05/04/23

Can a landlord recover a service charge from its tenants towards the cost of repairing a lift, which is in the common parts of a block of flats?

That was the question the Upper Tribunal (Lands Chamber) (UT) had to consider in a recent case, Anchor Hanover Group v Cox [2023] UKUT 14 (LC) (17 January 2023).

The building was a 4-storey independent living retirement development of 51 flats for those aged 55 and over. Many of the tenants were elderly or infirmed and required use of the lift to continue living in their flats. All of the flats were occupied under assured tenancies.

The building was owned by Anchor Hanover Group (Anchor). The Tenancy Agreement set out that Anchor would provide services including the repair, maintenance and insurance of the lift serving the building, and the tenant would pay a service charge for those services. The Tenancy Agreement also provided that Anchor would repair and maintain any communal (shared) areas. The parties agreed that this included the lift.

Anchor sought a contribution from the tenants through the service charge towards the cost of installing a new lift, lift servicing, lift inspection and lift repair. One of the tenants disagreed that he was required to pay those costs and applied to the First Tier Tribunal for a determination of his liability to pay the service charge.

The First Tier Property Tribunal decided that the tenant was not required to pay the service charge for the costs relating to the repair and maintenance of the lift as the landlord was required to repair. However, the UT disagreed.

The Upper Tribunal considered Section 11 of the Landlord and Tenant Act 1985 (“the Act”). Section 11 provided Anchor must keep in repair the structure and exterior of the building (so far as it belonged to Anchor), to keep the installations for the supply of water, gas and electricity, and for sanitation, in repair and proper working order, and the installations for heating and heating water. The Act also provided that Anchor was only obliged to repair the structure and exterior of the building, and the installations only if the disrepair affected the tenant’s enjoyment of their flat or the common parts.

The UT decided that the lift could not be described as part of the structure or exterior of the building, nor was it an installation for the supply of water, gas, electricity, or sanitation, or for heating or heating water. Therefore, there was no implied obligation on the landlord to repair the lift and Anchor was able to recover the cost of that work from the tenant through the service charge.

At Kitsons we’re experts in all things property related. If you have any concerns or queries in relation to your service charges or understanding the terms of your Tenancy Agreement/Lease, we can help.

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05/04/23