Derwent House, Stanhope, South Kensington, London, SW7 5BJ LON/00AW/LDC/2025/0659

FIRST-TIER TRIBUNAL

PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case No LON/00AW/LDC/2025/0659

Between

Derwent House Freehold LimitedApplicant

As per the schedule of leaseholders attached to the applicationRespondent

Before

Mr R Waterhouse BSc (Hons) LLM

TLC Real Estate Services Ltd. for the Applicant

None For dispensation from the consultation for the Respondent

Date 13 May 2025

Property: Kensington, London, SW7 5BJ

Type of application: requirements under Section 20ZA Landlord & Tenant Act 1985

DECISION

This has been a remote paper determination, which has been consented to by the parties. A face-to-face hearing was not held because it was not practicable, and no one requested same. The documents the Tribunal were referred to were in a bundle of some 65 pages. Decision(1) The Tribunal determines that unconditional dispensation should be granted from the consultation requirements from Section 20ZA of the Landlord and Tenant Act 1985 (the Act) in respect of the property Derwent House, Stanhope, South Kensington, London SW7 5BJ

(2) We make no determination as to the reasonableness of the costs of same, these being matters which can be considered, if necessary, under the provisions of s27A and s19 of the Act. The Application

[1]This Application received 14 February 2025, is made by TLC Real Estate Services Ltd, on behalf of, the freeholder, Derwent House Freeholder Limited.

[2]The Application seeks dispensation from the consultation requirements under Section 20ZA of the Landlord and Tenant Act 1985.

[3]The Application is concerned solely with the question of what consultation if any should be given of the consultation requirements of Section 20 of the 1985 for works costing in excess of £250 per flat. It is not concerned with the reasonableness or payability of any service charges which may arise. The Determination

[4]A written Application was made by TLC Real Estate Services Ltd. The tribunal considered the written bundle of 65 pages, in support of the Application. Background The property

[5]The Property built in the 1950s comprises six storeys plus basement comprising 24 Flats. The Building has a communal boiler housed in the basement which supplies heating and hot water.

[6]The Application is made for “qualifying works”. The Form notes under “Grounds for Seeking Dispensation”; specifically, “the building recently installed three new communal boilers in the basement plant room and was preparing to initiate the section 20 consultation process by issuing a notice of intention for this riser pipe replacement work. However, the leak has deteriorated rapidly, making immediate action necessary.”

[7]Further the Application notes; “initial plans to address the leak through the standard section 20 consultation process have been overridden by the escalation of the issue. The water flow into the plant room has increased significantly, posing a serious risk to the boilers and the overall infrastructure. One quote has already been obtained, and the contractor requires at least seven days to schedule work. There will be lead time from ordering to receiving the required materials, but this cannot start without instruction to the contractor.”

[8]The Application Form notes in the urgency being caused by “any delay in these repairs could compromise the water supply and heating for residents at Derwent House / Furthermore. A potential burst of the riser pipes could result in extensive damage to the buildings structure, placing significant financial burden on leaseholders.”

[9]The Directions dated 21 March 2024, provided for the tenants to be given copies of the Application form, a brief statement to explain the reasons for the Application and display a copy of the directions in a prominent place in the common parts of the property. This to be done by the 28 March 2025 and the Tribunal notified as such by the 7 April 2025.

[10]The Directions also note that any leaseholder who opposes the Application should by the 14 April 2025 complete the reply form and return it to the Tribunal. The Landlord may by the 21 April 2025 provide a brief reply to any leaseholder who opposes the Application.

[11]The Landlord confirmed to the Tribunal by email dated 26 March 2025 that compliance with the Directions had been carried out. By letter dated 30 April 2025 contained in the Bundle, TLC Real Estate services Ltd confirmed that no comments or objections had been received.

[12]The only issue for the Tribunal is whether or not it is reasonable to dispense with the statutory consultation requirements of Section 20 of the 1985 Act. This Application does not concern the issue of whether any service charge costs will be reasonable or payable. Documents

[13]The Tribunal has had recourse to the Bundle of 65 pages which includes the Application form, Directions, quotations and a copy of a specimen lease. The Tribunal’s decision

[14]The Tribunal grants dispensation under Section 20 ZA of the Landlord and Tenant Act 1985 and the Service Charges (Consultation) (England) 2003 for the works set out in the Application.

[15]We are, aware of the judgment in Daejan Investments Limited v Benson and others

[2013] UKSC 14

. The Application for dispensation is not challenged.

[16]The Supreme Court (Lord Neuberger at para 50) accepted that there must be real prejudice to the tenants. Indeed, the Respondents do not oppose the Application. It is accepted that we have the power to grant dispensation on such terms as we think fit. However, the Landlord is entitled to decide the identity of the contractors who carry out the work, when they are done, by whom and the amount. The safety net for the Respondents is to be found in Sections 19 and 27A of the Landlord and Tenant Act 1985.

[17]Accordingly, we find that unconditional dispensation should be granted.

[18]Our decision is in respect of the dispensation from the provisions of s20 of the Act only. It is open to the opposing leaseholder or others to apply under the Landlord and Tenant Act 1985 Section 27A, should there be concerns over the payability and reasonableness of the service charge, these may include concerns over necessity, quality of work and its cost. Richard Waterhouse Name: Richard Waterhouse FRICS 13 May 2025 ANNEX – RIGHTS OF APPEAL

[1]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 at the Regional Office which has been dealing with the case.

[2]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.

[3]If the Application is not made within the 28-day time limit, such Application must include a request to 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 identify the decision of the Tribunal to which it relates (ie 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