First-tier Tribunal Grants Lease Variation Request

© CROWN COPYRIGHT 2014

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference

LON/00AW/AH/2019/0002

Property

GALAXY HOUSE (now known as the Morello Quarter) 41 CHERRY ORCHARD ROAD, CROYDON, [POSTCODE]

Applicant [COMPANY] [NAME] of [COMPANY] solicitors

Respondent [NAME], AS IDENTIFIED IN THE SCHEDULE TO THE APPLICATION [COMPANY] of Application An Application to vary various leases pursuant to the provisions of section 36 of the Landlord and Tenant Act 1987

Tribunal Members Judge Huskinson

Venue of [ADDRESS] [POSTCODE] Date of Directions

29th January and 2nd April 2019

Date of Hearing

3rd July 2019

Date of Decision 7th August 2019

2

DECISION

INTRODUCTION

1. This case involves an Application dated 19th December 2018 to vary various leases pursuant to the provisions of section 36 of the Landlord and Tenant Act 1987 (“the Act”).

2. The application is made by [COMPANY] (“the Applicant”) which is the freehold owner of the various blocks comprising the relevant property. The Respondents are the leaseholders of the 297 flats which form part of a new purpose built estate now known as [ADDRESS] [POSTCODE] (“the Property”).

3. Directions were given in the case on 29th January 2019 and in addition subsequently on the 2nd April 2019. On this second occasion of directions, [NAME] of Counsel appeared for the Applicant (as she did at the substantive hearing) and a Ms [NAME]- O’Malley, the secretary of the [COMPANY] (“the Association”), appeared for the Association which she told the Tribunal represented the then 26 Active Respondents. [NAME] explained to the Tribunal at the directions hearing, as she did helpfully at the main hearing, the nature of the Application and also informed the Tribunal that the applicant intended to bear its own costs of the application, and that it would be unlikely to oppose an order under Section 20C of the Landlord and Tenant Act 1985 if such an application were made. She also informed the Tribunal that the applicant had offered to fund the cost of the leaseholders taking independent legal advice, such funding

3 to be capped at £5,000. The directions made on that occasion were ordered to be sent to each of the 26 Active Respondents but, as all of them appeared to be represented by the Association future communications with those respondents by the Tribunal and the Applicants solicitors could be emailed to the Association email address, together with a hard copy sent to the secretary of the Association, whose responsibility it would be to notify the 26 Active Respondents as may be appropriate. The usual directions were made in respect of statements of case and witness statements and the date for the determination of the application was fixed for the 3 July.

4. The matter came before the Tribunal on 3rd July, and as indicated the Applicant was represented by [NAME] of Counsel and there were also in attendance, representatives from the [NAME] and [NAME]’ instructing solicitors; namely, [NAME].

5. There was no appearance by any of the Respondents. No statement of case nor any written representations or indeed objections to the order sought from the Respondents, were served on either the Tribunal or the Applicant.

6. On the contrary, an email was received by the Tribunal on the 2 July at 16.36 from [NAME] who is apparently the co-chair of the [COMPANY]. She states in that email that the Association “will not be objecting to Redrows’ application to vary the Respective Leases” She goes on to state in that email various criticisms and misrepresentations made by the applicant when marketing the flats. However, as indicated this is all prefaced by the stated lack of objection to the order requested by the Applicant being made.

7. In the circumstances, [NAME] very fairly proceeded on the basis that notwithstanding the lack of objection she should prove the Applicants case to the satisfaction of the Tribunal. It is proposed briefly

4 to state the background to the making of this application and then to give the Tribunals’ conclusions.

Analysis

8. The Applicants’ case is well set out in its statement of case made pursuant to the aforesaid directions and in addition in a witness statement made by [NAME] of the applicants [NAME] – all as helpfully supplemented by [NAME]’ submissions.

9. The statutory power to vary leases in these circumstances can be found at Section 35 of the Landlord &Tenant Act 1987. The Act provides that:

(1) Any party to a long lease of a flat may make an application to the appropriate tribunal for an order varying the lease in such manner as is specified in the application

(2) The grounds on which any such application may be made are that the lease fails to make satisfactory provision with respect to one of more of the following provisions, namely ... (f) the computation of the service charge payable under the lease.

10. By virtue of Section 32(4) of the Act, for the purposes of sub-section (2)(f), a lease fails to make satisfactory provision with the respect to the computation of a service charge payable under it if:

(a) it provides for any such charge to be a proportion of expenditure incurred, or to be incurred, by or on behalf of the landlord or a superior landlord; and (b) other tenants of the landlord are also liable under their leases to pay by way of service charges proportions of any such expenditure; and

5 (c) the aggregate of the amounts that would, in any particular case, be payable by reference to the proportions referred to in paragraphs (a) and (b) would either exceed or be less than the whole of any such expenditure.

11. Section 38 of the Act enables the Tribunal to make an order of variation provided it is satisfied that the appropriate ground has been established. Section 38(6) of the Act provides that no such order should be made if substantial prejudice would be caused to the Respondent, of a kind that could not be compensated for under the compensation provisions in the Act.

12. In this particular case the estate is made up of four separately named tower blocks. Those blocks are substantively separate blocks, but each of the pair of two blocks is connected by a low rise red brick block. The leases are drafted in such a way as to provide for service charges to be paid in respect of Estate costs and, separately, Block costs. An example of the provision can be found in the sample lease at page 46 of the hearing bundle at part 3 of schedule 6 to the lease. It will be observed that the percentages are charged within the so-called Initial Block Maintenance charge at that section in the lease.

