Avon Ground Rents Ltd v Cowley & Ors

Avon Ground Rents Ltd v Cowley & Ors

Where there exists an anticipated schedule of works, the total costs of which are reasonable and there is a possibility of a third party making a contribution to those costs, section 19(2) of the Landlord and Tenant Act 1985 requires the landlord to give credit for anticipated payments when assessing the reasonable amount to be credited on account for advance service charges.

Parties
Appellant: Avon Ground Rents Limited; First Respondent: Mrs Rosemary Cowley and Others; Second Respondent: Metropolitan Housing Trust; Third Respondent: Advance; Fourth Respondent: May Hempstead Partnership
Jurisdiction
England and Wales
Judgment Date
29 October 2019
Procedural Posture
Civil Appeal / Judgment on Appeal From Upper Tribunal (lands Chamber)
Outcome
appeal dismissed
Legal Topics
Service Charges, Residential Leases, Statutory Interpretation, Third Party Contributions, Reasonableness of Advance Payments
Land Law Landlord and Tenant Service Charges Residential Leases Statutory Interpretation Third Party Contributions Reasonableness of Advance Payments

Case Brief

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Parties

Avon Ground Rents Limited

Appellant

Mrs Rosemary Cowley and Others

First Respondent

Metropolitan Housing Trust

Second Respondent

Advance

Third Respondent

May Hempstead Partnership

Fourth Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From Upper Tribunal (lands Chamber)

Legal Issues

  1. 1 Whether section 19(2) of the Landlord and Tenant Act 1985 requires a landlord to give credit for anticipated third-party payments (such as insurance) when assessing reasonable advance service charges.
  2. 2 Whether the tribunal erred in reducing the appellant's recoverable costs under section 20C of the 1985 Act.

Ratio Decidendi

Where there exists an anticipated schedule of works, the total costs of which are reasonable and there is a possibility of a third party making a contribution to those costs, section 19(2) of the Landlord and Tenant Act 1985 requires the landlord to give credit for anticipated payments when assessing the reasonable amount to be credited on account for advance service charges.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed on both grounds.
  • No change to the cost order made by the tribunals below.