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The Law Commission


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

INTRODUCTION

                   F.7                As already noted, the jurisdiction exercised by LVTs has been accumulated in stages since the 1977 Act. After the coming into force of the 2002 Act LVTs will exercise jurisdiction under five enactments; the 1967 Act (as conferred by the 1980 Act); the 1985 Act; the 1987 Act; the 1993 Act; and the 2002 Act. The broad categories in which LVTs exercise jurisdiction are: enfranchisement; lease renewal/extension; tenant’s right to first refusal; service, estate and administration charges; appointment of managers; estate management schemes; and forfeiture breaches. The extent of power exercised by LVTs has increased over time. For instance, under the 1967 Act it is confined to considering matters incidental to enfranchisement whereas under the 1993 Act LVTs can determine a wider range of matters related to collective enfranchisement. In total there are 57 distinct areas of jurisdiction exercised by LVTs. The table below summarises the position.

 

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.

THE 1967 ACT

Introduction

                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.

Determination of Sum Payable for Freehold

                F.9                A tenant of a house held under certain long tenancies has a right to purchase the freehold from the landlord. Under section 9 of the 1967 Act the price to be paid by the tenant to the landlord of such houses is the price that would be obtained if a willing seller sold the freehold interest in the open market. Under section 21(1)(a), if the parties cannot agree an application can be made to the relevant LVT to determine the price.

Determination of Rent Payable for Extended Lease

                F.10                A tenant of a house held under certain long tenancies is entitled to a term extension of 50 years of the lease. Section 15(2) of the 1967 Act states the conditions for ascertaining the rent to be paid under an extended lease. Under section 21(1)(b) if the parties cannot agree on the rent to be paid an application can be made to the relevant LVT to determine the matter.

Determination of Costs Payable for Freehold Acquisition/Lease Extension

                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.

Determination of Tenant’s Compensation for Disentitlement

                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.

Determination of Sum Lodged in Court for Freehold Acquisition

                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).

Determination of Landlord’s Compensation for Ineffective Claim

                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.

Provisions of a Conveyance/Lease

                F.15                Where a tenant acquires a lease under section 8 or is granted a lease extension under section 14, certain conditions have to be contained in the conveyance or lease executed thereunder. Section 10 lists various rights to be conveyed to the tenant on enfranchisement, section 14 makes provision in relation to terms of lease extensions and section 29(1) contains special provisions for where the landlord is a local authority. Under section 21(2)(a) where the parties agree, or where an application is made under section 21(1), the LVTs have jurisdiction to determine what provisions ought to be contained in a conveyance or lease in accordance with sections 10, 14 and 29(1). 

Apportionment of House and Premises and Other Property

                F.16                Tenants who qualify for enfranchisement or a lease extension under the 1967 Act are only entitled to the freehold title or lease extension in respect of a residential house and premises, as defined by section 2. Where a lease contains a mix of house and premises and other property, only the former portion can benefit from the 1967 Act. Under section 21(2)(b), where the parties agree or where an application is made under section 21(1), LVTs have jurisdiction to apportion the rent payable under any tenancy between the house, premises and other property.

Determination of Sub–tenant’s Compensation

                F.17                As discussed in paragraph F.6 above, a landlord who exercises his rights under sections 17 and 18 can disentitle a tenant who would otherwise be entitled to acquire a freehold or have a lease extended. When this right is exercised the tenant is entitled to compensation. Under paragraph 6(2) of Schedule 2 certain sub–tenants are entitled to share in the compensation awarded to the tenant. Under section 21(2)(c), where the parties agree or where an application is made under section 21(1), the LVT has jurisdiction to determine the amount of the sub–tenant’s share of the compensation.

THE 1985 ACT

Introduction

                F.18                The 1985 Act, insofar as it is relevant to the jurisdiction exercised by LVTs, is concerned with the payment of service charges by a tenant to his landlord. The most significant jurisdiction granted to LVTs by the 1985 Act is the jurisdiction under section 27A to determine the liability and prospective liability of tenants to pay service charges. Again the jurisdiction exercised by LVTs under the 1985 Act has been considerably reformed by the 2002 Act. There are a total of eight areas where LVTs have jurisdiction under the 1985 Act, outlined below.

