THE COMMONHOLD AND

LEASEHOLD REFORM BILL

FACT SHEET No 8 – LEASEHOLD VALUATION TRIBUNALS

 The Leasehold Valuation Tribunals currently deal with a wide range of disputes involving residential leasehold property. For example they deal with disputes over valuation for the purposes of enfranchisement and lease renewal (both for houses and flats), and the appointment of managers.  Furthermore, LVT's are able to make a determination on the reasonableness of service charges.  The Government is aware that there has been criticism of the workings of the Leasehold Valuation Tribunals and the Commonhold and Leasehold Reform Bill will introduces changes that will make the LVTs more effective and efficient.

 The Commonhold and Leasehold Reform Bill will: -

consolidate the law on the LVTs constitution and procedure;

 extend the LVT's jurisdiction to be able to make a determinations as to the liability of leaseholders to pay the service charge;

allow landlords to apply to the LVT, before carrying out specific works, for a determination that the cost of the specific works fall to be paid by way of service charges under the relevant leases.  This will enable landlords to have some reassurance that the works they propose to carry out will qualify as recoverable under the service charge provisions of the lease.  Such a determination of the LVT will be persuasive in future proceedings before the LVT or the court for the recovery of service charges in respect of the completed works.

allow the LVT to make determinations as to the liability to pay an administration charge;

grant the LVT's powers to enforce directions;

grant LVT's the power to award costs where, in the opinion of the Tribunal, a party has in bringing or conducting proceedings before the tribunal acted frivolously, vexatiously, abusively, disruptively or otherwise unreasonably;

provide that all appeals to the Lands Tribunal from the LVT be subject to permission of the LVT concerned or the Lands Tribunal;

provide that where both parties agree disputes can be dealt with by way of written representation.

In addition to the changes in the Bill the Government have already taken action to ensure LVTs provide better quality service for landlords and leaseholders.   This was seen in the recent review of the Rent Assessment Panels.  This highlighted and identified areas where the LVTs need to improve their performance in order to deliver a more effective service.  These are currently being implemented.  The changes involve: -

Speeding up the process by: 

simplifying the application forms and method for collection of fees;

setting service standards for the turnaround of cases;

adopting a more flexible approach to dispute resolution. Exploring the possibility of single member tribunals;

Raising standards and improving consistency by:

organising training on a Panel-wide basis;

producing comprehensive guidance manuals and tighter monitoring of members' performance;

Making the tribunals more accessible by:

providing the parties with more information and better guidance;

changing the fee structure so that reduced fees are payable in low value disputes.