32. The Tribunal is satisfied that the Applicant’s object in seeking the lease variation cannot be met unless all subject leases are varied to the same effect, the requirements of section 37 are satisfied and none of the reasons for not granting an order as set out in section 38 applies.

33. The Tribunal therefore makes the following Order as requested.

IT IS ORDERED THAT:

1. Upon the Applicant’s application for an order under section 37 of the Landlord and Tenant Act 1987 varying the 96 leases listed in the schedule annexed to this Order at Annexe 1 2. And upon the Tribunal being satisfied in respect of all 96 leases that; a. The object to be achieved by the proposed variations cannot be satisfactorily achieved unless all the leases listed in the schedule annexed to this Order at Annexe 1 are varied to the same effect b. The application is made in respect of more than 8 leases, is not opposed for any reason by more than 10 per cent of the total number of the parties concerned and at least 75 per cent of that number consent to it. c. The variations proposed by the Applicant would not be likely substantially to prejudice any respondent to the application, or any person who is not a party to the application. d. It would be reasonable in the circumstances for the variation to be effected.

3. The leases listed in the schedule annexed to this Order at Annexe 1 do be varied in the manner set out in the documents at Annexe 2 of this Order, such variations to be effective from the date of this Order.

4. The Applicant shall be responsible for making applications to the Land Registry to note the decision against the Freehold Titles and the Leasehold Titles of the properties as aforesaid.

8 CHI/00HN/LVT/2022/0001 Annexe 1

Flat Number Postcode Date of Lease Original Tenant Original Landlord Term of Lease Title [ADDRESS] [POSTCODE] 16 January 2006 [NAME_584] and [NAME_485] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_540] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_367] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_366] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_497] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_370] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_593] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Ms [NAME_593] [ADDRESS] [POSTCODE] 11 February 2005 [COMPANY_365] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_510] DT327858 [NAME_614] [ADDRESS] [POSTCODE] 11 July 1974 Emanuel [COMPANY_1] (Company Registration No. 4472677) 98 years from 11 July 1974 [NAME_538] [ADDRESS] [POSTCODE] 11 February 2005 [COMPANY_364] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_581] DT328368 [NAME_555] DT328368 [NAME_603] [ADDRESS] [POSTCODE] 25 April 2005 [NAME_369] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_523] [ADDRESS] [POSTCODE] 23 February 2005 [NAME_64] and [NAME_535] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_64] DT327831 Ms [NAME_535] [ADDRESS] [POSTCODE] 24 July 2014 [COMPANY_450] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_526] [ADDRESS] [POSTCODE] 15 December 2004 Eric [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_368] DT326801 [NAME_390] [ADDRESS] [POSTCODE] 19 July 1974 [COMPANY_471] (Company Registration No. 4472677) 98 years from 17 July 1974 [NAME_507] [ADDRESS] [POSTCODE] 15 December 2004 [COMPANY_373] (Company Registration No. 4472677) 999 Years from 24 June 2004 [COMPANY_378] [ADDRESS] [POSTCODE] 11 February 2005 [NAME_484] [COMPANY_1] (Company Registration No. 4472677)

999 Years from 24 June 2004 [NAME_561] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_606] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_423] DT326210 [NAME_379] [ADDRESS] [POSTCODE] 15 December 2004 [COMPANY_587] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_391] [ADDRESS] [POSTCODE] 25 April 2005 [NAME_87] also known as [COMPANY_515] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_87] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_549] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Ms [NAME_549] [ADDRESS] [POSTCODE] 11 February 2005 [NAME_487] and [NAME_381] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_610] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_488] and [COMPANY_521] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_516] [ADDRESS] [POSTCODE] 11 February 2005 [NAME_566] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_477] DT327524 [NAME_586] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_467] and others [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_459] DT326469 Mr [NAME_467] DT326469 Mr [NAME_392] DT326469 [NAME_380] DT326469 [NAME_565] [ADDRESS] [POSTCODE] 11 February 2005 [COMPANY_598] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_511] DT329083 [NAME_496] [ADDRESS] [POSTCODE] 11 February 2005 [COMPANY_598] (Company Registration No. 4472677) 999 Years from 24 June 2004

[COMPANY_377]

