Tenant Allowed to Challenge Liability for Service Charges

OUTCOME: Allowed

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/42UG/LSC/2024/0018 CAM/42UG/LBC/2024/0005 Property : 34 [ADDRESS], [POSTCODE] Applicant : [redacted] : [NAME] [RESPONDENT] and Counsel Mr [COUNSEL] Respondent : [redacted] : [COUNSEL] Solicitors LLP and Counsel Mr [COUNSEL] of application : For the determination of the liability to pay service charges under section 27A of the Landlord and Tenant Act 1985 and Tribunal members :

Judge Adcock-Jones Dr Jan Wilcox FRICS

Venue : [COMPANY], [ADDRESS], [POSTCODE] Date of hearing : 24 April 2025

Date of decision : 24 April 2025

DECISION

2 Upon Counsel for the Parties informing the Tribunal that the issue relating to the stairs and all other issues subject to the applications dated 04 March 2023 have been agreed in principle between the parties and therefore no longer required to be determined by the Tribunal;

And upon the Tribunal noting that, had it been invited to make a determination on the stairs issue only, it would have determined that the current state of the stairs was not in good repair and condition contrary to Schedule 4 Paragraph 10.1 of the Lease, and therefore in breach of covenant pursuant to section 168(4) of the Commonhold and Leasehold Act 2002;

And upon the Tribunal informing the Parties of its serious concerns about the stairs and the need for urgent repair;

The Tribunal determines that:

1. Parties are to file with the Tribunal an executed deed of settlement by 4pm 08 May 2025 which includes provision for disposal of the present applications;

2. There be no further directions.

Name: Judge Adcock-Jones Date: 24 April 2025

Rights of appeal By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the person making the application. If the application is not made within the 28-day time limit, such application 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 application for permission to appeal to proceed, despite not being within the time limit. The application 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 making the application is seeking.

3 If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).

1 IN THE FIRST TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case Ref: CAM/42UG/LSC/2024/0018 CAM/42UG/LBC/2024/0005

B E T W E E N:

[NAME]

Applicant

and

[NAME]

Respondent

HEADS OF AGREEMENT

1. The parties have settled the above cited applications in connection with the property known as and situate at 34 [ADDRESS], [POSTCODE] and registered at HMLR under title number SK387907 (‘the Property’).

2. The Respondent is the leasehold proprietor of the Property pursuant to a lease entered into by [RESPONDENT] [NAME] on the first part, and the Respondent on the second part, on 7 August 2018 for a period of 125 years (‘the Lease’).

3. The Applicant was represented by Mr [COUNSEL]. [COUNSEL] of counsel, who was instructed by [NAME].

4. The Respondent was represented by Mr [COUNSEL]. [NAME] of counsel, who was instructed by [COUNSEL] Solicitors.

5. Both parties were in attendance throughout the negotiations and the hearing, and confirmed their agreement to the following heads of agreement.

6. The exterior staircase connecting the Respondent’s kitchen to the rear garden of the premises is to be replaced by the Applicant following assignment of the Property. The works will be funded as follows: a. The Applicant will obtain market quotes for the replacement of the exterior staircase, together with associated costs (such as planning costs and legal costs). b. The works will incorporate a contingency fund not exceeding 10% of quote. (‘a’ and ‘b’ together, the Sum) c. The Respondent will provide the Sum to the Applicant from the net proceeds of sale of the Property. d. If the final bill upon completion of the works exceeds the Sum paid by the Respondent, then the Respondent will pay the excess to the Applicant. e. If the final bill upon completion of the works is less than the Sum paid by the Respondent, then the Applicant will reimburse the surplus to the Respondent.

7. The Respondent will indemnify the Applicant against any claim arising out of or in connection with the exterior staircase until the conclusion of the replacement works.

2 8. The parties agree that they will retain the external rear garden as two distinct gardens, but by no later than 10am on the day of any assignment by the Respondent to a third party assignee, those two gardens will swap usage of the gardens (so that the garden currently used by the Applicant will be used by the Respondent and vice versa). This will not amount to a grant of easement.

9. The parties agree that the middle fence (currently informally dividing the exterior rear garden) shall be replaced with a six foot high fence and installed by a competent professional. The Applicant will obtain three quotes for the replacement of the fencing, and the Respondent will select one of the nominated professionals. The parties will share the costs of the professional in equal shares of 50%.

10. The Respondent will lay good quality carpet and underlay to all floors within the Property, including the interior staircase, but excluding the kitchen and bathroom, by no later than 28 days following the execution of the settlement deed.

11. The Applicant grants permission for the Respondent’s two currently owned cats to remain in occupation until such time as the Respondent assigns the Lease and vacates the Property. Any other animal currently in occupation shall be removed by no later than 28 days following the execution of the settlement deed. No other animal is permitted to occupy the Property. The Respondent undertakes to inform the future assignee that no pets will be allowed under the terms of the lease, without prejudice to the future assignee’s ability under the Lease to request permission for pets from the Applicant.

12. The Respondent undertakes not to engage in any anti-social behaviour within the Property and/or the curtilage of the Building (as defined at paragraph 1.1 of the Lease) and will use best endeavours to ensure that any visitor will do so also. For the purposes of this agreement, anti-social behaviour is defined as: a. being abusive or aggressive to the Applicant or her husband; b. swearing at the Applicant or her husband; c. speaking of the Applicant or her husband in a derogatory manner; d. shouting loudly to neighbours; e. intentionally causing damage to the Property or the Building; f. swearing and making offensive gestures at the Applicant’s Ring doorbell.

13. The Respondent undertakes not to bury any further animals anywhere within the Property and/or the curtilage of the Building.

14. The Respondent will not make use of any screen within the Common Parts (as defined at paragraph 1.1 of the Lease).

15. The Respondent undertakes not to allow any noise to emanate from the Property between the hours of 11pm and 7am.

16. The Respondent will remove wooden or metal debris from the Common Parts by no later than 28 days following the execution of the settlement deed.

17. The Respondent will not obstruct the Applicant from repairing or maintaining the rear fence.

3 18. The Respondent will remove the shed and contents from the Common Parts forthwith or as soon as is reasonably practicable.

19. The Respondent will pay any unpaid 2023 service charges as identified within the application as follows: a. The sum of £1,000 by no later than 90 days following the execution of the settlement deed; b. Any remaining balance by the earliest of 12 months following the execution of the settlement deed, or assignment of the Property.

20. The Respondent will place the Property on the open market by no later than 14 days following the execution of the settlement deed.

21. It is recorded that the Tribunal directed that a copy of the executed settlement deed is to be filed with the Tribunal by no later than 4pm on 8 May 2025.

Dated this 24th day of April 2025.