By Harry Scoffin
Controversial freeholder Israel Moskovitz and his legal team were reprimanded in the property tribunal last month for failing to hand over £69,633.72 to a right to manage company.
Bridge Court South RTM, 24-flats in Leyton, north-east London, won back half the contingency fund from the control of Mr Moskovitz’s manager Y and Y Management.
The other half is for the separate building Bridge Court North, which also has 24 flats but with commercial premises below. As a result, it remains under the control of Mr Moskovitz.
Barrister Justin Bates provided the statement of case on behalf of Mr Moskovitz, who was represented on the day by Mr Simon Allison, of Landmark Chambers.
Mr Bates argued that because the site was run as one entity, Mr Moskovitz’s freehold company Triplerose Limited, the two blocks had never had separate accounts.
“… the Applicant [Mr Moskovitz’s Triplerose] is unwilling to make an estimate or apportionment [to hand over to the RTM]. As a statutory trustee of the service charge funds that would be inappropriate.
“Accordingly, the FTT needs to decide what – if anything – should be paid over to the Respondent.
“The Applicant considers that, as a matter of law, nothing is payable …”
These objections were rejected by Judge Nicholas Nicol, who stated in his ruling:
“This argument is so obviously wrong as to do no credit to the experienced lawyers who managed to convince themselves that it was appropriate to waste the Tribunal’s time with it.”
“The service charges held on the Applicant’s behalf include sums paid in respect of the premises, Bridge Court South. The fact that the lease does not require any apportionment to each block is entirely beside the point.
“When the right to manage is exercised, the funds must be apportioned. Depending on the circumstances, this might not be an easy task but such difficulties are not relevant to the principle.”
Judge Nicol added:
“The Tribunal is aware that the criticism made of the Applicant’s representatives here is, for good reason, rare but, with this particular landlord, it appears to be part of a pattern.”
Judge Nicol, who took only five days to make his ruling, ordered Mr Moskovitz’s Triplerose to hand over £69,633.72, exactly half of the reserve fund, to the Bridge Court South RTM.
The same tribunal ordered leaseholders to pay £6,100 to cover the landowner’s legal fees and the costs associated with handing over the management of the block.
Bridge Court South mounted several attempts to gain the right to manage before the current leaseholders were successful in removing Y and Y Management at their second attempt in September 2018.
Judge Nicol referenced the frustrations of Bridge Court South RTM to achieve its right to manage.
“… a reluctant landlord may stray into putting up obstacles without any genuine foundations.
“Parties must be aware that arguments raised purely for such tactical reasons will be given short shrift and may have costs consequences.”
It is ironical that Mr Moskovitz’s Triplerose Limited managed the two-block site as one, when the Triplerose decision in the Court of Appeal argued the precise opposite and undermined multi-block RTMs.
Tribunal tells freeholder Israel Moskovitz to drop the ‘nonsense’ to frustrate right to manage
The Law Commission has been tasked by government to remove the arbitrary 25% rule concerning commercial premises as part of its work to reform right to manage.
The reform effort also involves removing the incentives for landlords “to adopt a tactical approach” to tenants trying to take control of their service charges.
The body’s recommendations are due to be published in February, which may come as relief to leaseholders of Bridge Court North and others in similar situations.
The ruling can be read here: BridgeCourtRTMDecision2
Justin Bates legal opinion: FTTReserveFundApplication
Related posts:
Israel Moskovitz demand for £22,170 admin charges reduced to £300 in ‘colossal waste of court’s time’
Israel Moskovitz’s bid to monetise squalid car park back-fires and may cost him over £100,000 at tribunal
Tribunal tells freeholder Israel Moskovitz to drop the ‘nonsense’ to frustrate right to manage
Israel Moskovitz fails to get £30 each from leaseholders for his ground rent demands (as barrister Rebecca Cattermole, acting pro bono, sees off Justin Bates in the Upper Tribunal)
Full ‘legal torture’ tribunal ruling is published
Residents at cladding site Citiscape allowed back in to retrieve possessions
for discussion …..
England Scotland & Wales ; 650 MPs will have to pass a Law along the lines of :
New Build Flats & Houses : in the SALES OFFICE when a Customer pays a DEPOSIT to
RESERVE ANY PROPERTY – Leasehold or Freehold : House or Flat
Each House or Flat will have FINAL COPY details of the Leasehold or Freehold Titles
for each Buyer which includes anything & everything to do with the House or Flat and
the Estate .
NOTHING IS PUT UP FOR SALE UNTIL THE DETAILS ARE PROOFED & CHECKED
BY LAWYERS OF THE DEVELOPER.
For a period of 2 years or 5 years , the Estate Costs shall be FIXED at e.g. £50 or £100
or £150 depending on the size and cost of the Flat or House.
Those COSTS SHALL BE INCLUDED IN THE SALE PRICE.
The ESTATE COSTS for Green spaces , Play areas and Access roads etc might be higher
or lower IN TOTAL for the 2 year or 5 year period for the Land Owner. Tough luck.
For the period after 2 years or 5 years.
The National Property Tribunal will allocate the costs as a % for each FLAT OR HOUSE to be
determined before anything is SOLD.
There shall be an OPTION for any Flat or House to buy AN EQUAL SHARE of the Common Land
in the Estate and to decide on Managing the Land and an OPTION to be EXCLUDED but
allways to be liable to pay a % of the Costs as defined in the Title Deeds and Schedule.
There will be NIL Service Charge Payments for any Leasehold property for 5 years with
the Costs paid by The Freeholder and included in the Sales Price..
