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You are here: BAILII >> Databases >> The Law Commission >> LAND, VALUATION AND HOUSING TRIBUNALS (A Consultation Paper) [2002] EWLC 170(APPENDIX F) (12 December 2002) URL: http://www.bailii.org/ew/other/EWLC/2002/170(APPENDIX_F).html Cite as: [2002] EWLC 170(APPENDIX F) |
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appendix f
Leasehold valuation tribunals
part i
Legislative background
F.1 Leasehold Valuation Tribunals (LVTs) determine various matters and disputes that may arise between landlords and tenants in the private rented housing market. Except in relation to matters involving local authority or Crown interests in property, they are a “party and party tribunal”.[1] They are not an appellate body, rather, matters and disputes that they consider arise directly from the landlord and tenant relationship and not from a decision of an intermediary administrative body.
F.2 LVTs’ are designated under various enactments as a category of Rent Assessment Committee (RAC) for the purpose of carrying out functions provided under statute. Section 65 and Schedule 10 to the Rent Act 1977 (the “1977 Act”) grant power to the Secretary of State to establish RACs. In particular, paragraph 1 of Schedule 10 enables the Secretary of State to draw up from time to time panels of persons to act as chairmen and other members of RACs. At least one member of every Tribunal must be experienced in the valuation of land.[2] On foot of this power LVTs have been designated as the duly constituted RAC to determine certain matters arising under the following enactments: the Leasehold Reform Act 1967 (the “1967 Act”), as conferred by the Housing Act 1980 (the “1980 Act”); the Landlord and Tenant Act 1985 (the “1985 Act”); the Landlord and Tenant Act 1987 (the “1987 Act”); the Leasehold Reform, Housing and Urban Development Act 1993 (the “1993 Act”) and the Commonhold and Leasehold Reform Act 2002 (the “2002 Act”).[3]
F.3 LVTs are a category of what was known as a “Rent Assessment Panel”. “Rent Assessment Panel” was the collective term for LVTs, Rent Tribunals and RACs. [4] On a literal reading of the 1977 Act, however, there is no legislative basis for using this term. The generic term should be “Rent Assessment Committees”, and LVTs and Rent Tribunals should be termed categories or divisions of RACs. In addition there are a number of functions exercised by RACs qua RACs. It is important to note that this issue has recently been superseded. On 1 May 2002 the Department of Transport Local Government and the Regions issued a press release declaring that the “Rent Assessment Panels” will change their name to the “Residential Property Tribunal Service” with effect from 7 June 2002.[5] We shall employ the current collective noun, and call them “RPTS tribunals”.
F.4 The procedure of hearings held before LVTs at time of writing is governed by the Rent Assessment Committee (England and Wales) (Leasehold Valuation Tribunal) Regulations 1993 (as amended).[6] These regulations make detailed provision in relation to the submission of applications to LVTs. They are likely to be replaced by regulations made under the 2002 Act. Schedule 12 thereto permits the appropriate national authority[7] to make regulations on the procedure of LVTs. At time of writing no such regulations had been made.
F.5 LVTs have accumulated jurisdiction in a piecemeal fashion over the past twenty years. The matters that they consider are not easily referable to particular classes of dispute, but rather, are comprehensible only in the context of the particular enactment under which their jurisdiction is granted. Accordingly the approach in this paper will be to analyse LVTs’ jurisdiction as it is granted under the five principal statutes referred to in the paragraph F.2 above. Section 142 of the 1980 Act was the first legislative provision to confer jurisdiction on LVTs, and was therefore the first instance of the establishment of RACs known as LVTs.[8] Schedule 22 to the 1980 also provided for the membership and operational structure of LVTs in respect of the exercise of jurisdiction conferred on them by the 1980 Act. The jurisdiction of LVTs was extended by the enactments that followed. The 2002 Act has, however, reformed considerably the jurisdictional basis of LVTs.[9] Prior to its enactment each legislative provision that conferred jurisdiction on LVTs explicitly designated them as RACs constituted under Schedule 10 to the 1977 Act, and provided details on the procedure to be followed by LVTs when exercising the particular jurisdiction concerned.
