First-tier Tribunal: Resolving Leasehold Disputes
The First-tier Tribunal (Property Chamber) is the primary forum for resolving disputes between leaseholders, freeholders, and managing agents. This guide explains how it works and when it can help.
What Cases Does the First-tier Tribunal Handle?
The First-tier Tribunal deals with a wide range of residential leasehold disputes under various pieces of legislation, including the Landlord and Tenant Act 1985 and the Commonhold and Leasehold Reform Act 2002. Key types of application include:
Service charge disputes
Determining whether service charges have been reasonably incurred and whether work has been carried out to a reasonable standard under Section 27A.
Appointment of a manager
Where a managing agent is failing in their duties, leaseholders can apply for the tribunal to appoint a new manager under Section 24 of the Landlord and Tenant Act 1987.
Right to manage claims
Adjudicating disputes about whether a right to manage company has met the qualifying criteria under the Commonhold and Leasehold Reform Act 2002.
Lease variations
Varying lease terms where they are defective, including correcting service charge apportionment or updating outdated provisions.
Section 20 dispensation
Granting dispensation from the Section 20 consultation requirements where it would be reasonable to do so, for example in emergencies.
Administration charges
Determining the reasonableness of administration charges, such as consent fees, transfer fees, and late payment penalties.
How to Apply to the First-tier Tribunal
Applying to the tribunal is a structured process. Before making an application, it is advisable to attempt to resolve your dispute directly with your managing agent or freeholder, or through a redress scheme such as The Property Ombudsman.
Identify the correct application type
Choose the appropriate application form based on your dispute. Service charge challenges use a different form to right to manage claims.
Complete the application form
Provide details of the property, the parties involved, the nature of your dispute, and what you are asking the tribunal to determine.
Gather supporting evidence
Collect all relevant documents: service charge demands, accounts, correspondence, lease clauses, invoices, photographs, and any expert reports.
Pay the application fee
Fees range from one hundred to three hundred and fifty pounds depending on the application type. Fee remission may be available if you are on a low income.
Await directions
The tribunal issues directions setting out the timetable, what evidence each party must provide, and whether a hearing will be held.
Attend the hearing or await a paper decision
Straightforward cases may be decided on paper. Complex cases require an oral hearing, which is usually held locally.
Service Charge Disputes at the Tribunal
The most common type of application to the First-tier Tribunal is a service charge dispute. Leaseholders can challenge both past charges and estimated future charges, asking the tribunal to determine whether:
- The costs were reasonably incurred
- The work or services were carried out to a reasonable standard
- The amount payable is in accordance with the lease
- The service charge accounts comply with legal requirements
- The Section 20 consultation process was correctly followed for major works
A well-managed block with transparent service charge accounts and proper consultation processes is far less likely to face tribunal challenges. Professional block management helps protect both leaseholders and freeholders.
Frequently Asked Questions
What is the First-tier Tribunal (Property Chamber)?
The First-tier Tribunal (Property Chamber) is an independent judicial body that resolves disputes about residential leasehold property in England. It deals with applications about the reasonableness of service charges, the right to manage, lease extensions, the appointment of a manager, and other leasehold matters. The tribunal provides a less formal and less expensive alternative to court proceedings for leaseholders and freeholders.
Can leaseholders challenge service charges at the tribunal?
Yes, leaseholders can apply to the First-tier Tribunal to challenge the reasonableness of service charges under Section 27A of the Landlord and Tenant Act 1985. The tribunal can determine whether a service charge has been reasonably incurred and whether the work or services were carried out to a reasonable standard. This applies to both past charges and estimated future charges.
How much does it cost to apply to the First-tier Tribunal?
Application fees are relatively modest. A standard application to determine service charge reasonableness costs between one hundred and three hundred and fifty pounds, depending on the type of application. Unlike court proceedings, each party usually bears their own costs, so you are unlikely to be ordered to pay the other side's legal fees even if your application is unsuccessful. This makes the tribunal a lower-risk option for leaseholders.
How long does a First-tier Tribunal case take?
Timescales vary depending on complexity, but most cases take between three and six months from application to decision. Simple service charge disputes may be resolved on written evidence alone, without a hearing. More complex cases involving multiple issues or large sums may require an oral hearing. The tribunal aims to issue its written decision within six weeks of the hearing.
Do I need a solicitor for a First-tier Tribunal case?
No, you do not need a solicitor. The tribunal is designed to be accessible to unrepresented parties, and many leaseholders present their own cases successfully. However, for complex disputes or those involving significant sums, professional advice can be helpful. The Leasehold Advisory Service offers free initial guidance, and some solicitors specialise in leasehold tribunal work.
What can the First-tier Tribunal order?
The tribunal can determine that service charges are unreasonable and should be reduced, that a managing agent should be replaced by appointing a new manager, that a lease should be varied, or that a right to manage claim is valid. It can also grant dispensation from the Section 20 consultation process in certain circumstances. The tribunal cannot award compensation for distress or inconvenience; it deals with the specific legal issues before it.
Professional Block Management That Stands Up to Scrutiny
Transparent accounting, proper consultation, and responsive service reduce the risk of tribunal disputes. Talk to us about how professional management can benefit your block.