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Types of Leasehold Valuation Tribunal application (Wales)

Estate charges under estate management schemes

In this guide

These rights are set out in Section 159 of the Commonhold and Leasehold Reform Act 2002.

Estate management schemes (EMS), approved under the Leasehold Reform Act 1967 or the Leasehold Reform, Housing and Urban Development Act 1993, create obligations on those living within the scheme area (including freeholders) to contribute towards the costs of furthering the objects of the scheme. These will usually be for works to amenity areas, gardens, roads and footpaths and will be generally directed towards the preservation of the particular architectural or historic significance of the area, and to ensure that the appearance and quality of the area as a whole is adequately maintained.

Charges levied under an EMS must be reasonable and a determination of the liability to pay and reasonableness of the charge may be sought from the LVT where this is believed not to be the case.

The provisions and remedies are similar to those in respect of service charges and administration charges. Where the charge is not specified in the scheme or calculated according to a formula in the scheme, the Leasehold Valuation Tribunal (LVT) can decide what is reasonable in the circumstances. This becomes the maximum the manager of the scheme can recover.

Where the charge is specified or calculated according to a formula in the EMS, the LVT can vary the scheme to amend the sum or to change or delete the formula.

The LVT may also determine:

  • the person by whom it is payable
  • the person to whom it is payable
  • the amount which is payable
  • the date at or by which it is payable
  • the manner in which it is payable

As with service charges, the application may be made whether or not the payment has been made, but not where the matter has been:

  • agreed or admitted by the person concerned
  • determined by a court
  • referred to arbitration. Any reference to arbitration must be with the person's agreement following the dispute arising
  • the subject of determination by arbitration as a result of an agreement after the dispute has arisen

Any clause in a lease or any other agreement which appears to commit the person to arbitration in advance of a dispute arising is deemed to be void and will not bind the tenant nor prevent an application to the LVT.

Last updated:
8 December 2020
Next review:
18 December 2026