How leasehold disputes reach the First-tier Tribunal

What the tribunal decides

The First-tier Tribunal (Property Chamber) in England decides many leasehold disputes, including:

• whether service charges or administration charges are payable and reasonable;
• dispensation from section 20 consultation;
• breaches of lease covenants (as a step before forfeiture);
• appointing a manager;
• varying leases that do not work;
• right to manage and enfranchisement disputes.

In Wales, the Residential Property Tribunal Wales hears these cases.

Try to resolve it first

Most disputes in self-managed blocks come from poor information. Share the accounts, explain decisions, and offer a meeting. A written complaints process helps. Mediation is often cheaper than a hearing.

Applying

Applications are made on the tribunal’s forms, with a fee. The tribunal gives directions, and many cases are decided on paper. Each side usually pays its own costs, though costs can be awarded for unreasonable conduct.

Litigation costs and the service charge

Leaseholders can ask the tribunal to stop the company adding its legal costs to the service charge (section 20C). In a leaseholder-owned company, remember that legal costs fall on the members in the end.