F.6 All jurisdiction exercised by LVTs is now referable to the establishment provisions of the 2002 Act. Section 173 consolidates all jurisdiction conferred on LVTs by previous (or future) enactment.[10] Regulations made under Schedule 12 will replace all previous enactments on the membership and operational structure of LVTs. The paramount jurisdictional basis of LVTs is therefore section 173 of the 2002 Act and Schedule 10 to the 1977 Act. The upshot of the recent reform is that jurisdiction conferred by any enactment on LVTs is automatically exercisable by RACs constituted under Schedule 10 to the 1977 Act.
part ii
Substantive jurisdiction
Jurisdiction Table
Act |
Legislative Provision |
Matter |
Further Appeal |
County Court* |
1967 Act |
Section 21(1)(a) |
Sum Payable for Freehold |
Lands Tribunal |
A |
1967 Act |
Section 21(1)(b) |
Rent Payable for Extended Lease |
Lands Tribunal |
A |
1967 Act |
Section 21(1)(ba) |
Cost Payable for Freehold Acquisition/Lease Extension |
Lands Tribunal |
A |
1967 Act |
Section 21(1)(c) |
Tenant’s Compensation for Disentitlement |
Lands Tribunal |
A |
1967 Act |
Section 21(1)(cza) |
Sum Lodged Court for Freehold Acquisition |
Lands Tribunal |
A |
1967 Act |
Section 21(1)(c)a |
Landlord’s Compensation for Ineffective Claim |
Lands Tribunal |
A |
1967 Act |
Section 21(2)(a) |
Provisions of a Conveyance/ Lease |
Lands Tribunal |
A |
1967 Act |
Section 21(2)(b) |
Apportionment of House and Other Property |
Lands Tribunal |
A |
1967 Act |
Section 21(2)(c) |
Sub–tenant’s Compensation |
Lands Tribunal |
A |
1985 Act |
Sections 19(2A) and 19(2B) |
Reasonableness of Costs Behind a Service Charge |
Lands Tribunal |
C |
1985 Act |
Section 20C |
Limit Landlord’s Power to Add Costs of Proceedings to Future Service Charge Bills |
Lands Tribunal |
C |
1985 Act |
Section 27A(1) |
Liability to Pay Service Charges |
Lands Tribunal |
D |
1985 Act |
Section 27A(3) |
Prospective Liability to Pay Service Charges |
Lands Tribunal |
D |
1985 Act |
Section 20ZA |
Dispensation of Consultation Requirements |
Lands Tribunal |
A |
1985 Act |
Section 20C(2) |
Order for Costs |
Lands Tribunal |
A |
1985 Act |
Section 21A(4) |
End Withholding of Service Charge |
Lands Tribunal |
A |
1985 Act |
Paragraph 8 of the Schedule |
Landlord’s Choice of Insurer |
Lands Tribunal |
C |
1987 Act |
Section 13(1)(b) |
Determination of Non–Monetary Consideration |
Lands Tribunal |
B |
1987 Act |
Section 13(1)(a) and (b) |
Terms of Purchase Notice |
Lands Tribunal |
B |
1987 Act |
Section 24(1) |
Appointment of Manager |
Lands Tribunal |
B |
|
|
|
|
|
|
|
|
|
|
1987 Act |
Section 24(9) |
Discharge of Appointment of Manager |
Lands Tribunal |
B |
1987 Act |
Section 22(3) |
Dispensation of Notice |
Lands Tribunal |
B |
1987 Act |
Section 31 |
Terms of Acquisition Offer |
Lands Tribunal |
B |
1987 Act |
Section 38(1) |
Variation of Lease |
Lands Tribunal |
B |
1987 Act |
Section 38(2) |
Variation of Other Leases |
Lands Tribunal |
B |
1987 Act |
Section 38(3) |
Variation of Leases by Majority of Parties |
Lands Tribunal |
B |
1987 Act |
Sections 38(9) and 39(5)(b) |
Endorsement of Documents |
Lands Tribunal |
B |
1987 Act |
Section 38 (10) |
Payment of Compensation |
Lands Tribunal |
B |
1987 Act |
Section 39(4) |
Cancellation or Modification of Variation |
Lands Tribunal |
B |
1987 Act |
Section 40(1) |
Variation of Insurance Provisions |
Lands Tribunal |
B |
1993 Act |
Section 91(2)(a) |
Terms of Acquisition – General |
Lands Tribunal |
B |
1993 Act |
Section 24 |
Terms of Acquisition – Specific |
Lands Tribunal |
B |
1993 Act |
Section 27 |
Terms of Vesting Order |
Lands Tribunal |
B |
1993 Act |
Section 48(1) |
Terms of Acquisition – New Leases |
Lands Tribunal |
B |
1993 Act |
Section 51 |
Terms of Vesting Order – New Leases |
Lands Tribunal |
B |
1993 Act |
Section 70(1) |