Reasonableness of Costs Behind a Service Charge

                F.19                A tenant or landlord may apply to an LVT for a determination as to whether costs that are alleged to be payable, or may be payable, for: services; repairs; maintenance; insurance; or management are reasonable. Or, whether services or works for which the costs were incurred meet a reasonable standard, or whether an amount payable before costs are incurred is reasonable. This jurisdiction comes from sections 19(2A) and 19(2B) of the 1985 Act.

Limit Landlord’s Power to Add Costs of Proceedings to Future Service Charge Bills

                F.20                Section 20C of the 1985 Act gives the Tribunal the power, on application by the tenant, to limit or prevent the landlord from including the costs of proceedings before a court, the LVT or the Lands Tribunal in the amount payable by the tenant as a service charge.

Determination of Liability to Pay Service Charges

                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.

Determination of Prospective Liability to Pay Service Charges

                F.22                An application may also be made to an LVT for a determination on whether, if costs were incurred (for example, for repairs or maintenance), a service charge would be payable. Under section 27A(3) LVTs have jurisdiction to determine such applications, and if they determine that services charges would be payable they may then determine: (a) by and to whom it would be payable; (b) the amount payable; (c) the date payable; and (d) the manner in which it would be payable.

Dispensation of Consultation Requirements

                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.

Order in Relation to Costs

                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.

Determination of Application to End Withholding of Service Charge

                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.

Determination of Challenge to Landlord’s Choice of Insurer

                F.26                The Schedule to the 1985 Act contains detailed provisions on the rights of tenants with respect to insurance. Where a tenancy agreement requires the tenant to insure the dwelling with an insurer nominated or approved by the landlord the tenant or landlord may apply to an LVT or County Court for a determination on whether the insurance or premiums are unsatisfactory for the dwelling in question. Under paragraph 8 of the Schedule an LVT or County Court has jurisdiction to make an order requiring the landlord to nominate or approve another insurer.

THE 1987 ACT

Introduction

                F.27                The 1987 Act, insofar as it is relevant to jurisdiction exercised by LVTs, deals with a number of distinct issues of landlord and tenant law. It confers the right on qualifying tenants to first refusal on the disposal by the landlord of any estate or interest in premises occupied by them (including common areas); it enables tenants to force the appointment of a manager over a shared premises; it enables qualifying tenants to compulsorily acquire their flats; and it allows parties to a lease to obtain an order varying the lease. There are a total of thirteen areas where LVTs exercise jurisdiction under the 1987 Act.

Determination of Non–Monetary Consideration

                F.28                A landlord is obliged under section 5 to serve notice on tenants when he proposes to make a relevant disposal. There are special notice provisions contained in section 5E in relation to a proposed disposal for wholly or substantially non–monetary consideration. Qualifying tenants can elect to apply the provisions of section 8C(3) whenever a non–monetary disposal is proposed. If such an election is made a calculation has to be made of the money value of the non–monetary consideration. Under section 8C(4) a landlord or nominated person (tenants’ representative) can apply to an LVT to have the amount determined. Section 13(1)(b) specifically confers jurisdiction on LVTs for this purpose.

Determination of Terms of Purchase Notice

                F.29                Sections 12A, 12B and 12C allow qualifying tenants to take benefit of a disposal of an estate or interest to which they would have been entitled had the landlord informed them of their rights. In each case a notice has to be served by the tenants on the landlord or purchaser as the case may be. The terms of this notice must specify the subject matter of the disposal and the terms on which the disposal is to be made. The tenants have the option to state in the notice that the subject matter of the disposal and the terms are a matter to be determined by the LVT (see sections 12A(5), 12B(4) and 12C(6)). Section 13(1)(a) and (b) specifically confer jurisdiction on LVTs to hear and determine these matters.

