Decision details

The freeholders of Kings Mall/Ashcroft Square propose to carry out redevelopment which will involve replacing the podium deck cover which separates the retail units on the ground floor from the housing blocks on the upper level and is beyond further repair.

Reasons for urgency:

An urgent approval for the renewal to proceed is required to avoid further water ingress to the retail units on the lower level. As the Head Lessor Hammersmith and Fulham are liable to contribute 50% of any costs, as per the terms of the lease. The freeholders are planning to commence the works toward the end of July therefore approval of Hammersmith and Fulham’s contribution is urgently required.

That the Council enters into an agreement with Ingka covering the following matters:

1.    approval of the estimated cost provided by Ingka.  The final cost will be confirmed following competitive tendering

2.    payment by the Council of up to £1.3 million being the estimate of 50% of the podium cover costs (minus the contribution by the leaseholder) which is required to be paid under the terms of the lease between the Council and Ingka

3.    In the event of a dispute the Council will consent to any application made by the Landlord to the first Tier Tribunal (Property Chamber) in so far as is necessary to give effect to the agreement between the parties

4.    that the service charge liability payable by the Council’s leaseholders to the Council for the proposed works (estimated to be £200,000) will be borne by Ingka in consideration for the Council agreeing to dispense with  requirement for a consultation for the proposed words under  Section 20 of the Landlord and Tenant Act 1985.

Approving the estimated expenditure will allow the Council to fulfil its obligation for contributing to the cost of the podium deck cover renewal, as per the terms of the lease.

Approval of Ingka Group proposal to absorb the Council’s residential leaseholders contribution liability, will allow the Council to dispense with the requirement to carry out the statutory consultation process   under the service charge legislations (Section 20 Landlord and Tenant Act 1985).

As described in the report.