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Articles
Robin Church from Colman Coyle is quoted in the article below published in Property Week: 04 June 2010
Need to know: Managing Agents Case
On 20 April, the High Court passed judgment in a case significant for parties entering agreements to carry out residential estate management
What happened?
In January 2002, West End Quay Estate Management was set up to manage communal parts of three blocks of flats. Paddington Basin Management was incorporated in September 2005 and West End Quay entered an agreement: Paddington Basin Management would manage the whole development, including West End Quay.
What was the issue?
This agreement was entered into without consulting the tenants in the flats. The High Court found it was a "qualifying long-term agreement", defined by the Landlord and Tenant Act 1985, which meant that West End Quay Estate Management could only recoup up to £100 from each of the 467 tenants each year.
Why is this significant?
Robin Church, solicitor at law firm Colman Coyle, warns that landlords and agents must "bear in mind the consultation requirements as set out in the Landlord and Tenant Act 1985 before they enter into any contracts. [They must] not rely on a guaranteed dispensation from the leasehold valuation tribunal, which although possible, is by no means guaranteed".
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Published: Property Week, 04 June 2010
Date: May 2010