1-6 Manor Court, High Street, Southgate, London N14 6NG (Flats 2 and 5 only) LON/00AK/LVT/2024/0008

FIRST-TIER TRIBUNAL

PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case No LON/00AK/LVT/2024/0008

Between

Brickfield Properties LimitedApplicant

(1) Harsha and Hershruta Yadav (Flat 2) (2) Gervasios Eseridis and Edita Grikpedyte (Flat 5)Respondent

Before

Judge Tagliavini

Wallace LLP for the Applicant

N/A for the Respondent

Venue 10 Alfred Place, London WC1E 7LR

Date 17 December 2024

Property: Southgate, London N14 6NG (Flats 2 and 5 only)

Type of application: Variation of a lease

DECISION

[1]The tribunal determines that the respondents leases fail to make satisfactory provision for the payment of service charges pursuant to s.35(4) of the Landlord and Tenant Act 1985. Therefore the tribunal determines that: (i) The respondents’ leases of flats 5 and 7 at 1-6 Manor Court High Street, London N14 6NG to be varied in such a way as to provide that the service charge proportion payable by each of the respondents is as follows: 16.67 % (service charges) 2.7899% (Estate charges) (ii)The respondents’ leases for flats 2 and 5 respectively be varied in the manner set out in the draft Deed of Variation provided by the applicant to the tribunal. (iii) The amended service charge proportions are to have effect from the date of completion of the acquisition of the right to manage by the tenants of bock flats 7-30 and 31-36 Manor Court being 1 January 2024. _____________________________________________________ The application

[2]The Applicants seek to vary the lease(s) of two flats (flats 2 and 5) at 6 Manor Court, High Street, Southgate, London N14 6NG under Section 35 of the Landlord and Tenant Act 1987 ("the 1987 Act"). The leases are said to be defective because: The present service charge regime in the leases for the two flats does not enable the Applicant to recover 100% of the service charges. The background

[3]In the witness statement of Fleur Leonie Neale, Legal Director of Wallace LLP dated 26 July 2024 made on behalf of the applicant, Ms Neale stated that the freeholder owner of the flats known as Manor Court, High Street, Southgate, London N14 6NG (‘the property’) is City and Country Properties Limited. Pursuant to three leases dated 4 May 201, the freeholder granted the applicant three separate headleases of 999 years for flats 1-6, 7-30 and 31-36 Manor Court.

[4]The applicant is also the long leaseholder of flats 1, 4 and 6 and the leases for flats 1 – 36 are in a similar form and provide for a contribution amounting to 100% of the costs incurred by the applicant in respect of the provision of services. However, in or about 23 August 2023 the participating tenants of blocks 7-30 and 31-36 Manor Court exercised their right to manage and thereafter the applicant no longer undertook management function in respect of those two blocks.

[6]Clause 2(2) or 5(2) of the leases of the flats for the 3 blocks provides that the lessees will pay and contribute to the service charges (‘the Original Percentage’) which include costs incurred in respect of the Estate known as 1-36 Manor Court. The original percentage was calculated on the basis that the leases 1 to 36 Manor Court would contribute 100% to the applicant’s expenses. In about 2020, the Residents Association for Manor Court sought an adjustment to the service charges percentages on the basis that an additional property known as The Lodge was also included, as it benefited from the services provided to the Estate although not held on a long lease.

[7]This request was accepted by the applicant and the service charge percentage was adjusted, (‘the Adjusted Percentage’) so that 2.87% was attributable to The Lodge with the percentages for the flats adjusted appropriately, although no formal amendment to the leases was made to reflect this change. However, since the right to manage was acquired by 2 of the 3 blocks this has led to an anomaly arising and a recalculated percentage is required in respect of the management services as well as a separate sum for Estate charges.

[8]The applicant proposed two different service charge percentages be sought from flats 1-6 Manor Court –(i) a charge covering those services provided to the Estate as a whole and shared with all other flats at Manor Court and The Lodge and

(ii) a charge relating to the management services provided to flats 1-6 Manor Court only. The applicant proposed the following changes to the percentage charge payable by: Flats 1-6: 16.666% (service charges) Flats 1-6: 2.789% (Estate charges) The hearing

[9]No party requested an oral hearing and the tribunal determined the application on the 270 digital bundle of documents provided by the applicant. The applicant confirmed that all interested parties had been notified of the application and had sought their consent to the relevant lease(s) being varied by way of a Deed of Variation so as to provide for the Amended Percentage of 16.67% of the management services payable for the block 106 Manor Court and 2.7899% of the service charge payable for the Estate.