Approval of Estate Management Schemes |
Lands Tribunal |
B |
1993 Act |
Section 71(1) |
Approval of Joint Estate Management Schemes (1) |
Lands Tribunal |
B |
1993 Act |
Section 71(3) |
Approval of Joint Estate Management Scheme (2) |
Lands Tribunal |
B |
1993 Act |
Section 73 |
Late Approval of Schemes |
Lands Tribunal |
B |
1993 Act |
Section 75(2) |
Variation of Existing Schemes |
Lands Tribunal |
B |
1993 Act |
Section 94(10) |
Application in Relation to Crown Land |
Lands Tribunal |
B |
1993 Act |
Section 88 |
Application in Relation to Crown Land (1967 Act) |
Lands Tribunal |
B |
1993 Act |
Section 91(2)(b) |
Terms of Lease of Former Freeholder |
Lands Tribunal |
B |
1993 Act |
Section 91(2)(c) |
Determination of Payment (section 18(2)) |
Lands Tribunal |
B |
1993 Act |
Section 91(2)(c)a |
Determination of Compensation (section 37A) |
Lands Tribunal |
B |
1993 Act |
Paragraph 2 of Schedule 14 |
Determination of Compensation (section 61) |
Lands Tribunal |
B |
1993 Act |
Section 91(2)(c)b |
Determination of Compensation (section 61A) |
Lands Tribunal |
B |
1993 Act |
Section 91(2)(d) |
Determination of Costs |
Lands Tribunal |
B |
1993 Act |
Section 91(2)(e) |
Apportionment of Amounts |
Lands Tribunal |
B |
2002 Act |
Section 84(3) |
Entitlement of Right to Manage |
Lands Tribunal |
A |
2002 Act |
Section 85(2) |
Order Where Landlord Not Traceable |
Lands Tribunal |
A |
2002 Act |
Section 88(4) |
Costs |
Lands Tribunal |
A |
|
|
|
|
|
2002 Act |
Section 94(3) |
Accrued Uncommitted Service Charges |
Lands Tribunal |
A |
2002 Act |
Section 99(1) |
Objection to Approval |
Lands Tribunal |
A |
2002 Act |
Section 159(3) |
Variation of Estate Management Scheme |
Lands Tribunal |
A |
2002 Act |
Section 159(6) |
Estate Charges |
Lands Tribunal |
D |
2002 Act |
Section 168(4) |
Determination of Forfeiture Breach |
Lands Tribunal |
A |
2002 Act |
Paragraph 3 of Schedule 11 |
Variation of Leases (Administration Charges) |
Lands Tribunal |
A |
2002 Act |
Paragraph 5(1) of Schedule 11 |
Liability to Pay Administration Charges |
Lands Tribunal |
D |
*Column 5 headed “County Court” summarises the jurisdictional relationship between LVTs and the County Court.
A = LVT exercises exclusive jurisdiction.
B = LVT exercises exclusive jurisdiction except where its jurisdiction is joined to proceedings heard by the County Court.
C = LVT and County Court share jurisdiction.
D = LVT exercises exclusive jurisdiction, when raised as a distinct cause of action though County Court may also consider these matters when debt proceedings are before it – see paragraphs 4.4 and 4.9.
F.8 The 1967 Act facilitates the acquisition by tenants of the freehold title of houses, and the extension by tenants of leases of houses that they rent under certain long tenancies. LVTs have jurisdiction to determine nine separate matters under the 1967 Act.[11] The six areas of jurisdiction listed in section 21(1) are exercisable only in default of agreement by the parties (that is, the landlord and tenant), whereas the three areas of jurisdiction listed in section 21(2) may be exercised either by agreement between the parties or, where an application is made under section 21(1), with reference to the same transaction that is the subject of a determination by the LVT thereunder. Below are the matters that may be determined by LVTs under the 1967 Act.
F.11 Where a person applies for an acquisition of a freehold or an extension of a lease he is liable to pay certain costs that result from such an application. Sections 9(4) and 14(2) of the 1967 Act respectively list the costs that a person is liable to meet. Under section 21(1)(ba)[12] if the parties cannot agree on the costs for which the person applying for the freehold or lease extension is liable an application can be made to the relevant LVT to determine the matter.
