20 Beacon Court, 25 Beacon Drive, Highcliffe
- The building
- 24 flats in four materially identical blocks of six. Original leases of 1970 were surrendered and regranted in 2003 for 999 years.
- What was applied for
- A determination under section 27A of the Landlord and Tenant Act 1985 of whether the lease requires a contribution to structural repairs across all four blocks or only the leaseholder's own, with section 20C and paragraph 5A applications.
- The figures
- 24 flats in four blocks of six. Leases regranted for 999 years from 24 June 2003. Development said to have existed 54 years. Fees of 320 pounds to be reimbursed within 14 days.
- Costs
- Section 20C granted in full, so none of the costs of the proceedings may be treated as relevant costs, and a paragraph 5A order made. The tribunal criticised the respondent for not attempting mediation, calling it a case par excellence where neighbours in a continuing relationship had fallen into disagreement.
What Happened
The leaseholder, a former director who had been outvoted on this interpretation and excluded from board meetings, argued the lease consistently distinguishes the Building, meaning her own block, from the Development, meaning all four blocks and the grounds. The freehold company, owned by the leaseholders, said the distinction was merely descriptive and that a single share across 24 flats had been used for 54 years.
What the Tribunal Held
For the leaseholder. Applying Arnold v Britton and Sara and Hossein v Blacks Outdoor Retail, the tribunal had no hesitation in accepting her interpretation, holding that the provisions all point towards the leaseholders of each block contributing to structural repairs to their own block, and that it is not relevant that this interpretation has not been followed previously or is considered administratively inconvenient by the current board. It found no linguistic, grammatical or other uncertainty, and rejected the claimed discretion over apportionment as inconsistent with the language used. General management and sweeper clauses cannot be used to recover costs falling under earlier paragraphs.
What it means for a block here. Where a lease repeatedly distinguishes the Building from the Development, structural costs must be apportioned block by block even if the site has been billed as one pot for decades. Long-standing practice does not rewrite the lease.