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Injunctions - A Remedy for Breach of Covenant
For the most part, when dealing with breaches of leasehold covenants, the ultimate remedy that will be pursued if available to the landlord will be forfeiture of the lease. The draconian consequences of forfeiture mean that it is a most powerful remedy to force compliance by the defaulting…
When is an unsatisfactory lease unsatisfactory enough?!
In the recent case of Triplerose Limited -v- Stride [2019] UKUT 0099 (LC), the Upper Tribunal (‘the UT’) allowed a leaseholder’s appeal against the decision of the First-Tier Tribunal (‘the FTT’) to vary a lease where there was a failure to make satisfactory provision for the recovery of service…
Dealing with Sinking and Reserve Funds
The difference between sinking and reserve funds is often an area of confusion, and it is a commonly assumed that their description and purpose is virtually interchangeable. Leases invariably contain references to sinking or reserve funds in one form or another, and knowing the difference is of…
Liability for Common Parts - A Common Problem
Amongst the many excuses we see for non-payment of service charges payable in respect of leasehold flats or freehold estates, “ I don’t have access to those common parts, so I don’t have to pay ” is one of the most common. This could be, for example, the owner of the ground floor flat with no need…
Reasonableness of advance service charges when payment due from third party
Section 19 (1) (a) of the Landlord and Tenant Act 1985 (LTA 1985) states that service charges are payable “ only to the extent that they are reasonably incurred ”. This means that a Landlord should take steps to ensure that costs incurred are on items reasonably required and then only at a level…
Can a new owner be liable for the previous leaseholder’s breaches or arrears?
It is often stated to us by landlords, agents and even some lawyers, that if a flat is sold and the former leaseholder departs owing monies (or is otherwise in breach at the point of sale) that his/her wrongs are in some way accepted and inherited by the purchaser. This is almost always not the…
Urgency is a reason, but not a pre-condition, for dispensation from s.20 Consultation
As lawyers advising landlords, managing agents, RMC and RTM companies, not a day goes by that we are not providing advice on the consultation requirements under Section 20 of the Landlord and Tenant Act 1985 (“the Act”) and the associated Regulations in relation to any qualifying works , qualifying…
Clarity on costs conditions in dispensation applications and leaseholder protections in the Building Safety Act 2022 - Adriatic Land 5 Limited -v- Leaseholders at Hippersley Point
In the first of what we expect to be many to come, the Upper Tribunal (“UT”) has recently decided an appeal and provided clarity on certain provisions of the Building Safety Act 2022 (“BSA”), as well as the circumstances in which costs conditions are imposed in dispensation applications. Adriatic…
How to deal with contractual provisions for amending service charge contributions under the lease.
The Upper Tribunal’s recent decision on the case of Braganza -v- Riverside Group Ltd deals with the common questions affecting the ability of the landlord to amend service charge proportions where the lease provides for them to do so. The questions dealt with in this case were :- initially whether…
FTT imposes irrelevant conditions to grant of dispensation
Where Section 20 of the Landlord and Tenant Act 1985 has not been followed or there has been some other failure in the consultation process when it comes to the carrying out of qualifying works (see here ), or qualifying works under qualifying long term agreements (see here ), or the entering into…
Can shared ownership leaseholders qualify for the Right to Manage?
The Court of Appeal handed down a judgment on 11 May 2023 in the case of Avon Ground Rents Limited v Canary Gateway (Block A) RTM Company Ltd (2023) EWCA Civ 616 , which confirmed that owners of flats held on shared ownership leases are qualifying leaseholders for the purposes of pursuing a claim…
Renters Reform Bill finally introduced to Parliament
This week’s Legal Update provides news on the long awaited Renters (Reform) Bill (“the Bill”), introduced to the House of Commons for its first reading yesterday, 17 May 2023, with the second reading scheduled for today, 18 May 2023. It is a year since our last Legal Update on the then proposed…
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