F.12 Under certain circumstances a landlord can defeat the right of a tenant to acquire the freehold title or to be granted a lease extension under s 14. If a lease extension has been granted under s 14 and there is at least 12 months left on the original lease, a landlord can apply to court[13] pursuant to section 17 to resume possession of the house and premises for the purpose of redevelopment (for instance, demolition or reconstruction). If a person is entitled to acquire the freehold or to be granted a lease extension under section 14 (but has not yet acquired or been granted it), the landlord may apply to court, pursuant to section 18, to resume possession of the house and premises for the purpose of occupation of the house and premises as a main residence, by him or an adult family member. A person who is disentitled by virtue of sections 17 and 18 can claim under section 17(3) and 18(4) respectively for compensation that is calculated in accordance with the provisions of Schedule 2 to the 1967 Act. Under section 21(1)(c), if the parties cannot agree on the compensation payable an application can be made to the relevant LVT to determine the matter.
F.13 Where a person has a right to acquire a freehold, but is prevented from so doing because the landlord cannot be found or his identity cannot be ascertained, the tenant can apply to court[14] under section 27 to have the freehold vested in him. Under section 27(3) the court can require the tenant to pay into court a sum as a condition of the property vesting in him and under section 27(5) LVTs are authorised to determine that sum in accordance with Schedule 9. Section 21(1)(cza)[15] expressly acknowledges the jurisdiction of the LVT to determine the amount payable under section 27(5).
F.14 If a tenant applies to acquire a freehold or a lease extension and the claim is not effective[16] and the landlord suffers certain adverse consequences the landlord is entitled to be compensated by virtue of section 27A(2). The amount of compensation is calculated in accordance with section 27A(4). Under section 21(1)(ca) if the parties cannot agree on the compensation payable an application may be made to the relevant LVT to determine the matter.
F.21 Under section 27A(1)[17] LVTs have jurisdiction to determine whether service charges are payable. If it decides that services charges are payable it has jurisdiction to determine; (a) by and to whom it is payable; (b) the amount payable; (c) the date payable; and (d) the manner in which it is payable.
F.23 The Secretary of State may prescribe by regulation consultation requirements to be adhered to by landlords and tenants where there is a proposed limitation of service charges under section 20.[18] Under section 20ZA[19] an LVT has jurisdiction, on application, to dispense with the consultation requirements. Only when regulations are made under these sections will the details of the LVT’s jurisdiction be clear.
F.24 A tenant can make an application to an LVT for an order that costs incurred or to be incurred in relation to proceedings before an LVT shall not be regarded as relevant costs when determining the amount of service charge payable by the tenant. LVTs have jurisdiction under section 20C(2)[20] to make such orders.
F.25 Under section 21A(1)[21] a tenant is entitled to withhold payment of service charges owed to his landlord if the landlord does not supply him a document that conforms with the requirements of section 21. However, it is possible for a landlord to apply to an LVT to prevent the tenant withholding the service charge owing. Under section 21A(4) LVTs have jurisdiction to determine whether the landlord had “a reasonable excuse” for failing to supply to the document and can make an order that ends the tenant’s right to withhold payment.
F.30 Part II of the 1987 Act deals with the appointment by an LVT of a manager to a property that is comprised of two or more flats.[22] A tenant can apply, pursuant to section 21 to an LVT for a manager to be appointed to the premises in which his flat is contained. Section 24(1) grants jurisdiction to the LVT to appoint a manager to premises on foot of an application by a tenant. Sections 24(2)–(7) list the conditions under which a section 24(1) order may be made.
F.33 Part III of the 1987 Act deals with the compulsory acquisition by qualifying tenants of flats contained in premises to which the Part applies. It permits the making of an application by a tenant to the County Court[23] for an “acquisition order”. When granted the acquisition order contains details of the terms on which the applicant tenant may acquire the flat. Section 31 grants jurisdiction to LVTs to determine the terms on which the landlord’s interest in the premises specified in the acquisition order may be acquired by the tenant to the extent that those terms have not been determined by agreement.
F.34 Part IV of the 1987 Act is concerned with the variation of long leases of flats. Any party to a long lease of a flat can apply to an LVT[24] pursuant to section 35 for a variation of the lease. Section 35(2) details the grounds on which such an application may be made. Section 38(1) grants jurisdiction to the LVT to make an order varying the lease.
