Did you know that when the management of a residential building becomes the source of ongoing problems, the leaseholders of the building may be able to apply to the Tribunal for it to appoint a manager? However, is it always the case?
The recent case heard in the Upper Tribunal, Lonestar Properties Ltd v Lecacheur, highlights an important limitation on this kind of application.
Written by Yitong Guo, Solicitor
Background
This case concerned an application for the appointment of a manager under Part II of the Landlord and Tenant Act 1987.
The First-tier Tribunal (FTT), on the finding that the relationship between the parties had broken down and that both buildings must be managed together, made a management order covering two separate terrace buildings. The landlord appealed and argued that one of the buildings did not satisfy the statutory requirements for the Tribunal to appoint a manager.
The issue points to the statutory concept of “qualifying tenants” and whether the relevant premises satisfied the requirements under the 1987 Act.
Only a “qualifying tenant” – broadly, the holder of a long lease of a flat in the building – can apply for a manager to be appointed under section 21 of the 1987 Act. Whether someone qualifies, and which building their lease relates to, can determine whether an application succeeds at all.
The Upper Tribunal considered the facts and concluded that the FTT did have jurisdiction to appoint a manager covering more than one building, but it had not properly justified extending the management order to the other building. The two buildings were treated as separate for lease and management purposes. The landlord had different obligations in respect of each building.
Importantly, the Tribunal also rejected the idea that two separate buildings could simply be treated together to overcome the problem. The fact that one building might satisfy the statutory requirements did not automatically make another building eligible.
The Impact
The Upper Tribunal allowed the appeal. It is a useful reminder that the Tribunal’s powers are statutory. It cannot simply make a management order because it considers that doing so would be practical or desirable.
Before making an application like this, leaseholders as tenants, need to consider carefully: whether the property falls within the relevant legislation, who the qualifying tenants are, and how the relevant “premises” should be defined for the statutory purpose.
In practice, this means checking, for each building involved:
- Whether the property falls within the relevant legislation
- Who the qualifying tenants are
- How the “premises” should be defined for the statutory purpose
And before asking the Tribunal to change who manages a building, it is important to establish that the Tribunal has the legal power to do so.
If you are a leaseholder worried about how your building is being managed, or a landlord facing an application to appoint a manager, getting legal advice early can help you understand your rights and decide what to do next.
Get in touch with our team today to discuss your situation and find out how we can help.
Have questions? Get in touch today!
Call our office on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.
Email us on [email protected].
Or, use the contact form on our website. Simply enter your details and leave a message, we will get right back to you: https://lisaslaw.co.uk/contact/
For more updates, follow us on our social media platforms! You can find them all on our Linktree right here.
