Veale Wasbrough Vizards

UK 200 2014 position: 93

Landlord and tenant relationships — Philips v Francis granted permission to appeal

By David Bird

The right to appeal the 2012 case of Philips v Francis has been granted amid widespread concern about how landlords of residential property can reliably collect service charges.

The case involved a 25-acre holiday site in Cornwall that comprised more than 150 chalets let on 999-year leases and a dispute over service charges being sought under those leases.

After the freehold was sold to Mr and Mrs Francis in 2008, they informed the lessees on several occasions of their intention to improve the quality of the site. However, although the lessees were in support of the improvements, they objected to the service charge demanded, which was more than double that demanded by the previous freeholders…

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