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Long leases.

The editors of this section are Piers Harrison, barrister (enfranchisement) and Jonathan Upton, barrister (service charges), assisted by Harriet Holmes, Richard Alford, Katie Gray and Diane Doliveux all of Tanfield Chambers London.

There are two cases this month:
  • A landlord could recover costs on an enfranchisement claim notwithstanding that the valuation was carried out after the tenant had applied to the Tribunal.
  • An appeal was allowed in circumstances where a management order put the freeholder in breach of its obligations to a third party.


Enfranchisement

Costs

Chung v Towey
[2017] UKUT 157 (LC)

Summary

A landlord could recover the statutory costs recoverable on a house enfranchisement claim including the cost of a valuation notwithstanding that the valuation was carried out after the tenant applied to the Tribunal.

Relevant statutory provisions

Section 9(4)(e) of the Leasehold Reform Act 1967, so far as is relevant, provides:

“(4) Where a person gives notice of his desire to have the freehold of a house and premises under this Part of this Act, then unless the notice lapses under any provision of this Act excluding his liability, there shall be borne by him (so far as they are incurred in pursuance of the notice) the reasonable costs of or incidental to any of the following matters:—
(a) . . .

(e) any valuation of the house and premises”

Outline of case

The landlord sought to recover the cost of a valuation under the above statutory provision. The tenant alleged that the cost of the valuation was not incurred “in pursuance of the notice” because the valuation was only carried out after the tenant made the application to the First-tier Tribunal (FTT) to determine the terms of acquisition. The FTT found in favour of the tenant but this decision was reversed on appeal. There is a distinction b ... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW

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