LVT/0026/08/14: 11 Llannerch Hall, St Asaph
| Jurisdiction | England & Wales |
| Applied Rules | Landlord and Tenant Act 1985 |
| Date | 24 July 2015 |
| Year | 2015 |
| Subject Matter | Section 27A |
| Court | Leasehold Valuation Tribunals |
| Judgement Number | LVT/0026/08/14 |
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Y TRIBIWNLYS EIDDO PRESWYL
RESIDENTIAL PROPERTY TRIBUNAL
LEASEHOLD VALUATION TRIBUNAL
Reference: LVT/0026/08/14
In the Matter of Flat 11, Llannerch Hall, Llannerch Park, St. Asaph, LL17 0BD
APPLICANT Llannerch Hall Limited
RESPONDENTS Mr T.E.M McGregor and Mrs S.L McGregor
TRIBUNAL Richard Payne LLB, M Phil.
Tom Daulby B.Sc., MRICS, FNAEA.
Bill Brereton M.A. Cantab., B.A. Hons.
HEARING; 25TH March 2015, The Oriel Hotel, Upper Denbigh Road, St.Asaph.
Upon hearing Mr Ni cholas Warren, Mrs Last and Mr Dean for the A pplicant and the Respondents in
person.
REASONS
1. The Applicant, Llannerch Hall Limited (hereafter referred to as “LH”) applied to the
Northampton County Court on 4th April 2014 for a judgement against the Respondents for
arrears of service charge of £1407.84 and arrears of administration charges of £3833.22 and
in both cases, of sums continuing to accrue. The total claimed as at 31st March 2014 was
£5241.06 plus solicitors’ costs. A defence was filed by the Respondents dated 9th May 2014,
broadly pleading that various of the sums claimed against them had already been paid, and
disputing the reasonableness of the charges claimed. The periods in question for which the
charges were being claimed were not clear from the particulars of claim. The file was
subsequently transferred to the Rhyl County Court where Deputy District Judge Hynes by
order made on 19th August 2014 and promulgated on 26th August 2014 transferred the
matter to the Leasehold Valuation Tribunal for Wales (“LVT”).
2. On the 12th September 2014 separate application forms were submitted to the LVT by LH in
relation to the applications for service and administration charges. The tribunal gave
directions on the 7th October 2014 and 14th January 2015 to prepare the matter for hearing
which included that the applications were to be heard at the same time. The service charge
application form to the LVT sought a determination of service charges for three periods;
a) 1st July 2012 - 30th June 2013,£1032.48
b) 1st July 2013 – 30th June 2014, £1,415.15.
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c) The current service charge year of the 1st July 2014 – 30th June 2015, £1242.57.
These service charge sums total £3690.20.
3. The administration charge application form claimed variable administration charges incurred
in pursuit of arrears “including the managing agent’s Credit Control and professional legal
fees, court and Tribunal fees, and other disbursements.” The form did not break these down
into amounts. However in compliance with directions the Applicant subsequently provided a
hearing bundle, the Applicant’s bundle (subsequently referred to as “AB”). At section 2, page
25 of this bundle was a breakdown of the variable administration charges being claimed for
the appropriate periods and this totalled £4,663.22. When this is added to the service
charges sought, the total of administration and service charges that the tribunal was being
asked to determine was £8353.42. The administration charges that had been incurred
before the date of the particulars of claim (4th April 2014) total £4078.22.The Respondents
had also prepared and submitted a bundle which will be referred to as the Respondents
bundle or RB for short.
4. The tribunal members inspected Llannerch Hall on the 24th March 2015 and heard the case
on the 25th March 2015. Subsequently, further written representations were received from
the Applicant on 9th April 2015 and from the Respondents on 21st April 2015. We also had a
written copy of the documents that the Respondents read their representations from at the
hearing.
THE INSPECTION
5. Llannerch Hall is a grade ll listed building which has been converted into 13 flats, numbered,
perhaps superstitiously, 1-12 and 14. It is accessed by a pri vate road that is not in the
Applicant’s ownership and has enviable views over open countryside from the front. It has a
parking area and a separate forecourt accessible to vehicles, as well as i ts own grounds that
include various flowerbeds and a lawned area. We were accompanied at the inspection by
Mrs Last who is a leaseholder of flats at Llannerch Hal l as well as being a director of the
Applicant. We knocked at the door of the Respondents ’ flat and rang the bell to invite them
to accompany us on the inspection but we did not receive a reply. The Respondents had
been previously notified of the date and time of the inspection by letter. We inspected the
common parts of the building, including the staircases, landings, cellar, entrance hallway and
porch. We also inspected the grounds and the side and rear of Llannerch Hall. Unfortunately,
a large tree had recently been blown over from the car park and had caused some damage
to the roof of Mrs Last’s flat and to the surface of the car parking area but this of course was
not a matter that was before us. We inspected the window of flat 4 externally and noted the
location of the re-sited gas pipe to the exterior of flat 14 on the third floor, the respective
replacement and re-siting costs of which are the subject of challenge from the Respondents.