13. The Applicant’s case (not seriously challenged by the Respondents) is that a mistake has been made, not in respect of the Estate Costs but in respect of the Block Charges. The mistake was apparently made in the drafting of the lease, and came about because instead of calculating the appropriate percentage by reference to the flats in the four blocks separately, they were calculated by reference to the two pairs of blocks which are joined by the single low-rise red brick sections.

14. The applicant says that this is a clear error which could and should be remedied by a variation pursuant to section 35(4) of the Act, because that error means that the percentages in respect of each separate block do not add up to a full 100%. The shortfalls are specified at paragraph

6 9 of the statement of case and amplified in Annex 2 attached to that statement.

15. [NAME] also took the Tribunal to a decision of the Upper Tribunal (Lands Chamber) in the case of Brickfield Properties Limited v Paul Botten [2013] UKUT 0133 (LC) made by His Honour Judge Huskinson on 6th March 2013. That case is of relevance principally on two points. First, does the Tribunal have the jurisdiction to make the variation retrospective? The Applicant invites the Tribunal so to specify in the draft order prepared. Secondly, it deals with questions of prejudice, and whether or not this is a case in which such prejudice would arise for the respondents if the variation requested were made.

16. It is not necessary to recite verbatim the relevant observations by the learned Judge in that case but suffice it to say that, on the first point, that is to say the backdating, the Upper Tribunal found, upon a proper construction of the Act, that the Tribunal had a broad discretion and power to backdate. Secondly, on the question of prejudice, the Upper Tribunal found that in a case of this kind, it can always be said that the Respondent leaseholder will be in a worse position if the percentage is increased, but that does not constitute prejudice for the purposes of the Act. In effect, it is the loss of a windfall which was unintended and undeserved flowing from the inability to recover 100% of the costs which ought to be recoverable.

17. The Tribunal agrees with the submissions made on behalf of the Applicant in this case. It seems to the Tribunal that there has indeed been an error in the calculation of the percentages payable in respect of the block maintenance charge which, if not varied, would result in it being impossible to recover 100% of the correct service charge. Specifically, the Tribunal finds for the reasons advanced and set out above, that the lease fails to make satisfactory provision with respect to the computation of a service charge payable under the lease.

7 18. Moreover, the Tribunal is satisfied that this is not a variation which the Tribunal should decline because of prejudice not capable of compensation under the abovementioned provisions of the Act. Indeed, the Tribunal finds that there is no such prejudice for the reasons identified in the Brickfield case referred to above. The Tribunal in this particular case, has been informed on behalf of the Applicant that in fact the service charges demanded and paid from the inception of the leases have been calculated by reference to the correct percentage rather than the defective percentage provided for in the leases. As understood by the Tribunal, those charges have been paid by the various leaseholders, and so there is no prejudice to them either for the reason given in the Brickfield case (deprivation of a windfall is not prejudice) nor in the sense that upon the making of this variation they will be presented with an unusually high service charge demand, to make up for the shortfall which has occurred by claiming insufficient funds. As a matter of fact, the correct funds have always been claimed and paid.

Conclusion

19. For the reasons indicated above, the Tribunal is satisfied that the variation sought properly comes within the provisions of section 35(2)(f) of the Act, and that the Order as sought should be made, and is made. The form of order is as appears at page 157 – 170 of the hearing bundle. The Applicant has confirmed that it will not seek to recover its costs, and for the avoidance of doubt, an order is made under section 20C of the Landlord and Tenant Act 1985, that no part of the costs incurred in making this application shall be recoverable against the Respondents as part of the service charge.

20. In a sense, the order to be made, is a complicated order, in that a whole series of newly calculated percentages have had to be set out. However, that work has been done, and appears in the fourth schedule to the draft order submitted as part of the application.. The mechanics

8 for the variation, as understood by the Tribunal will not be to execute deeds of variation in respect of these 297 flats (which would be an expensive and cumbersome exercise) but instead to give notification to the Land Registry, so that the title of each leasehold interest has this order of the Tribunal registered against it. This is a course similar to that taken in the Brickfield case.

21. Accordingly, the Tribunal makes the order in the form requested by the Applicant appearing at pages 157 – 170 of the hearing bundle and which is attached to this Decision.

JUDGE SHAW

7th August 2019

9

Case Number: LON/00AH/LVT/2019/0002

FIRST TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

IN THE MATTER OF

Morello Quarter, [ADDRESS], Croydon

BETWEEN:

[COMPANY] Applicant

and

VARIOUS LEASEHOLDERS OF FLATS AT THE MORELLO QUARTER

Respondents

ORDER

UPON DETERMINING THAT each of the 297 leases of apartments situated at the Morello Quarter, [ADDRESS], Croydon (the details of which are more particularly set out in the First Schedule hereto) (“Leases”)

10 fails to make satisfactory provision with respect to the computation of a service charge payable under the lease.

AND UPON DETERMINING THAT the object to be achieved cannot be satisfactorily achieved unless all of the leases are varied to the same effect

Pursuant to Section 38(4) of the Landlord and Tenant Act 1987 IT IS HEREBY ORDERED that the Leases are varied in the terms set out in the Second Schedule hereto.

IT IS FURTHER ORDERED that the said variation of the Leases should take effect from the date of the original grant of the Lease in each case.

