What happens if First Tier Tribunal directions are ignored?

[HazeltonLane]

Hi all, RMC director here. We made an application to the FTT for lease variations for the whole block. We have received Directions from the FTT that we had to send to all the leaseholders (respondents). Does anyone know what will happen if some of them don't respond to the Directions? They have basically been told to write a statement saying whether they agree or disagree with the proposed lease variations but it seems some of them don't want to be bothered doing this.

In a way I don't blame them as the proposed variation is minor so they probably don't see the point in even reading the mountain of papers that we had to send them!

Grateful for any advice on this.

[leaseholder64]

See https://www.legislation.gov.uk/ukpga/1987/31/section/37 sub-paragraph 5.

If 8 or less parties (e.g seven flats and the freeholder) are involved, the variation will fail if more than one person fails to respond (or rejects).

For 9 or more, it will fail if less than 75% vote for or if more than 10% vote against.

Why did you make an application without confirming overwhelming support?

[HazeltonLane]

It's an application under Section 35. Sorry, should have stated that in the OP.

[leaseholder64]

Sounds like they are treating it as section 37. I suppose they could be keeping options open as to whether or not there is a serious defect in the lease.

I'm not sure why a defective lease would be a "minor" issue.

[eagle2]

To answer your question, if someone does not comply with a direction,"the Tribunal may take such action as the Tribunal considers just". Here the Tribunal is giving leaseholders the opportunity to respond, if they do not respond, they are effectively allowing the Tribunal to decide on their behalf. The Tribunal would probably assume that anyone with an objection would take the trouble to respond and then it would probably consider whether or not the proposals are in the best interests of all parties.

[Macromia]

I agree with 'eagle2', the tribunal may proceed on the assumption that anyone with an objection should have responded.

I think that it does depend what the proposed variation is though, and how it will affect all parties. If the variation is unfavourable to parties who don't respond, the tribunal may decide that agreement in accordance with section 37 is required.

[HazeltonLane]

Thanks all. I know the tribunal won't decide on the S37 route as the leases fail to make satisfactory provision for computation of the service charge.

The variation we've proposed treats all parties the same (i.e. we've requested a proportionate increase in service charges for every lease, which equates to a fractionally higher percentage for everyone—hence my comment about the minor variation).