Tribunal Grants Dispensation for Urgent Lift Repairs in Multi-Tenant Building

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00AG/LDC/2023/0229

Property : 31 [APPELLANT], West Hampstead, London, [POSTCODE]

Applicant: [redacted] : [COUNSEL] - [APPELLANT]: 20575

Respondent : [redacted] [NAME] & [NAME] [NAME] 17, [ADDRESS], 3-21 [NAME] and [NAME] 5 [NAME] [NAME] 4 [NAME] 2

Representative : Not represented Type of application : Application for dispensation from the consultation requirements of s20 under section 20ZA of the Landlord and Tenant Act 1985 Tribunal member : [NAME] Venue : 10 [ADDRESS] [POSTCODE] Date of decision : 13 February 2024

DECISION

2 Decision of the tribunal 1. The tribunal exercises its discretion to grant dispensation from the consultation requirements of s20ZA in respect of the works required to the lift. The application 2. The Applicant seeks dispensation from the consultation requirements under section 20ZA of the Landlord and Tenant Act 1985 (“the 1985 Act”) in respect of works required to repair defects in the lift control panel. The works are said to be urgent as there are disabled residents in the building who rely on the lift.

3. Directions were made on 1 November 2023 for a paper determination in the week commencing 12 February 2024. The only issue for the tribunal is whether it is reasonable to dispense with the statutory consultation requirements.

4. This decision does not concern the issue of whether any service charge costs will be reasonable or payable.

The hearing 5. A written application was made by the managing agents of the property on behalf of the landlord under the leases of the flats in the block on 7 September 2023. The current application is in respect of works required to the control panel in the lift. A lift engineers report and estimate from OTIS has been provided in support of the application.

6. An specimen lease of flat 2 has been provided and the other leases are said to be in similar form . The case was decided on paper and no appearances were made. The tribunal considered the written application form, copy letters to the leaseholders, estimates and the specimen lease included in the bundle.

The background 7. The property is a modern purpose built block of 5 flats of traditional appearance. The application lists 5 flats which have been sold on long lease. Each lease requires the landlord to provide services and the tenant to contribute towards their costs by way of a variable service charge.

8. An inspection was not requested and the tribunal did not consider that one was necessary, nor would it have been proportionate to the issues.

3 9. A specimen lease has been provided showing the scope of the works is within the service charge provisions of the lease. A list of leaseholders has been provided. The tribunal wrote to the parties on 2 November 2023 with the directions applicable to this application. The applicant was directed to serve the bundle on each leaseholder. No representations have been received objecting to the application as to the scope of the works or appropriateness of the application.

The Law s20ZA of the Landlord and Tenant Act 1985 Service charges 20ZA Consultation requirements: supplementary (1)Where an application is made to the appropriate tribunal for a determination to dispense with all or any of the consultation requirements in relation to any qualifying works or qualifying long term agreement, the tribunal may make the determination if satisfied that it is reasonable to dispense with the requirements. (2)In section 20 and this section— “qualifying works” means works on a building or any other premises, and “qualifying long term agreement” means (subject to subsection (3)) an agreement entered into, by or on behalf of the landlord or a superior landlord, for a term of more than twelve months. (3)The Secretary of State may by regulations provide that an agreement is not a qualifying long term agreement— (a)if it is an agreement of a description prescribed by the regulations, or (b)in any circumstances so prescribed. (4)In section 20 and this section “the consultation requirements” means requirements prescribed by regulations made by the Secretary of State. (5)Regulations under subsection (4) may in particular include provision requiring the landlord—

4 (a)to provide details of proposed works or agreements to tenants or the recognised tenants’ association representing them, (b)to obtain estimates for proposed works or agreements, (c)to invite tenants or the recognised tenants’ association to propose the names of persons from whom the landlord should try to obtain other estimates, (d)to have regard to observations made by tenants or the recognised tenants’ association in relation to proposed works or agreements and estimates, and (e)to give reasons in prescribed circumstances for carrying out works or entering into agreements. (5A)And in the case of works to which section 20D applies, regulations under subsection (4) may also include provision requiring the landlord— (a)to give details of the steps taken or to be taken under section 20D(2), (b)to give reasons about prescribed matters, and any other prescribed information, relating to the taking of such steps, and (c)to have regard to observations made by tenants or the recognised tenants’ association in relation to the taking of such steps. (6)Regulations under section 20 or this section— (a)may make provision generally or only in relation to specific cases, and (b)may make different provision for different purposes. (7)Regulations under section 20 or this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

10. The applicable case law is [COMPANY] v Benson [2013] UKSC 14, 1 WLR 854 where the Supreme Court held that the relevant test is whether the leaseholders have suffered prejudice by the failure to consult. Where the extent, quality and cost of the works were unaffected by the landlord’s failure to comply with the consultation requirements, an unconditional dispensation should normally be granted.

5 The tribunal’s decision 11. The tribunal exercises its discretion to grant dispensation from the consultation requirements of under s20 ZA of the Landlord and Tenant Act 1985 and the Service Charges (Consultation Requirements) (England) Regulations 2003

Reasons for the tribunal’s decision 12. The works were required to repair the lift control panel. The application states that there are disabled residents in the building who rely on the lift for access. The application also states the works were being carried out as a matter of urgency. The leaseholders were notified that this application for dispensation from the consultation requirements of section 20 would be made.

13. The tribunal is satisfied that the leaseholders were aware of the works required and none have objected.

14. The Tribunal is being asked to exercise its discretion under s.20ZA of the Act. The wording of s.20ZA is significant. Subs. (1) provides:

“Where an application is made to a [leasehold valuation] tribunal for a determination to dispense with all or any of the consultation requirements in relation to any qualifying works or qualifying long term agreement, the tribunal may make the determination if satisfied that it is reasonable to dispense with the requirements” (emphasis added).

15. The Tribunal understands that the purposes of the consultation requirements is to ensure that leaseholders are given the fullest possible opportunity to make observations about expenditure of money for which they will in part be liable. The test laid down by the Supreme Court in [NAME] v Benson is whether the leaseholders would suffer prejudice if the application were to be granted and a full consultation not carried out.

16. The tribunal considers that there is no prejudice to the leaseholders in granting dispensation as the works were urgently needed to retore the lift to working order and leaseholders have been consulted and have not objected to the works. The tribunal is satisfied that the risk of delay outweighs any possible prejudice arising from a failure to carry out the full consultation process.

17. The tribunal is satisfied the works were urgent and that dispensation should be granted.

18. The granting of dispensation is not concerned with the cost and recoverability of service charges for the works which are dealt with under section 27A of the Act.

6 Name: [NAME]: 13 February 2024

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).