In a divorce case involving a couple with assets of more than £260 million, the Family...
A recent decision by the First-tier Tribunal (FTT) has confirmed that a landlord may be granted dispensation from the consultation requirements under Section 20 of the Landlord and Tenant Act 1985, where urgent works are necessary and leaseholder interests are not prejudiced.
Under the Act, landlords must consult leaseholders before carrying out qualifying works costing over £250 per lease. Failure to do so typically limits recoverable costs to that amount per leaseholder. However, Section 20ZA permits landlords to apply to the FTT for a waiver of this requirement in appropriate circumstances.
In this case, the landlord sought retrospective dispensation after completing emergency repairs to the property’s heating and hot water systems, including the replacement of heating pumps and inverters. The works were undertaken without prior consultation due to their urgency.
The FTT accepted that the works were both essential and time-sensitive. Importantly, none of the leaseholders raised objections to the application for dispensation.
Referring to the Supreme Court’s decision in Daejan Investments Ltd v Benson, the FTT reiterated that the key consideration in such cases is whether the leaseholders have suffered any prejudice as a result of the landlord's failure to consult. The consultation requirements are designed to safeguard leaseholders from inappropriate or overpriced works.
In this instance, the Tribunal found no evidence of prejudice and therefore granted an unconditional dispensation. It also emphasised that this ruling does not prevent leaseholders from disputing the reasonableness of service charges under Section 27A of the Act.