F.39 Section 39 declares that any variation effected by an order of an LVT shall be binding on persons who are not party to the lease in question. To protect the interests of third parties, section 35(5) requires that persons affected by a proposed variation be given notice. If no such notice is given a person adversely affected can apply, pursuant to section 39(3) to the LVT for a modification or cancellation of the order under section 38. Section 39(4)(a) grants jurisdiction to LVTs to make an order to cancel or modify the original variation.[25]
F.40 Any party to a long lease of a dwelling[26] can apply, pursuant to section 40(1), to an LVT for an order varying the lease on the grounds that it fails to make satisfactory provision in respect of insurance of the dwelling. Section 38(1) (as amended by section 40(3) for the purpose of conferring jurisdiction on LVTs in relation to applications made pursuant to section 40(1)) grants jurisdiction to LVTs to make a variation of the lease.
F.41 The 1993 Act, insofar as it is relevant to the jurisdiction exercised by LVTs is concerned with the enfranchisement of Right to Collective Enfranchisement Companies (“RTCE Companies”); [27] the acquisition by qualifying tenants of flats of new leases; and the establishment of estate management schemes. There are a total of nineteen matters that fall within the jurisdiction of LVTs under the 1993 Act.
F.44 Where a landlord cannot be found or ascertained an RTCE Company that has a right of collective enfranchisement can apply to the County Court[28] under section 26(1) for a vesting order of the landlord’s interest. Section 27 grants jurisdiction to LVTs to determine the terms on which the landlord’s interest can be vested, the form of conveyance and the sum to be lodged in court.
F.47 Estate management schemes are schemes submitted by a landlord to secure his powers of management of a house or premises that is acquired by tenants either under Part I of the 1967 Act or Chapter I of Part I of the 1993 Act. Section 70(1) grants jurisdiction to LVTs, on application by a landlord, to consider an estate management scheme submitted by the landlord within two years from the coming into force of section 118 of the 1996 Act. LVTs can approve, modify with agreement or dismiss any such application. [29]
F.52 Generally the right of enfranchisement or entitlement to a new lease does not extend to land in which there is a Crown interest.[30] However, where there is an agreement between the appropriate authority,[31] the tenant or tenants and any other interested person, to have the question in relation to enfranchisement or acquisition of a new lease considered, section 94(10) grants jurisdiction to LVTs to determine the question.
F.53 Likewise the right of enfranchisement under the 1967 Act does not generally extend to land in which there is a Crown interest.[32] However, where there is agreement between the appropriate authority,[33] the tenant and all other interested persons to have the question in relation to enfranchisement considered, section 88 of the 1993 Act grants jurisdiction to LVTs to determine the question.
F.54 Section 36 and Schedule 9 provide that an RTCE Company that acquires a freehold interest shall under certain circumstances lease back the flats of other units contained in the premises enfranchised to the landlord. In default of agreement between the parties, LVTs have jurisdiction under section 91(2)(b)[34] to determine the terms of such leases.
F.67 Section 159 establishes a uniform dispute resolution procedure for estate management schemes under section 19 of the 1967 Act, Chapter 4 of Part 1 of the 1993 Act and section 94(6) of the 1993 Act (Crown leases) which also include provisions imposing obligations on occupiers or owners to pay estate charges. Any person who is liable to pay an estate charge under such a scheme may apply to an LVT pursuant to section 159(3) for an order varying the scheme on the ground that the amount of estate charge[35] payable, or the formula on which it is calculated, is unreasonable.
F.68 Under section 159(6) an application may be made to an LVT to determine whether an estate charge is payable by a person and if so, (a) the person by and to whom it is payable, (b) the amount payable, (c) the date it is payable and (d) the manner in which it is payable.[36] Section 159(8) stipulates that the jurisdiction exercised by LVTs under this section is in addition to jurisdiction exercised by County Courts in respect of these matters.