[ADDRESS] [POSTCODE] 15 December 2004 [NAME_383] and [COMPANY_375] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_117] - [NAME_118] DT326898 Ms [NAME_382] [ADDRESS] [POSTCODE] 25 April 2005 [NAME_509], [NAME_545] and [COMPANY_372] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_543] DT330770 [NAME_580] DT330770 [NAME_386] [ADDRESS] [POSTCODE] 11 February 2005 [NAME_601] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_588] [ADDRESS] [POSTCODE] 29 March 2005 [NAME_132] and [COMPANY_536] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_578] DT328657 [NAME_393] [ADDRESS] [POSTCODE] 11 February 2005 [COMPANY_376] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_592] [ADDRESS] [POSTCODE] 11 February 2005 [NAME_525] and others [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_525] DT331766 [NAME_384] DT331766 [NAME_387] [ADDRESS] [POSTCODE] 11 February 2005 [NAME_388] and others [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_611] [ADDRESS] [POSTCODE] 25 April 2005 [NAME_145] and [NAME_394] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_145] DT329115 Ms [NAME_394] [ADDRESS] [POSTCODE] 11 February 2005 [NAME_464] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_482] [ADDRESS] [POSTCODE] 14 March 2005 [NAME_389] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_514] DT328485 [NAME_506] [ADDRESS] [POSTCODE] 22 June 2005 [COMPANY_374] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_560] [ADDRESS] [POSTCODE] 11 February 2005 [COMPANY_522] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_408] [ADDRESS] [POSTCODE] 15 December 2004 [COMPANY_451] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004

[COMPANY_451] (Co. Regn. No. 740555)

[ADDRESS] [POSTCODE] 11 February 2005 [NAME_483] and [NAME_411] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_589] DT328704 Ms [NAME_411] [ADDRESS] [POSTCODE] 11 February 2005 [NAME_412] and [COMPANY_395] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_543] DT329272 [NAME_580] [ADDRESS] [POSTCODE] 29 March 2005 [NAME_491] and [COMPANY_583] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_553] [ADDRESS] [POSTCODE] 14 March 2005 [COMPANY_397] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_406] [ADDRESS] [POSTCODE] 15 December 2004 [COMPANY_479] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_401] [ADDRESS] [POSTCODE] 15 December 2004 [COMPANY_396] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_406] DT326964 [NAME_402] DT326964 [NAME_400] [ADDRESS] [POSTCODE] 23 July 1974 [COMPANY_513] (Company Registration No. 4472677) 98 years from 23 July 1974

[COMPANY_455] (Co. Regn. No. 1721596)

[ADDRESS] [POSTCODE] 25 April 2005 [COMPANY_398] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_409] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_410] and [NAME_573] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_533] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_571] and [NAME_613] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_562] DT326171 [NAME_605] [ADDRESS] [POSTCODE] 25 February 2005 [COMPANY_570] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_544] DT327898 [NAME_577] [ADDRESS] [POSTCODE] 29 March 2005 [COMPANY_399] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_474] DT328278 [NAME_616] DT328278 [NAME_548] DT328278 Mr [NAME_125] [NAME_153] [NAME_19] [ADDRESS] [POSTCODE] 25 February 2005 [NAME_599] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_407] DT327906 [NAME_478] [ADDRESS] [POSTCODE] 11 February 2005 [COMPANY_404] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_609] DT452866 [NAME_403] DT452866 [NAME_609] DT452866 [NAME_403] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_604] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_518] [ADDRESS] [POSTCODE] 11 February 2005 [COMPANY_463] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_552] DT338503 [NAME_405] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_529] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_480] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_413] and [NAME_551] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_413] DT326304 Ms [NAME_551] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_472] and [NAME_220] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_574] DT327046 Mr [NAME_415] [ADDRESS] [POSTCODE] 15 December 2004 [COMPANY_568] (Company Registration No. 4472677)