IT IS FURTHER ORDERED that subject only to the variations expressed in this Order all the clauses, covenants, conditions and provisions of each Lease (as varied if applicable) shall continue in full force and effect and the Lease shall henceforth be construed as if such amendments were originally contained herein.

AND IT IS FURTHER ORDERED that the Chief Land Registrar shall make such entries on the registers relating to the titles hereby affected or to open a new title or titles as shall be deemed appropriate for the purpose of recording and giving effect to the terms of this Order.

11

THE FIRST SCHEDULE

MORELLO QUARTER APARTMENTS

SCHEDULE OF LEASES

Apartment Number Date of lease Term of lease [NAME]

1 17.11.2016 999 years from 01.01.2014 SGL770628 2 29.11.2016 999 years from 01.01.2014 SGL776602

12 3 25.11.2016 999 years from 01.01.2014 SGL776552 5 31.10.2016 999 years from 01.01.2014 SGL775946 6 09.12.2016 999 years from 01.01.2014 SGL778318 9 28.10.2016 999 years from 01.01.2014 SGL778311 10 11.11.2016 999 years from 01.01.2014 SGL778355 11 28.10.2016 999 years from 01.01.2014 SGL775531 12 21.10.2016 999 years from 01.01.2014 SGL775651 13 04.11.2016 999 years from 01.01.2014 SGL778361 14 21.10.2016 999 years from 01.01.2014 SGL784364 15 21.10.2016 999 years from 01.01.2014 SGL778312 16 21.10.2016 999 years from 01.01.2014 SGL778304 17 25.11.2016 999 years from 01.01.2014 SGL778307 18 26.10.2016 999 years from 01.01.2014 SGL776305 19 31.10.2016 999 years from 01.01.2014 SGL797418

13 21 20.10.2016 999 years from 01.01.2014 SGL776341 22 20.10.2016 999 years from 01.01.2014 SGL775411 23 20.10.2016 999 years from 01.01.2014 SGL775641 24 23.11.2016 999 years from 01.01.2014 SGL778438 26 28.10.2016 999 years from 01.01.2014 SGL775518 27 11.11.2016 999 years from 01.01.2014 SGL778367 28 01.11.2016 999 years from 01.01.2014 SGL777997 29 28.10.2016 999 years from 01.01.2014 SGL778309 30 28.10.2016 999 years from 01.01.2014 SGL778304 31 28.10.2016 999 years from 01.01.2014 SGL778359 32 04.11.2016 999 years from 01.01.2014 SGL778323 34 04.11.2016 999 years from 01.01.2014 SGL775621 36 09.12.2016 999 years from 01.01.2014 SGL778321 38 24.10.2016 999 years from 01.01.2014 SGL778315

14 41 18.11.2016 999 years from 01.01.2014 SGL776723 43 13.12.2016 999 years from 01.01.2014 SGL778198 44 10.11.2016 999 years from 01.01.2014 SGL777961

[ADDRESS]

43, 45 19.05.2017 999 years from 01.01.2014 SGL782240 44, 45 19.05.2017 999 years from 01.01.2014 SGL781860 45, 45 18.05.2017 999 years from 01.01.2014 SGL782237 46, 45 26.05.2017 999 years from 01.01.2014 SGL782346 51, 45 10.05.2017 999 years from 01.01.2014 SGL782032 52, 45 05.05.2017 999 years from 01.01.2014 SGL781790 53, 45 25.05.2017 999 years from 01.01.2014 SGL782252 55, 45 12.05.2017 999 years from 01.01.2014 SGL782243 56, 45 12.05.2017 999 years from 01.01.2014 SGL782259

15 57, 45 21.04.2017 999 years from 01.01.2014 SGL781675 59, 45 28.04.2017 999 years from 01.01.2014 SGL782216 60, 45 28.04.2017 999 years from 01.01.2014 SGL781226 61, 45 28.04.2017 999 years from 01.01.2014 SGL781244 63, 45 13.04.2017 999 years from 01.01.2014 SGL781229 64, 45 13.04.2017 999 years from 01.01.2014 SGL781196 68, 45 13.04.2017 999 years from 01.01.2014 SGL780905 69, 45 07.04.2017 999 years from 01.01.2014 SGL780755 71, 45 13.04.2017 999 years from 01.01.2014 SGL781868 74, 45 07.04.2017 999 years from 01.01.2014 SGL781237 75, 45 31.03.2017 999 years from 01.01.2014 SGL780845 76, 45 20.03.2017 999 years from 01.01.2014 SGL781251 77, 45 07.04.2017 999 years from 01.01.2014 SGL781230 78, 45 05.04.2017 999 years from 01.01.2014 SGL780931

16 79, 45 27.03.2017 999 years from 01.01.2014 SGL780658 80, 45 07.04.2017 999 years from 01.01.2014 SGL780863 82, 45 31.03.2017 999 years from 01.01.2014 SGL781194 86, 45 24.03.2017 999 years from 01.01.2014 SGL781223 87, 45 24.03.2017 999 years from 01.01.2014 SGL781234 88, 45 09.05.2017 999 years from 01.01.2014 SGL781861 90, 45 24.03.2017 999 years from 01.01.2014 SGL781232 4, 47 10.05.2017 999 years from 01.01.2014 SGL781807 7, 47 25.11.2016 999 years from 01.01.2014 SGL778724 8, 47 11.11.2016 999 years from 01.01.2014 SGL778442 20, 47 11.11.2016 999 years from 01.01.2014 SGL778441 25, 47 06.12.2016 999 years from 01.01.2014 SGL778486 33, 47 14.11.2016 999 years from 01.01.2014 SGL779909 35, 47 04.11.2016 999 years from 01.01.2014 SGL778451