All Leaseholders will have an OPTION at the point of Deposit to BUY A SHARE OF THE
FREEHOLD TITLE at a COST TO BE ALREADY DECIDED by the PROPERTY TRIBUNAL. and
the Details shall be finalised and clear for all to see.
IF FOR ANY REASON within 5 years there is any Buyer unhappy with Workmanship
or Quality Standard of any House or Flat THE TRANSACTION WILL BE CANCELLED.
No refund of Legal or Occupancy or Maintenance Costs will be made to anyone.
If the Property Market has Gone UP or Gone DOWN during those 5 years : TOUGH LUCK.
The BUYER WILL BE REFUNDED THE SALE or PURCHASE PRICE and nothing else.
This means the House or Flat will have to be of THE VERY HIGHEST QUALITY.
This also means The Builder might have to arrange Indemnity Insurance and-or
retain PROFITS as CASH instead of being distributed as DIVIDENDS or
STAFF BONUS for those 5 years.
The NEW LAW will allow for an Ombudsman Service to deal with property Disputes
who will also have discretion to allow further Case Study and Judgement at the Tribunal..
IF FOR ANY REASON the Leasehold & Freehold documents and other Costs &
Schedules are not available at the Show Room : the FCA or Land Registry or Property
Tribunal can impose a Heavy Fine on both the Developer and Sales Official.
If the Documents are NOT AVAILABLE there will be NO WEB-SITE in OPERATION
and the SALES OFFICE WILL BE CLOSED.
All of you CLEVER LAWYERS & Property People can Argue and Argue until
the Cows Come Home and you are Blue in the Face : it is better to
sort out Title and Costs before something goes on Sale.
ADMIN …….. The article mentions ´´ warfare ´´. Why ?
There were no Soldiers , no Tanks and no Miltary Aircraft.
It was a Property dispute that went to the FTT for a decision.
Try to be Neutral , try not to be biased and try to be Adult.
QUICK & EASY PROPERTY LAW REFORM for you Dumb Arses who MOAN & COMPLAIN
I first heard about Lemon Laws from the USA (quite a few) decades ago.
And I thought : Why don´t we have those Lemon Laws here in the UK?
The reason is ….. 650 MPs.
All it needs are amendments to the Sale Of Goods Act to cover
NEW BUILD LEASEHOLD & FREEHOLD FLATS & HOUSES and
NEW & USED Cars here in the UK.
What could be simpler when BREXIT is finally sorted ?
Lets have the updated Lemon Laws effective 2025.
——————————————————————
I emailed a FEW MPs and Newspapers with the above
message just 3 minutes ago
Dumb Arses Everywhere : New Build Flats & House that are sometimes CRAP quality
In the USA they have LEMON LAWS that concern CRAP NEW & USED CARS.
These LEMONS can be taken back to the Showroom for a FULL refund.
We don´t apply the Sale Of Goods Act to NEW Cars & Houses & Flats – we should.
Most of the Problem today with MEGA Domestic Property Companies is the lack
of strict oversight from 10 Downing Street : it did almost nothing for decades.
Even with second-hand property for sale & rent , it is a nightmare with Estate Agents
cowboys & spivs.
In the USA and EEC property agents & tradesman are Licenced and Supervised –
in the UK it is almost like a Car Boot sale pot-luck lottery ticket.
————————————————————————————
In Scotland many years ago the Missives procedure for New Build Law was
outdated and then a MSP started a review process that finally became Law.
It isn´t perfect TODAY : if there is SEVERE DELAY to a build or the specifcation
is really substandard then the Buyer can pull out and get the Money
deposited refunded in full but not Legal or other costs..
——————————————————————————————–
It surprises me that such an important Topic as UK New Build Property Law
has been neglected by Parliament for so long ……. decades.
Ditto Vehicle Pollution
Ditto Knife Crime
Ditto Vehicle Deaths & Injuries (including the EEC)
Ditto Recycling & Litter
Ditto Alcohol Abuse & Obesity
Ditto Traffic congestion
Ditto Keith Lemon
LEMON LAWS
In the USA they have LEMON LAWS that concern CRAP NEW & USED CARS.
Dumb Arses Everywhere : New Build Flats & House that are sometimes CRAP quality
These LEMONS can be taken back to the Showroom for a FULL refund.
We don´t apply the Sale Of Goods Act to NEW Cars & Houses & Flats – we should.
Most of the Problem today with MEGA Domestic Property Companies is the lack
of strict oversight from 10 Downing Street : it did almost nothing for decades.
Even with second-hand property for sale & rent , it is a nightmare with Estate Agents
cowboys & spivs.
In the USA and EEC property agents & tradesman are Licenced and Supervised –
in the UK it is almost like a Car Boot sale pot-luck lottery ticket.
————————————————————————————
In Scotland many years ago the Missives procedure for New Build Law was
outdated and then a MSP started a review process that finally became Law.
It isn´t perfect TODAY : if there is SEVERE DELAY to a build or the specifcation
is really substandard then the Buyer can pull out and get the Money
deposited refunded in full but not Legal or other costs..
——————————————————————————————–
It surprises me that such an important Topic as UK New Build Property Law
has been neglected by Parliament for so long ……. decades.
Ditto Vehicle Pollution
Ditto Knife Crime
Ditto Vehicle Deaths & Injuries (including the EEC)
Ditto Recycling & Litter
Ditto Alcohol Abuse & Obesity
Ditto Traffic congestion
Ditto Keith Lemon