CA-2024-001597 - [2025] EWCA Civ 1308

This appeal from the Upper Tribunal (Lands Chamber) (“the UT”) concerns a challenge by leaseholders of flats in a building in London to service charges levied by their landlord. The relevant provision requires the landlord to act reasonably, and the particular question is whether the landlord was acting reasonably when it decided to include in the service charge the entirety of costs associated with a gym in the building.

A challenge to the service charges by two leaseholders, Mr Bradley and Mr Rhodes (“the Leaseholders”), failed in the First-tier Tribunal (“the FTT”), but succeeded (in part) on appeal to the UT where it was heard by Judge Elizabeth Cooke (“the Judge”).

The landlord, Abacus Land 4 Ltd (“Abacus”), now appeals to this Court with the permission of Snowden LJ. We have heard well presented arguments from Mr Tom Morris for Abacus and from Mr Michael Walsh KC, who appeared with Ms Claudia Barry, for the Leaseholders.

For the reasons that follow, I prefer those of Mr Morris and would allow the appeal and restore the decision of the FTT.