Question 1

Expensive Balconies

Accepted Answer

Expensive Balconies Q: The development has been issued with two section 20 notices for the initial phases of the management company's balcony refurbishment. These are for two separate blocks on the development. Can we apply to the First Tier Tribunal on the grounds that the management company are proposing improvements rather than repairs and are therefore unfair? Just in 2020 alone the additional charges will be up to £2,000, in addition to the management company's 'normal' management charges of just under £2,000. The year after that it gets worse, with additional charges of up to £3,000. People trying to sell their properties are accepting offers of around £8,000 below their list price. We have looked at the RTM route but don't have at the moment sufficient numbers of people to support that approach. Part of the reason is that there are different balcony sizes and the costs vary wildly. We think the balcony refurbishment is 'over the top' as they are proposing (indeed it's specified on the section 20 notice) to take all the steelwork off site to be galvanized. It was not galvanized when the flats were built in 2005 and the management company admits that. It's that specification that seems to be incurring all the costs, with multiple contractors proposed on the section 20 notices, e.g. scaffolders, decking specialists, glass work blast cleaning, galvanize specialists. FPRA Hon Consultant Shabnam Ali-Khan replies: You ask if we start an appeal to the FTT on the grounds that the managing agents proposed works constitute 'improvements' and that the charges they intend making are disproportionate to the work required, will such an appeal stall the Section 20 notice, which we were issued with on 2 December 2019? When you refer to an appeal it you mean an actual application to the FTT, this can be made pursuant to s27A of the Landlord and tenant Act 1985 as amended. Firstly, you need to ensure you have sufficient grounds to challenge the liability to pay towards the works. You mention they are improvements. You will need to see if on the face of it your lease allows the landlord to carry out improvements AND recover the cost from the leaseholders. I also note you feel the costs are too high. Unfortunately, an application to the FTT will not have the power to suspend the s20 notice procedure. Therefore, the landlord will have a right to carry on. Of course, a sensible landlord will be advised to stop and await the outcome of the FTT. You ask how long on average (if it's possible to determine) would an appeal to a FTT take? This is difficult to say. It might be worth speaking to the FTT directly. I am not sure what their current turnaround time frame is. It could be several months as they will need to process the application first and potentially issue directions to both sides. This will be a list of conditions/requirements to be fulfilled. They may also want to carry out a site visit especially where works have begun to help assess the case. You ask if you can we commence an appeal to a FTT as a group even if it doesn't constitute a 'right to manage'? It is a good idea to make an application as a group as there is strength in numbers. You could set yourselves up as an informal residents’ association. Various people can help with the application in terms of collating information and other evidence to support your case. [Submitted December 2019]

Question 2

Expensive Balconies

Accepted Answer

Expensive Balconies Q: The development has been issued with two section 20 notices for the initial phases of the management company's balcony refurbishment. These are for two separate blocks on the development. Can we apply to the First Tier Tribunal on the grounds that the management company are proposing improvements rather than repairs and are therefore unfair? Just in 2020 alone the additional charges will be up to £2,000, in addition to the management company's 'normal' management charges of just under £2,000. The year after that it gets worse, with additional charges of up to £3,000. People trying to sell their properties are accepting offers of around £8,000 below their list price. We have looked at the RTM route but don't have at the moment sufficient numbers of people to support that approach. Part of the reason is that there are different balcony sizes and the costs vary wildly. We think the balcony refurbishment is 'over the top' as they are proposing (indeed it's specified on the section 20 notice) to take all the steelwork off site to be galvanized. It was not galvanized when the flats were built in 2005 and the management company admits that. It's that specification that seems to be incurring all the costs, with multiple contractors proposed on the section 20 notices, e.g. scaffolders, decking specialists, glass work blast cleaning, galvanize specialists. FPRA Hon Consultant Shabnam Ali-Khan replies: You ask if we start an appeal to the FTT on the grounds that the managing agents proposed works constitute 'improvements' and that the charges they intend making are disproportionate to the work required, will such an appeal stall the Section 20 notice, which we were issued with on 2 December 2019? When you refer to an appeal it you mean an actual application to the FTT, this can be made pursuant to s27A of the Landlord and tenant Act 1985 as amended. Firstly, you need to ensure you have sufficient grounds to challenge the liability to pay towards the works. You mention they are improvements. You will need to see if on the face of it your lease allows the landlord to carry out improvements AND recover the cost from the leaseholders. I also note you feel the costs are too high. Unfortunately, an application to the FTT will not have the power to suspend the s20 notice procedure. Therefore, the landlord will have a right to carry on. Of course, a sensible landlord will be advised to stop and await the outcome of the FTT. You ask how long on average (if it's possible to determine) would an appeal to a FTT take? This is difficult to say. It might be worth speaking to the FTT directly. I am not sure what their current turnaround time frame is. It could be several months as they will need to process the application first and potentially issue directions to both sides. This will be a list of conditions/requirements to be fulfilled. They may also want to carry out a site visit especially where works have begun to help assess the case. You ask if you can we commence an appeal to a FTT as a group even if it doesn't constitute a 'right to manage'? It is a good idea to make an application as a group as there is strength in numbers. You could set yourselves up as an informal residents’ association. Various people can help with the application in terms of collating information and other evidence to support your case. [Submitted December 2019]

Expensive Balconies

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