80B New Selhurst Road, London SE25 5PU LON/00AH/OC9/2025/0650
DECISION
Decision of the tribunal (1) The tribunal determines the costs payable by the respondent to the applicant to be reasonable in the sum of £4,875.60. _____________________________________________________ The application[1]This is an application made pursuant to s.60 of the Leasehold Reform, Housing and Urban Development Act 1993 (‘the 1993 Act’) seeking costs in the sum of £4,875.60. The background[2]On 16 October 2024 the respondent leaseholder’s solicitors, Solicitors Inn, served a Section 42 Notice upon the applicant freeholder, Wendell Pitters. The notice was allegedly defective as it provided for the freeholder to respond with a s45 counter notice within 3 weeks of service of the s42 notice and not 2 months’ as required by s45 of the 1993 Act.[3]Despite being notified of the defect on 7 November 2024, the leaseholder’s solicitors have failed to continue with the claim or provide any response to the applicant and have failed to respond to the freeholders claim for costs.[4]The costs claim for £4,875.60 is set out in two schedules in the indexed and paginated bundle of documents accompanying the application. The hearing[5]Neither party requested an oral hearing and the application was determined on the papers provided by the applicant in the application and other accompanying documents as no hearing bundle was provided and the respondent made no representations. Reasons for the tribunal’s decision[6]In reaching its decision the tribunal had regard to s.60 of the 1993 Act which states: Costs incurred in connection with new lease to be paid by tenant. (1)Where a notice is given under section 42, then (subject to the provisions of this section) the tenant by whom it is given shall be liable, to the extent that they have been incurred by any relevant person in pursuance of the notice, for the reasonable costs of and incidental to any of the following matters, namely— (a)any investigation reasonably undertaken of the tenant’s right to a new lease; (b)any valuation of the tenant’s flat obtained for the purpose of fixing the premium or any other amount payable by virtue of Schedule 13 in connection with the grant of a new lease under section 56; (c)the grant of a new lease under that section; but this subsection shall not apply to any costs if on a sale made voluntarily a stipulation that they were to be borne by the purchaser would be void. (2)For the purposes of subsection (1) any costs incurred by a relevant person in respect of professional services rendered by any person shall only be regarded as reasonable if and to the extent that costs in respect of such services might reasonably be expected to have been incurred by him if the circumstances had been such that he was personally liable for all such costs. (3)Where by virtue of any provision of this Chapter the tenant’s notice ceases to have effect, or is deemed to have been withdrawn, at any time, then (subject to subsection (4)) the tenant’s liability under this section for costs incurred by any person shall be a liability for costs incurred by him down to that time. (4)A tenant shall not be liable for any costs under this section if the tenant’s notice ceases to have effect by virtue of section 47(1) or 55(2). (5)A tenant shall not be liable under this section for any costs which a party to any proceedings under this Chapter before the appropriate tribunal incurs in connection with the proceedings. (6)In this section “relevant person,” in relation to a claim by a tenant under this Chapter, means the landlord for the purposes of this Chapter, any other landlord (as defined by section 40(4)) or any third party to the tenant’s lease.[6]In reaching its decision the tribunal also had regard to the applicant’s Schedule of Costs which claimed for the following items: Reviewing the section 42 notice served by the tenant Reviewing OCEs Investigating statutory compliance of the section 42 notice, including date checks Meeting and corresponding with freeholder and advising regarding the invalidity of the notice Drafting formal letter to the tenant’s solicitors advising of the notice’s invalidity Preparing schedule of costs Grade A engaged 4 hours @ £350 per hour £1,400.00 Grade D engaged 5.3 hours @ £350 per hour £1,113.00 Surveyor’s costs (estimated) £500.00 £3,013.00 VAT £615.60 Less; Surveyor’s costs - not incurred £500.00 Sub-total £3,115.60 The costs of making Leasehold 8 application include: reviewing file; preparing, checking and finalising Leasehold 8 application form; collating bundle of documents and correspondence to support application; and corresponding with the Tribunal, the Leaseholders solicitors and the Freeholder. Grade A Engaged 3 hours @ £350 per hour £1,050 VAT £210.00 £ £1,260 The freeholder claims a total of: £4,875.60[7]Although the tribunal considered the number of hours (or part) spent by both a Grade A and a Grade D fee earners to be high, it did not consider them to be excessive. Further, the tribunal considered the hourly rate of each fee earner to be within the range of reasonableness.[8]In the absence of any engagement by the respondent in this application and any objection, the tribunal determines the costs payable by the respondent to the applicant to be reasonable in the sum of £4,875.60. Name: Judge Tagliavini Date: 16 September 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 should be made on Form RP PTA available at https://www.gov.uk/government/publications/form-rp-pta-application-for-permission-to-appeal-a-decision-to-the-upper-tribunal-lands-chamber 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).