Firstport Property Services Limited v Various Leaseholders of Switch House
[2023] UKUT 219 (LC)
Avon Grounds Rents Limited v Kirstie Ward
4 April 2023
[2023] UKUT 88 (LC)
Upper Tribunal
A landlord tried to get a tenant to pay for repairs after a plumber caused a flood. Even though the landlord technically won the case, the judge decided it was unfair for the tenant to pay the landlord's legal fees because the landlord knew they couldn't evict the tenant and the tenant wasn't at fault. The higher court agreed with the judge.
Key Facts
- •Avon Grounds Rents Limited (appellant) is the freeholder, and Kirsty Ward (respondent) is the long leaseholder of a flat.
- •A pipe fractured in the respondent's flat causing £30,000 damage.
- •Respondent's lease requires her to maintain the property and provide notice of works.
- •Appellant sought a determination under section 168 of the Commonhold and Leasehold Reform Act 2002 that the respondent breached covenants.
- •The First-tier Tribunal (FTT) found the respondent in breach of covenants but made orders preventing the appellant from recovering costs via service or administration charges under section 20C of the Landlord and Tenant Act 1985 and paragraph 5A of Schedule 11 to the 2002 Act.
- •Appellant appealed the FTT's cost orders.
Legal Principles
A landlord cannot forfeit a lease for breach of covenant without serving a section 146 notice (Law of Property Act 1925). Section 168 of the Commonhold and Leasehold Reform Act 2002 governs this notice.
Law of Property Act 1925, section 146; Commonhold and Leasehold Reform Act 2002, section 168
Acceptance of rent after a breach of covenant can waive the right to forfeit.
Case law (implied)
The FTT has discretion in awarding costs; the Upper Tribunal will only interfere if the decision falls outside the range of reasonable decisions.
Case law (implied)
Orders under section 20C and paragraph 5A interfere with contractual rights and require careful consideration.
Landlord and Tenant Act 1985, section 20C; Commonhold and Leasehold Reform Act 2002, Schedule 11, paragraph 5A
Damages for breach of covenant in a long lease are limited by the Leasehold Property Repairs Act 1938 and section 18(1) of the Landlord and Tenant Act 1985.
Leasehold Property Repairs Act 1938; Landlord and Tenant Act 1985, section 18(1)
Outcomes
Appeal dismissed.
The FTT's decision to prevent the appellant from recovering costs was within its discretion. The FTT considered relevant factors such as the pointlessness of the section 168 application given the waiver of forfeiture, the respondent's lack of fault, and the appellant's conduct.
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