The Crown Estates CommissionersApplicantThe five named long leaseholders of 20 Jermyn Street, London SW1Y gLTRespondent
Before
R Waterhouse FRICSNot represented for the ApplicantNone To dispense with the requirements to consult lessees about major works for the RespondentVenue 10 Alfred Place, London, WC1E 7LRDate 11 March 2026Property: 20 Jermyn Street, London, SW1Y 6LTType of application: section 20ZA of the Landlord and Tenant Act 1985.
DECISION
[1]The Applicant is granted dispensation under Section 20ZA of the Landlord and Tenant Act 1985 from the consultation requirements imposed on the landlord by Section 20 of the 1985 Act in respect of major works, being as set out in the application; external masonry securing via a mobile Elevated Platform (MEWP) triggered by a 360-degree survey conducted on the 29th of August 2025. The application and the history of the case[2]The application was determined on papers.[3]A Notice of Intention was issued on 1 October 2025, with the consultation period ending on 1 November 2025, no observations were received from the leaseholders.[4]The Applicant applied by an application dated 18 November 2025 for dispensation under Section 20ZA of the Landlord and Tenant Act 1985 (“the Act”) from the consultation requirements imposed by Section 20 of the Act in respect of major works of external masonry securing via a mobile Elevated Platform (MEWP) triggered by a 360-degree survey conducted on the 29th of August 2025.[5]The tribunal provided Directions dated 22 January 2026. The Applicant relied on their application form; no bundle was supplied.[6]By e mail to the tribunal dated 27 January 2026 the managing agent to the freeholder confirmed that on 27 January 2026 an e mail was issued to each of the leaseholders of 20 Jermyn Street containing copies of the application form, a reply form for leaseholders and a brief statement to explain the reasons for the application. Also, that a copy of the application form has been displayed in a prominent place in the common parts of the property 20 Jermyn Street.[7]The tribunal has received no objections from the leaseholders. The Law[8]Section 20 of the Landlord and Tenant Act 1985 (“the Act”) and the related Regulations provide that where the lessor undertakes qualifying works with a cost of more than £250 per lease the relevant contribution of each lessee (jointly where more than one under any given lease) will be limited to that sum unless the required consultations have been undertaken or the requirement has been dispensed with by the tribunal. An application may be made retrospectively.[9]Section 20ZA provides that on an application to dispense with any or all of the consultation requirements, the tribunal may make a determination granting such dispensation “if satisfied that it is reasonable to dispense with the requirements”.[10]The appropriate approach to be taken by the tribunal in the exercise of its discretion was considered by the Supreme Court in the case of Daejan Investment Limited v Benson et al [2013] UKSC 14.[11]The leading judgment of Lord Neuberger explained that a tribunal should focus on the question of whether the lessee will be or had been prejudiced in either paying where that was not appropriate or in paying more than appropriate because the failure of the lessor to comply with the regulations. The requirements were held to give practical effect to those two objectives and were “a means to an end, not an end in themselves”.[12]The factual burden of demonstrating prejudice falls on the lessee. The lessee must identify what would have been said if able to engage in a consultation process. If the lessee advances a credible case for having been prejudiced, the lessor must rebut it. The tribunal should be sympathetic to the lessee(s).[13]Where the extent, quality and cost of the works were in no way affected by the lessor’s failure to comply, Lord Neuberger said as follows: “I find it hard to see why the dispensation should not be granted (at least in the absence of some very good reason): in such a case the tenants would be in precisely the position that the legislation intended them to be- i.e. as if the requirements had been complied with.”[14]The “main, indeed normally, the sole question”, as described by Lord Neuberger, for the tribunal to determine is therefore whether, or not, the lessee will be or has been caused relevant prejudice by a failure of the Applicant to undertake the consultation prior to the major works and so whether dispensation in respect of that should be granted.[15]The question is one of the reasonableness of dispensing with the process of consultation provided for in the Act, not one of the reasonableness of the charges of works arising or which have arisen.[16]If dispensation is granted, that may be on terms. That is to say that dispensation is granted but only if the landlord accepts- and fulfils appropriate conditions. Specific reference was made to costs incurred by the lessees, including legal advice about the application made.[17]There have been subsequent decisions of the higher courts and tribunal’s of assistance in the application of the decision in Daejan but none are relied upon or therefore require specific mention in this Decision.[18]More generally, the tribunal considers that the case authorities demonstrate that the tribunal has a very wide discretion to, if it considers it appropriate, impose whatever terms and conditions are required to meet the justice of the particular case- in Daejan it was said “on such terms as it thinks fit- provided, of course, that any such terms are appropriate in their nature and their effect”. Submissions and Consideration The Property[19]The property is said to comprise a leasehold block consisting of five leasehold 2-bedroom flat. The building was rebuilt 10 years ago. The Applicant[20]The Applicant served a Notice of Intention on 1 October 2025 with the consultation period ending on 1 November 2025. No observations were received from the leaseholders.[21]A statement of estimates was issued on 14 November 2025, with the consultation period expiring on 16 December 2025.[22]Two estimates were obtained for the amber works: Thomann Hanry: £25700 plus VAT and PAYE: £36,806 plus VAT.[23]The works are said to be essential to mitigate health and safety risks from falling masonry to persons and property below as the elevation faces the street. To prevent delays due to seasonal constraints and address amber risk assessment actions before they become overdue. The Respondents[24]No submissions were received from any of the Respondents. Determination 25.The tribunal finds that the Respondents will not suffer any prejudice by the failure of the Applicant to follow the full consultation process. 26.The tribunal consequently finds that it is reasonable to dispense with all of the formal consultation requirements in respect of the major works to the building in respect to the works detailed in the application and set out in paragraph 1 of the decision.[27]This decision is confined to determination of the issue of dispensation from the consultation requirements in respect of the major works outlined above. The tribunal has made no determination on whether the costs incurred are reasonable and whether service charges are payable in any given sum or at all. If a Lessee wishes to challenge the reasonableness of those costs and/ or the payable service charges, then a separate application under section 27A of the Landlord and Tenant Act 1985 would have to be made. Chair: Waterhouse FRICS Date: 11 March 2026. 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).