LVT/0012/06/21: 38 Golate Court, Cardiff
| Jurisdiction | England & Wales |
| Applied Rules | Landlord and Tenant Act 1985 |
| Date | 13 December 2021 |
| Year | 2021 |
| Subject Matter | Section 27A - Service Charges |
| Court | Leasehold Valuation Tribunals |
| Judgement Number | LVT/0012/06/21 |
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Y TRIBIWNLYS EIDDO PRESWL
RESIDENTIAL PROPERTY TRIBUNAL
LEASEHOLD VALUATION TRIBUNAL
Reference: LVT/0012/06/20
In the matter of No. 38 Golate Court, Golate Street, Cardiff, CF10 1EW
Applicant: RMB 102 Limited
Respondent: Dr Mahamaz Mohammad Ali & Mr Jamil Abdillayev
DECISION
Before: Tribunal Judge AR Phillips (Legal Chair)
Mr K Watkins (Surveyor Member)
Dr A Ash (Lay Member)
The matter was initially listed for a remote Cloud Video Platform hearing but it was agreed by
the parties shortly before the due hearing date that the matter could proceed as a hearing on
the papers.
On the 25th May 2021 the Tribunal was unable to reach a determination and the matter was
adjourned, with further directions being issued, to 3rd August 2021. The Tribunal considered
matters on 3rd August 2021 and again 28th September 2021. The Tribunal issued further
Directions on 5th October 2021.
BACKGROUND
1. Proceedings had been issued in the Cardiff County Court by the Applicant in relation to
alleged non-payment of service charges for the period 01/01/2018 to 31/12/2019, reserve
charge contributions and balancing charges under the terms of the lease.
2. An order of the Cardiff County Court issued on 25/06/20 transferred the question of the
determination of the above service charges to the Leasehold Valuation Tribunal. The
Applicant has requested that further arrears for 2020 are included in the sums to be
determined by the Tribunal. The Tribunal is concerned only with the determination of the
matters that have been transferred from the County Court and not additional matters that
may become the subject of a future claim by the Applicant.
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THE LEASE
3. The Applicant is the freeholder of the development known as Golate Court, Golate Street,
Cardiff CF10 1EU, their title being registered at the Land Registry with title number
WA125851. The Respondent is the lessee of 38 Golate Court, Golate Street, Cardiff CF10
1EU (“the Flat”) their title being registered at the Land Registry with title number
CYM296130. The development at Golate Court consists of 49 residential units and 2
commercial units with 6 parking spaces. The Respondent’s lease is dated 18th May 2006
(“the Lease”) and is for a term of 125 years from 1st July 2005. The Respondents purchased
the Flat on 27th July 2011.
4. The Lease contains the usual provisions for the demanding and payment of service
charges.
The relevant provisions are as follows:-
a) In clause 3(20) the Lessee covenants with the Lessor to
“Pay by way of further or additional rent the Interim Charge and the Service Charge at
the times and in the manner provided in the Fourth Schedule….”
b) In summary, the Fourth Schedule (“the Schedule”) defines the relevant terms by which
the Service Charge is to be calculated. It is unnecessary for the purposes of this
decision to repeat the provisions of the Schedule verbatim, but the following sections
are significant.
c) The Schedule divides expenditure into Category A Expenditure and Category B
Expenditure.
d) Clause (4)(i) of the Schedule states that Category A Expenditure “means the total
expenditure incurred by the Lessor in complying with its obligations (inter alia) under
Clause 5(5) hereof being the expenditure the Lessor (acting reasonably) shall consider
relates to the residential parts of the Building as a whole and/or is incurred solely for
the general benefit of the Lessee and other Flat Owners less the Category B
Expenditure”
e) Clause (4)(ii) of the Schedule states that Category B Expenditure “means the total
expenditure incurred by the Lessor in complying with its obligations (inter alia) under
Clause 5(5) hereof being the expenditure the Lessor (acting reasonably) shall consider
relates to the Building as a whole”
f) In the Particulars of the Lease the Lessee’s Percentage Contribution to the Service
Charge is set at 1.9% of the Category A Expenditure and 1.44% of Category B
Expenditure
g) The Interim Charge is to be paid to the Lessor by equal half yearly payments in advance
on the Rent Days in each year.
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