17 37, 47 11.11.2016 999 years from 01.01.2014 SGL779911 39, 47 11.11.2016 999 years from 01.01.2014 SGL778723 40, 47 14.11.2016 999 years from 01.01.2014 SGL778443 42, 47 13.12.2016 999 years from 01.01.2014 SGL778465

[NAME]

1 20.10.2017 999 years from 01.01.2014 SGL787397 2 03.11.2017 999 years from 01.01.2014 SGL787122 3 22.01.2018 999 years from 01.01.2014 SGL789579 4 13.10.2017 999 years from 01.01.2014 SGL788707 5 23.08.2017 999 years from 01.01.2014 SGL786210 6 06.11.2017 999 years from 01.01.2014 SGL787310 7 18.08.2017 999 years from 01.01.2014 SGL785598 8 09.10.2017 999 years from 01.01.2014 SGL787436 9 18.08.2017 999 years from SGL788107

18 01.01.2014 10 28.07.2017 999 years from 01.01.2014 SGL784958 11 27.07.2017 999 years from 01.01.2014 SGL785988 12 04.08.2017 999 years from 01.01.2014 SGL784117 13 25.08.2017 999 years from 01.01.2014 SGL785319 14 11.08.2017 999 years from 01.01.2014 SGL784737 15 04.08.2017 999 years from 01.01.2014 SGL784728 16 17.08.2017 999 years from 01.01.2014 SGL785286 17 18.08.2017 999 years from 01.01.2014 SGL785148 18 04.08.2017 999 years from 01.01.2014 SGL784015 19 31.08.2017 999 years from 01.01.2014 SGL786212 20 21.07.2017 999 years from 01.01.2014 SGL783861 21 21.07.2017 999 years from 01.01.2014 SGL783836 22 04.08.2017 999 years from 01.01.2014 SGL784286 23 28.07.2017 999 years from SGL783959

19 01.01.2014 24 28.07.2017 999 years from 01.01.2014 SGL784733 25 17.07.2017 999 years from 01.01.2014 SGL783409 26 21.07.2017 999 years from 01.01.2014 SGL783862 27 14.07.2017 999 years from 01.01.2014 SGL783869 28 23.06.2017 999 years from 01.01.2014 SGL783415 29 14.07.2017 999 years from 01.01.2014 SGL784243 30 21.07.2017 999 years from 01.01.2014 SGL783641 31 07.07.2017 999 years from 01.01.2014 SGL783110 32 21.07.2017 999 years from 01.01.2014 SGL784781 33 17.07.2017 999 years from 01.01.2014 SGL783410 34 28.07.2017 999 years from 01.01.2014 SGL784278 35 09.06.2017 999 years from 01.01.2014 SGL782523 36 07.06.2017 999 years from 01.01.2014 SGL786168 37 26.05.2017 999 years from SGL782728

20 01.01.2014 38 07.07.2017 999 years from 01.01.2014 SGL784491 39 07.07.2017 999 years from 01.01.2014 SGL783106 40 31.07.2017 999 years from 01.01.2014 SGL785150 41 10.07.2017 999 years from 01.01.2014 SGL783513 42 16.06.2017 999 years from 01.01.2014 SGL785765 47 26.05.2017 999 years from 01.01.2014 SGL783189 48 31.05.2017 999 years from 01.01.2014 SGL782792 49 05.06.2017 999 years from 01.01.2014 SGL782970 50 31.05.2017 999 years from 01.01.2014 SGL783059 54 09.06.2017 999 years from 01.01.2014 SGL783160 58 25.04.2017 999 years from 01.01.2014 SGL782888 62 03.05.2017 999 years from 01.01.2014 SGL782499 65 13.04.2017 999 years from 01.01.2014 SGL787972 66 05.05.2017 999 years from SGL783242

21 01.01.2014 67 18.05.2017 999 years from 01.01.2014 SGL783274 70 07.04.2017 999 years from 01.01.2014 SGL783514 73 28.04.2017 999 years from 01.01.2014 SGL786617 81 24.03.2017 999 years from 01.01.2014 SGL785599 83 26.05.2017 999 years from 01.01.2014 SGL782821 84 19.05.2017 999 years from 01.01.2014 SGL783257 85 13.04.2017 999 years from 01.01.2014 SGL781462 89 23.05.2017 999 years from 01.01.2014 SGL782329

[NAME]

1 15.03.2018 999 years from 01.01.2014 SGL790597 2 18.12.2017 999 years from 01.01.2014 SGL789157 3 12.02.2018 999 years from 01.01.2014 SGL790402 4 18.12.2017 999 years from 01.01.2014 SGL789020

