[2024] UKUT 0135 (LC)

This appeal is about the leaseholder protections provided by Schedule 8 of the Building Safety Act 2022.

Section 122 and Schedule 8 of the 2022 Act contain provisions designed to protect leaseholders under “qualifying leases” from liability to pay some or all of the service charges which would otherwise be due from them as their contribution towards costs connected with “relevant defects”. The most comprehensive of these protections protects all leaseholders from liability to contribute towards the cost of “relevant measures” if their landlord was “responsible for” the relevant defect. Where the landlord satisfies a “contribution condition”, “qualifying” leaseholders are protected from all liability to contribute towards the cost of relevant measures. Where the contribution condition is not satisfied, the qualifying leaseholder’s liability is nevertheless limited to a permitted maximum. Qualifying leaseholders also have protection from any liability to contribute towards “cladding remediation” costs, and in respect of the cost of certain legal or other professional services

In this case the appellant, Mr Markus Lehner, owns the lease of Flat 44, at 4 Sanctuary Street, London SE1. The appeal concerns his liability, as leaseholder, to contribute towards the cost of removing and replacing combustible insulation and installing additional fire stopping in the cavities between the interior and exterior surfaces of the walls of certain parts of the building.

In a decision given on 12 April 2023, the First-tier Tribunal, Property Chamber (“the FTT”), determined that Mr Lehner was liable to pay £1,244.85 demanded on 8 February 2021 as a service charge contribution towards the cost of the insulation and fire-stopping work intended to be undertaken to the walls of the building. Mr Lehner’s appeal against that decision is brought with the permission of this Tribunal; he was represented by his father,Dr Alfred Lehner, at the hearing of the appeal as he had been before the FTT.

The respondent to the appeal is Lant Street Management Co Ltd (“LSMC”), which was responsible for commissioning the works and is entitled to collect any service charges due. It is Mr Lehner’s immediate landlord, although the capacity in which it originally joined in the lease of his flat was as the management company for the building. It was as management company that Mr Lehner named it as respondent to his application to the FTT for a determination under section 27A, Landlord and Tenant Act 1985, of his liability to contribute towards the costs of the proposed works. At the hearing of the appeal the respondent was represented by counsel, Mr Ashley Pratt, who did not appear before the FTT. Mr Veneik of the respondent’s managing agents, Houston Lawrence, who had previously represented the company also attended the appeal.