Order to Appoint Manager

                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.

Discharge of Order

                F.31                Section 24(9) grants jurisdiction to the LVT to vary or discharge an order made by it under section 24(1) on application by an interested person. Where appropriate an order to vary or discharge may direct that an entry registered under the Land Charges Act 1972, or the Land Registration Act 2002 under a section 24(1) order, be cancelled.

Dispensation of Notice

                F.32                Before an application for an order under section 24 can be made a notice must be served by the tenant, pursuant to section 22, on the landlord or any other person who owes obligations to the tenant relating to the management of the premises. Section 22(3) grants jurisdiction to LVTs to dispense with the notice requirement in cases where it is satisfied that it would not be reasonably practicable to serve the notice.

Determination of Terms of Acquisition Order

                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.

Order for Variation of Lease

                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.

Order for Variation of Other Leases

                F.35                Where an application is made under section 35 the other party to the lease (the “respondent”) can apply under section 36(1) for an order to make corresponding variations to such other leases as are specified in the application. Section 36(3) states the grounds on which such an application can be made. Section 38(2) grants jurisdiction to LVTs to make an order varying the other lease(s).

Order for Variation of Leases by Majority of Parties

                F.36                Section 37 provides for the making of an application to an LVT to vary leases, which have a common landlord, where the object to be achieved can only be achieved by varying all leases that are held under the common landlord. Section 37(5) contains details on the percentage of parties that need to be in agreement to make such an application. Section 38(3) grants jurisdiction to LVTs to make an order varying all leases subject to a section 37 application.

Order for Endorsement of Documents

            F.37                Section 38(9) and section 39(5)(b) grant jurisdiction to LVTs to endorse such documents as specified by it with the memorandum of any variation of a lease, or cancellation or modification of a variation, effected by an order.

Order for Payment of Compensation

            F.38                Section 38(10) grants jurisdiction to LVTs to make an order requiring that a party to the lease pay compensation to a person who is likely to suffer a disadvantage because of the variation to the lease.

Order for Cancellation or Modification of Variation

            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]

Order for Variation of Insurance Provisions in a Lease

            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.

THE 1993 ACT

Introduction

            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.

Determination of Terms of Acquisition – General

            F.42                In default of agreement between the parties section 91(2)(a) grants a general jurisdiction to LVTs to determine the terms of acquisition (including any matter that needs to be determined for the purpose of Schedule 6 or 13) in relation to a collective enfranchisement, pursuant to Chapter I or an individual lease pursuant to Chapter II.

Determination of Terms of Acquisition – Specific

            F.43                Sections 21, 22 and 23 contain provisions on the issue of counter–notices by the reversioner of a long lease where the RTCE Company exercises its right of collective enfranchisement. If after a period of two months from the issue of the counter–notice any term of the acquisition is in dispute the reversioner or RTCE Company can apply to an LVT to have the matters in dispute determined. Section 24 grants jurisdiction to LVTs to determine such disputes.

Determination of Terms of Vesting Order

            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.

Determination of Terms of Acquisition (New Lease)

            F.45                Chapter II of the 1993 Act gives an individual right to a qualifying tenant of a flat to acquire a new lease. To exercise that right the tenant must serve a notice on the landlord or third party to the lease pursuant to section 42. Sections 45, 46 and 47 make provision for the making of counter–notices by the landlord. Where, two months after the serving of counter–notices by the landlord under sections 45(2)(a), 46(4) or 47(4) any terms of acquisition of the new lease remain in dispute, a leasehold valuation has jurisdiction on application of either tenant or landlord under section 48(1) to determine the matters in dispute.

Determination of Terms of Vesting Order (New Leases)

            F.46                Where a landlord cannot be found or ascertained a tenant of a flat who has a right to a new lease can apply pursuant to section 50(1) for a vesting order of the new lease. Section 51 grants jurisdiction to LVTs to determine the terms on which the new lease can be vested, the form of the lease to be executed, and the sum to be lodged in court.

