Skip to main content
Beta

We're testing our new website – please tell us what you think and help us improve (opens in new tab).

Types of Leasehold Valuation Tribunal application (Wales)

Service charges

In this guide

You can apply for a determination of liability to pay, and the reasonableness of, service charges under Section 27A of the Landlord and Tenant Act 1985.

Either the tenant or the landlord may apply for determinations on:

  • the person(s) by whom the service charges is payable
  • the person(s) to whom it is payable
  • the amount which is payable
  • the date on or by which it is payable
  • the manner in which it is payable

The application may be made in respect of charges which have already been levied, or charges which are proposed, whether or not the charge has been paid. However, no application may be made where the issue has been:

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

Also, the right to seek a determination of service charges from the Leasehold Valuation Tribunal (LVT) does not apply to local authority tenants such as secure tenants, unless they have been granted a long tenancy or lease. Any clause in a lease or any other agreement which appears to commit the tenant 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.

Payment of the service charge or any part of it, on its own does not necessarily amount to an agreement or admission by the tenant that the charge is payable or reasonable.

Landlords proposing to carry out works can also ask the LVT for a determination that their proposals are reasonable, and that the service charge is payable, before they start spending.

Service charges in leases can include such things as maintenance, repair or other works to the building, improvements, management, cleaning, porterage or insurance and other costs incurred by the landlord and recharged to the tenants, such as legal and other professional fees.

Either the tenant or the landlord may apply to the LVT for a determination, and the LVT can interpret the terms of the lease to resolve disputes or uncertainties as to whether the tenant is liable to pay a service charge.

There is, of course, no simple definition of ‘reasonable’ and it is for the LVT to determine the issue according to the evidence before them. However, in determining reasonableness, some of the questions that might be addressed are:

  • are (or were) the works or services necessary?
    • are the works or services required at all?
    • are the works sufficient to remedy the perceived problem?
    • are the works or services adequate or over-extensive?
  • was, or is, the original specification for the works or service adequate?
    • did it include all necessary work or was the job allowed to expand as additional repairs were revealed?
    • are there genuine grounds for additional works of an urgent nature?
  • what were the landlord’s procedures for costing the works or services?
    • has the landlord complied with the consultation requirements under Section 20?
    • are there arrangements for competitive tendering or obtaining competitive estimates?
    • did the landlord follow the procedures where the tenants nominated a contractor or insurer?
    • do the works or services arise from a contract already in place?
  • what are the landlord’s arrangements for controlling costs?
    • how adequate is site supervision?
    • what controls are there for checking and payment of invoices etc?
    • what arrangements are there for checking the service provided against that specified?
    • is the standard of the works or service proposed or completed appropriate and reasonable?

Standards will vary according to the perceptions and viewpoint of the applicant. A landlord might wish to carry out works to a higher standard than the tenant may consider reasonable in terms of their shorter interest in the property and their liability to pay. Equally, the converse can apply, where the tenants expect higher standards in terms of what they are paying or are expected to pay.

  • was, or is, the standard of the works or services appropriate?
    • is the standard of insurance cover appropriate?
    • will the specification deliver the levels of services or standards of work expected?
    • are the completed works satisfactory?
    • were the works carried out in accordance with the standards specified?
  • what are the landlord’s arrangements for monitoring service delivery?
    • are services maintained to the agreed specification?
  • what amount is reasonable for a tenant to pay as an interim charge?

Applications should be based on firm grounds, not subjective opinion. In some cases evidence may have to be presented to the LVT by an expert witness, normally a property professional.

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