Flats 1-8, 3 Alexander Road, London N19 3PF: LON/00AU/LAC/2024/0017 LON/00AU/LAC/2024/0017

FIRST-TIER TRIBUNAL
PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
Case No LON/00AU/LAC/2024/0017
Elizabeth Bullivant(1) Samuel Dixon (2) Paul Whitehead (3) Nik Tomanovic (4) Ian Brook (5) Yasmon Mohammed (6) Charlotte Lytton (7) Sanjay Wadhia (8)ApplicantAssethold LimitedRespondent
Judge ShepherdEagerstates Limited for the ApplicantDate 17 December 2024Property: Flats 1-8, 3 Alexander Road, London N19 3PFType of application: Payability of Administration Charges

DECISION

[1]This is a paper determination made on 17th December 2024. The Applicants are various leaseholders of premises at Flats 1-8, 3 Alexander Road, London,N13 3PF ( The premises). The Respondents are the freeholders of the premises Assethold Limited. Their managing agents are Eagerstates Limited.[2]The Applicants challenge the payability of an administration charge connected with the collection of ground rent. In a sample notice given to Mr Dixon and Ms Power dated 29th August 2024 it states: We now request payment of the following monies due under the terms of your lease….. Ground rent for the period September 2024/2025- £300 Admin costs for collection of rent -£60[3]The same letter was sent to all of the Applicants. They say the admin costs are not payable under the lease and are not administration charges as defined under paragraph 5A of Sched 11 of the Commonhold and Leasehold Reform Act 2002 (The Act). The Respondents appear to have taken no part in these proceedings. Determination[4]The admin costs for the collection of rent are not payable.

REASONS

[5]There is no provision in the lease that allows for the collection of admin costs for the collection of rent. In addition the costs do not come within the definition of administration charges under the Act.[6]The demands were issued by the Respondents after the Applicants obtained the Right to Manage in November 2023. In addition, the demands were issued notwithstanding a number of previous Tribunal decisions on similar facts finding that admin charges of this type were not recoverable. It is hoped that the Respondents may in future consider carefully whether they are entitled to administration charges before imposing them. Additional relief[7]The Tribunal exercises its discretion under paragraph 5A of Schedule 11 to the 2002 Act as the Applicants have been entirely successful. The Respondents are also required to repay the Applicants their application fee of £100. Judge Shepherd 17th December 2024 ANNEX - RIGHTS OF APPEAL Appealing against the tribunal’s decisions[1]A written application for permission must be made to the First-tier Tribunal at the Regional tribunal office which has been dealing with the case.[2]The application for permission to appeal must arrive at the Regional tribunal office within 28 days after the date this decision is sent to the parties.[3]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.[4]The application for permission to appeal must state the grounds of appeal, and state the result the party making the application is seeking. All applications for permission to appeal will be considered on the papers[5]Any application to stay the effect of the decision must be made at the same time as the application for permission to appeal. © CROWN COPYRIGHT 2024