Approval of Estate Management Scheme

            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]

 Approval of Joint Estate Management Scheme (1)

            F.48                Where two landlords of neighbouring areas jointly apply for approval of an estate management scheme as scheme in respect of a single unit LVTs have jurisdiction pursuant to section 71(1) to approve such schemes.

Approval of Joint Estate Management Scheme (2)

            F.49                A “representative body” of person’s interests of property in an area, landlords, or both jointly, may apply for approval of an estate management scheme in respect of the area in question. Section 71(3) grants jurisdiction to LVTs to approve any such schemes.

Late Approval of Schemes 

            F.50                Under section 73 certain public authorities can apply to an LVT for the late approval of an estate management scheme in respect of a conservation area after the expiry of two year period mentioned in section 70, if the scheme would have been approved under section 70. Section 73(1) grants jurisdiction to LVTs to hear such applications.

Variation of Existing Schemes

            F.51                Section 19 of the 1967 Act provided for the establishment of estate management schemes in respect of areas enfranchised under that Act. Under section 19(6) a provision could be included in a scheme requiring the approval of the High Court of any termination or variation of a scheme. Section 75(1) of the 1993 Act substitutes the reference to the High Court in section 19(6) with “leasehold valuation tribunal” and grants jurisdiction to LVTs to vary or terminate such schemes. Furthermore section 75(2) grants jurisdiction to LVTs to extend schemes approved under section 19.

Application in Relation to Crown Land

            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.

Application in Relation to Crown Land – 1967 Act

            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.

Determination of Terms of Lease to Former Freeholder

            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.

Determination of Payment – section 18(2)

            F.55                Section 18(1) places a duty on the RTCE Company to notify the reversioner of any agreement between the RTCE Company and others providing for the disposal of the relevant interest. Section 18(2) provides that where the RTCE Company fails to so notify the reversioner the RTCE Company and its members are liable to pay an amount to the reversioner. In default of agreement LVTs have jurisdiction under 91(2)(c) to determine the amount of any payment due under section 18(2).

Determination of Compensation – section 37A

            F.56                Section 37A entitles a landlord to compensation under certain circumstances where a claim for enfranchisement by an RTCE Company under the 1993 Act is not effective. In default of agreement between the parties LVTs have jurisdiction under section 91(2)(ca) to determine the compensation payable.

Determination of Compensation – section 61

            F.57                Section 61 grants the right to the landlord to resist the granting of a new tenancy to the tenant of a flat under section 56 on the grounds that he intends to redevelop the property in question. The landlord applies to the County Court for an order declaring his redevelopment rights. When such a right is being exercised, section 61(4) entitles the tenant of a flat to compensation, the amount of which is calculated by reference to Schedule 14. Paragraph 2 confers jurisdiction on LVTs to determine the amount of compensation payable.

Determination of Compensation – section 61A

            F.58                Section 61A entitles a landlord to compensation under certain circumstances where a claim for a new lease by a tenant is not effective. In default of agreement between the parties LVTs have jurisdiction under section 91(2)(cb) to determine the compensation payable.

Determination of Costs

            F.59                In default of agreement between the parties LVTs have jurisdiction under section 91(2)(d) to determine the amount of costs payable to any person or persons by virtue of any provision of Chapter I or II. Furthermore, LVTs have jurisdiction to determine liability of any persons for costs to which sections 33(1) and 60(1) apply.

Apportionment of Amounts

            F.60                In default of agreement between the parties LVTs have jurisdiction under section 91(2)(e) to apportion between two or more persons any amount (whether costs or otherwise) payable by virtue of any provision.

THE 2002 ACT

Introduction

            F.61                The 2002 Act makes provision for commonhold land and amends the law in relation to leasehold property. As noted in paragraph F.6 above, it has rationalised the bases of jurisdiction exercised by LVTs and made detailed amendments to jurisdiction conferred on LVTs by earlier enactment. It also confers a number of new grounds of jurisdiction on LVTs: determination of entitlement of the right to manage premises; certain matters in relation to estate management schemes; and the determination of forfeiture breaches. There are ten matters over which LVTs have jurisdiction under the 2002 Act.

