Find a Solicitor to help with Leasehold Valuation Tribunal

Previously resolved at a Leasehold Valuation Tribunal, property disputes between leaseholders and freeholders are resolved at a First-Tier Tribunal (FTT). It addresses concerns relating to service charges, rent increases, lease extensions, and buying the freehold. Freeholders may take leaseholders to a tribunal for failure to pay service charges. 

This is a comprehensive guide for leaseholders and freeholders involved in disputes resolved through the First-Tier Tribunal. The content will cover the purpose of the tribunal, the types of disputes it handles, the legal process for bringing a case, and what to expect during a tribunal hearing.

We’ve written this for:

• Leaseholders involved in disputes with freeholders
• Freeholders facing legal challenges from leaseholders
• Legal professionals advising clients on leasehold valuation disputes
• Property managers and landlords engaged in lease-related conflicts

The purpose of this guide is to inform leaseholders and freeholders about their rights and the property tribunal process, encouraging them to seek legal assistance to navigate disputes effectively.

Types of disputes heard by the leasehold valuation tribunal

The Leasehold Valuation Tribunal (LVT) was closed in England in 2013 with property matters since being heard in the First-tier Tribunal (Property Chamber) (FTT). The FTT is a statutory court that hears a range of residential landlord and tenant disputes including leasehold disputes.

Here are some of the most common types of disputes heard at the First-Tier Tribunal.

Service charge disputes

Tribunals can rule on the reasonableness of service charges and whether they should be reduced or refunded. A tribunal can decide whether the amount charged for services or repairs is reasonable. 

To decide if a service charge is reasonable, the tribunal must assess the following:

• Is the work or services necessary?
• Is the work sufficient to solve the issue the landlord is trying to fix?
• Is the work too extreme for the problem it is attempting to solve?
• Was the specification for the work adequate:
• Did it include all necessary work, or was additional work added to the spec?
• Were there genuine reasons that the spec expanded?
• Did the landlord follow the procedures for costing the work/services?
• Did they follow section 20 of the Landlord and Tenant Act 1985 consultation requirements
• Did the work/services stem from an existing contract?
• How did the landlord attempt to control the costs?
• Was the site supervision adequate?
• What controls were there for checking and paying invoices?
• What processes were in place to check the level of the work against what was stated in the spec?
• Was the standard of completed work appropriate and reasonable?

If a building is badly managed and repairs and maintenance are routinely not carried out, leaseholders can petition the tribunal to appoint a new managing agent. Leaseholders can apply to the tribunal by filling out an application form, providing information about the service charge costs, and include a copy of the lease.

You can’t apply as a leaseholder if the charge has already been agreed or admitted, or being referred to arbitration, or has been determined by a court or tribunal.

A First-Tier Tribunal can refer cases to mediation if all parties agree. The benefits of mediation are the cost savings associated with legal proceedings, the time saved that’s needed to bring a case to trial and reduced stress. 

Lease extension dispute

Tribunals can resolve disputes over the terms and costs of extending a lease.

You can apply to the tribunal if you and your landlord can’t agree on the cost of extending your lease after the landlord has served their Section 45 counter-notice in response to a leaseholder Section 42 Notice, requesting the extension of a lease.

You can apply as a leaseholder within 2-6 months of the date the counter-notice is served. The application fee is £100, and then a hearing fee of £200 applies. 

The decision of the FTT becomes binding after 28 days from the date the decision is made. Its decision is sent to both parties as soon as possible usually within 6 weeks. The parties involved in a tribunal include the applicant – the person who made the application, the respondent – the person responding to the claim, and the tribunal panel.

Enfranchisement and purchase price disputes

When it comes to collective enfranchisement, the tribunal will look at the conditions of your lease to settle any disputes between tenants and landlords. 

The FTT can evaluate the premium that is being negotiated for collective enfranchisement – the process of leaseholders clubbing together to purchase the freehold of their lease. 

It will consider evidence presented by both parties, their legal representatives and any witnesses and experts they bring. 

Legal process for bringing a case to the LVT

The FTT is an impartial and independent body with a remit of resolving lease extension disputes. It follows an informal process typically with a panel of three presiding over its rulings. The panel is made up of a legal expert, a surveyor and a layperson (non-expert). 

The panel’s decision is based on how important the matter is to the parties, the complexity of the matter the costs involved, and the financial capabilities of each party.

When bringing a case to the tribunal there is a process that should be followed to maximise your chances of getting the result you want and speeding up the process. 

Step 1: Preparing the case

You and your solicitor should review your lease terms to understand what your legal rights are under the lease.

Then gather evidence to support your claims. This will include evidence presented by expert valuers, which will help the tribunal make decisions in technical cases. 