999 Years from 24 June 2004 [NAME_556] [ADDRESS] [POSTCODE] 29 March 2005 [NAME_504] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Ms [NAME_504] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_230] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_475] [ADDRESS] [POSTCODE] 11 February 2005 [NAME_421] and [NAME_546] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_421] DT327487 Ms [NAME_546] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_576] and [COMPANY_532] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_379] DT327161 [NAME_423] [ADDRESS] [POSTCODE] 25 February 2005 [NAME_542] and [NAME_239] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [COMPANY_445] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_441], [NAME_473] and [NAME_596] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_530] DT327028 [NAME_541] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_442] and [NAME_486] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_426] DT326648 [NAME_524] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_591], [NAME_499], [NAME_563] and [NAME_429] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_591] DT327677 Ms [NAME_505] DT327677 Mr [NAME_462] DT327677 Ms [NAME_594] [ADDRESS] [POSTCODE] 29 March 2005 [COMPANY_465] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_420] [ADDRESS] [POSTCODE] 25 April 2005 [NAME_422] ith [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_427] DT330165 Ms [NAME_52] [NAME_263] n [ADDRESS] [POSTCODE] 15 December 2004 [NAME_443] and [NAME_265] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_469] [ADDRESS] [POSTCODE] 11 Febuary 2005 [NAME_564] and [NAME_512] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_612] [ADDRESS] [POSTCODE] 15 December 2004 [COMPANY_597] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_569] [ADDRESS] [POSTCODE] 25 February 2005 [COMPANY_501] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_428] DT328014 [NAME_430] [ADDRESS] [POSTCODE] 25 April 2005 [COMPANY_416] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_432] [ADDRESS] [POSTCODE] 15 December 2004 [COMPANY_417] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_585] DT326284 [NAME_519] DT326284 [NAME_527] DT326284 [NAME_520] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_435], [NAME_444] and [COMPANY_528] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_424] DT326907 [NAME_425] DT326907 [NAME_436] [ADDRESS] [POSTCODE] 08 October 2013 [NAME_437] and [NAME_498] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_468] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_595] and [NAME_446] [NAME_438] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [COMPANY_439] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_419] and [NAME_590] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_431] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_307] and [NAME_537] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_433] DT326437 [NAME_440] [ADDRESS] [POSTCODE] 25 February 2005 [NAME_460] and [COMPANY_418] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_534] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_315] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_315] [ADDRESS] [POSTCODE] 15 December 2005 [NAME_493] and [NAME_554] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Ms [NAME_554] [ADDRESS] [POSTCODE] 29 March 2005 [NAME_320] and [NAME_500] [COMPANY_1] (Company Registration No. 4472677)

999 Years from 24 June 2004 [NAME_607] [ADDRESS] [POSTCODE] 29 March 2005 [NAME_572] and [COMPANY_559] (Company Registration No. 4472677)

999 Years from 24 June 2004 [NAME_582] DT331670 Mr [NAME_517] [ADDRESS] [POSTCODE] 29 March 2005 [NAME_600] and [NAME_449] [COMPANY_1] (Company Registration No. 4472677)

999 Years from 24 June 2004 Mr [NAME_164] [NAME_56] [ADDRESS] [POSTCODE] 29 March 2005 [NAME_600] and [NAME_449] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Ms [NAME_331] [NAME_294] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_494] and [NAME_531] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 [ADDRESS] [POSTCODE] 14 March 2005 [NAME_481] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_489] [ADDRESS] [POSTCODE] 11 February 2005 [NAME_602]- [NAME_340] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_448] DT329084 [NAME_492] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_466] and [NAME_557] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_466] DT327045 [NAME_476] [ADDRESS] [POSTCODE] 29 March 2005 Ze'ev Ziv and [COMPANY_1] (Company Registration No. 4472677) 999 [ADDRESS] [POSTCODE] 11 February 2005 [NAME_567] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_615] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_470] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 Mr [NAME_470] [ADDRESS] [POSTCODE] 05 October 2018 [COMPANY_456] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004

[COMPANY_456]

[ADDRESS] [POSTCODE] 11 Febuary 2005 [NAME_608] and [NAME_508] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_495] [ADDRESS] [POSTCODE] 15 December 2004 [NAME_539] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_558] DT326352 96 Flag 96 Crag Head [POSTCODE] 15 December 2004 [COMPANY_447] [COMPANY_1] (Company Registration No. 4472677) 999 Years from 24 June 2004 [NAME_503] DT326953 [NAME_490] DT326953

15 Annexe 2 Variations to the Lease for Crag Head, [ADDRESS], Bournemouth with the exception of flats 6, 12 and 45. Replacement of existing clauses 1. The figure "(7)" contained in line four of paragraph 21 of the Sixth Schedule shall be deleted and replaced with the figure "(6)"

