Leasehold: your rights
Leaseholders have the right to challenge service charges and the cost of works by taking their landlords to an LVT. Landlords who disagree with an LVT judgment on service charges cannot automatically appeal to the Lands Tribunal.
A flat-dweller with a share in the freehold of his block also enjoys these rights, since he or she is still bound by the terms of his or her lease.
A freehold houseowner whose property comes under an estate management scheme has no right to challenge service charges at an LVT. He or she has the right only to challenge the terms of the scheme.
The Commonhold and Leasehold Reform Bill, at present concluding its committee stage, will grant freehold houseowners under estate management schemes the same rights on service charges as leaseholders.
LVTs are "people's courts". Applying to an LVT costs a maximum of £500 and you do not need legal representation (although in practice most parties retain lawyers). An LVT does not have the power to award costs but if you are a leaseholder, it can prevent your landlord passing on his costs to you in higher service charges.
The Commonhold and Leasehold Reform Bill abolishes the automatic right of landlords or estates to appeal against an LVT decision at the Lands Tribunal (in the past, appeals have spun out the length and cost of an LVT challenge). Where there is an appeal, awarded costs will not exceed £500.
