Repairing covenants and landlords' obligations: be careful what work you do

The clause relates to keeping the building, in which the leasehold property is situated, in good condition and for the prevention of disrepair to the building. This ensures that the total cost is recoverable by each tenant of the leasehold properties within the building.

The definition of disrepair may be easy to define – blocked drains or worn-out paint but what is in question is items that are in need of replacement or not in a level of current disrepair but will give rise to disrepair in the future, such as installing new windows to make them more modern and replacing older windows which would give rise to a requirement for repair in the future.

When considering if works carried out truly fall within the repairing covenant, it will be necessary to look at factors such as the effect of the works on the property and the nature of the building and cost-benefit.

What's changed? The importance of Tedworth North Management v Miller [2016[ UKUT 0522 (LC)

In this case, the landlord sought to recover the costs of replacing all the windows in a collectively enfranchised building.

Windows were replaced with new double-glazed units in flats belonging to tenants who agreed personally to meet the costs incurred. The landlord consulted with the tenants, and 28 leaseholders wished to proceed while the remaining 18 did not.

The question at hand was whether the landlord could rely on the repairing covenant to keep the building in good condition in order to demand a contribution from tenants towards costs incurred.

The decision

The Upper Tribunal Lands Chamber held that the landlord could not rely on the repairing covenant in this instance to recover costs as the replacement was unjustified, owing to the fact that:

1. the "repairs" were unreasonable as there was no damage to the window frames that actually required action.
2. the landlord's decision to replace was motivated by the availability of a modern alternative that would provide improved heat and noise insulation, not by the state of the frames.
3. It later transpired that the only defect in most windows was painting work was required.

How does this affect you?

Before any repairs take place, it is crucial to ensure that planned works do not fall outside the scope of your repairing covenant. Otherwise, it is possible you may incur costs that cannot be recovered through service charges, although you are making positive change. 

In the present case, the landlord's attempt to modernise windows was not in line with its repairing covenant, notwithstanding the benefits provided by double-glazing windows.

Contact our property solicitors today

SO Legal has offices across the South East. Our team of property solicitors in Brighton, Eastbourne, Hastings, London and Uckfield can help you understand repairing covenants and landlords' obligations.