• Menu
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • Home
  • What is LKP
  • Find everything …
  • Contact
Donate

Leasehold Knowledge Management Logo

Secretariat of the All Party Parliamentary Group on leasehold reform

Mobile Menu

  • Home
  • What is LKP
  • Find everything …
  • Contact
  • Advice
  • News
    • Find everything …
    • About Peverel group
    • APPG
    • ARMA
    • Bellway
    • Benjamin Mire
    • Brixton Hill Court
    • Canary Riverside
    • Charter Quay
    • Chelsea Bridge Wharf
    • Cladding scandal
    • Competition and Markets Authority / OFT
    • Commonhold
    • Communities Select Committee
    • Conveyancing Association
    • Countrywide
    • MHCLG
    • E&J Capital Partners
    • Exit fees
    • FirstPort
    • Fleecehold
    • Forfeiture
    • FPRA
    • Gleeson Homes
    • Ground rent scandal
    • Hanover
    • House managers flat
    • House of Lords
    • Housing associations
    • Informal lease extension
    • Insurance
    • IRPM
    • Jim Fitzpatrick MP
    • John Christodoulou
    • Justin Bates
    • Justin Madders MP
    • Law Commission
    • LEASE
    • Liam Spender
    • Local authority leasehold
    • London Assembly
    • Louie Burns
    • Martin Paine
    • McCarthy and Stone
    • Moskovitz / Gurvits
    • Mulberry Mews
    • National Leasehold Campaign
    • Oakland Court
    • Park Homes
    • Parliament
    • Persimmon
    • Peverel
    • Philip Rainey QC
    • Plantation Wharf
    • Press
    • Property tribunal
    • Prostitutes
    • Quadrangle House
    • Redrow
    • Retirement
    • Richard Davidoff
    • RICS
    • Right To Manage Federation
    • Roger Southam
    • Rooftop development
    • RTM
    • Sean Powell
    • SFO
    • Shared ownership
    • Sinclair Gardens Investments
    • Sir Ed Davey
    • Sir Peter Bottomley
    • St George’s Wharf
    • Subletting
    • Taylor Wimpey
    • Tchenguiz
    • Warwick Estates
    • West India Quay
    • William Waldorf Astor
    • Windrush Court
  • Parliament
  • Accreditation
  • [Custom]
Menu
  • Advice
  • News
      • Find everything …
      • About Peverel group
      • APPG
      • ARMA
      • Bellway
      • Benjamin Mire
      • Brixton Hill Court
      • Canary Riverside
      • Charter Quay
      • Chelsea Bridge Wharf
      • Cladding scandal
      • Competition and Markets Authority / OFT
      • Commonhold
      • Communities Select Committee
      • Conveyancing Association
      • Countrywide
      • MHCLG
      • E&J Capital Partners
      • Exit fees
      • FirstPort
      • Fleecehold
      • Forfeiture
      • FPRA
      • Gleeson Homes
      • Ground rent scandal
      • Hanover
      • House managers flat
      • House of Lords
      • Housing associations
      • Informal lease extension
      • Insurance
      • IRPM
      • Jim Fitzpatrick MP
      • John Christodoulou
      • Justin Bates
      • Justin Madders MP
      • Law Commission
      • LEASE
      • Liam Spender
      • Local authority leasehold
      • London Assembly
      • Louie Burns
      • Martin Paine
      • McCarthy and Stone
      • Moskovitz / Gurvits
      • Mulberry Mews
      • National Leasehold Campaign
      • Oakland Court
      • Park Homes
      • Parliament
      • Persimmon
      • Peverel
      • Philip Rainey QC
      • Plantation Wharf
      • Press
      • Property tribunal
      • Prostitutes
      • Quadrangle House
      • Redrow
      • Retirement
      • Richard Davidoff
      • RICS
      • Right To Manage Federation
      • Roger Southam
      • Rooftop development
      • RTM
      • Sean Powell
      • SFO
      • Shared ownership
      • Sinclair Gardens Investments
      • Sir Ed Davey
      • Sir Peter Bottomley
      • St George’s Wharf
      • Subletting
      • Taylor Wimpey
      • Tchenguiz
      • Warwick Estates
      • West India Quay
      • William Waldorf Astor
      • Windrush Court
  • Parliament
  • Accreditation
You are here: Home / News / Tribunal to rule on whether West India Quay leaseholders are subbing the energy costs of the hotel below

Tribunal to rule on whether West India Quay leaseholders are subbing the energy costs of the hotel below

December 19, 2018 //  by Sebastian O'Kelly

West India Quay, in prime London Docklands, has seen numerous disputes between the leaseholders and the Monaco-based freeholder John Christodoulou. This time the dispute concerns the apportionment of energy charges, with leaseholders claiming they are subsidising the 12-storey hotel below

Monaco-based freeholder John Christodoulou was in tribunal at the beginning of the month fighting the court appointed manager at Canary Riverside, last week he was back again in a row with leaseholders at West India Quay.

