RTM Settlers Court Nightmare decision for leaseholders?

By challenging the managing agents at FTT, if you win, not only will you get a refund of some/all fees charged but it should help you in your quest to change case law.

Dear Jill,

I have a similar situation to yours. I would be interested where you got to in pursuing unreasonable service charges?

We were previously charged £15k for management for 33 flat block + garden. We now control 30 out of 33 flats. The landlord has just sent a garden budget which includes £15k of management charges just for the garden.

I can only comment on our situation. Three blocks in freehold owning RMC, a limited company,leaseholders each one voting share. SC is for LLs , the RMC,costs of maintenance of common parts inside each block separately. The exterior and roof space not fall under SC. We sit on an estate ie common area land retained by the Freeholders ie leaseholders. These maintenance costs as Estate service charge is Rent.In our case it is Fixed amount apportioned to each whole block. If we wish to alter this amount then we apply to Civil Court. It doesn’t fall under landlord &tenant act so not FTT.

Hi Ricky
Yes we have the same problem i.e. being ripped off under Settlers Court and it appears that the Freeholders believe they can bully us into paying fees without being challenged. This is where they are wrong and you can demand a breakdown of costs which they have to provide and in a worse case scenario go to tribunal. Happy for you to email me at [email protected] as we do need an action group to challenge the fallout from Settlers Court

I was wondering if any resolution has come about with settlers court??
We are in a similar position- unfortunately at the time of the rtm application we didn’t specify our appertunent property ( garden space) and we haven’t been provided with estate costs as yet. We are worried if we go tribunal we will be plonked with freeholders court fees. This could end up being disastrous. The law is unfair. I contacted my local mp and it seems the govt is backtracking on leasehold reforms changes during a recent debate in Parliament . Anyone successfully gone to tribunal without bearing freeholders costs??

Hi
Read taylorwessing.com
report on the Judgement. Unless Supreme Court allows an appeal and you have very deep pockets and accept you may lose.
The Supreme Court ruled the RTM did not acquire the right to manage the estate surrounding the block which is the Freeholders own land and the maintenance charges are not service charge under ss 18-30 landlord & tenant act which is for sc for common parts inside the block and tax exempt. Estate charge is rent payable to the Freeholder , not tax exempt only pursuable for alleged breach of the estate sc contract through the Civil Court.

Reply to the comment left by Kizzie at 27/05/2023 – 11:35
I did not follow why you mentioned “tax exempt”?

I think there is no mention of tax in the Settlers Court judgement?

Service charge under long residential lease is not company money . It is held in a statutory discretionary trust account for the landlord named in leases to whom sc to be paid and should be tax exempt.

Settlers court Supreme Court decision is the estate is not inthe lease managed by RTM.

lease costs fall under LTA etc Estate costs are rental different and separate as company money and therefore management cannot be shared. Gala Unity decision absurd and was overturned.

Don’t think you can appeal Supreme Court decision.