First-tier Tribunal Grants Dispensation from Consultation Requirements for Major Works

OUTCOME: Allowed

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference

:

HAV/00HQ/LDC/2025/0634

Property

:

11 [ADDRESS], [POSTCODE]

Applicant: [redacted]

[COMPANY]

:

[NAME]

Respondent: [redacted]

[NAME] 1 [NAME] 2 [NAME] 3 [NAME] 4 [NAME] 5 [NAME] 6 [NAME] 7 [NAME] 8

Representative

:

Type of Application

:

To dispense with the requirement to consult [NAME] about major works section 20ZA of the Landlord and Tenant Act 1985

Tribunal Member

:

Regional Judge Whitney

Date of Decision

:

13 May 2025

DECISION

2 This is a formal order of the Tribunal which must be complied with by the parties.

Communications to the Tribunal MUST be made by email to [EMAIL]. All communications must clearly state the Case Number and address of the premises.

Summary of the Decision

1. The Applicant is granted dispensation under Section 20ZA of the Landlord and Tenant Act 1985 from the consultation requirements imposed on the landlord by Section 20 of the 1985 Act in relation to the necessary repairs to the roof and the fire prevention works. The Tribunal has made no determination on whether the costs of the works are reasonable or payable.

Background

2. The Applicant seeks dispensation under Section 20ZA of the Landlord and Tenant Act 1985 from the consultation requirements imposed on the landlord by Section 20 of the 1985 Act. The application was received on 2 April 2025.

3. The Property is described in the application as a:

Purpose built property of 8 flats over 4 storey's consisting of 1, 2 and 3 bedrooms with balconies and 2 blocks of garages. on the driveway is a shallow bin store to house 2x8 bins

4. The Applicant explains:

In February 2023, a survey identified structural roof issues and other necessary repairs.

A schedule of works was created, and quotes were obtained ranging from £112-142k In July 2023, shareholders agreed to proceed outside the Section 20 process to save costs. Shareholders proposed an initial funding of £10,000 per flat and prioritise works. A more competitive quote (£75,826.10) was obtained in September 2023, and the contractor [NAME] was selected. A formal Section 20 Notice was issued in October 2023 following an agreed specification of works from a structrual surveyor. A revised quote from [NAME] (£82,065.66) was obtained in August 2024, factoring in increased material and labour costs. Following an additonal fire safety survey of the property, common area fire doors and smokescreen quotes obtained [NAME] (£ 23,656.04) are to be added to the works

3 A Section 20 Notice with quotes was issued in August 2024 along with voluntary option. An amended section 20 Notice of Intention to add the fire prevention works was sent in September 2024 with an option for all [NAME] to agree to forego the section 20 process saving on costs. 7 out of 8 [NAME] agreed to dispense the section 20.

5. The works are described as:

Taken from the Structrural (sic) Surveyors Schedule of Works 2023: To provide scaffolding. Remove rain water goods and replace. Clean and prepare soffits, fascias, timber dormers, barge boards of roof line ready for redecoration. Remove damaged roof tiles and replace with matching. Remove and replace pointing to valleys. Prepare exterior for redecoration. Clean and prepare balconies for redecoration and any softened timber externally. Clean and prepare metal work for redecoration. Repair and repaint all rendered surfaces. Replace defective mastic around windows. Apply fungacide to all pathways and driveway and jetwash. New waterproof specified by [NAME] for balcony coverings. Remove all timber fascia and soffits to garage and bin store and replace with UPVC. Rerender and repaint exterior of garages and bin store. Internally - skim communal areas and redecorate. All timber areas to be filled, repaired and varnished. All metal work repaired and prepared for redecoration. Remove and replace communal fire doors and smoke screens to meet new regulations. Replace/improve service cupboard doors to meet new regulations. Reinstall Fire notices and signs in line with FRA and regulations.

6. The Tribunal gave Directions on 7 April 2025 listing the steps to be taken by the parties in preparation for the determination of the dispute, if any.

7. The Directions stated that Tribunal would determine the application on the papers received unless a party objected in writing to the Tribunal within 7 days of the date of receipt of the Directions. No party has objected to the application being determined on the papers.

8. The only issue for the Tribunal is whether or not it is reasonable to dispense with the statutory consultation requirements. This application is not about the proposed costs of the works, and whether they are recoverable from

4 the [NAME] as service charges or the possible application or effect of the Building Safety Act 2022. The [NAME] have the right to make a separate application to the Tribunal under section 27A of the Landlord and Tenant Act 1985 to determine the reasonableness of the costs, and the contribution payable through the service charges.

The Law

9. Section 20 of the Landlord and Tenant Act 1985 (“the Act”) and the related Regulations provide that where the lessor undertakes qualifying works with a cost of more than £250 per lease, the relevant contribution of each [NAME] (jointly where more than one under any given lease) will be limited to that sum unless the required consultations have been undertaken or the requirement has been dispensed with by the Tribunal. An application may be made retrospectively.

