Court of Appeal decision may impact on estate management schemes

A recent Court of Appeal decision, Pexton & another -v- The Wellcome Trust Limited (10th October 2000) may have a significant impact on the operation of estate management schemes drawn up under the provisions of the Leasehold Reform, Housing and Urban Development Act 1993 (the "Act").

The freehold owners of a property in Egerton Crescent, South Kensington, failed in their appeal against a ruling by His Honour Judge Marr Johnson in August 1999 that they should not have commenced works to the rear of the property which would have allowed access for vehicles via Crescent Place.

The property is part of the South Kensington Estate, which was acquired by Wellcome between 1995 and 1998, and is subject to a scheme of management drawn up under the provisions of the Act as approved by the Leasehold Valuation Tribunal. Under the scheme, Wellcome are "guardians" of the property and their consent must be given before alterations are carried out.

Wellcome originally refused to give their consent for a number of reasons, which included the impact on the tranquillity of Crescent Place, and the nuisance and annoyance that would be caused to neighbouring properties.

The Court of Appeal held that Wellcome (represented by Tim Dutton) was entitled to take into consideration the character of the surrounding area and the effect on Crescent Place (a property outside of the scheme area) in refusing consent to the proposed alterations.

This ruling represents a sensible interpretation of the effect of the estate management scheme which should allow other guardians to exercise their discretion on the basis of common-sense rather than on an overly restrictive interpretation of the terms of the scheme. Importantly, guardians will be able to bear in mind the effect of the proposed works on the neighbourhood as a whole and not just on those properties within the scheme.

For further information please contact Patrick Wetherall at [email protected] or on 020 7367 2423.