I would like to add to an answer given by the Law Society practice advice service (see [2004] Gazette, 11 November, 38).


The Leasehold Valuation Tribunal (LVT) can determine costs payable by tenants and landlords in a variety of cases. These include costs payable by a tenant, but incurred by a landlord, where a tenant seeks a new lease or a group of tenants seek to enfranchise under the Leasehold Reform Housing & Urban Development Act 1993 (sections 33 and 60).


The LVT has a similar jurisdiction to determine costs payable under section 9(4) or 14(2) of the Leasehold Reform Act 1967.


More recently, the Commonhold and Leasehold Reform Act 2002 has given the LVT jurisdiction to determine the amount of 'administration charges'.


These could be costs associated with granting of approvals under a lease, costs of providing information to the tenant (for example, on sale of the leasehold), charges arising from a breach or alleged breach of covenants, or charges arising after the failure of a tenant to make a payment due under the lease.


If legal costs are included in service charges, tenants or landlords can seek a determination on liability (which includes reasonableness) under section 27A of the Landlord and Tenant Act 1985. Tenants may make an application to the LVT under section 20C of the Landlord and Tenant Act 1987 for an order preventing a landlord from recovering all/any costs incurred in connection with proceedings before an LVT.


Landlords can ask for a determination of the amount of costs payable following right to manage claims (section 88(4) CLRA 2002).


Given consent of the parties, LVTs can decide cost issues on 'paper track', that is, on the basis of written representations. Otherwise decisions are made at hearings that are less formal than in the courts.



Veronica Barran, vice-president, Residential Property Tribunal Service (London panel)