Tribunal Extends Property Manager's Term for Two Years

OUTCOME: Allowed in Part

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00AH/LAM/2025/0007 Property : [ADDRESS], [ADDRESS], London SE25 5 PJ Applicant : [redacted] Manager) Representative : In person Respondent : [redacted] Representative : Mr [COUNSEL], counsel Type of application : Variation of order for appointment of a manager Tribunal members : Judge Tagliavini Mrs S Phillips MRICS Venue : 10 [ADDRESS] [POSTCODE] Date of hearing Date of decision : 21 July 2025 30July 2025

DECISION

2 Decisions of the tribunal 1. The tribunal extends the appointment of Mr [NAME] [NAME], AssocRICS as the Manager of premises situate at [ADDRESS], [ADDRESS], London SE25 5 PJ (‘the Property’) until 30

June 2027 pursuant to the terms of the Management Order

dated 18 May 2017 (as amended on 23 July 2020).

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The application 2. This is an application to extend the Reappointment for Mr. [NAME]

of [COMPANY], as manager of the Property

pursuant to section 24 of the Landlord and Tenant Act 1985 The background 3. Mr. [APPELLANT] was previously Appointed as Manager from 1 July 2017 to

30 June 2020 under the terms of a Management Order, dated 18 May

2017. An Application to vary and extend the terms of the Management

Order was made and the Tribunal in its Decision, extended the Existing

Management Order for a period of five years, expiring 30 June 2025 (not

19 June 2025 as stated by Mr [NAME] in his application). 4. In the application Mr [NAME] sought an extension of his appointment for

a period of two years and sought an amendment to the Management

Order to provide him with the power to bring forfeiture proceedings

against the lessee of Flats 1, 3, and 4 for substantial service charge

arrears. 5. The subject property is a purpose built building containing four flats.

The long leaseholder of Flats 1, 3, and 4 is Ms [NAME] and the long

leaseholder of Flat 2 is Ms [NAME]. This application was supported by

Ms [NAME] who provided a Witness Statement dated 4 April

2025. The respondent supported the application to the extent it accepted

Mr [NAME] appointment should be extended by a further period of two

years on the same terms as the existing Management Order. The hearing 6. An oral face to face hearing was held on 21 July 2025 at which Mr [RESPONDENT]

represented himself and the respondent was represented by Mr [COUNSEL]

of counsel. Neither long leaseholder attended the hearing. 7. The tribunal was provided with a digital bundle of 366 pages as well as a

skeleton argument from the respondent. In his witness statement, Mr

[RESPONDENT] set out what had been achieved over the course of his

appointment which included:

We have set annual budgets, accounted for collection and service

charges resulting in a basic reserve or sinking fund.

We have also pursued non-payer accounts.

Suitable insurance cover is in place for the building.

Health and Safety Health and safety improvements recommended in

the General Risk Assessment and some remedial action was undertaken

to date, and schedule updated risk assessments continue to meet

industry standards.

[COMPANY] progress has been made on Major Works, due to

a shortage of funds.

Minor repairs and management activities We have performed and

continue to undertake minor repairs, both cyclical and ad hoc in nature,

and maintain the provision of regular management activities. 9. This included obtaining a charging order against Ms [NAME] in respect

of previous arrears (although no copy of the court order was included

in the bundle). In his witness statement Mr [NAME] had requested the

Management Order to be varied in the following way:

(a) the grant of additional powers in relation to forfeiture of leases;

(b) the grant of additional powers for the recovery of bad debts;

(c) his (the Manager’s) ability to recover legal costs;

(e) arrears of charges.

10. Mr [NAME] also informed the tribunal that it was his intention to:

(a) To collect outstanding arrears and costs;

(b) To save up Reserve Funds towards the Upgrade of the Fire Alarm

and External Works;

(c) To complete the Major Works.

11. The tribunal was also provided with a witness statement dated 16 May

2025 of Mr [RESPONDENT] a director of the [COMPANY]

which stated:

For the avoidance of doubt, EKL requests that any amended

management order remain substantially in the same terms as

the order included within Judge Timothy Powell's decision

dated 23 July 2020…EKL do not wish for the Applicant to be

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granted any additional powers in relation to the Building or to

be specifically empowered to commence the forfeiture process

or collect ground rents on EKL’s behalf. 12. During the course of the hearing Mr [NAME] withdrew his expressed wish

to be granted powers of forfeiture and requested his appointment be

extended for a further five-year period. The tribunal’s decision 13. The tribunal is satisfied it is appropriate to extend the appointment of

Mr [NAME] for a further two years i.e. until 30 June 2027. 14. The tribunal determines the current form of Management Order (as

amended by Judge Powell) is sufficient to provide [NAME] with the

necessary powers to carry out his responsibilities. Reasons for the tribunal’s decision 15. In reaching its decision the tribunal was satisfied that the Manager had

made a positive contribution to the proper management of the building

and was also satisfied he would continue to do so. Further, the tribunal

was satisfied Mr [NAME] had successfully fully utilised the powers given

to him under the existing Management Order, to address the arrears of

service charges accrued by Ms [NAME]. 16. The tribunal recognises Mr [NAME] frustration at the delays caused by

the county court process, both in obtaining judgement and in seeking to

effectively enforce it. However, as the landlord has declined to pursue

forfeiture proceedings, Mr [NAME] appeared aware of the need to

pursue all other avenues of enforcement available to him. 17. The tribunal was surprised to learn the respondent had given little or no

thought to appointing its own managing agent, in view of the fact the

Management Order for this relatively uncomplicated Property had been

in place for 7 years and the management of the building had improved.

This was despite Ms [NAME] persistent failure to pay service charges and

the respondent’s refusal to initiate forfeiture proceedings. 18. Consequently, the tribunal concluded that it was appropriate for Mr

[NAME] appointment to be extended for a further 24 months. This

period allows Mr [NAME] the opportunity to implement intended further

projects (subject to funding). This extension of Mr [RESPONDENT]

appointment also provides the respondent, with an opportunity to

consider appointing its own managing agent and implementing its

repairing and maintenance obligations under the leases when the period

of [NAME]’s appointment comes to an end.

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Name: Judge Tagliavini Date: 30 July 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. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).