22 5 02.02.2018 999 years from 01.01.2014 SGL789750 6 19.09.2017 999 years from 01.01.2014 SGL785813 7 25.08.2017 999 years from 01.01.2014 SGL785950 8 25.08.2017 999 years from 01.01.2014 SGL786208 9 25.08.2017 999 years from 01.01.2014 SGL785010 10 14.08.2017 999 years from 01.01.2014 SGL784970 11 13.09.2017 999 years from 01.01.2014 SGL785252 12 02.10.2017 999 years from 01.01.2014 SGL786513 13 11.09.2017 999 years from 01.01.2014 SGL785575 14 01.09.2017 999 years from 01.01.2014 SGL784982 15 22.09.2017 999 years from 01.01.2014 SGL786166 16 01.09.2017 999 years from 01.01.2014 SGL786463 17 25.08.2017 999 years from 01.01.2014 SGL785836 18 01.09.2017 999 years from 01.01.2014 SGL786407

23 19 02.08.2017 999 years from 01.01.2014 SGL784784 20 17.11.2017 999 years from 01.01.2014 SGL788157 21 08.09.2017 999 years from 01.01.2014 SGL791158 22 01.09.2017 999 years from 01.01.2014 SGL785198 23 25.08.2017 999 years from 01.01.2014 SGL785057 24 01.09.2017 999 years from 01.01.2014 SGL785406 25 01.09.2017 999 years from 01.01.2014 SGL785892 26 02.10.2017 999 years from 01.01.2014 SGL786793 27 14.08.2017 999 years from 01.01.2014 SGL784802 28 14.08.2017 999 years from 01.01.2014 SGL784862 29 01.09.2017 999 years from 01.01.2014 SGL784998 30 25.08.2017 999 years from 01.01.2014 SGL785679 31 11.08.2017 999 years from 01.01.2014 SGL785194 32 08.09.2017 999 years from 01.01.2014 SGL787265

24 33 29.09.2017 999 years from 01.01.2014 SGL785811 34 11.08.2017 999 years from 01.01.2014 SGL784520 35 27.09.2017 999 years from 01.01.2014 SGL786869 36 11.08.2017 999 years from 01.01.2014 SGL784394 37 07.12.2017 999 years from 01.01.2014 SGL788039 38 14.08.2017 999 years from 01.01.2014 SGL784848 39 14.08.2017 999 years from 01.01.2014 SGL784903 40 30.11.2017 999 years from 01.01.2014 SGL788937 41 15.09.2017 999 years from 01.01.2014 SGL785545 42 18.08.2017 999 years from 01.01.2014 SGL789679 43 18.08.2017 999 years from 01.01.2014 SGL784458 44 12.01.2018 999 years from 01.01.2014 SGL789574 45 06.10.2017 999 years from 01.01.2014 SGL786051 46 08.09.2017 999 years from 01.01.2014 SGL785299

25 47 04.10.2017 999 years from 01.01.2014 SGL786535 48 25.08.2017 999 years from 01.01.2014 SGL785803 49 25.08.2017 999 years from 01.01.2014 SGL786263 50 25.08.2017 999 years from 01.01.2014 SGL786041 51 19.01.2018 999 years from 01.01.2014 SGL789570 52 01.09.2017 999 years from 01.01.2014 SGL785028 53 31.08.2017 999 years from 01.01.2014 SGL785027 54 10.10.2017 999 years from 01.01.2014 SGL786192 55 22.09.2017 999 years from 01.01.2014 SGL785465 56 15.11.2017 999 years from 01.01.2014 SGL787553 57 15.09.2017 999 years from 01.01.2014 SGL786207 58 11.10.2017 999 years from 01.01.2014 SGL787144 59 22.09.2017 999 years from 01.01.2014 SGL785634 60 05.10.2017 999 years from 01.01.2014 SGL786812

26 61 29.09.2017 999 years from 01.01.2014 SGL786218 62 25.08.2017 999 years from 01.01.2014 SGL785792 63 29.09.2017 999 years from 01.01.2014 SGL786547 64 29.09.2017 999 years from 01.01.2014 SGL786217 65 23.02.2018 999 years from 01.01.2014 SGL790287 66 10.10.2017 999 years from 01.01.2014 SGL786955 67 10.11.2017 999 years from 01.01.2014 SGL787283 68 15.09.2017 999 years from 01.01.2014 SGL786613 69 13.09.2017 999 years from 01.01.2014 SGL785607 70 15.09.2017 999 years from 01.01.2014 SGL786029 71 15.09.2017 999 years from 01.01.2014 SGL786236 72 16.02.2018 999 years from 01.01.2014 SGL790078 73 13.10.2017 999 years from 01.01.2014 SGL786754 74 25.09.2017 999 years from 01.01.2014 SGL786926

27 75 22.09.2017 999 years from 01.01.2014 SGL786661 76 15.09.2017 999 years from 01.01.2014 SGL785308 77 15.09.2017 999 years from 01.01.2014 SGL786242 78 24.11.2017 999 years from 01.01.2014 SGL787618 79 30.10.2017 999 years from 01.01.2014 SGL786781 80 27.10.2017 999 years from 01.01.2014 SGL787001 81 28.02.2018 999 years from 01.01.2014 SGL790592 82 29.09.2017 999 years from 01.01.2014 SGL791656 83 29.09.2017 999 years from 01.01.2014 SGL786952 84 23.11.2017 999 years from 01.01.2014 SGL787595 85 27.03.2018 999 years from 01.01.2014 SGL791628 86 20.10.2017 999 years from 01.01.2014 SGL787136 87 20.10.2017 999 years from 01.01.2014 SGL787276 89 20.10.2017 999 years from 01.01.2014 SGL787132