Determination of Entitlement of Right to Manage

            F.62                Chapter 1 of Part 2 grants a right to certain tenants who form a Right to Manage (RTM) Company a right to manage their premises. In order to claim the right to manage, the RTM Company must serve a notice on the landlord (and other parties) in accordance with section 79. A party on whom such a notice is served may, under section 84, serve a counter–notice that either admits the RTM Company’s entitlement to acquire the right to manage or, for a specified reason, denies that the RTM Company is so entitled. If the person serving the counter–notice denies its entitlement, the RTM Company may apply, pursuant to section 84(3), to an LVT to determine the matter.

Order Where Landlord not Traceable

            F.63                Section 85 deals with the situation where an RTM Company wishes to assert its right to manage but the landlord cannot be ascertained or identified. In such circumstances an RTM Company may apply, pursuant to section 85(2), to an LVT for an order that it is to acquire the right to manage the premises.

Determination in Relation to Costs

            F.64                Section 88(4) holds that any question in relation to any costs payable by a RTM Company may be, in default of agreement, determined by an LVT.

Determination of Accrued Uncommitted Service Charges

            F.65                Section 94(1) holds that, where a RTM Company exercises its right to manage, the landlord (or other relevant party) must pay to the company any accrued uncommitted service charge. Section 94(2) provides a means of calculating the sum involved. The landlord or the RTM Company may apply, pursuant to section 94(3), to the relevant LVT for a determination on the amount of accrued uncommitted service charge payable.

Determination of Objection to Approval

            F.66                Section 98 vests certain functions in relation to the grant of approvals to a tenant under a long lease to the RTM Company, in place of the landlord. The RTM Company cannot exercise its power to grant approval without first serving notice on the landlord in accordance with section 98(4). If the landlord objects to the granting of approval, an LVT has jurisdiction pursuant to section 99(1) to determine the matter. The parties listed in section 99(5), that is the RTM Company, the tenant, the sub–tenant (if applicable) and the landlord may apply to the LVT under this section. 

Order for Variation of Estate Management Scheme

            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.

Determination of Matters Relating to Estate Charges

            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.

Determination of Forfeiture Breach

            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]

Order for Variation of Lease

            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.

Determination of Liability to Pay Administration Charges

            F.71                Under paragraph 5(1) of Schedule 11 an application can be made to an LVT for a determination on whether an administration charge is payable and if so, (a) by who 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. Paragraph 5(3) stipulates that the jurisdiction exercised by LVTs under paragraph 5(1) is in addition to jurisdiction exercised by County Courts in respect of these matters.

part iii
territorial jurisdiction

            F.72                Paragraph 1 of Schedule 10 provides that the Secretary of State shall from time to time draw up panels of persons to act as chairmen and other members of RACs for such area as the Secretary of State may from time to time determine. Paragraph 2 provides that each panel shall comprise of persons appointed by both the Lord Chancellor and the Secretary of State. The Schedule does not require the Secretary of State to designate the area of operation of RACs (and by implication LVTs) by statutory instrument or order. 

            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.

            F.75                The devolution of powers to the National Assembly for Wales has not affected the substantive jurisdiction of LVTs. All substantive jurisdiction exercised by LVTs is conferred directly by statute and therefore falls outside of the powers transferred to the Assembly. The Assembly does have power (jointly with the Lord Chancellor) to appoint RAC members, to determine the areas in which RAC panels operate and to make subordinate legislation when so empowered.