A solicitor can also help you compile evidence such as:

• Bills and invoices
• Solicitor letters
• Communications: email, letters, text messages

The freeholder will also bring their expert witnesses and leasehold valuation dispute solicitors to the tribunal to present their case, supported by evidence. 

Step 2: Filing the application

Application forms for the Residential Property First-Tier Tribunal can be found at Gov.uk. There are a variety of different forms relating to specific issues such as leasehold enfranchisement issues, including:

• Form Leasehold 8: Apply to determine reasonable costs of the freeholder in enfranchisement of flats
• Form Leasehold 9: Flats and premises leasehold enfranchisement (missing landlord, lease terms and/or premium)
• Apply to determine disputed terms of acquisition in collective enfranchisement of flats and premises: Form Leasehold 10
• Apply to settle a lease renewal dispute for flats: Form Leasehold 11
• Apply to determine the price for enfranchisement of houses: Form Leasehold 12

If unsure about which form you need speak to a solicitor who can advise you on which form you will need for your matter and talk you through the finer points of completing it.

You will need supporting documents to back up your application, these may include:

• Tenancy agreements 
• Correspondence related to the dispute
• Copies of notices, e.g Section 42, Section 45
• Other relevant documents

Step 3: Tribunal hearing process

At the tribunal hearing, you can represent yourself or instruct a legal professional to represent you on your behalf. Whether you choose to represent yourself or not, it is still a good idea to seek advice on your case from an expert property solicitor.

The tribunal is independent of government and listens to both sides of the argument before making a decision. A tribunal is held somewhere local to both parties. 

Evidence is presented by experts such as surveyors, who can argue for a specific valuation for collective enfranchisement. 

The tribunal will ask questions of both sides and allow both sides to respond to any allegations. 

Hearings can last anywhere from a few hours, to a few days when the matter is particularly complex. 

Step 4: Appealing the decision 

Tribunal decisions can be appealed under certain circumstances. 

Appeals are normally granted when the FTT:

• Acted unfairly
• Ignored hearing protocol

You cannot appeal simply because you disagree with the decision. When it does make mistakes the FTT has the power to change its decision.

You will need to appeal to the Upper Tribunal (Lands Chamber). Permission to appeal must be given by the FTT. 

To request permission to appeal you will need to write to the FTT within 28 days of receiving written reasons for the decision. 

Risks and considerations

There are risks and costs involved in taking a matter to the FTT. You may have to pay the other side’s costs if your claim is unsuccessful. 

You will need to pay legal fees to have a solicitor represent you, filing fees for submitting your application and tribunal costs to bring your claim to a tribunal. 

Be prepared to invest a big chunk of time into bringing a case to tribunal. Cases can be highly complex taking months to resolve, especially when expert witnesses or detailed valuations are involved.

This process can be stressful and take an emotional toll. Additionally, it will remove the time you have available to maintain your responsibilities, so be sure that you have the time and energy to commit to the process before filing a claim.

Costs and fees Involved

You will have to bear the costs of filing an application with the FTT, there will be additional costs for attending the hearing too, including travel and accommodation for longer hearings.

The main legal fees involved include instructing a solicitor to prepare the case, review documents, and represent you during the hearing.

The cost for a licensed solicitor to help with FTT is dependent on many factors including the complexity and specific requirements of the case. On average it is expected to range from £150-£200, but in some cases, it could cost as much as £350.

FAQs

What are the costs of bringing a case to the LVT?

Typically, the application fee for bringing a case to FTT is £100. It can be waived for certain groups, such as those receiving benefits. The hearing fee is usually £200. Plus, £150-£200 for legal advice or representation, expenses for travel, lost work, evidence gathering, and administrative costs can see the total coming to around £500.

How long does the LVT process take?

A hearing can take anywhere from a few hours to a few days. However, you won’t get a decision immediately at the end of the case, you will typically have to wait at least several weeks before receiving a written decision from the tribunal in the post. Tribunal hearings often have a long backlog, so you may have to face a waiting list to have your case heard.

Why choose Lawhive for leasehold valuation tribunal cases?

Here are the top reasons to choose Lawhive for representation in leasehold FTT cases:

• Lawhive’s expertise – we have extensive experience in representing both leaseholders and freeholders in disputes before the FTT
• Combination of technology and legal expertise – Lawhive uses technology to efficiently manage tribunal cases, making the process more streamlined and cost-effective for clients
• Client-centric approach – we are committed to understanding your needs and providing tailored legal solutions to ensure the best outcome in tribunal cases

Leasehold valuation tribunal legal advice

Preparing thoroughly for an FTT hearing is essential to ensure your case is successful. Our qualified solicitors will help to navigate the process successfully.

Leaseholders and freeholders can seek expert legal assistance from Lawhive when facing disputes that may require tribunal resolution. Get a free legal assessment today.

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