28 90 24.11.2017 999 years from 01.01.2014 SGL788439 91 14.12.2017 999 years from 01.01.2014 SGL789027 92 19.12.2017 999 years from 01.01.2014 SGL789237 93 26.01.2018 999 years from 01.01.2014 SGL790094 94 28.02.2018 999 years from 01.01.2014 SGL790293 95 03.11.2017 999 years from 01.01.2014 SGL786954 96 30.11.2017 999 years from 01.01.2014 SGL787696 97 12.12.2017 999 years from 01.01.2014 SGL788179 98 16.11.2017 999 years from 01.01.2014 SGL787346 99 02.02.2018 999 years from 01.01.2014 SGL789375 100 17.12.2017 999 years from 01.01.2014 SGL788041 101 10.11.2017 999 years from 01.01.2014 SGL787780 102 01.12.2017 999 years from 01.01.2014 SGL788509 103 14.09.2018 999 years from 01.01.2014 SGL796808

29 104 26.01.2018 999 years from 01.01.2014 SGL789346 105 16.02.2018 999 years from 01.01.2014 SGL790787 106 08.12.2017 999 years from 01.01.2014 SGL788994 107 08.12.2017 999 years from 01.01.2014 SGL789663 108 12.01.2018 999 years from 01.01.2014 SGL788887 109 14.12.2017 999 years from 01.01.2014 SGL788059 110 19.01.2018 999 years from 01.01.2014 SGL792493 111 20.12.2017 999 years from 01.01.2014 SGL788570 112 18.12.2017 999 years from 01.01.2014 SGL789307

[NAME]

2 05.03.2018 999 years from 01.01.2014 SGL790437 3 16.03.2018 999 years from 01.01.2014 SGL791321 4 02.02.2018 999 years from 01.01.2014 SGL789558 5 15.12.2017 999 years from SGL790188

30 01.01.2014 6 15.12.2017 999 years from 01.01.2014 SGL789140 7 15.12.2017 999 years from 01.01.2014 SGL789121 8 08.06.2018 999 years from 01.01.2014 SGL793749 9 26.01.2018 999 years from 01.01.2014 SGL789952 10 08.12.2017 999 years from 01.01.2014 SGL788656 11 01.12.2017 999 years from 01.01.2014 SGL789146 12 01.12.2017 999 years from 01.01.2014 SGL788389 14 21.12.2017 999 years from 01.01.2014 SGL790000 15 24.11.2017 999 years from 01.01.2014 SGL788458 16 07.12.2017 999 years from 01.01.2014 SGL788222 17 24.11.2017 999 years from 01.01.2014 SGL788611 18 22.06.2018 999 years from 01.01.2014 SGL796410 19 20.12.2017 999 years from 01.01.2014 SGL788888 20 17.11.2017 999 years from SGL791162

31 01.01.2014 21 17.11.2017 999 years from 01.01.2014 SGL787711 22 17.11.2017 999 years from 01.01.2014 SGL788312 23 29.06.2018 999 years from 01.01.2014 SGL794704 24 17.11.2017 999 years from 01.01.2014 SGL788052 25 16.10.2017 999 years from 01.01.2014 SGL787213 26 15.12.2017 999 years from 01.01.2014 SGL789039 27 24.11.2017 999 years from 01.01.2014 SGL788353 28 23.11.2017 999 years from 01.01.2014 SGL788412 29 13.11.2017 999 years from 01.01.2014 SGL787268 30 21.12.2017 999 years from 01.01.2014 SGL788520 31 18.12.2017 999 years from 01.01.2014 SGL789288 32 08.12.2017 999 years from 01.01.2014 SGL788697 33 21.12.2017 999 years from 01.01.2014 SGL788738 34 15.12.2017 999 years from SGL788289

32 01.01.2014 35 09.03.2018 999 years from 01.01.2014 SGL791349 37 10.11.2017 999 years from 01.01.2014 SGL787765 38 19.12.2017 999 years from 01.01.2014 SGL788322 39 26.01.2018 999 years from 01.01.2014 SGL789339 40 23.11.2017 999 years from 01.01.2014 SGL788315 41 19.01.2018 999 years from 01.01.2014 SGL789090 42 10.11.2017 999 years from 01.01.2014 SGL787769 43 23.11.2017 999 years from 01.01.2014 SGL788417 44 13.11.2017 999 years from 01.01.2014 SGL787404 45 19.02.2018 999 years from 01.01.2014 SGL789929 46 19.01.2018 999 years from 01.01.2014 SGL789756 47 10.11.2017 999 years from 01.01.2014 SGL787784 48 01.12.2017 999 years from 01.01.2014 SGL788087 49 17.07.2018 999 years from SGL795889

33 01.01.2014 50 31.07.2018 999 years from 01.01.2014 SGL795552 51 12.01.2018 999 years from 01.01.2014 SGL790272

THE SECOND SCHEDULE

VARIATIONS TO LEASES OF FLATS AT THE MORELLO QUARTER, CHERRY ORCHARD ROAD, CROYDON

The percentage figure specified in of Part III of the Sixth Schedule shall be deleted from each and every Lease and substituted in each case with the corresponding figure set out in the Third Schedule hereto

34

35

THE THIRD SCHEDULE (New Block Maintenance Charge Percentages)

