An owner of a multi-million pound penthouse located on Park Lane in central London has been embroiled in an eight-year legal battle with companies belonging to the estate of the late Mohamed Al Fayed and his family, according to a BBC investigation.
The dispute originated from disagreements over a legal agreement related to the installation of a new lift more than two decades ago.
The matter has since escalated to encompass allegations of leaky roofs, substandard refurbishments, and claims that a noisy lift was “maliciously” operated during nighttime hours to disturb the penthouse owner’s sleep.
Legal representatives for both parties have declined to issue any statements regarding the ongoing case.
The dispute, which is unfolding at the exclusive Mayfair address and documented in High Court filings, provides insight into the business practices within Mohamed Al Fayed’s empire in the years preceding his death.
Throughout his life, Al Fayed was known for his assertive and litigious approach to resolving disagreements.
The luxury penthouse at the center of this legal conflict is owned by Alan and Rosaleen Hodson. Alan Hodson is a property developer whose company has constructed thousands of homes in southeastern England.
The penthouse is situated on the top floor of 55 Park Lane, known as “Hyde Park Residence,” a prominent apartment building located adjacent to the Dorchester Hotel.
The building’s website advertises “an atmosphere of warmth and calm with the best of London living.” Currently, a four-bedroom apartment within the building is listed for sale at £8.5 million.
In 2003, the Mail on Sunday described the address as offering “sensational” views of Hyde Park, complemented by a “marble entrance foyer [that] has to be seen to be believed.”
However, a recent visit to the building reveals a slightly different impression. Some observers might find it somewhat rundown for such a prestigious location, noting peeling paint and a missing sign above the entrance.
Hyde Park Residence has been under the ownership of the Al Fayed family since the 1980s, managed through Prestige Properties (PP), a company based in Liechtenstein.
Since Mohamed Al Fayed’s death in 2023, Prestige Properties has been “under the control and held for the benefit of” his estate and family, according to filings from a subsidiary company in the UK. Al Fayed’s widow, Heini Wathen-Fayed, serves as a director of this subsidiary, Hyde Park Residence Ltd, which manages some of the apartments.
Al Fayed’s son Dodi, who tragically died in a car crash with Princess Diana in 1997, reportedly resided in a flat within the building.
During his ownership of Harrods, Mohamed Al Fayed occasionally allowed managers and directors to reside in the block, as well as in the neighboring building at 60 Park Lane, which he also owned.
In 2024, the BBC reported allegations from 13 women who accused Al Fayed of sexual assault at 60 Park Lane. Four of the women alleged that they were raped.
According to court documents reviewed by the BBC, the initial issue arose shortly after Mr. Hodson purchased the penthouse in 2004.
Upon moving in, Mr. Hodson undertook extensive renovations to the apartment, which included modifying the kitchen, upgrading the roof terraces, and installing a new lift to avoid using a flight of stairs to access the property.
Mr. Hodson claims that Liechtenstein-based PP did not honor an agreement to grant him legal ownership of his new lift by updating his lease.
The ownership structure of Hyde Park Residence is complex, typical of many large buildings.
The Grosvenor Estate, which possesses extensive landholdings in central London, holds the freehold of the building. The Al Fayed family’s company, PP, has the right to utilize it for the next 110 years.
Although time-limited, this leasehold arrangement is considered a form of ownership.
Grosvenor should have been consulted before the commencement of these improvements; however, permission was not initially sought. In 2006, Grosvenor retrospectively granted permission in exchange for a payment of £100,000, which Prestige Properties paid.
In 2014, Mr. Hodson began experiencing disturbances due to noise emanating from two of the building’s lifts. He alleges that despite his complaints, the noise worsened, leading the building managers to agree to suspend the use of one of the problematic lifts at night in 2015.
The relationship between the two parties further deteriorated in 2016 when PP demanded that Mr. Hodson contribute £80,000 toward the payment made to the Grosvenor Estate several years prior.
In the following year, the Hodsons filed a case in the High Court against PP and two other Al Fayed-controlled companies, seeking resolution of various grievances and compensation for damages.
Among the issues raised, Mr. Hodson stated his desire to extend the flat by adding an additional floor. He claimed to have spent £180,000 developing a plan, but PP allegedly denied him permission to proceed, despite initially encouraging the project, according to his lawyers.
PP’s legal representatives argued that the company had not granted Mr. Hodson permission to extend his property. They contended that, as a property developer, he should have been aware that obtaining permission would require a substantial payment to PP, as the landlord.
Mr. Hodson asserted that, as a result of this dispute, PP permitted the use of a noisy lift, which disrupted his sleep. He viewed this as a “malicious and deliberate” response to a letter of complaint, noting that on one particular night, the lift was used 23 times between midnight and 02:00.
He also cited issues of substandard repair work, which he claimed resulted in a leaky roof and damage to his roof terraces.
The dispute remains unresolved. In March of this year, Mr. Hodson filed another court document stating, “The roof is still leaking. The lift is still making excessive noise… The corridors and lobby have never been finished following refurbishment.”
In response, lawyers for PP argue that the noise from the lift is within “acceptable levels” and deny that its use was restarted maliciously. They acknowledge the water leak but assert that their clients have taken all reasonable steps to rectify the issue.
PP is counterclaiming £344,000 in ground rent, in addition to £286,000 in interest and costs.
These sums are relatively small compared to Mohamed Al Fayed’s estimated wealth of £1.7 billion at the time of his death, making the protracted nature of the dispute all the more remarkable.
Al Fayed was known for his unwavering stance in disagreements, and this approach appears to persist even after his passing.
Alan Hodson, Heini Wathen-Fayed, PP, and the Grosvenor Estate have all declined to comment on the matter.
Detectives have written to alleged victims of the late Harrods boss and promised to answer questions about their ongoing investigation.
Survivors of alleged sexual abuse by the department store’s former boss could get up to £385,000.
The women worked as nannies or private air stewards for the late billionaire and former owner of Harrods.
The women all worked at Harrods – Ali Fayed, 82, denies the claims and says he “will not be scapegoated”.
The High Court hears details of a civil case being brought against Harrods by an alleged victim.