F.69 Under section 146 of the Law of Property Act 1925 a landlord under a long lease can serve a forfeiture notice after it has been established that the tenant breached a covenant or condition of the lease. A landlord can apply under section 168(4) of the 2002 Act to an LVT for a determination on whether the tenant breached a covenant or condition of the lease. If an LVT makes a positive determination the landlord can issue the forfeiture notice.[37]
F.70 Schedule 11 makes provision in relation to “administration charges”[38] that arise in connection with the lease by a tenant of a dwelling. Any party to a lease of a dwelling may apply, pursuant to paragraph 3, to an LVT for an order varying the lease on the ground that any administration specified in the lease, or the formula on which it is calculated, is unreasonable. LVTs may also make an order pursuant to paragraph 3 directing that a memorandum of any variation be endorsed on such documents as specified by it.
part iii
territorial jurisdiction
F.73 The website of the Office of the Deputy Prime Minister[39] states that there are currently five Rent Assessment Panels[40] (now termed RPTS tribunals) for England and one for Wales: the Eastern Rent Assessment Panel; the London Rent Assessment Panel; the Midlands Rent Assessment Panel; the Northern Rent Assessment Panel; the Southern Rent Assessment Panel; and the Wales Rent Assessment Panel. Under section 173(2) of the 2002 Act when an RAC constituted in accordance with Schedule 10 exercises a jurisdiction conferred on an LVT it is known as an LVT. Accordingly the London Rent Assessment Panel is known as the London Leasehold Valuation Tribunal when exercising the jurisdiction of an LVT. In conclusion, the territorial jurisdiction of LVTs is a matter determined by the Secretary of State from time to time and at present there are six area divisions for LVTs in England and Wales.
F.74 The 1977 Act and the 2002 Act only have effect in England and Wales.[41] LVTs constituted under section 173 of the 2002 Act and Schedule 10 to the1977 Act therefore do not have jurisdiction in either Scotland or Northern Ireland. Powers have been devolved to the National Assembly for Wales under the Government of Wales Act 1998 and the National Assembly for Wales (Transfer of Functions) Order 1999[42] (the “1999 Order”). Paragraph 2 and Schedule 1 to the 1999 Order have transferred the powers previously exercised by the Secretary of State under the 1967 Act, the 1977 Act, the 1985 Act, the 1987 Act and the 1993 Act to the National Assembly for Wales. However, paragraph 1(f) stipulates that Schedule 1 does not transfer any functions of the Lord Chancellor. The Lord Chancellor’s power to appoint RAC members under Schedule 10 to the 1977 Act therefore remains with the Lord Chancellor. The National Assembly for Wales also exercises the power conferred on it directly by the 2002 Act.
part iv
Relationship with County courts and further appeals
F.77 The jurisdiction of LVTs runs in tandem with, but does not overlap the jurisdiction of County Courts. Section 21 lists the jurisdiction exercised by LVTs and section 20 deals with the jurisdiction of country courts under the 1967 Act. Section 20(1) lays down the general proposition that jurisdiction conferred on the court shall be exercised by the County Court. Section 20(2) lists four specific matters over which County Courts have jurisdiction, all substantive matters of entitlement. The role of LVTs on the other hand is to assess sums that fall to be calculated or other incidental matters that arise by virtue of a legal entitlement. For instance, under section 20(2)(a) County Courts have jurisdiction to decide whether a tenant is entitled to acquire the freehold title, whereas the relevant LVT has jurisdiction to determine the sum payable for the freehold title.[43] In other words, whenever there is a dispute as to a legal entitlement under the 1967 Act, the County Court is the appropriate forum to have the matter resolved and whenever legal entitlement is not in doubt, but agreement on incidental matters is disputed the LVT is the appropriate forum.
F.79 The position under the 1985 Act regarding the jurisdictional relationship between LVTs and the County Court is uneven. Some jurisdiction is exclusive to LVTs and other jurisdiction potentially overlaps. The jurisdiction exercised by LVTs under section 20ZA, section 20C(2) and section 21A(4) is exclusive to LVTs, whereas the jurisdiction exercised by LVTs under paragraph 8 of the Schedule is shared with the County Court. Paragraph 8 of the Schedule provides that an application thereunder can be made to either a County Court or an LVT. The situation regarding the exercise of jurisdiction by LVTs under section 27A(1) and section 27A(3) is more complicated. Section 27A(7) states that the jurisdiction conferred on an LVT under that section is in addition to any jurisdiction of a court[44] in respect of the matter. This section simply states that LVTs’ jurisdiction is in addition to jurisdiction exercised by a court; it does not specifically confer jurisdiction on a court. Clearly it is possible for LVTs and County Courts to share jurisdiction in respect of matters arising under section 27A, however there is no guidance on when a matter thereunder would fall within the country court’s jurisdiction. The purpose of section 27A seems to be to make sure that County Courts (and small claims courts) can continue to exercise jurisdiction in relation to the collection of unpaid service charge as debts. When exercising such jurisdiction they may be required to consider the matters referred to in section 27A(1) and (3). Section 27A(7) ensures that they can continue to exercise that jurisdiction, though it does not confer jurisdiction on County Courts to exercise section 27A(1) and (3) jurisdiction as distinct causes of action.
