RECEIVERSHIPS OF LEASEHOLD FLATS — THE BEGINNING OR THE END

This summer the Court of Appeal will hear a case which could affect the right of lessees to appoint a surveyor of their choice to act as a receiver and manager of their leasehold flats in place of their landlord, so as to enable urgent repairs to be carried out to their flats and common parts. The case concerned is Evans v Clayhope Properties Ltd and the point to be decided is whether such a receiver appointed in those circumstances can recover from the landlord in advance of the trial his fees and expenses incurred in executing the repairs he was appointed to do. In a situation where the lessees have insufficient funds and the landlord is said to be the only party with the necessary finance to meet the receiver's costs, the High Court ruled late last year that it could not order the landlord to pay the receiver's fees and expenses, in advance of the trial. The residents have appealed and this paper examines the recent developments in the law which enabled receivers and managers to be appointed in respect of leasehold blocks of flats. The paper also looks at the work and duties of a receiver and finally asks the crucial question — does the system work?