Block Apartment Number

New Block [NAME] 1 3.1823 [NAME] 2 1.3731 [NAME] 3 1.4218 [NAME] 4 1.9229 [NAME] 5 1.4218 [NAME] 6 1.8226 [NAME] 7 2.0691 [NAME] 8 2.9601 [NAME] 9 1.3731 [NAME] 10 1.4218 [NAME] 11 1.8226 [NAME] 12 2.0691 [NAME] 13 2.9601 [NAME] 14 1.3731 [NAME] 15 1.4218 [NAME] 16 1.8226 [NAME] 17 2.0691 [NAME] 18 2.9601 [NAME] 19 1.3731 [NAME] 20 1.4218 [NAME] 21 1.8226

36 [NAME] 22 2.0691 [NAME] 23 2.9601 [NAME] 24 1.3731 [NAME] 25 1.4218 [NAME] 26 1.8226 [NAME] 27 2.0691 [NAME] 28 2.9601 [NAME] 29 1.3731 [NAME] 30 3.4827 [NAME] 31 2.0854 [NAME] 32 2.6947 [NAME] 33 1.8739 [NAME] 34 2.0854 [NAME] 35 2.5322 [NAME] 36 1.8768 [NAME] 37 1.354 [NAME] 38 1.4083 [NAME] 39 1.8253 [NAME] 40 1.8768 [NAME] 41 1.354 [NAME] 42 1.4082 [NAME] 43 1.8252 [NAME] 44 1.8768 [NAME] 45 1.354 [NAME] 46 1.4082 [NAME] 47 1.8252 [NAME] 48 2.8788 [NAME] 49 1.8768 [NAME] 50 1.8252 [NAME] 51 3.1388

Totals 100.00%

37

Block Apartmen t Number New Block Maintenan ce [NAME] 1 0.953 [NAME] 2 1.2552 [NAME] 3 0.7517 [NAME] 4 1.042 [NAME] 5 0.778 [NAME] 6 0.9573 [NAME] 7 0.8197 [NAME] 8 0.7321 [NAME] 9 1.1755 [NAME] 10 0.7613 [NAME] 11 0.9308 [NAME] 12 0.8892 [NAME] 13 0.9503 [NAME] 14 0.753 [NAME] 15 0.7281 [NAME] 16 1.1755 [NAME] 17 0.7613 [NAME] 18 0.9323 [NAME] 19 0.8892 [NAME] 20 0.9503 [NAME] 21 0.753 [NAME] 22 0.7281 [NAME] 23 1.1755 [NAME] 24 0.7613 [NAME] 25 0.9323 [NAME] 26 0.8892 [NAME] 27 0.9503 [NAME] 28 0.753

38 [NAME] 29 0.7281 [NAME] 30 1.1755 [NAME] 31 0.7613 [NAME] 32 0.9323 [NAME] 33 0.8892 [NAME] 34 0.9503 [NAME] 35 0.753 [NAME] 36 0.7281 [NAME] 37 1.1755 [NAME] 38 0.7613 [NAME] 39 0.9323 [NAME] 40 0.8892 [NAME] 41 0.9503 [NAME] 42 0.753 [NAME] 43 0.7281 [NAME] 44 1.1755 [NAME] 45 0.7613 [NAME] 46 0.9323 [NAME] 47 0.8892 [NAME] 48 0.9503 [NAME] 49 0.753 [NAME] 50 0.7281 [NAME] 51 1.1755 [NAME] 52 0.7613 [NAME] 53 0.9323 [NAME] 54 0.8892 [NAME] 55 0.9546 [NAME] 56 0.753 [NAME] 57 0.7281 [NAME] 58 0.9378 [NAME] 59 0.9308 [NAME] 60 0.8892 [NAME] 61 0.9546

39 [NAME] 62 0.753 [NAME] 63 0.7281 [NAME] 64 0.9378 [NAME] 65 0.9323 [NAME] 66 0.8892 [NAME] 67 0.9546 [NAME] 68 0.753 [NAME] 69 0.7281 [NAME] 70 0.9378 [NAME] 71 0.9323 [NAME] 72 0.8892 [NAME] 73 0.9546 [NAME] 74 0.753 [NAME] 75 0.7281 [NAME] 76 0.9378 [NAME] 77 0.9323 [NAME] 78 0.8892 [NAME] 79 0.9546 [NAME] 80 0.753 [NAME] 81 0.7281 [NAME] 82 0.9378 [NAME] 83 0.9323 [NAME] 84 0.8892 [NAME] 85 0.9546 [NAME] 86 0.753 [NAME] 87 0.7281 [NAME] 88 0.9378 [NAME] 89 0.9323 [NAME] 90 0.8892 [NAME] 91 0.9546 [NAME] 92 0.753 [NAME] 93 0.7281 [NAME] 94 0.9378

40 [NAME] 95 0.9323 [NAME] 96 0.8892 [NAME] 97 0.9546 [NAME] 98 0.753 [NAME] 99 0.7281 [NAME] 100 0.9378 [NAME] 101 0.9323 [NAME] 102 0.8892 [NAME] 103 0.9546 [NAME] 104 0.753 [NAME] 105 0.7238 [NAME] 106 0.9337 [NAME] 107 0.9308 [NAME] 108 0.8892 [NAME] 109 1.5685 [NAME] 110 0.9822 [NAME] 111 0.9795 [NAME] 112 1.5422

