The Woodland, Woodlands Road, Heaton Mersey, SK4 3AF ((Leasehold) disputes (management) - Service charges) -[2022] UKFTT MAN_OOBS_LDC_2022_0032- (18 October 2022)

Gladman Retirement Living Limited applied to dispense with consultation requirements under Section 20ZA of the Landlord and Tenant Act 1985 for The Woodlands, Woodlands Road, Heaton Mersey (SK4 3AF). The application was granted due to a significant energy cost increase (20p to 89p per kw/hr) if renewed for 12 months, and no objections from 63 long leaseholder respondents. The Tribunal approved the dispensation on 18 October 2022, with the decision finalized on 20 October 2022.

The key issue was whether the Tribunal should grant dispensation under Section 20ZA of the Landlord and Tenant Act 1985 to allow Gladman Retirement Living Limited to enter a long-term energy agreement exceeding 12 months without fulfilling standard consultation requirements. The Applicant argued that a significant energy price increase (from 20p to 89p per kw/hr) necessitated flexibility to secure favorable terms in a volatile market. The Tribunal considered the absence of objections from leaseholders, the economic climate, and the Applicant's engagement with residents during a budget meeting, concluding it was reasonable to dispense with the requirements to mitigate financial pressure on the leaseholders.

The Tribunal granted the application to dispense with the consultation requirements under Section 20ZA of the Landlord and Tenant Act 1985, allowing the Applicant to enter into a long-term energy agreement beyond 12 months. This was due to the significant increase in electricity costs from 20p to 89p per kw/hr and the need to mitigate financial pressure on the leaseholders. No objections were received from the Respondents.

The Tribunal granted the application to dispense with the consultation requirements imposed by Section 20 of the Landlord and Tenant Act 1985 and the Service Charges (Consultation Requirements) (England) Regulations 2003. This allows the Applicant to enter into a qualifying long-term energy agreement exceeding 12 months for The Woodland, Woodlands Road, Heaton Mersey, SK4 3AF.

The Tribunal applied Section 20ZA of the Landlord and Tenant Act 1985 to grant dispensation from consultation requirements under Section 20 and the Service Charges (Consultation Requirements) (England) Regulations 2003. The decision relied on the principle that dispensation is reasonable if tenants would not be prejudiced, as established in Daejan Investments Ltd v Benson [2013] UKSC 14. The Applicant sought flexibility to negotiate longer-term energy contracts amid volatile pricing, and the Tribunal found no prejudice to leaseholders given the lack of objections and the need to mitigate financial risks.

Daejan Investments Ltd v Benson