Penthouse Row in Mayfair: Legal Battle Over Leaks, Noise and Ownership Drags into 8th Year

A long-running legal dispute involving a luxury penthouse on Park Lane has brought fresh scrutiny to the late Mohamed Al Fayed’s property empire, with court filings revealing complaints about leaking roofs, disruptive noise, and alleged bad faith by the companies managing the building.

Alan and Rosaleen Hodson, owners of a penthouse at 55 Park Lane – known as Hyde Park Residence – have spent eight years in litigation with Prestige Properties (PP), a firm controlled by the Al Fayed family. The legal row began over a lease agreement tied to a private lift installation but has since escalated into a broader conflict involving maintenance issues, blocked renovation plans, and claims of deliberate harassment.

Hyde Park Residence, neighbouring The Dorchester Hotel, has long been associated with wealth and exclusivity. Currently, apartments there list for up to £8.5 million. But the property, owned through a Liechtenstein-based company linked to the Al Fayed estate, is now at the centre of a public legal spat rarely seen among London’s elite.

Court documents seen by the BBC reveal that Mr Hodson – a property developer – purchased the top-floor apartment in 2004 and invested heavily in upgrades, including adding a lift for private access. However, he claims Prestige Properties failed to update his lease as agreed, denying him legal ownership of the new lift.

The freehold of the building belongs to the Grosvenor Estate, while Prestige Properties holds a lease allowing control of the building for over a century. Though retrospective permission for the works was granted in 2006 – for which PP paid Grosvenor £100,000 – Hodson was later asked to contribute £80,000 toward that fee.

Tensions escalated in 2014 when Hodson began complaining about the noise from two of the building’s lifts, which he said disrupted his sleep. In one instance, he claimed the lift was used 23 times between midnight and 2:00am. Though PP initially agreed to restrict the lift’s operation at night, the restriction was lifted in 2016 – allegedly in retaliation for a letter of complaint.

In 2017, the Hodsons filed a High Court claim against PP and two other Al Fayed-linked companies, alleging poor maintenance, a leaking roof, and damages from stalled renovation efforts. Mr Hodson says he had spent £180,000 developing plans to expand the flat but was later blocked, despite initial encouragement.

PP’s legal team has denied wrongdoing, stating that noise from the lifts remains within “acceptable levels” and that any water leaks were addressed in a timely manner. They argue that, as an experienced developer, Mr Hodson should have known an extension would require a substantial payment to the landlord. They are now counterclaiming for £344,000 in unpaid ground rent, plus £286,000 in interest and costs.

In a filing from March, Mr Hodson said the roof was still leaking, lift noise continued, and common areas remained unfinished following refurbishment.

The ongoing case offers a rare view into the inner workings of the Al Fayed family’s property interests following Mohamed Al Fayed’s death in 2023. Known for his combative business style and readiness to litigate, Al Fayed’s legacy appears to be living on through the intransigence of the companies now run by his estate and widow, Heini Wathen-Fayed, who remains a director at Hyde Park Residence Ltd.

None of the key parties – including the Hodsons, PP, or the Grosvenor Estate – responded to requests for comment.