The
Residential Property Tribunal
Service is
now the body
that deals with disputes over service
charges and the purchase of leasehold
property by tenants holding long
leases.
It can also appoint managers
of leasehold properties when the landlords'
managers are not acceptable. Leasehold
valuation tribunals started operating in
1997 whereas previously county courts
handled these disputes.
Service Charges
Disputes often arise over
service charges. The idea of service charges is to
ensure that the property and particularly the common
parts (roofs for example), which are not the responsibility
of any one tenant, are kept in good repair.
Whereas individual
tenants may neglect necessary repair work, to the
eventual detriment of all the tenants in the building, a
good responsible landlord/managing agent will ensure
that the property is properly maintained.
There are safeguards in
the legislation which are there to prevent
landlords/agents from improving the building at
the expense of the tenants by carrying out improvements
(as opposed to necessary maintenance and repairs)
and adding the cost to the service charges.
Sometimes it's difficult
to make repairs without actually improving as well. New
methods and materials such as double glazing mean that
any replacement window system will actually be an
improvement.
It will be necessary for
the tenants to employ a building surveyor to
determine for sure whether any change actually
constitutes an improvement in law.
Tenants have the power to
stop projects before they commence by applying to the county
court for a declaration which would confirm one way
or the other whether the work is likely to be a repair
or an improvement.
The legal test of reasonableness
ultimately applies in service charge disputes
regarding repairs: this test requires the landlord to
show that any costs were reasonably incurred and
furthermore, that the work was carried out to a reasonable
standard.
The Commonhold
and Leasehold Reform Act 2002 will change some of
the above by applying the test of reasonableness to
improvements.
Anyone who has a reasonableness
dispute can apply to a local Residential
Property Tribunal
Service (Tel: 020 7446 7700)
The Leasehold
Advisory Service (Tel: 020 7490 9580) can help in these
matters.
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Never rely totally on this information which relates primarily to England & Wales. Before taking action or not, seek expert advice with the full facts of your case and all documents to hand.
