First-tier Tribunal Grants Tenant's Request to Vary Lease
📌 In brief
The First-tier Tribunal allowed a tenant's request to change their lease terms, including modifications to service charges and interim expenditures, under the Landlord and Tenant Act 1987.
⚖️ Legal holding
A tenant is entitled to have their lease varied under section 35 of the Landlord and Tenant Act 1987.
📖 What the law says
Any party to a long lease of a flat can apply to an appropriate tribunal to vary the lease if the lease does not provide satisfactory arrangements for the repair or maintenance of the flat, building, or related property; insurance of the building; repair or maintenance of necessary installations; provision or maintenance of necessary services; recovery of expenditure; or computation of a service charge.
If the grounds for an application under section 35 are proven to the satisfaction of the tribunal, the tribunal can make an order varying the lease as specified in the application, unless the variation would substantially prejudice a respondent or non-party without adequate compensation, or if it would not be reasonable to make the variation.
Plain-English explanation — does not replace advice from a solicitor.
📖 Technical summary
The First-tier Tribunal varied residential long Underleases under the Landlord and Tenant Act 1987.
📜 Headnote Official document
The First-tier Tribunal varied residential long Underleases under the Landlord and Tenant Act 1987, allowing changes to service charges and interim expenditures.
📚 Full judgment Official document
OUTCOME: Allowed
1
Case Reference
: BIR/00CN/LVT/2020/0004
Property
: [ADDRESS] [POSTCODE]
HMCTS
: CVPREMOTE (paper,video, audio)
Applicant
: [redacted] : [NAME]
: [NAME] Solicitors
Respondent (1)
: [RESPONDENT] (Head Lessee & Intermediate Lessor) Respondent (2) : The Long Leaseholders listed in the Application (Underlessees)
Date of Application : 6th July 2020
Type of Application : To vary the lease by parties to the lease (s35 Landlord and Tenant Act 1987)
Tribunal
: Judge JR [NAME] – Regional Surveyor
Date of Order
: 8th September 2020
_______________________________________________
ORDER ____________________________________
© CROWN COPYRIGHT 2020
FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
2
UPON the application dated 6th July 2020 and the Tribunal’s decision dated 3rd September 2020
IT IS ORDERED THAT:
1) Pursuant to section 38(3) of the Landlord and Tenant Act 1987 Act all the residential long Underleases at the Property are varied, with effect from the date of this Order, as follows:
1. The words “and Interim Expenditure” to be added to the definition of the Service Charge in Clause 1 as follows:
“the Service Charge” – the Service Charge Proportions of the Expenditure and Interim Expenditure or such other proportion of Expenditure as the Management Company or the Landlord may from time to time determine to be fair and reasonable having regard to the benefit derived and the advantages variously enjoyed or available for the beneficial use and enjoyment by the tenants and occupiers of the Development.
2. Sub-paragraph 6.3 to be added to paragraph 6 of the Seventh Schedule as follows:
6.3 If during a Financial Year, the Management Company reasonably expects the Expenditure to increase materially above the estimate, the Management Company may revise its estimate of the Expenditure and the Expenditure will be based on that revised estimate (“the Interim Expenditure”). The Management Company may serve a supplemental demand in respect of the further Interim Expenditure at any time within the Financial Year such demand will become due for payment by the Tenant to the Management Company 28 days after the date of service. The Landlord may revise the Expenditure no more than once in a Financial Year.
2) Pursuant to section 38(9) of the Act it is ordered that the [NAME] shall make such entries on the registers relating to the titles hereby affected for the purpose of recording and giving effect to the terms of this Order.
Judge JR Morris
8th September 2020
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) Tribunal Allows £46,044 Fire Alarm Installation Without Full Consultation
- First-tier Tribunal (Property Chamber) First-tier Tribunal Varies Leases Under Section 35 of 1987 Act
- First-tier Tribunal (Property Chamber) First-tier Tribunal Orders Variation of Residential Leases
- First-tier Tribunal (Property Chamber) First-tier Tribunal Varies Leases for Eight Flats Under s.37
- First-tier Tribunal (Property Chamber) First-tier Tribunal Varies Lease to Include Service Charge
- First-tier Tribunal (Property Chamber) First-tier Tribunal Grants Lease Variations Without Compensation
- First-tier Tribunal (Property Chamber) Tribunal Grants £35,000 Fire Safety Works Dispensation for High-Rise Proper…
- First-tier Tribunal (Property Chamber) Tribunal sets £1,090,927 premium for lease extension in London
- First-tier Tribunal (Property Chamber) Tribunal rules service charges unreasonable for leaseholders in Birmingham
- First-tier Tribunal (Property Chamber) Tenant Entitled to Freehold Acquisition Price Under Leasehold Reform Act
A snapshot of this collection — not a prediction of your case's outcome.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The tenant seeks variation under sections related to fair treatment and legal entitlements.
- The variation requested corrects an unfair situation for the tenant.
- The lease variation is sought due to urgent and necessary safety reasons.
- The tenant's request for lease variation is based on clear statutory grounds.
- The tenant's application for lease variation is supported by multiple successful precedents.
❌ Tends to be rejected
- The tenant's request for lease variation was dismissed because the lease already made satisfactory provisions for the matters in question.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The decision allowed the variation of residential long Underleases to include provisions for interim expenditure and revised estimates of expenditure under the Landlord and Tenant Act 1987.
What was the dispute about?
The dispute was about whether the Underleases should be varied to include provisions for interim expenditure and revised estimates of expenditure.
How did the court decide, and why?
The court decided to allow the variation of the Underleases, as it was deemed fair and reasonable to include provisions for interim expenditure and revised estimates of expenditure.
Which laws or rules were applied?
The Landlord and Tenant Act 1987 sections 38(3) and 38(9) were applied.
What was the argument that mattered most?
The argument that mattered most was the fairness and reasonableness of including provisions for interim expenditure and revised estimates of expenditure in the Underleases.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation can seek to vary their Underleases to include provisions for interim expenditure and revised estimates of expenditure.
What evidence or documents mattered?
The judgment does not specify the evidence or documents that mattered.