The two prime London Docklands sites, both near Canary Wharf, have witnessed repeated acrimony between the residential leaseholders and the freeholder.

Barrister Justin Bates, for the freeholder, used the analogy of flats above a chip shop to explain the predicament of ritzy West India Quay

This time the issue was over whether the leaseholders at West India Quay are subsidising the energy consumption of the 12-storey Marriott Hotel on site, and assorted serviced apartments. These are part of Mr Christodoulou’s interests, the tribunal was told.

The action was initiated by East Tower Apartments Limited, an investor owning and renting out 42 flats at the 33-storey site, which thinks it is paying too much – a view shared by other leaseholders at the site, although they were not a party to the case.

The commercial part of West India Quay amounts to 47% of the total, while the rest is 158 apartments with 999-year leases.

As with Canary Riverside, the commercial portion is greater than 25%, so right to manage and freehold enfranchisement are not options for the leaseholders. This is an issue that LKP is urging the Law Commission to address in its enfranchisement reforms.

East Tower Apartments Limited is no stranger to challenging John Christodoulou in court, and it challenged energy charges in 2015, which seemed to result in an accord.

No.1 West India Quay (Residential) Ltd v East Tower Apartments Ltd [2018] EWCA Civ 250

Leases often provide that a landlord may not unreasonably refuse consent to assign. In this case, applicable to both residential and commercial leases, the Court of Appeal considered whether consent was unreasonably withheld where two of the grounds for refusal were reasonable, but a third had been held not to be.

But the case last week returned to the issue, with East Tower Apartments Limited arguing that the original ruling lacked clarity.

Two days were put aside for this, with another one scheduled in March. As both sides have armed up with barristers, this is a costly affair.

East Tower Apartments Limited argued that the leaseholders should not be subsidising the commercial premises by paying more for their “direct electricity”, which goes straight to the apartments and is metered. But there are “indirect electricity” charges that relate to the energy used for heating, cooling and domestic hot water, which comes through a central plant.

West India Quay is one of the most expensive blocks in London, and its striking blue-glass angles have been used numerous times in films, such as the gangster caper Layer Cake.

That did not prevent barrister Justin Bates, for the freeholder, likening the iconic site to flats above a humble chippie:

“The analogy is with insurance of a flat above a fish and chip shop … the nature of that building means higher insurance … the nature of this building, given its size and commercial parts, means that you have to pay a charge to the grid for access. It’s just a cost this building has to bear.” 

Lina Matsson, for the leaseholder: ‘The problem for the landlord is he has a vested interest in that the hotel, which is part of the same group, would have to pay. This is why he is talking about a loss.’

For East Tower Apartments Limited, counsel Lina Mattsson said that her client and other leaseholders “have accurate readings – we can prove we did not consume it [the energy]. We should be paying for what has been consumed, in accordance with the actual utility bill charges.”

The tribunal heard that there were almost 600 “bulk meters” throughout the building, most of which are not functioning properly: “… 550 more than they need, [and] they don’t sound to me reliable,” said Judge Geddes.

He added: “The landlord has been repeatedly warned from 2006 on that his meters need to be replaced. And he has not done anything about it.

“If my meter is saying I consumed 100 units, why should I – as a leaseholder – be paying for more than what the utility company is charging?”

Mr Bates, for the landlord, responded:

“Our point is that the only thing you can rely on is the utility company. We’re using what has been billed to us by the utility company as the starting point. The fundamental different view is do you start from the leaseholder perspective, or the landlord perspective?”

Mr Bates referenced Ofgem guidance, claiming “I am required, as per the Ofgem guidance, to recover not more than I pay. Ofgem does not require me to make a loss. It requires me not to make a profit.”

Ms Mattsson told the tribunal:

“The problem for the landlord is he has a vested interest in that the hotel, which is part of the same group, would have to pay. This is why he is talking about a loss.”

