What happens when the lift stops?

The law requires landlords to consult with tenants before incurring expenditure for works or entering into long term agreements for services.  Consultation is required if costs exceed prescribed limits. Landlords and management companies are often presented with a dilemma when urgent works arise but time does not allow for the consultation process to be followed.

In appropriate cases, landlords and management companies can apply to the LVT to dispense with all or any of the consultation requirements.

The Leasehold Valuation Tribunal (LVT) can decide about all aspects of the liability to pay a service charge.  A leaseholder will only be liable to pay a reasonable service charge. .  The LVT can decide whether service charge costs are reasonably incurred and whether the standard of any works for which costs are charged is reasonable.  Such applications can be made either before or after service charge costs have been incurred under Section 27(A) of the Landlord and Tenant Act 1985

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It is in leaseholders' long term interests that their buildings are properly managed.  Where emergency works are required, landlords need to follow the correct procedures so that landlords and leaseholders alike know where they stand.  Uncertainty helps no-one.

Dawsons' guide to the Landlord and Tenant Act 1985 

1.                  Landlords can apply to the LVT for dispensation with the requirements for consultation before commencing the works.

2.                   The LVT is unlikely to be sympathetic to applications made after the event where the application could and should have been made earlier.

3.                  The fact that costs were reasonably incurred and/or that the works were of a reasonable standard is unlikely to be sufficient ground to obtain a dispensation from the consultation requirements.

4.                  Retrospective dispensation for emergency work should be limited to such work as is necessary to deal with the emergency itself.  Any further work should only be done after consulting the leaseholders.

5.                  A retrospective application to dispense with the requirement to consult before entering a qualifying long term agreement is unlikely to be successful.

6.                  The LVT can dispense with statutory consultation requirements but cannot dispense with any consultation requirement which may be a requirement of the lease itself.  (A separate application for a declaration in the County Court is likely to be required in those circumstances).

7.                  The application should contain a summary of the details on which the LVT can make a determination.

8.                  The LVT is likely to be sympathetic in cases involving a genuine emergency. Once the LVT have made a favourable determination, this can avoid time consuming and costly challenges later.

9.                  Costs may be recoverable under the lease.  Leaseholders can ask the LVT to determine whether those costs can be charged, for instance where the freeholder should have known of the need to do the works but delayed in doing so.

10.              Generally, the parties pay their own costs in the LVT unless one party is found to have acted vexatiously. The maximum costs that the LVT can award is £500.

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