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United Kingdom

Lehner v Lant Street: Upper Tribunal on BSA 2022 leaseholder protections, qualifying leases, cladding remediation and s47 LTA 1987; invalid service charge; 'cladding system' includes insulation (England)

Published on: 23 July 2024

Published by a LexisNexis Property Disputes expert
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Lehner v Lant Street Management Ltd [2024] UKUT 0135 (LC)

What are the practical implications of this case?

The BSA 2022 sets out a regime safeguarding leaseholders with ‘qualifying leases’ against paying, in whole or in part, service charges that would otherwise fall due from them as their contribution towards expenditure connected with ‘relevant defects’ arising out of post‑Grenfell cladding remediation costs. Its widest protection relieves all leaseholders of any duty to fund ‘relevant measures’ where the landlord was ‘responsible for’ the particular defect. When that requirement is fulfilled, the protection is absolute and complete; accordingly, if it is not, leaseholder contributions still remain constrained by a ‘permitted maximum’ payable by leaseholders. The protections apply not only to the works themselves but also to associated professional fees and legal costs, including sums otherwise recoverable through service charges. The principal provisions lie in BSA 2022, s 122 and Sch 8. Part 5, however, begins at BSA 2022, s 116, which introduces ss 117–125 and states that, read together with Schedule 8, they ‘make provision in connection with the remediation of relevant defects in relevant buildings’...

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