Avon Grounds Rents Limited v Kirstie Ward
[2023] UKUT 88 (LC)
Gray’s Inn Investments Limited v Sally Claire Jolleys
3 January 2024
[2024] UKUT 2 (LC)
Upper Tribunal
A buyer took over someone else's attempt to get a longer lease on their flat. The attempt failed, and the landlord wanted their costs back. The court ruled that the buyer had to pay, even though the paperwork didn't specifically say so, because taking over the lease also meant taking over its responsibilities.
Key Facts
- •Ms Jolleys purchased a flat and the benefit of a section 42 notice (Leasehold Reform, Housing and Urban Development Act 1993) from Mr Warburton.
- •The lease extension process was not completed, resulting in the section 42 notice being deemed withdrawn.
- •The landlord, Gray's Inn Investments Limited, claimed costs from Ms Jolleys under section 60 of the 1993 Act.
- •The First-tier Tribunal (FTT) dismissed the landlord's claim.
- •Gray's Inn Investments Limited appealed to the Upper Tribunal (Lands Chamber).
Legal Principles
Liability for costs under section 60 of the 1993 Act.
Leasehold Reform, Housing and Urban Development Act 1993, section 60
Assignment of rights and obligations under section 43 of the 1993 Act.
Leasehold Reform, Housing and Urban Development Act 1993, section 43
Interpretation of section 60(1) of the 1993 Act regarding the liability of an assignee tenant for costs.
Leasehold Reform, Housing and Urban Development Act 1993, section 60(1)
Outcomes
The Upper Tribunal allowed the appeal and set aside the FTT's decision.
The FTT misconstrued section 60 of the 1993 Act. Section 43(1) and (2) means that when Ms Jolleys took the benefit of the section 42 notice, she also took on the associated liabilities. The concluding clause of section 60(1) is an exception, not a condition for assignee liability.
The matter was remitted to the FTT to assess the appellant's costs.
The appellant had not provided details of its costs to the Tribunal.
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