The Upper Tribunal gives guidance on the application of ss.20, 20ZA, Landlord and Tenant Act 1985

The Upper Tribunal (Lands Chamber) has given guidance on the proper application of ss.20, 20ZA, Landlord and Tenant Act 1985, in the recent matter of various Leaseholders of Foundling Court and O’Donnell Court, Brunswick Centre, London v (1) Camden LBC; (2) Allied London (Brunswick) Ltd and others [2016] UKUT 366 (LC)

In situations where there is an intermediate lease between the freeholder and the occupational leaseholders, the statutory obligation to consult the occupational leaseholders before carrying out qualifying works or entering into qualifying long term agreements falls on the freeholder.

The freeholder should consult both the intermediate leaseholder and the occupational leaseholders. If that is impracticable, then the freeholder should seek dispensation from the First-Tier Tribunal (Property Chamber) prior to placing any contract. The FTT could grant dispensation on terms as to alternative methods of consultation (e.g. placing a notice in the common parts) so as to ensure that the rights of occupational leaseholders were properly protected.