The Angel School, Newstead House, 57a Liverpool Road, N1 0RT LON/00AU/LDC/2019/0216
DECISION
[1]The tribunal grants dispensation from the consultation requirements under s20 ZA of the Landlord and Tenant Act 1985. The application[1]The Applicant seeks dispensation from the consultation requirements under s20ZA of the Landlord and Tenant Act 1985.[2]The relevant legal provisions are set out in the Appendix to this decision. The hearing[3]A written application was made by Rendall & Rittner, the managing agents of the property. The case was decided on paper and no appearances were made. The tribunal considered the written application form, copy letters to the leaseholders, reports and estimates and a specimen lease. The background[4]The property which is the subject of this application consists of 2 blocks totalling 23 flats in 2 blocks apparently converted sometime around 2004/5 when the leases were granted. Photographs appear to show a Victorian era school. The application arose from an investigation of cooking smells passing from one flat to another. Smoke tests were carried out confirming that seals were not airtight between levels and horizontally.[5]Building surveyors were instructed to report on remedial works and on further investigation revealed further areas where fire stopping was inadequate. To cure the problem major works would be required involving removing ceilings, installing fire breaks and firestopping. An alarm was also advised.[6]Discussions then ensued with the Fire Risk Assessor which concluded it was not reasonable to address all the gaps and breaches in the building and that a reasonable course of action would be to install a fully automated fire alarm including sounders in the hall of each flat connected to heat detectors.[7]A specimen lease has been provided. A list of leaseholders has been provided with confirmation from the agents that they have been notified of the proposed works. Representations were originally received from Places for People, who have 11 flats, objecting to the application. That objection has been withdrawn in writing following agreement over the alarm system to be installed.[8]The works are said to be urgent due to the need to deal with an identified fire danger. The works have been agreed with the largest leaseholder and no other objections have been received.[9]The works fall within the service charge provisions of the lease which allow for providing additional or upgraded Facilities for the greater amenity of those using the block. The cost is recoverable under the service charge provisions, subject to any challenge under s27A of the Landlord and Tenant Act 1985. The Works[10]A notice of intention was sent to lessees on 22 November 2019. The application includes the investigation reports and also estimates from four contractors. Fidelity Integrated Systems £31,898 plus VAT Firetechnics Systems (2 blocks) (alternative quotes) £7168.76 & £7722.12 plus VAT or £8270.58 & £8999.51 plus VAT Blinky Property Solutions £32,473.25 plus VAT Canam Group £13600 plus VAT or £15200 plus VAT[11]It is proposed to instruct Firetechnics but which specification is not clear. The tribunal’s decision[12]The tribunal grants 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[13]The tribunal is satisfied that the works are required to deal in a practical way with an identified fire danger. Efforts have been made to thoroughly investigate the problem and identify a solution. Lessees have been consulted about the estimates obtained and the application is to curtail the consultation period. The tribunal is satisfied that lessees were informed of the need for the work and agreed it was necessary. There is no prejudice to the lessees by giving dispensation. Name: A Harris LLM FRICS FCIArb Date: 19 February 2020 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). Appendix of relevant legislation S20 Limitation of service charges: consultation requirements (1) Where this section applies to any qualifying works or qualifying long term agreement, the relevant contributions of tenants are limited in accordance with subsection (6) or (7) (or both) unless the consultation requirements have been either— (a) complied with in relation to the works or agreement, or (b) dispensed with in relation to the works or agreement by (or on appeal from) a leasehold valuation tribunal.[2]In this section "relevant contribution", in relation to a tenant and any works or agreement, is the amount which he may be required under the terms of his lease to contribute (by the payment of service charges) to relevant costs incurred on carrying out the works or under the agreement.[3]This section applies to qualifying works if relevant costs incurred on carrying out the works exceed an appropriate amount.[4]The Secretary of State may by regulations provide that this section applies to a qualifying long term agreement—(a) if relevant costs incurred under the agreement exceed an appropriate amount, or(b) if relevant costs incurred under the agreement during a period prescribed by the regulations exceed an appropriate amount.[5]An appropriate amount is an amount set by regulations made by the Secretary of State; and the regulations may make provision for either or both of the following to be an appropriate amount—(a) an amount prescribed by, or determined in accordance with, the regulations, and(b) an amount which results in the relevant contribution of any one or more tenants being an amount prescribed by, or determined in accordance with, the regulations.[6]Where an appropriate amount is set by virtue of paragraph (a) of subsection (5), the amount of the relevant costs incurred on carrying out the works or under the agreement which may be taken into account in determining the relevant contributions of tenants is limited to the appropriate amount.[7]Where an appropriate amount is set by virtue of paragraph (b) of that subsection, the amount of the relevant contribution of the tenant, or each of the tenants, whose relevant contribution would otherwise exceed the amount prescribed by, or determined in accordance with, the regulations is limited to the amount so prescribed or determined.[FN1] [FN1] ss.20-20ZA substituted for s.20 subject to savings specified in SI 2004/669 art.2(d)(i)-(vi) by Commonhold and Leasehold Reform Act (2002 c.15), Pt 2 c 5 s 151 S20ZA Consultation requirements: supplementary(1) 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.(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— (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.(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.[...] [FN1] [FN1] ss.20-20ZA substituted for s.20 subject to savings specified in SI 2004/669 art.2(d)(i)-(vi) by Commonhold and Leasehold Reform Act (2002 c.15), Pt 2 c 5 s 151