Further hurdles for residential landlords regarding section 20 consultations

 

The Upper Tribunal (Lands Chamber) has held that, for the purposes of the consultation requirements under section 20 of the Landlord and Tenant Act 1985 (LTA 1985), where a superior landlord intends to carry out qualifying works or enter into a qualifying long term agreement, the statutory obligation:

• To comply with those consultation requirements was an obligation imposed on the superior landlord and not the intermediate landlord under the headlease.

• Required the superior landlord to consult not just the intermediate landlord, but also each of the individual leaseholders even though those leaseholders were subtenants and therefore had no direct relationship of landlord and tenant with the superior landlord.

Landlords of residential premises who are obliged to...

Show full content >

 

The Upper Tribunal (Lands Chamber) has held that, for the purposes of the consultation requirements under section 20 of the Landlord and Tenant Act 1985 (LTA 1985), where a superior landlord intends to carry out qualifying works or enter into a qualifying long term agreement, the statutory obligation:

• To comply with those consultation requirements was an obligation imposed on the superior landlord and not the intermediate landlord under the headlease.

• Required the superior landlord to consult not just the intermediate landlord, but also each of the individual leaseholders even though those leaseholders were subtenants and therefore had no direct relationship of landlord and tenant with the superior landlord.

Landlords of residential premises who are obliged to comply with the consultation requirements under section 20 of the LTA 1985 should take note of this important decision. Failure to comply with the consultation requirements could be costly as it will mean that the superior landlord's ability to pass on its costs to tenants is limited unless the First-tier Tribunal agrees that the superior landlord may dispense with the consultation requirements. This is likely to pose a significant practical difficulty for superior landlords who will not know the identity of those subtenants with whom it is required to consult. (Leaseholders of Foundling Court and O'Donnell Court v The Mayor and Burgesses of the London Borough of Camden and others [2016] UKUT 366 (LC).)

This weekly email update was originally published on PLC Property by Practical Law on 19 August 2016 and is reproduced with the permission of Practical Law.  (www.practicallaw.com)

Hide full content >
Contact Us...

Tel: 020 7317 3210

info@sgdlaw.com

Statham Gill Davies
38 Wigmore Street
London
W1U 2RU

Closest Tube Station:
Oxford Circus or Bond Street

Find Us