Tribunal Appoints Property Manager to Resolve Management Issues

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00AH/LAM/2024/0028 Property : 5 St Peter’s [ADDRESS], [POSTCODE] Applicant : [redacted] (2) [APPELLANT] : (1) In person for both Applicants (2) n/a Respondent : [redacted] (2) [COUNSEL] : Did not attend and was not represented Type of [NAME] : Appointment of a manager Tribunal member(s) : Tribunal Judge I [NAME] Mr S Mason FRICS

DECISION

2 Background

1. This is an [NAME] made by the Applicants under section 24 of the Landlord and Tenant Act (as amended) (“the Act”) for an order in respect of 5 St Peter’s [ADDRESS], [POSTCODE] (“the property”).

2. The property is comprised of 4 long leasehold flats in a converted Victorian house. The Applicants are the two of the leaseholders joined in the [NAME]. The Respondents are the freeholders of the property.

3. In 1985, the Respondents granted leases which are now held by the

following:

(a) Ms [APPELLANT] is the tenant of Flat D which is a one-bedroom flat on

the second floor. On 23 September 2003, she acquired the lease.

(b) [NAME] is the tenant of Flat C which is a one-bedroom flat on

the first floor. On 9 December 2019, it acquired the lease on 7 January

2020.

(c) [COMPANY] are the tenant of Flat B which is a two-bedroom flat

on the ground floor. They acquired the leasehold interest at an auction

in 2019. They are not a party to this [NAME].

(d) Flat A is a two-bedroom flat on the lower ground floor. The tenant

is Ms [APPELLANT], the Respondents daughter.

4. This is in fact the second [NAME] made by the Applicants for the

appointment of a manager. The earlier [NAME] was dismissed by the

Tribunal in its decision dated 3 August 2023 on the basis that it was not

just and convenient to do so. It should be noted that there are parallel

proceedings in the County Court at Central London for a claim brought

by the First Applicant against the Respondents for disrepair, which has

been met with a counterclaim by them for her service charge arrears.

The Tribunal was informed that the final hearing for this case is listed in

June 2025. 5. In broad terms, the various alleged historic management failures

complained of by the Applicants on the part of the Respondent, and

repeated again here, are:

(a) breach of their repairing obligations.

(b) [NAME] unreasonable service charge demands.

(c) breaches of the management code of practice under section 87 of

the Leasehold Reform, Housing and Urban Development Act

1993. 6. For reasons that will become apparent, it is not necessary to set these out

in any detail.

3 The Law 7. Section 24 of the Landlord and Tenant Act 1987 provides:

"(1) A leasehold valuation tribunal may, on an [NAME] for an order under this section, by order appoint a manager to carry out, in relation to any premises to which this Part applies-

(a) such functions in connection with the management of the

premises, or

(b) such functions of a receiver,

or both, as the Tribunal thinks fit.

(2) A leasehold valuation tribunal may only make an order under this section in the following circumstances, namely-

(a) where the tribunal is satisfied-

(i) that any relevant person either is in breach of any

obligation owed by him to the tenant under his tenancy

and relating to the management of the premises in

question or any part of them...

(ii) ...

(iii) that it is just and convenient to make the order in all the

circumstances of the case;

(ab) where the tribunal is satisfied-

(i) that unreasonable service charges have been made, or

are proposed or likely to be made; and

(ii) that it is just and convenient to make the order in all the

circumstances of the case;

(aba)...

(abb)...

(ac) where the tribunal is satisfied-

(i) where any relevant person has failed to comply with any

relevant provision of a code of practice approved by the

Secretary of State under section 87 of the Leasehold

Reform, Housing and Urban Development Act 1993

(codes of management practice), and

circumstances of the case;

(b) where the tribunal is satisfied that other circumstances exist which make it just and convenient for the order to be made.

Hearing 8. The hearing took place on 20 January 2025. The First Applicant

appeared in person on behalf of both Applicants. The Respondents did

not attend and were not represented.

4 9. However, by a letter 8 November 2024, the Respondents confirmed

that they had no objection to the Applicants’ proposed manager, Mr

[NAME], being appointed. In other words, they did not oppose the

[NAME].

10. It follows that it was not necessary for the Tribunal to make any

findings in relation to the various management failures alleged by the

Applicants. On the basis that the [NAME] was not opposed by the

Respondents, the Tribunal was satisfied that it was just and convenient

to appoint a manager.

11. The only issue for the Tribunal to decide was whether Mr [NAME] was

suitable to be appointed as the manager. The Tribunal then heard oral

evidence from Mr [NAME] about his knowledge and experience of being

a manager. He had prepared a detailed management plan for the

property and a witness statement setting out his professional

qualifications and experience of being a manager. This was supported

by the relevant disclosure in appendices A-H to his witness statement.

These documents are found at pages 119-265 in the hearing bundle.

12. Having done so, the Tribunal was satisfied that Mr [NAME] should be

appointed as the manager for the property for the following main

reasons:

(a) he possessed the relevant professional qualifications and

experience. In particular, Mr [NAME] confirmed that he

currently had been appointed by the Tribunal as the manager for

8 or 9 other properties. Moreover, he also confirmed that he

had managed to successfully manage the properties, some of

which also had troubled history like this property.

(b) he had already carried out an inspection of the property.

(c) in relation to the alleged disrepair, he was going to instruct a

Surveyor promptly to carry out a survey of the property to

ascertain what repairs were needed.

(d) he was aware that the last service charge accounts that had been

prepared was in 2021.

(e) as to the collection of any outstanding and estimated service

charges, Mr [NAME] confirmed that he routinely instructed a

[NAME] to pursue these and that the cost of doing so

was met when these monies had been recovered. The relevance

of this was that the management of the property would

not be frustrated by a lack of funds by the manager.

(f) Mr [NAME] struck the Tribunal as a person who would be able to

effectively manage the relationships between the Respondent

and other leaseholders in the property.

5 13. Accordingly, the Tribunal appointed Mr [NAME] as the manager of the

property for a term of 3 years from the date of this decision. The terms

of his appointment are set out in the management order annexed to

this decision.

Name: Tribunal Judge I [NAME]: 4 March 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 [NAME] for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. 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]. 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. 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. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).