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If you are a leaseholder and are having problems negotiating with your freeholder, a leasehold valuation tribunal (LVT) may be able to help. They can settle most financial disputes and may be able to sort out disagreements about the quality of services provided.

For more information about leasehold law generally, please see the section on leaseholders' rights.

How do leasehold valuation tribunals work?

A leasehold valuation tribunals is a panel of three members: a solicitor, a valuer and a non-specialist lay person. They are independent and impartial. They are a type of legal hearing but are less formal than going to court.

Problems can be taken to a leasehold valuation tribunal by either the leaseholder or the freeholder. Hearings do not always take place at the leasehold valuation tribunal's own offices. They are often held near your home, such as at the local council's offices and are usually open to the public.

If you are thinking of asking a leasehold valuation tribunal to settle a disagreement, you may want to go along to see a hearing first. Your regional leasehold valuation tribunal office will be able to tell you when and where a hearing involving a similar problem will take place.

What disputes can a leasehold valuation tribunal help with?

Your local leasehold valuation tribunal can help with most problems that cannot be resolved between leaseholders and the freeholder. This includes, for example:

• if your freeholder can’t be traced or refuses to reply to your letters
• if you cannot agree a price if you want to buy the freehold (enfranchise) or extend your lease
• if you want to exercise your ‘right of first refusal’ on sale of the freehold, or the compulsory acquisition of the freehold
• if you have a dispute about service charges or administration charges
• if you are not happy with the freeholder’s choice of insurer
• if you want the right to manage and appoint managers
• if either party wants to apply for the lease to be varied (changed)
• if the freeholder wants to change estate management schemes and/or estate charges.

You don’t have to go to a leasehold valuation tribunal. Many leasehold disputes can be resolved by alternative dispute resolution (ADR). But usually you can’t go to court about disputes that leasehold valuation tribunal can deal with.

Will I need help from a solicitor?

It depends on whether the issue you are disputing is very complicated. You won’t necessarily need help for simple disputes. But it is usually a good idea to get professional advice and representation if:

• your freeholder has professional advice
  
• the dispute is complicated
  
• the dispute involves a lot of money.

This may be expensive, and legal aid is not available, but it is sensible if you are arguing about thousands of pounds.

If you have a dispute that may affect many leaseholders of the same freeholder (ie a dispute about a service charge in a block of flats), you can probably get together to share the cost of advice and representation.

If you decide to run the case yourself, you can get more information from:

• the Residential Property Tribunal Service
• Leasehold Advisory Service (LEASE)
• a local advice centre - use our directory to find one in your area.

How could the leasehold valuation tribunal resolve the dispute?

In financial disputes, leasehold valuation tribunals can decide whether the amount you have to pay is 'reasonable'. This won't necessarily be the price you were hoping for but can often be less than the freeholder has asked for.

The leasehold valuation tribunal can't usually force the freeholder to refund any money you have already paid or order her/him to pay your legal costs. If you have problems like these you may need to go to court instead, so get professional advice.

If your building is being managed very badly, you can ask the leasehold valuation tribunal to appoint a manager. The freeholder would still own the property but would lose the right to manage it. S/he may also lose the right to collect ground rent.

If what your lease says about maintenance, repairs, insurance or service charges is unclear or unfair, the leasehold valuation tribunal may be able to change it.

How do I apply?

You can get application forms from the Residential Property Tribunal Service website or directly from your local leasehold valuation tribunal. Check to make sure that you don't have to do anything before making an application. For example, if you want to appoint a manager for the property, you normally have to give the freeholder a certain amount of written notice before applying. You can get advice from the Leasehold Advisory Service, or an advice centre in your area. Use our directory to find one.

What happens at the hearing?

You need to gather evidence before the hearing. The leasehold valuation tribunal will make its decision based on the information you and the freeholder provide. Both sides will have the chance to present your side of the story. The leasehold valuation tribunal will ask questions and you will have the opportunity to question the freeholder and any witnesses. You will probably have to wait up to six weeks after the hearing before a written decision comes through the post. Many leasehold valuation tribunals have waiting lists, so the whole process often takes up to a year.

Is the decision enforceable?

Most freeholders will follow the leasehold valuation tribunal's decision. If s/he refuses, the leasehold valuation tribunal doesn't have the power to force her/him to comply with the decision but the decision is still binding and you can apply for a court order to force her/him to do so. If you are in this situation, you will probably need help from a solicitor.

What if I don't agree with the decision?

If you think the leasehold valuation tribunal's decision is wrong, you may be able to appeal. This is normally only possible if the leasehold valuation tribunal acted unfairly or didn't follow the correct procedures. You can't appeal just because you don't agree with the decision.

How much will it cost?

Application fees vary from £300 to £500. If you win, the leasehold valuation tribunal may be able to order the freeholder to refund this. If you (or your partner) are on benefits, you may get a discount or may not have to pay any fees at all. If the problem affects more than one leaseholder, you can apply together and share the costs.

You may also have to pay a surveyor, property manager and/or a solicitor. You can't usually claim any of these costs back.

Some freeholders will try to include their legal costs in future service charges. Check your lease to see if it says whether they can do this. If the agreement does allow them to do this, or is unclear, ask the leasehold valuation tribunal to make an order preventing the freeholder from doing so.

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