From the Leasehold Valuation Tribunal to the First-tier Tribunal

by | Jul 1, 2013 | Contract Administration and Major Works

For leaseholders questioning a service charge, and landlords or managing agents planning major works, the tribunal they dealt with changed on 1 July 2013. From that date, the work of Leasehold Valuation Tribunals in England passed to the new First-tier Tribunal (Property Chamber), under the Transfer of Tribunal Functions Order 2013. Other property tribunals, including rent assessment committees and agricultural land tribunals, moved into the same chamber.

What stayed the same

The legal tests were unchanged. The tribunal would still decide:

  • whether service charges are payable and reasonable;
  • whether works were carried out to a reasonable standard;
  • applications for dispensation from section 20 consultation;
  • many other leasehold matters.

New procedure rules applied, including wider powers to award costs where a party behaves unreasonably, so check the current forms and guidance before making an application.

Why evidence matters

Most service charge disputes turn on facts. Was the work needed? Was the specification sensible? Was the price fair? Was the work done properly? A tribunal will look for clear, contemporaneous records, not recollections assembled after the event.

For landlords and managing agents

  1. Plan ahead. A planned maintenance programme shows why works are being done now and how they fit the building’s needs.
  2. Document consultation. Keep copies of every section 20 notice, observation and response.
  3. Tender properly. A competitive tender with a clear analysis supports the reasonableness of the cost.
  4. Record quality. Site reports, photographs and a defects record show that work was done to a reasonable standard.

For leaseholders

  1. Ask for the supporting documents early.
  2. Identify specific items you dispute, with reasons.
  3. Consider an independent surveyor’s view on the need for the works, their scope and their cost.

The best outcome for everyone is a dispute that never reaches the tribunal, because the process was clear from the start.

Our Planned Preventative Maintenance and Major Works services are built around that kind of record. See how a planned maintenance programme for a Grade II listed London building set out a decade of spend.