F.80 The jurisdiction of LVTs under the 1987 Act runs parallel to, but potentially overlaps, the jurisdiction of country courts. Section 52 deals with the jurisdictional relationship between LVTs and County Courts. Under section 52(1) County Courts are granted jurisdiction to hear and determine any matter arising under Parts 1 and 3, section 42 and sections 46 to 48 that is not within the jurisdiction of LVTs by virtue of section 13(1) and 31(1). Sections 13(1) and 31(1) are the only provisions in Parts 1 and 3 that confer jurisdiction on LVTs; therefore there is no prima facie sharing of jurisdiction. There is no issue of shared jurisdiction in relation to section 42 and sections 46 to 48. In respect of jurisdiction exercised by LVTs under Part 2 (i.e. appointment of managers and receivers), section 21(6) states that a tenant cannot make an application to court when the option is available to him to apply under section 24 for the appointment of a manager. In the recent case Stylli v Hamberton Properties Inc[45]the High Court held that the effect of section 21(6) was to vest exclusive jurisdiction in LVTs to consider applications for the appointment of managers and receivers under section 24. It also held that the effect of the vesting of exclusive jurisdiction was to preclude applications for the appointment of a receiver by the High Court under section 37 of the Supreme Court Act 1981. The jurisdiction exercised by LVTs under Part 4 (sections 38, 39 and 40) is also exclusive to LVTs having been transferred to them from County Courts by virtue of section 181 of the 2002 Act. In straightforward cases the jurisdiction of LVTs and County Courts under the 1987 Act do not overlap.
F.84 Under the 2002 Act some jurisdiction is exclusive to LVTs and other jurisdiction may potentially be shared with County Courts. Exclusive jurisdiction is conferred on LVTs in respect of the jurisdiction exercised by it under sections 84(3), 85(2), 88(4), 94(3), 99(1), sections 159(3), 168(4) and paragraph 3 of Schedule 11. The position regarding jurisdiction that is exercised under 159(6) and paragraph 5(1) of Schedule 11 is not as clear–cut. Section 159(8) and paragraph 5(3) respectively provide that the jurisdiction conferred on LVTs in respect of matters arising under those two provisions is “in addition to any jurisdiction of a court in respect of the matter”. This section simply states that LVTs’ jurisdiction is in addition to jurisdiction exercised by a court; it does not confer jurisdiction on a court. Clearly it is possible for LVTs and County Courts[46] to share jurisdiction in respect of matters arising under these provisions, but there is no guidance on when a matter thereunder would fall within the country court’s jurisdiction. The purpose of section 159(8) and paragraph 5(3) seems to be to make sure that County Courts (and small claims courts) can exercise jurisdiction in relation to the collection of unpaid estate and administration charges as debts. When exercising such jurisdiction they may be required to consider the matters referred to in section 159(6) and paragraph 5(1). Section 159(8) and paragraph 5(3) ensure that they can exercise that jurisdiction, though they does not confer jurisdiction on County Courts to exercise section 159(6) and paragraph 5(1) as distinct causes of action.
[1] This is the term used in the report of the Leggatt Review of Tribunals to refer to tribunals that hear disputes between private citizens as opposed to citizen/state disputes.
[2] Housing Act 1980, Sched 2, para 1.
[3] The Housing Act 1996 (the “1996 Act”) also confers jurisdiction on LVTs. However it does so by the insertion of a provision into the previous enactment. No jurisdiction is directly referable to the 1996 Act.
[4] For example the “Rent Assessment Panels Corporate Plan 2002–3” published by the Residential Property Tribunal Service.
[5] Available at www.press.dtlr.gov.uk.
[6] SI 1993 No 2408. They were considerably amended by the Rent Assessment Committee (England and Wales) (Leasehold Valuation Tribunal) (Amendment) Regulations SI 1997 No 1854.
