[2025] UKUT 88 (LC)

The RTM Company initially proposed four variations to the 11 leases of flats in the building. The FTT refused all four, and only two are now the subject of this appeal. Both concern the costs of proceedings.

The RTM Company proposes the addition to each lease of a new covenant by the leaseholder, to be numbered clause 3(13A), in these terms:

“To pay to the Landlord on demand the reasonable costs and expenses (including any solicitors', surveyors' or other professionals' fees, costs and expenses and any VAT on them) incurred by the Lessor in connection with or in contemplation of the enforcement of any of the Lessee’s covenants.”

The second addition is to the list in paragraph 1(1) of the Third Schedule of expenses to which the leaseholders are required to contribute through the service charge. There would be added any expenditure incurred by the Lessor:

“(iv)

in paying the fees of any Solicitors or other professional in connection with or in contemplation of the enforcement of any of the Lessee covenants in the lease where such fees are unable to be recovered from the defaulting leaseholder as an administration charge in accordance with clause 3(13A).”