[10]Only a response was received in respect of flat 3, who consented to the variation sought. No responses were received in respect of flats 2 and 5 either agreeing or objecting to the proposed variation. The applicant submitted that s.35 of the Landlord and Tenant Act 1987 was satisfied and the variation sought should be made by the tribunal. The tribunal’s reasons

[11]In reaching its decision the tribunal had regard to the relevant statutory provisions and s.35 of the Landlord and Tenant Act 1987 which states 35.— Application by party to lease for variation of lease.(1) Any party to a long lease of a flat may make an application to the appropriate tribunal for an order varying the lease in such manner as is specified in the application.

(2) The grounds on which any such application may be made are that the lease fails to make satisfactory provision with respect to one or more of the following matters, namely— (a) the repair or maintenance of— (i) the flat in question, or (ii) the building containing the flat, or (iii) any land or building which is let to the tenant under the lease or in respect of which rights are conferred on him under it; (b) the insurance of the building containing the flat or of any such land or building as is mentioned in paragraph (a)(iii); (c) the repair or maintenance of any installations (whether they are in the same building as the flat or not) which are reasonably necessary to ensure that occupiers of the flat enjoy a reasonable standard of accommodation; (d) the provision or maintenance of any services which are reasonably necessary to ensure that occupiers of the flat enjoy a reasonable standard of accommodation (whether they are services connected with any such installations or not, and whether they are services provided for the benefit of those occupiers or services provided for the benefit of the occupiers of a number of flats including that flat); (e) the recovery by one party to the lease from another party to it of expenditure incurred or to be incurred by him, or on his behalf, for the benefit of that other party or of a number of persons who include that other party; (f) the computation of a service charge payable under the lease ; (g) such other matters as may be prescribed by regulations made by the Secretary of State.

(3) For the purposes of subsection (2)(c) and (d) the factors for determining, in relation to the occupiers of a flat, what is a reasonable standard of accommodation may include— (a) factors relating to the safety and security of the flat and its occupiers and of any common parts of the building containing the flat; and (b) other factors relating to the condition of any such common parts. (3A) For the purposes of subsection (2)(e) the factors for determining, in relation to a service charge payable under a lease, whether the lease makes satisfactory provision include whether it makes provision for an amount to be payable (by way of interest or otherwise) in respect of a failure to pay the service charge by the due date.

(4) For the purposes of subsection (2)(f) a lease fails to make satisfactory provision with respect to the computation of a service charge payable under it if— (a) it provides for any such charge to be a proportion of expenditure incurred, or to be incurred, by or on behalf of the landlord or a superior landlord; and (b) other tenants of the landlord are also liable under their leases to pay by way of service charges proportions of any such expenditure; and (c) the aggregate of the amounts that would, in any particular case, be payable by reference to the proportions referred to in paragraphs (a) and (b) would either exceed or be less than the whole of any such expenditure.

(5) Procedure regulations under Schedule 12 to the Commonhold and Leasehold Reform Act 2002 and Tribunal Procedure Rules shall make provision— (a) for requiring notice of any application under this Part to be served by the person making the application, and by any respondent to the application, on any person who the applicant, or (as the case may be) the respondent, knows or has reason to believe is likely to be affected by any variation specified in the application, and (b) for enabling persons served with any such notice to be joined as parties to the proceedings.

(6) For the purposes of this Part a long lease shall not be regarded as a long lease of a flat if— (a) the demised premises consist of or include three or more flats contained in the same building; or (b) the lease constitutes a tenancy to which Part II of the Landlord and Tenant Act 1954 applies. (8) In this section “service charge” has the meaning given by section 18(1) of the 1985 Act. (9) For the purposes of this section and sections 36 to 39, “appropriate tribunal” means— (a) if one or more of the long leases concerned relates to property in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and (b) if one or more of the long leases concerned relates to property in Wales, a leasehold valuation tribunal.

[12]The tribunal is satisfied that the acquisition of the right to manage the two blocks containing flats 7-30 and 31-36 materially affected the applicant’s ability to recover 100% of the costs incurred in respect of the services provided to flats 1-6. Consequently, the tribunal finds that the provisions of s.35(4) have been made out by the applicant and the tribunal makes the determination sought by the applicant Name: Judge Tagliavini Date: 17 December 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 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).