[7] “Appropriate nationality authority” is defined in s 179(1) as the Secretary of State in respect of England and the National Assembly for Wales in respect of Wales.
[8] Section 142 transferred the jurisdiction exercised by Lands Tribunals under ss 21(1)–(3) of the 1967 Act to LVTs. See Part II below.
[9] At time of writing the 2002 Act is not in force. Under s 181 the power rests with the Secretary of State, the National Assembly for Wales and the Lord Chancellor’s (as the case may be) to bring the provisions of the 2002 Act into force. This paper works on the basis that all parts of the 2002 Act are in force and that any repeal or amendment thereunder has taken effect.
[10] Section 173(1) states: “Any jurisdiction conferred on a leasehold valuation tribunal by or under any enactment is exercisable by a rent assessment committee in accordance with Sched 10 to the Rent Act 1977.” Section 173(2) states: “When so constituted for exercising any such jurisdiction a rent assessment committee is known as a leasehold valuation tribunal.”
[11] The jurisdiction exercised under the 1967 was formerly exercised by the Lands Tribunal, and was transferred to LVTs under the 1980 Act (see n 6 above). LVTs’ jurisdiction under the 1967 Act has been supplemented by the 1996 Act and the 2002 Act.
[12] Inserted into the 1967 Act by Sched 11 of the 1996 Act.
[13] Reference to jurisdiction exercised by the “court” in the 1967 Act is the County Court. See 1967 Act s 20.
[14] The relevant court is again the County Court (see n 11 above), however prior to the 2002 Act the relevant court was the High Court (changes made by the 2002 Act s 148(1)).
[15] Inserted into the 1967 Act by s 149(2) of the 2002 Act.
[16] As defined by s 27A(5).
[17] Section 155 of the 2002 Act. No such regulations are in force at time of writing.
[18] Reference to s 20 is the new s 20 as substituted by 2002 Act, s 151. As already noted the 2002 Act has not yet come into force nor have regulations been made under it. There are therefore no “consultation requirement” regulations in force at time of writing.
[19] 2002 Act, s 151.
[20] 1996 Act, s 83(4).
[21] Section 21A is substituted by 2002 Act, s 152.
[22] This Part has been extended to Crown leases by virtue of 2002 Act, s 172.
[23] 1987 Act, s 52.
[24] Only with the commencement of the 2002 Act will the jurisdiction to vary leases vest in LVTs. Until that time the County Court will exercise the jurisdiction.
[25] Section 39(4)(b) grants jurisdiction to make an order pursuant to section 38(10). See para F.37.
[26] “Dwelling” is defined in s 40(5) as any dwelling other than a flat.
[27] Section 1(1) defines an RTCE Company as a company, some members of which are qualifying tenants of a flat contained in premises.
[28] Section 90.
[29] Sections 70(7) and (9).
[30] “Crown interest” is defined in s 94(11).
[31] “Appropriate authority” is defined in s 94(11).
[32] “Crown interest” is defined in s 88(6).
[33] “Appropriate authority” is also defined in s 88(6).
[34] Schedule 9 contains detailed provisions in relation to mandatory leasebacks. Para 4(1) therein recognises the jurisdiction of LVTs to approve provisions in leasebacks that do not conform to the particulars of Part IV of the Schedule.
[35] “Estate Charge” is defined in s 159(1) as an obligation to make a payment pursuant to one of the aforementioned schemes.
[36] This mirrors the new jurisdiction exercisable by LVTs in relation to service charges that arise under the 1985 Act. See paras F.20 and F.21 above.
[37] The landlord may also issue the forfeiture notice if the tenant admits the breach or if a court or arbitral tribunal determines that a breach occurred: s 168(2)(b) and (c). An application cannot be made under s 168(4) if the matter is referred to or determined an arbitral tribunal or court: s 168(5).
[38] Para 1 lists the items that constitute an administration charge.
[39] http://www.housing.odpm.gov.uk/structure/rap.
[40] “Rent Assessment Panels” was the common term for RACs constituted under Sched 10 of the 1977 Act. See para F.3.
[41] 1977 Act, s 156(3) and 2002 Act, s 182.
[42] SI 1999 No 672.
[43] See para F.10, above.
[44] Reference to “court” is not defined.
[45] [2002] EWHC 394 (Ch).
[46] “Court” is not defined for the purpose of this section under the 2002 Act.