Landlord Granted Permission to Skip Consultation for Urgent Repairs

OUTCOME: Allowed

1

First-tier Tribunal Property Chamber (Residential Property)

Case reference

: CAM/34UC/LDC/2019/0039

Properties : [ADDRESS], Apartments 1-[ADDRESS], Norton, Daventry [POSTCODE] :

Applicant: [redacted]

Respondents The leaseholders of the properties listed in the [NAME] of [NAME] : 16 December 2019

Type of [NAME] : for permission to dispense with consultation requirements in respect of qualifying works - Section 20ZA Landlord and Tenant Act 1985 (“the Act”)

Tribunal

: Mrs [APPELLANT] [NAME] (Hons)

Date of Decision : 18 February 2020 ____________________________________________

DECISION _________________________________ [NAME] © 2019

Decision

1. The Applicant is granted dispensation from the statutory consultation requirements in respect of the qualifying works .

Reasons

Introduction

2. The landlord has applied for dispensation from the statutory consultation requirements in respect of repairs to the chimneys and roof at [ADDRESS]

3. The development comprises a converted former hunting lodge built in the 1860’s comprising of 16 apartments.

4. Several sections of the roof require repairing following reports of water ingress to 4 flats . In addition repairs are required to the chimney to stop leaks to one of the flats. The work requires hire of scaffold to provide access to both the roof and the chimneys.

2

5. A number of quotes were supplied with the bundle from two contractors. It is not altogether clear, in the case of one of the contractors, whether there is an overlap in items quoted for at different dates. However the cost appears to be in the region of £5000 to £7500 plus VAT.

6. A procedural chair issued directions timetabling this case to its conclusion. One of the directions said that this case would be dealt with on the papers taking into account any written representations made by the parties and a decision would be made on or after 18 February 2020. It was made clear that if any party requested an oral hearing one would be arranged. No such request has been received .

7. No objections were received from leaseholders .

The Law

7. Section 20 of the 1985 Act limits the amount which lessees can be charged for major works unless the consultation requirements have been either complied with, or dispensed with by a leasehold valuation tribunal (now called a First-tier Tribunal, Property Chamber). The detailed consultation requirements are set out in Schedule 3 to the Service Charges (Consultation Requirements) (England) Regulations 2003. These require a fairly complicated consultation process which gives the lessees an opportunity to be told exactly what is going on and the landlord must give its response to those observations and take them into account.

8. The landlord’s proposals, which should include the observations of tenants, and the amount of the estimated expenditure, then have to be given in writing to each tenant and to any recognised tenant’s association. Again, there is a duty to have regard to observations in relation to the proposals, to seek estimates from any contractor nominated by or on behalf of tenants and the landlord must give its response to those observations

7. Section 20ZA of the Act allows this Tribunal to make a determination to dispense with all or part of the consultation requirements if it is satisfied that it is reasonable and the Tenants have not suffered prejudice.

Discussion and Conclusions

8. Following the Supreme Court decision of Daejan Investments Ltd. v Benson [2013] UKSC 14, the only issue for the Tribunal is whether the Respondents have suffered prejudice in dispensing with the requirements.

9. Taking into account into account the urgency of the work and the potential risks of delay, and that no leaseholders have objected, it would clearly be unsatisfactory to the Applicant and the Respondents for the work to be delayed.

10. The Tribunal therefore grants dispensation from the consultation requirements of S.20 Landlord and Tenant Act 1985 in respect of the repairs to the roof and chimneys as specified in the [NAME].

3

10 This is not an [NAME] for the Tribunal to approve the reasonableness of the works or the reasonableness, apportionment or payability of the service charge demand. I make no finding in that regard and the leaseholders will continue to enjoy the protection of section 27A of the Act.

ANNEX - RIGHTS OF APPEAL

1. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber) then a written [NAME] for permission must be made to the First-tier Tribunal at the Regional office which has been dealing with the case.

2. The [NAME] for permission to appeal must arrive at the Regional office within 28 days after the Tribunal sends written reasons for the decision to the [NAME].

3. If the [NAME] is not made within the 28 day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28 day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed despite not being within the time limit.

4. The [NAME] for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal, and state the result the party [NAME] the [NAME] is seeking.