Clarity for leaseholders following the E & J Ground Rents No.11 Case?

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The tragedy Grenfell Towers last year has sparked a series of property disputes across the UK as freeholders and management companies of leasehold estates seek to ensure that their buildings are compliant with current fire safety standards.

The recent case of handed down on 24th January 2018 the Tribunal handed down its decision in the case of E & J Ground Rents No.11 LLP v Various leaseholders of Fresh Apartments, Salford, Whilst that decision does not create a legal precedent, may provide some clarity to leaseholders and freeholders alike as to the approach the courts may take in resolving these disputes.

Numerous private residents have received notices from management companies of exceptional service charges relating to the removal and replacement of cladding and other fire-safety measures. Leaseholders are entitled to be consulted on qualifying works and can challenge those works or the cost of implementing those works if they are ‘unreasonable’.

A number of cases are making their way through the First Tier Tribunal (Property Chamber) raising similar issues as leaseholders take issue with service charge demands that are in the tens of thousands of pounds. Some leaseholders find themselves in the invidious position of struggling to raise the funds to meet the service charge demands, spending thousands of pounds challenging the service charge in the courts and being unable to sell their property.

ENDS

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