FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00AF/OC9/021/0048 Property : 9 Transmere Road, Petts Wood, Orpington, Kent, BR5 1DT Applicant : Derek Walter Mayell Representative : Mike Stapleton & Co Respondent : Trendgrove Properties Ltd Representative : Winckworth Sherwood Type of application : Determination of the landlords recoverable costs under s60(1) of the Leasehold Reform, Housing and Urban Development Act 1993 Tribunal members : Mr A Harris LLM FRICS FCIArb Date of decision : 11 January 2022 DECISION © CROWN COPYRIGHT This has been a remote hearing on the papers which has been consented to by the Applicant and not objected to by the Respondent. A face to face hearing was not held because it was not practicable, no-one requested the same, and all the issues could be determined on the papers. The documents that I was referred to were emailed to the Tribunal, the contents of which I have recorded. Decision of the tribunal The tribunal determines that pursuant to section 60(1) legal fees of £2792.52 including VAT and surveyor’s fees of £1200 + VAT are payable by the Applicant. Introduction and background 1. The Applicant is the long leaseholder of the flat known as 9 Transmere Road, Petts Wood, Kent,BR5 1DT (the “Property”). 2. The Respondent is the freeholder of the building and the competent landlord for the purposes of the Leasehold Reform and Urban Development Act 1993. 3. This is an application under section 60 of the Leasehold, Reform, Housing and Urban Development Act 1993 (the “Act”) to determine the amount of the landlord’s recoverable costs in connection with a claim under section 42 of the Act to exercise the tenant’s right to extend the lease of the “Property”. 4. On 17 February 2020 the Applicants, served notices of claim on the landlord under section 42 of the Act. ( The First Application) 5. The First Application was based on the title documents shown at the Land Registry and proposed a premium of £1800 based on the unexpired term of 101.61 years and the ground rent specified in the lease of a peppercorn. 6. The Respondent objected to the notice as it did not reflect a deed of variation entered into between the Landlord and the Applicant’s predecessor in title varying the ground rent. On investigation a copy of the deed 13 September 2002 was found which should have been registered by the then tenant. 7. A second notice was then served dated 20 August 2020 proposing a premium of £8000 and a premium was eventually 2 agreed at £10,250. The date for service of a counter notice was 30 October 2020. Counter notice was served on 15 October 2020 admitting the claim but disputing the premium. 8. The parties agreed the terms of acquisition and the new lease has completed. 9. The Applicant applied for a Determination of Costs payable pursuant to Sections 60 of the Leasehold Reform Housing and Urban Development Act 1993. 10. The valuation fees are agreed at £600 for each application plus VAT 11. The Tribunal issued Directions on 13 October 2021 following which both parties have made written submissions. The costs in issue 12. The Respondent landlord has provided a schedule of costs for each claim and claims £3054.12 including VAT for the first claim and £2888.58 including VAT for the second claim. These totals include the agreed valuers fees. 13. The Applicant has submitted that legal costs of £1250 plus VAT to £1500 plus VAT would be appropriate for a lease extension of this value. The Respondents evidence 14. The tribunal has been provided with an itemised schedule of the legal fees for each claim with the date and description of each item, the time spent and resultant cost broken down into discrete areas covering each subsection of section 60 of the Act. 15. On 17 November 2020 the Applicant served a section 42 claim for a lease extension on the Property proposing a premium of £1800. On 24 February 2020 the Respondent’s solicitors submitted a Deposit Notice on a without prejudice basis and confirmed that they had been advised there was a Deed of Variation altering the ground rent from a peppercorn to £175 per annum doubling every 25 years. A copy of the Deed was forwarded on 4 March 2020 with a request it should be registered. The Applicant should have been aware that the rent actually being paid was different from that 3 specified in the lease. The Applicant was invited to re-serve the section 42 notice with a realistic prem