Totals 100.00%

Block Apartment Number New Block [NAME] 1 1.0007

41 [NAME] 2 1.265 [NAME] 3 2.139 [NAME] 4 0.9056 [NAME] 5 0.9708 [NAME] 6 1.4658 [NAME] 7 1.2068 [NAME] 8 0.9002 [NAME] 9 1.2474 [NAME] 10 0.902 [NAME] 11 0.9708 [NAME] 12 1.4606 [NAME] 13 0.9249 [NAME] 14 0.9513 [NAME] 15 1.1998 [NAME] 16 0.9002 [NAME] 17 1.2491 [NAME] 18 0.902 [NAME] 19 0.9708 [NAME] 20 1.4606 [NAME] 21 0.9249 [NAME] 22 0.9513 [NAME] 23 1.1998 [NAME] 24 0.9002 [NAME] 25 1.2491 [NAME] 26 0.902 [NAME] 27 0.9708 [NAME] 28 1.457 [NAME] 29 0.9233 [NAME] 30 0.9513 [NAME] 31 1.1998 [NAME] 32 0.9002 [NAME] 33 1.2491 [NAME] 34 0.902

42 [NAME] 35 0.969 [NAME] 36 1.457 [NAME] 37 0.9233 [NAME] 38 0.9513 [NAME] 39 1.1998 [NAME] 40 0.9002 [NAME] 41 1.2491 [NAME] 42 0.902 [NAME] 43 0.969 [NAME] 44 1.457 [NAME] 45 0.9233 [NAME] 46 0.9513 [NAME] 47 1.1998 [NAME] 48 0.9002 [NAME] 49 1.2491 [NAME] 50 0.902 [NAME] 51 1.2068 [NAME] 52 0.932 [NAME] 53 0.9567 [NAME] 54 1.1998 [NAME] 55 1.0782 [NAME] 56 1.0782 [NAME] 57 1.2068 [NAME] 58 0.932 [NAME] 59 0.9567 [NAME] 60 1.1998 [NAME] 61 1.0765 [NAME] 62 1.0765 [NAME] 63 1.2068 [NAME] 64 0.932 [NAME] 65 0.9567 [NAME] 66 1.1998 [NAME] 67 1.0765

43 [NAME] 68 1.0765 [NAME] 69 1.2068 [NAME] 70 0.932 [NAME] 71 0.9567 [NAME] 72 1.1998 [NAME] 73 1.0765 [NAME] 74 1.0765 [NAME] 75 1.2068 [NAME] 76 0.932 [NAME] 77 0.9567 [NAME] 78 1.1998 [NAME] 79 1.0765 [NAME] 80 1.0765 [NAME] 81 1.2068 [NAME] 82 0.932 [NAME] 83 0.9567 [NAME] 84 1.1998 [NAME] 85 1.0765 [NAME] 86 1.0765 [NAME] 87 1.982 [NAME] 88 1.2738 [NAME] 89 1.2579 [NAME] 90 2.0155

Total 100%

44

Block Apartment Number New Block [NAME] 1 3.2772 [NAME] 2 2.226 [NAME] 3 3.7488 [NAME] 4 2.2293 [NAME] 5 1.9575 [NAME] 6 1.8924 [NAME] 7 2.4941 [NAME] 8 2.0046 [NAME] 9 2.041 [NAME] 10 1.9214 [NAME] 11 2.2293 [NAME] 12 1.9575 [NAME] 13 1.8924 [NAME] 14 2.4941 [NAME] 15 2.0046 [NAME] 16 2.041 [NAME] 17 1.9214 [NAME] 18 2.2293 [NAME] 19 1.9575 [NAME] 20 1.8924 [NAME] 21 2.4941 [NAME] 22 2.0046 [NAME] 23 2.041 [NAME] 24 1.9214 [NAME] 25 2.2293 [NAME] 26 1.9575 [NAME] 27 1.8924

45 [NAME] 28 2.4941 [NAME] 29 2.0046 [NAME] 30 2.041 [NAME] 31 1.9214 [NAME] 32 2.3128 [NAME] 33 1.9575 [NAME] 34 1.8924 [NAME] 35 2.4798 [NAME] 36 2.0917 [NAME] 37 2.3165 [NAME] 38 1.9575 [NAME] 39 1.8851 [NAME] 40 2.6137 [NAME] 41 4.0456 [NAME] 42 2.3021 [NAME] 43 2.5957 [NAME] 44 4.1364

Total 100%

46

47

© CROWN COPYRIGHT 2014

LON/00AH/LVT/2019/0002

Property

Applicant [COMPANY] [NAME] of [COMPANY] solicitors

Tribunal Members Judge Huskinson

Venue of [ADDRESS] [POSTCODE] Date of Directions

29th January and 2nd April 2019

Date of Hearing

3rd July 2019

Date of Decision 7th August 2019

2

DECISION

INTRODUCTION

Analysis

Conclusion

JUDGE SHAW

7th August 2019

9

Case Number: LON/00AH/LVT/2019/0002

FIRST TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

IN THE MATTER OF

Morello Quarter, [ADDRESS], Croydon

BETWEEN:

[COMPANY] Applicant

and

VARIOUS LEASEHOLDERS OF FLATS AT THE MORELLO QUARTER

Respondents

ORDER

11

THE FIRST SCHEDULE

MORELLO QUARTER APARTMENTS

SCHEDULE OF LEASES

Apartment Number Date of lease Term of lease [NAME]

[ADDRESS]

[NAME]

[NAME]

[NAME]

THE SECOND SCHEDULE

34

35

Block Apartment Number

Totals 100.00%

37

Totals 100.00%

Block Apartment Number New Block [NAME] 1 1.0007

Total 100%

44

Total 100%

46

47