[2024] UKUT 72 (LC)

The Landlords were granted permission to appeal by the FTT on two issues. The first was whether the FTT’s interpretation of the leases, and its conclusion that so much of the insurance premium as was returned to WMS as commission was not recoverable from the leaseholders, were correct. The second was whether the FTT’s conclusion that the Landlords had “also failed to satisfy the burden on them to prove that such costs were reasonably incurred”, had been sufficiently explained in the decision.

When the FTT was asked to grant permission to appeal on the second of these grounds, it explained that it had meant only that, because there was no contractual liability on the leaseholders to pay the disputed charges, the costs had not been reasonably incurred. It acknowledged that this did not necessarily follow and it was for that reason it granted permission to appeal. It emphasised that, in view of the conclusion it had reached on the contractual recoverability of the charges, “there was no need for us to go on to determine whether the disputed amounts were reasonably incurred because that question was rendered academic”.