Types of Leasehold Valuation Tribunal application (Wales)
Limitation of service charges: landlord’s costs
These rights are set out in Section 20C of the Landlord and Tenant Act 1985.
It is common in residential leases for the landlord’s legal costs in managing the property to be rechargeable to the service charge. These costs can include the costs of court or Leasehold Valuation Tribunal (LVT) actions, whether started by the landlord or the tenant.
Section 20C of the Landlord and Tenant Act 1985 enables a tenant to make an application for an order that all or part of the costs incurred by the landlord arising from proceedings before the LVT are not to be included in the service charges.
Therefore, tenants seeking a determination of reasonableness can also apply to the LVT to ensure that any reduction achieved in their service charges will not be cancelled out by the landlord recharging the legal costs of an unsuccessful defence to the service charges. Tenants who are respondents in cases where the landlord seeks a determination of reasonableness, can also make an application under Section 20C.
The LVT will review the evidence presented before making whatever order it considers just and appropriate in the circumstances.
Where an application under Section 20C is made at the same time as the principal application, the 20C application will be dealt with by the LVT hearing the principal matter. If the application is made after proceedings are concluded, then it may be dealt with by a differently constituted LVT at a separate hearing.
- Last updated:
- 8 December 2020
- Next review:
- 18 December 2026