Tribunal Tells Managing Agent: Be Reasonable, They Can’t Afford To Pay

In a landmark case that will undoubtedly be a gamechanger for the property management industry, the Upper Tribunal has decided that managing agents must consider the financial impact of major works on lessees and whether to phase works so they become more affordable.

The case (Garside & Anson v RFYC and Maunder Taylor) concerned proposed major works on the Frognal Estate near leafy Hampstead in London. Historically, the 54 unit building had not been properly maintained such that a scheme of major works was required. Managing agents, Maunder Taylor had been appointed by the Leasehold Valuation Tribunal to manage the block. After assessment, they proposed works totalling £638,012 - substantially more than the flat owners had been used to paying. A dispute arose with a minority of the leaseholders pleading that the costs demanded were unreasonable, that they could not afford to pay and the works and cost should spread over a longer period of time. On Appeal, the Upper Tribunal (Lands Chamber) agreed with the flat owners, in principle, the particular works must now return to the LVT to consider the detail.