Sweeper Clauses In The Context Of Safety Concerns

A recent judgment (11 July 2024) of the Upper Tier Tribunal has clarified when a landlord can rely on the 'sweeper clause' in a lease to recover the costs of works needed to the freehold.

Background

London Borough of Tower Hamlets ("the Local Authority") owns the Barleymow Estate in East London which consists of two blocks of flats, owned by long leaseholders (leases of at least 21 years). The blocks were originally constructed using a 'large panel system' ("LPS") whereby mass-produced concrete slabs were bolted together to form the walls and floors of the building. The Local Authority needed to remedy structural defects caused by the LPS. The costs of these works were estimated at £8,066,944.38. The Local Authority sought to recover the costs of these works from the leaseholders.