Application costs

Most applications to the Leasehold Valuation Tribunal (LVT) are subject to payment of a fee, presently set at a maximum of £500. The fee is payable in two instalments: upon making the application and, where a hearing is to be held, prior to it taking place. There are arrangements for the fee to be waived or reduced in respect of certain applicants.

The application fee is based on a sliding scale dependent upon the circumstances, and is payable with the application. For applications relating to the challenge of costs, the initial fee is based on the amount in question; for other applications it is based on the number of dwellings to which the application relates. Where an application covers both cases, the application fee will be whichever is the greater.

Full details of the most up-to-date fees are set out in Leasehold Valuation Tribunal (Fees) (Wales) Regulations 2004.

For applications concerning service charges, premium of nominated insurer and administration charges, costs are as follows:

For applications concerning dispensation with consultation requirements, determination as to suitability of nominated insurer, appointment of managers and variation of leases, costs are as follows:

There is no fee payable in respect of the following provisions:

• applications to determine the terms or price in respect of enfranchisement (Leasehold Reform Act 1967 (houses) and Leasehold Reform, Housing and Urban Development Act 1993 (flats))
• applications to determine the terms or price in respect of lease extensions under the same legislation as for enfranchisement above
• application for an order for the limitation of service charges arising from the landlord’s costs of proceedings (S20(c) Landlord and Tenant Act 1985)
• application for an order to dispense with service of a Preliminary Notice prior to an action for the appointment of a manager (S22(3) Landlord and Tenant Act 1987)
• determination of liability to pay an estate management charge (S159(6) Commonhold Leasehold Reform Act 2002)
• variation of an estate management charge (S159(3) Commonhold and Leasehold Reform Act 2002)
• all applications arising from the right to manage (Ch 1, Pt2, Commonhold and Leasehold Reform Act 2002)
• applications for a determination that a breach of a covenant or condition in the lease has occurred

Where a court transfers proceedings to the LVT, the application fee will be the fee that would have been payable to the LVT (as above), less the total amount of any court fees paid by the applicant to date. Where the fee paid to the court is equal to or more than the fee payable to the LVT, no fee is payable.

Where the application fee is paid and the matter proceeds to a hearing, this will be subject to the payment of the hearing fee of £150 for all applications, within 14 days of the LVT’s request.

Where a determination by the LVT is made without the need for a full hearing, an application fee is payable in the normal manner as described above. However, there is no hearing fee payable.

No hearing will take place until all the fees have been paid.

An applicant is not liable to pay any fee where they, or their partner, are in receipt of:

• Income Support
• Housing Benefit
• Universal Credit
• Income-based Job Seekers Allowance
• a Working Tax Credit where the gross annual income used to calculate the tax credit is £14,213 or less
• a Working Tax Credit with a disability element or severe disability element (or both) or where the applicant or partner is also in receipt of child tax credit, and the gross annual income taken into account for the calculation of the Working Tax Credit is £14,213 or less
• a guarantee credit under the State Pensions Credit Act 2002
• a certificate issued under the Funding Code which has not been revoked or discharged and which is in respect of the proceedings before the tribunal the whole or part of which have been transferred from the county court for determination by a tribunal

Applicants are asked to state their grounds for waiver of the fee and these will be verified by the LVT on receipt of the application. Where more than one person is the applicant and at least one of them is liable to pay a fee, the fee shall be reduced rateably in accordance with the number of persons who would have been liable.

An application form for the waiver and reduction of fees is available from the LVT.

In certain circumstances, the LVT may order the reimbursement of all or part of the application and hearing fees paid. This is entirely at the discretion of the LVT. During the hearing, or after the hearing but before issue of the determination, an applicant may ask the LVT for an order requiring the reimbursement of their application and/or hearing fee by the other party.

It’s possible to make a joint application and split any costs among yourselves. For example leaseholders within a building could make a joint application to challenge the service charges and agree between them to split the costs.