10. The relevant section of the Act reads as follows:

S.20 ZA Consultation requirements: Where an application is made to a Leasehold Valuation Tribunal for a determination to dispense with all or any of the consultation requirements in relation to any qualifying works or qualifying long- term agreement, the Tribunal may make the determination if satisfied that it is reasonable to dispense with the requirements.

11. The appropriate approach to be taken by the Tribunal in the exercise of its discretion was considered by the Supreme Court in the case of [COMPANY] v [NAME] et al [2013] UKSC 14.

12. The leading judgment of Lord [NAME] explained that a Tribunal should focus on the question of whether [NAME] will be or had been prejudiced in either paying where that was not appropriate or in paying more than appropriate because the failure of the lessor to comply with the regulations. The requirements were held to give practical effect to those two objectives and were a means to an end, not an end in themselves.

13. The factual burden of demonstrating prejudice falls on [NAME]. [NAME] must identify what would have been said if able to engage in a consultation process. If [NAME] advances a credible case for having been prejudiced, the lessor must rebut it. The Tribunal should be sympathetic to [NAME](s).

14. Where the extent, quality and cost of the works were in no way affected by the lessor’s failure to comply, Lord [NAME] said as follows:

I find it hard to see why the dispensation should not be granted (at least in the absence of some very good reason): in such a case the tenants would be in precisely the position that the legislation intended them to be- i.e. as if the requirements had been complied with.

5 15. The main, indeed normally, the sole question, as described by Lord [NAME], for the Tribunal to determine is therefore whether, or not, [NAME] will be or has been caused relevant prejudice by a failure of the Applicant to undertake the consultation prior to the major works and so whether dispensation in respect of that should be granted.

16. The question is one of the reasonableness of dispensing with the process of consultation provided for in the Act, not one of the reasonableness of the charges of works arising or which have arisen.

17. If dispensation is granted, that may be on terms.

18. There have been subsequent Decisions of the higher Courts and Tribunals of assistance in the application of the Decision in Daejan but none are relied upon or therefore require specific mention in this Decision.

Consideration

19. The Directions attached a reply form for the Respondents to complete to confirm whether they agreed with the application or not and if opposed, to provide a statement setting out why they oppose.

20. All the Respondents have returned the reply form, confirming their agreement to the application.

21. Having considered the application and prior to undertaking this determination, I am satisfied that a determination on the papers remains appropriate, given that the application remains unchallenged.

22. The reason why dispensation from consultation requirements is said to be required is: rewriting the schedule of works and re-tendering would add unnecessary fees and delays, labour and material costs have already increased by £6,239.56 due to delays, expert fees have increased to 10% of works and further delays would risk the building’s integrity and occupants’ safety under the Fire Safety Act. Given the nature of the works and the fact that it related to the safety and welfare of the building and its occupants, I am satisfied that the qualifying works were of an urgent nature.

23. There has been no objection to the dispensation of the consultation requirements from any of the [NAME].

24. None of the [NAME] have therefore asserted that any prejudice has been caused to them. The Tribunal finds that nothing different would be done or achieved in the event of a full consultation with the [NAME], except for the potential delay and potential problems.

6 25. The Tribunal finds that the Respondents have not suffered any prejudice by the failure of the Applicant to follow the full consultation process.

26. The Tribunal consequently finds that it is reasonable to dispense with all of the formal consultation requirements in respect of the major works to the building as described in this Decision.

27. This Decision is confined to determination of the issue of dispensation from the consultation requirements in respect of the qualifying works for the necessary repairs to the roof and the fire prevention works as outlined at paragraph 5. The Tribunal has made no determination on whether the costs are payable or reasonable. If a [NAME] wishes to challenge the payability or reasonableness of those costs, then a separate application under section 27A of the Landlord and Tenant Act 1985 would have to be made.

28. In reaching my decision I have taken account of the fact that no party has objected to the application. The [NAME] have had opportunity to raise any objection and they have not done so.

RIGHTS OF APPEAL

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

30. 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.

31. 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.

32. 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.

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Reference

:

HAV/00HQ/LDC/2025/0634

Property

:

11 [ADDRESS], [POSTCODE]

Applicant: [redacted]

[COMPANY]

:

[NAME]

Respondent: [redacted]

[NAME] 1 [RESPONDENT] 2 [NAME] 3 [NAME] 4 [NAME] 5 [NAME] 6 [NAME] 7 [COUNSEL] [NAME] 8

Representative

:

Type of Application

:

Tribunal Member

:

Regional Judge Whitney

Date of Decision

:

13 May 2025

DECISION

Summary of the Decision

Background

3. The Property is described in the application as a:

4. The Applicant explains:

5. The works are described as:

The Law

10. The relevant section of the Act reads as follows:

17. If dispensation is granted, that may be on terms.

Consideration

RIGHTS OF APPEAL