The case continues, with a final sitting scheduled for Monday 18 March.

Related posts:

Legal army to stop West India Quay getting … a recognised residents’ association West India Quay defeats £74,560 legal onslaught … West India Quay illegal ravesHas The Times report ended bnb raves at West India Quay – where landlord John Christodoulou and manager Rendall and Rittner failed? West India Quay’s victory against £74,560 legal onslaught … for a recognised residents’ association Battle for Canary Riverside resumes after court appointed manager steps down

Category: John Christodoulou, Justin Bates, Latest News, News, West India QuayTag: 25% rule, Canary Riverside, East Tower Apartments Limited, John Christodoulou, Justin Bates, Lina Matsson, Mixed-use sites, Utility bills, West India Quay

Latest Tweets

Tweets by @LKPleasehold

Mentions

Anthony Essien (34) APPG (37) ARMA (87) Bellway (30) Benjamin Mire (32) Cladding scandal (71) Clive Betts MP (31) CMA (44) Commonhold (52) Competition and Markets Authority (39) Countryside Properties plc (33) FirstPort (40) Grenfell cladding (56) Ground rents (54) Harry Scoffin (150) James Brokenshire MP (31) Jim Fitzpatrick (35) Jim Fitzpatrick MP (30) Justin Bates (40) Justin Madders MP (64) Katie Kendrick (37) Law Commission (60) LEASE (66) Leasehold Advisory Service (62) Leasehold houses (32) Long Harbour (48) Martin Boyd (80) McCarthy and Stone (39) National Leasehold Campaign (38) Persimmon (49) Peverel (61) Property tribunal (49) Redrow (30) Retirement (37) Robert Jenrick (33) Roger Southam (47) Sajid Javid (38) Sebastian O’Kelly (55) Sir Peter Bottomley (200) Taylor Wimpey (106) Tchenguiz (33) The Guardian (33) The Times (31) Vincent Tchenguiz (42) Waking watch contracts (40)
Previous Post: « LKP praises Law Commission over commonhold in Telegraph
Next Post: Santa visits Citiscape and New Providence Wharf »

Reader Interactions

Comments

  1. Chris

    December 19, 2018 at 7:27 pm

    I can see the FtT being very busy especially if legislation is leveled between leaseholder and freeholder regarding costs etc. With a potential 6m leaseholders, time to spread the news about this feudal nonsense and let the battle commence.

  2. John McCreanney

    December 26, 2018 at 10:15 pm

    Why can Management companies be allowed not to be in a government redress system – my imposed Management Agent – collects £1.1m from the Lessees per year and he is not in any redress system.
    Every battle with the Free-Holder who also owns the Management company is so difficult to negotiate with, and it’s a fight every day every week after you come home from work to face.

    johnny – Mann Island. LIVERPOOL

  3. Michael Epstein

    December 27, 2018 at 12:07 am

    It has long been my belief that managing agents should be bonded in much the same way that ABTA bonds travel companies..
    It is beyond belief that as things currently stand a person with a criminal record for fraud can come out of jail and, set themselves up as a managing agent and hold millions of pounds of service charge funds..

Above Footer

Advising leaseholders. Avoiding disasters.
Stopping forfeiture. Exposing abuses. Urging reform.

We depend on individuals for the majority of our funding.

Support Us and Donate

LKP Managing Agents

Become an LKP Managing Agent

Common Ground
Adam Church
Blocnet property management2

Stay in Touch

To achieve victory in the leasehold game where you are playing against professionals and with rules that they know all too well - stay informed with the LKP newsletter.
Sign Up for Newsletter

Professional Directory

The following advertisements are from firms that seek business from leaseholders.
Click on the logos for company profiles.

Footer

About LKP

  • What is LKP
  • Privacy and data

Categories

  • News
  • Cladding scandal
  • Commonhold
  • Law Commission
  • Fleecehold
  • Parliament
  • Press
  • APPG

Contact

Leasehold Knowledge Partnership
Open Data Institute
5th Floor
Kings Place
London N1 9AG

sok@leaseholdknowledge.com

Copyright © 2023 Leasehold Knowledge Partnership | All rights reserved
Leasehold Knowledge Partnership Limited (company number: 08999652) is a company limited by guarantee that is a registered charity (number: 1162584) with the Charities Commission.
LKP website is hosted at www.34sp.com
Website by Callia Web