Budgens Stores Limited v Three Rivers Property Investments Limited

Facts

The appellant, Budgens Stores Limited, is the tenant of the ground floor premises at 41 High Road, Bushey Heath, under a lease dated 16 November 2012 for a term commencing on 22 October 2019 and expiring on 21 October 2027. The lease incorporates, save as modified, an earlier lease dated 11 October 2005 as varied. The respondent, Three Rivers Property Investments Limited, is the landlord. It claimed £70,796.44 in service charge arrears for works to the building, plus interest and costs. It alleged that it had complied with Schedules 4 and 5 by serving provisional charge notices (PCNs) on 11 May 2022, 27 July 2022 and 27 August 2022 and a final notice on 11 January 2024. In the alternative, it alleged that it had served both a PCN and a final notice on 14 June 2024, after the works were done. On preliminary issues of construction, the judge below, District Judge Chataway, held on 8 December 2025 that Schedule 5 was the only route to recovery, that a PCN was not a precondition to a final notice, and that a PCN could be served after completion of the works. He also held that the 2022 letters were not PCNs, a finding not challenged on appeal. Permission to appeal was granted by HHJ Andrew Davies. The tenant appealed on two grounds, and the landlord filed a respondent's notice challenging the finding that Schedule 5 was the only route.