Types of Leasehold Valuation Tribunal application (Wales)

Variation of leases

These rights are set out in Sections 35 to 40 of the Landlord and Tenant Act 1987.

A lease is a contract between the landlord and a tenant. No matter how unsatisfactory the terms may seem, none of the parties to the lease may vary the terms unilaterally. The consent of every party to the lease is required to vary it. Otherwise, the terms of a lease may only be varied by order of the Leasehold Valuation Tribunal (LVT).

In some cases, unsatisfactory provisions in the lease may affect all other tenants in a building, or the variation of one lease may have an effect on the others. In these cases it is often difficult to get every tenant to consent to vary the lease, so the law provides that the LVT can make an order to vary all the leases in the same way.

Application Form – Variation of Lease or Leases

Variation of single leases (flats)

Any party to a long lease of a flat may make an application for it to be varied. The grounds for the application to the LVT to vary a single lease are that the terms of the lease fail to make satisfactory provision in certain areas. These are:

for the repair and maintenance of the flat, or the building, or land or buildings let to the tenants or over which they have rights
for the insurance of the building containing the flat or the land or building
for the repair and maintenance of installations (whether in the building or not) which are necessary to ensure a reasonable standard of accommodation
for the provision or maintenance of services to ensure a reasonable standard of accommodation, for example, lighting, cleaning, caretaking, insurance
for the computation of the service charges, particularly in terms of the proportion of the charge payable by each flat in relation to the whole building, for example, if the individual proportions add up to more than 100%
for the payment of interest on arrears of service charges
for the recovery of expenditure from one party where it has been incurred on their behalf by another or for their benefit or the benefit of others including them
any other matter to be included in the Regulations

Where an application is made by an individual leaseholder in respect of one flat, any other party to the lease may apply to the LVT seeking that the variation ordered should also apply to one or more other leases.

Variation of two or more leases (flats)

An application may also be made for an order to vary two or more leases in the building in the same way, in order to correct the same defect. An application can be made by the tenant or the landlord. Where the application concerns less than nine leases, then all (or all but one) of the parties concerned must consent to it. Where the application concerns more than eight leases, it must not be opposed by more than 10% of the parties concerned and at least 75% of them must consent to it. For these purposes the landlord shall constitute one of the parties concerned.

The ground for the variation of two or more leases is that the object sought to be achieved by the variation cannot be satisfactorily achieved unless all the leases are varied to the same effect.

The LVT may make an order to vary the leases according to the application or as it considers appropriate. It may also make an order instructing the parties to vary the leases in accordance with that instruction, and the LVT can order any party to pay compensation to anyone considered likely to be disadvantaged by the variation of the leases. However, it cannot order the variation if it would cause a disadvantage to another tenant which could not be remedied by payment of compensation.

The LVT regulations require that anyone making an application for a variation must serve notice of the application on anyone likely to be affected by the proposed variation. This will include the landlord (where the landlord is not the applicant), the other leaseholders if the change will affect them, and the mortgagee to the flat or flats. Failure to serve the notices will allow the affected parties to apply to the LVT for cancellation or modification of the variation or, in some cases, to bring action for damages.