part iv
Relationship with County courts and further appeals

LVTs AND COUNTY COURTS

Introduction

            F.76                There are no principles of general application laid down in statute that regulate the jurisdictional relationship between LVTs and County Courts. In fact, the position varies depending on the enactment under which jurisdiction is being exercised. In assessing the relationship one must therefore review the position under each individual enactment. As a general matter of statutory construction, one can work on the assumption that LVTs only exercise jurisdiction where it is expressly conferred on them, and Part III, above, has listed all such grounds. Unlike the superior courts there is no basis for jurisdiction inhering in LVTs unless explicitly provided. Analytically there are three possible scenarios relevant to the relationship: (a) LVTs exercise exclusive jurisdiction; (b) LVTs and County Courts share jurisdiction; and (c) County Courts exercise exclusive jurisdiction. For the purpose of understanding the overlapping of jurisdiction between LVTs and County Courts only (a) and (b) need be considered in detail. Furthermore because Part III has listed all grounds of jurisdiction relevant to both categories (a) and (b), this section will focus on the jurisdiction that falls within category (b). It can be assumed that all other jurisdiction exercised by LVTs is exclusive and therefore falls into category (a).

The 1967 Act

            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.78                While there is no overlap in jurisdiction exercised by LVTs and County Courts under the 1967 Act, a matter that falls within the jurisdiction of LVTs may potentially arise in proceedings before the country court. Paragraph 3 of Schedule 12 to the 2002 Act makes provision for transferring proceedings that fall to be determined by LVTs when they are raised in proceedings before the County Court. In such a situation the court will transfer the relevant matter to the LVT and either dispose of the remaining matters or adjourn them pending the determination of the relevant question by the LVT. The procedure regulations made under Schedule 12 will provide more detail on the transfer of proceedings from County Courts to LVTs.

The 1985 Act

            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.

The 1987 Act

            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.81                However, the potential exists for jurisdiction to be shared by virtue of section 52(3). It provides that where a County Court hears a proceeding in exercise of the jurisdiction conferred on it, it may also assume jurisdiction to hear matters that are joined with those proceedings but which it would not otherwise have jurisdiction to hear. County courts may therefore in such circumstances exercise the jurisdiction conferred on LVTs that would otherwise be exclusive to LVTs.

The 1993 Act

            F.82                The jurisdiction of LVTs under the 1993 Act runs parallel to, but potentially overlaps, the jurisdiction of country courts. Under section 90(1) County Courts are granted the jurisdiction conferred on the “court” in Part I. The jurisdiction of the court and LVTs is clearly discernible in each provision, therefore there is no prima facie sharing of jurisdiction with LVTs. Section 90(2) also grants jurisdiction to the County Court to hear any proceedings arising by virtue of “any provision of Chapter I and II” which is not within its jurisdiction under section 90(1) or the jurisdiction of LVTs under section 91. Again this provision does not give rise to an overlap of jurisdiction with LVTs.

            F.83                However, the potential exists for jurisdiction to be shared by virtue of section 90(4). It provides that where a County Court hears proceedings in exercise of the jurisdiction conferred on it by section 90(1) or (2), it may also assume jurisdiction to hear matters that are joined with those proceedings but over which it would not otherwise have jurisdiction. County courts may therefore exercise the jurisdiction conferred on LVTs under the 1993 Act in such proceedings. Lastly whenever the High Court exercises jurisdiction conferred on it by the 1993 Act it may also assume, by virtue of section 90(4), the jurisdiction of County Courts under sections 90(1) and (2). This does not give rise to an overlap of jurisdiction between LVTs and the High Court.

The 2002 Act

            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.

FURTHER APPEALS

            F.85                The appeal route out of LVTs has been greatly simplified by section 175 of the 2002 Act. Section 175(1) simply states that a party to proceedings before an LVT may appeal to the Lands Tribunal from a decision of the LVT. All fifty–seven separate areas of jurisdiction identified in the jurisdiction table may therefore be appealed to the Lands Tribunal, pursuant to section 175(1) irrespective of the enactment under which they arise.

            F.86                An appeal can only be made to the Lands Tribunal with the permission of the LVT or the Lands Tribunal. Furthermore the Lands Tribunal has exclusive jurisdiction to hear appeals from decisions of LVTs. Sections 175(8) and (9) close off the option of making an appeal or stating a case to the High Court that is provided under section 11 of the Tribunals and Enquiries Act 1992.



[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.


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