6. We noted that most of the flowerbeds appeared to have been untouched for some time,
particularly the one adjoining the lawned area and we considered the extent of the lawned
area that is contained in the LH freehold according to the office copy entry plan (AB, tab 6
page 11). The condition of the road surface in the forecourt was in poor condition in places
with pot holes evident.
THE LEASE
7. The Applicant’s bundle contained a copy of the lease relating to flat 11 made between the
parties predecessors in title dated 2nd November 1979 for a term of 999 years from the 29th
September 1979 at a yearly ground rent of £40. Llannerch Hall i s referred to as “the
Mansion” and the premises demised to the lessee as “the flat”. The numbering of the lease
is not always clear but at page 3 of the lease are the lessee’s covenants regarding the service
charge. At clause 3 (i)(b), the lessee covenants
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"(b) to pay to the Lessors without any deduction by way of further and additional rent a
proportionate part of the expenses outgoings incurred by the Lessors in the repair
maintenance renewal and insurance of the Mansion and the provision of services therein
and the other heads of expenditure as the same are set out in the Fourth Schedule hereto
such further and additional rent (hereinafter called “the Service Charge”) being subject to
the following terms and provisions:-
(1) The amount of the Service Cha rge shall be ascertained and certified by a
Certificate (hereinafter called “the Certificate”) signed by the Lessors’ Auditors or
Accountants or Managing Agents (at the discretion of the Lessors).....annually
and so soon after the end of the Lessors’ financial year as may be practicable and
shall relate to such year in manner hereinafter appearing...”
8. Clause 3 (i)(b) (2) recorded that the Lessors’ financial y ear was originally from the seventh
April to the sixth April but could be such other period as the Lessors determine. Clause
3(i)(b)(3) requires a copy of the certificate for each financial year to be supplied by the
Lessor to the Lessee upon written request and clause 3(i)(b)(4) states;
“(4) The Certificate shall contain a Summary of the Lessors’ said expenses and
outgoings incurred by the Lessors during the Lessors financial year to which it relates
together with a Summary of the relevant details and figu res forming the basis of the
Service Charge and the Certificate (or a copy thereof duly certified by the person by
whom the same was given) shall be conclusive evidence for the purposes hereof of
the matters which it purports to certify.”
9. Clause 3(i) (b) (5) contained details on the calculation of the proportion of the service charge
payable by reference to the expenses and rateable values of the flats, and subsection (6)
clarified that the expression “the expenses and outgoings incurred by the Lessors” includes
estimated future expenditure as well as costs that have actually been incurred. Subsection 7
contained the obligation on the Lessee to pay to the Lessors payments in advance and on
account in respect of the service charges on the sixth of April and October each year.
10. Clause 3 (i)(b)(8) states that;
“(8)As soon as practicable after the signature of the Certificate the Lessors shall furnish
to the Lessee an account of the service charge payable by the Lessee for the year in
question due credit being gi ven therein for all interim payments made by the Lessee in
respect o f the said year and upon the furnishing of such account showing such
adjustment as may be appropriate there shall be paid by the Lessee to the Lessors the
amount of the Service Charge as aforesaid or any balance found payable or there shall be
allowed by the Lessors to the Lessee any amount which may have been overpaid any the
Lessee by way of interim payment as the case may require.”
11. Therefore it is clear that in respect of any balancing payments that may be due for the
service charge, the Lessee’s obligation to pay is dependent upon the issue of the certificate
and the summary of the expenses in accordance with the machinery of the l ease set out
above.
12. The Fourth Schedule to the lease, detailing the matters that make up the service charge
refer to the expenses of maintaining, repairing and renewing parts of the mansion, the cost
of cleaning the common parts, the costs of fuel, the managing agents fee and disbursements
and at clause 7, (a sweeping up clause) “All other expenses (if any) incurred by the Lessors in
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