2. Paragraph 6 of the Seventh Schedule of the Lease shall be deleted and replaced by the following: "[NAME_7] shall provide the Services as follows: (i) the supply and removal of electricity, water, sewage and other utilities to and from the Estate; (ii) providing maintaining and replacing where necessary such television, internet and other media supplies to the Estate as [NAME_7] reasonably considers necessary; (iii) complying with the recommendations and requirements of the [NAME_359] (insofar as those recommendations and requirements relate to the Reserved Property); (iv) complying with all laws including local, environmental and conservation regulations relating to the Reserved Property, their use and any works carried out at them, and relating to any materials kept at or disposed of from the parts of the Reserved Property which are used in common by the Owners and occupiers of any two or more of the Flats; (v) complying with all rights, covenants and restrictions that may from time to time affect the Estate; (vi) taking any steps (including proceedings) that [NAME_7] considers necessary to prevent or remove any encroachment over the Reserved Property or to prevent the acquisition of any right over the Reserved Property (or the Building as a whole) or to remove any obstruction to the flow of light or air to the Reserved Property (or the Building as a whole) as local regulations will allow; (vii) employing managing agents for carrying out and provision of the Services; (viii) administering and managing the Reserved Property and general supervision thereof including [NAME_360] [NAME_362] and [NAME_458] and any other [NAME_361] from time to time deemed appropriate by [NAME_7]; (ix) cleaning, maintaining, decorating, repairing, improving, reconstructing, replacing and remedying the Reserved Property and remedying any inherent defect, including but not exclusively the brickwork, the balconies, their floor coverings, the balustrades, the caretaker's building and facilities and all roofs of the Reserved Property; (x) providing heating to the internal ground floor areas of the Reserved Property which are used in common by the Owners and occupiers of any two or more flats during such periods of the year as [NAME_7] reasonably considers appropriate and cleaning, maintaining, repairing, improving, reconstructing and replacing the heating machinery and equipment and remedying any inherent defect;

16 (xi) lighting the areas of the Reserved Property which are used in common by the Owners and occupiers of any two or more of the Flats to include also the underground garages forming part of the Estate and as are normally lighted or should be lighted and cleaning, maintaining, repairing, improving, reconstructing and replacing lighting machinery and equipment and remedying any inherent defect; (xii) cleaning, maintaining, repairing and replacing the furniture, fittings and equipment in both the internal and external areas of the Reserved Property which are used in common by the Owners and occupiers of any two or more of the Flats; (xiii) cleaning, maintaining, repairing, improving, reconstructing and replacing the lifts and the lift shafts including roof housing lifts and lift machinery and equipment on the Reserved Property and remedying any inherent defects; (xiv) cleaning, maintaining, repairing, improving, reconstructing and replacing the communal water supply system and equipment on the Reserved Property and remedying any inherent defects; (xv) cleaning, maintaining, repairing, improving, reconstructing, operating and replacing security machinery and equipment (including closed circuit television), fire prevention evacuation and fighting machinery and equipment and fire alarms on the Reserved Property and remedying any inherent defects; (xvi) cleaning, maintaining, repairing, improving, reconstructing and replacing refuse bins on the parts of the Reserved Property which are used in common by the Owners and occupiers of any two or more of the Flats; (xvii) cleaning and maintaining the glass of the buildings forming part of the Reserved Property used in common by the Owners and occupiers of any two or more of the Flats; (xviii) cleaning, maintaining, repairing, improving, reconstructing and replacing signage for the parts of the Reserved Property which are used in common by the Owners and occupiers of any two or more of the Flats; (xix) maintaining and carrying out any other works to the garden and any landscaped and grassed areas of the Reserved Property; (xx) cleaning, maintaining, repairing, improving, reconstructing and replacing the floor coverings in the internal areas of the Reserved Property; (xxi) cleaning, maintaining, repairing, improving, reconstructing and replacing the swimming pool and related buildings machinery and equipment on the Reserved Property and remedying any inherent defects and providing services relating to the swimming pool including the supply of electricity; (xxii) cleaning, maintaining, repairing, improving, reconstructing and replacing the car parking areas at or below ground level including all their vehicular and pedestrian accesses and egresses on the Reserved Property and remedying any inherent defects; (xxiii) The cost of periodic [NAME_361] valuations of the Estate; (xxiv) any other service or amenity that [NAME_7] may in its reasonable discretion (acting in accordance with the principles of good estate management) provide for the benefit of the Owners and occupiers of the Estate.”

17

Variations to the Lease for flats 6, 12 and 45. Replacement of existing clauses 1.1 Paragraph 7 of the Seventh Schedule of the Lease shall be deleted and replaced by the following:

"[NAME_7] shall provide the Services as follows:

(i) the supply and removal of electricity, water, sewage and other utilities to and from the Estate; (ii) providing maintaining and replacing where necessary such television, internet and other media supplies to the Estate as [NAME_7] reasonably considers necessary; (iii) complying with the recommendations and requirements of the [NAME_359] (insofar as those recommendations and requirements relate to the Reserved Property); (iv) complying with all laws including local, environmental and conservation regulations relating to the Reserved Property, their use and any works carried out at them, and relating to any materials kept at or disposed of from the parts of the Reserved Property which are used in common by the Owners and occupiers of any two or more of the Flats; (v) complying with all rights, covenants and restrictions that may from time to time affect the Estate; (vi) taking any steps (including proceedings) that [NAME_7] considers necessary to prevent or remove any encroachment over the Reserved Property or to prevent the acquisition of any right over the Reserved Property (or the Building as a whole) or to remove any obstruction to the flow of light or air to the Reserved Property (or the Building as a whole) as local regulations will allow; (vii) employing managing agents for carrying out and provision of the Services; (viii) administering and managing the Reserved Property and general supervision thereof including [NAME_360] [NAME_362] and [NAME_458] and any other [NAME_361] from time to time deemed appropriate by [NAME_7]; (ix) cleaning, maintaining, decorating, repairing, improving, reconstructing, replacing and remedying the Reserved Property and remedying any inherent defect, including but not exclusively the brickwork, the balconies, their floor coverings, the balustrades, the caretaker's building and facilities and all roofs of the Reserved Property; (x) providing heating to the internal ground floor areas of the Reserved Property which are used in common by the Owners and occupiers of any two or more flats during such periods of the year as [NAME_7] reasonably considers appropriate and cleaning, maintaining, repairing, improving, reconstructing and replacing the heating machinery and equipment and remedying any inherent defect;

18 (xi) lighting the areas of the Reserved Property which are used in common by the Owners and occupiers of any two or more of the Flats to include also the underground garages forming part of the Estate and as are normally lighted or should be lighted and cleaning, maintaining, repairing, improving, reconstructing and replacing lighting machinery and equipment and remedying any inherent defect; (xii) cleaning, maintaining, repairing and replacing the furniture, fittings and equipment in both the internal and external areas of the Reserved Property which are used in common by the Owners and occupiers of any two or more of the Flats; (xiii) cleaning, maintaining, repairing, improving, reconstructing and replacing the lifts and the lift shafts including roof housing lifts and lift machinery and equipment on the Reserved Property and remedying any inherent defects; (xiv) cleaning, maintaining, repairing, improving, reconstructing and replacing the communal water supply system and equipment on the Reserved Property and remedying any inherent defects; (xv) cleaning, maintaining, repairing, improving, reconstructing, operating and replacing security machinery and equipment (including closed circuit television), fire prevention evacuation and fighting machinery and equipment and fire alarms on the Reserved Property and remedying any inherent defects; (xvi) cleaning, maintaining, repairing, improving, reconstructing and replacing refuse bins on the parts of the Reserved Property which are used in common by the Owners and occupiers of any two or more of the Flats; (xvii) cleaning and maintaining the glass of the buildings forming part of the Reserved Property used in common by the Owners and occupiers of any two or more of the Flats; (xviii) cleaning, maintaining, repairing, improving, reconstructing and replacing signage for the parts of the Reserved Property which are used in common by the Owners and occupiers of any two or more of the Flats; (xix) maintaining and carrying out any other works to the garden and any landscaped and grassed areas of the Reserved Property; (xx) cleaning, maintaining, repairing, improving, reconstructing and replacing the floor coverings in the internal areas of the Reserved Property; (xxi) cleaning, maintaining, repairing, improving, reconstructing and replacing the swimming pool and related buildings machinery and equipment on the Reserved Property and remedying any inherent defects and providing services relating to the swimming pool including the supply of electricity; (xxii) cleaning, maintaining, repairing, improving, reconstructing and replacing the car parking areas at or below ground level including all their vehicular and pedestrian accesses and egresses on the Reserved Property and remedying any inherent defects; (xxiii) The cost of periodic [NAME_361] valuations of the Estate; (xxiv) any other service or amenity that [NAME_7] may in its reasonable discretion (acting in accordance with the principles of good estate management) provide for the benefit of the Owners and occupiers of the Estate.”

19

RIGHTS OF APPEAL

1. A person wishing to appeal this decision to the Upper Tribunal (Lands Chamber) must seek permission to do so by making written application by email to [EMAIL] to the First-tier Tribunal at the Regional office which has been dealing with the case.

2. The application must arrive at the Tribunal within 28 days after the Tribunal sends to the person making the application written reasons for the decision.

3. If the person wishing to appeal does not comply with the 28 day time limit, the person shall include with the application for permission to appeal a request for an extension of time and the reason for not complying with the 28 day time limit; the Tribunal will then decide whether to extend time or not to allow the application for permission to appeal to proceed.

4. The application for permission to appeal must identify the decision of the Tribunal to which it relates, state the grounds of appeal, and state the result the party making the application is seeking.