Flats 1 to 34 Seaway Court, Seaway Lane
- The building
- 34 flats, the freehold owned by a company owned and controlled by the 34 leaseholders, each flat being a member.
- What was applied for
- Variation of all 34 leases under section 37 of the Landlord and Tenant Act 1987, to expand the definition of the costs of management of the estate.
- The figures
- 34 flats and 34 leases. One objection, 29 consents. Decided on the papers.
What Happened
The existing clause read only the costs of management of the Estate. Legal advice indicated a tribunal might read that narrowly, covering routine management but not substantial works or improvements. The tribunal's own directions criticised the first draft, and a revised draft was circulated to all leaseholders.
What the Tribunal Held
Varied in the revised terms. One leaseholder objected but set out no basis, no prejudice and no alternative wording, and the tribunal found no evidence of prejudice. It held that the object of conducting improvement works with certainty over how they will be agreed and charged back cannot satisfactorily be achieved without varying all the leases, and accepted that the existing drafting left an element of uncertainty over what charges are caught and, perhaps more importantly, what charges are therefore not caught. The varied clause lists the heads of expenditure including improvements, with improvements only after a vote of all leaseholders recording a majority in favour.
What it means for a block here. A bare costs of management clause can be widened by variation to cover improvements, but a bare objection carries no weight. A leaseholder who opposes must set out the prejudice or propose alternative wording.