News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the October / November 03 issue RPI news archive

Leaseholders gain right of challenge - October / November 2003

New rights for leaseholders to challenge service and other charges and, acting collectively, to take over management of their buildings came into effect at the end of September.

This was when the second tranche of provisions included in the Commonhold and Leasehold Reform Act 2002 came into effect. New consultation requirements on service charges will be required from the end of October and remaining provisions of the Act, including those making enfranchisement of flats easier, are expected to come into effect next spring.

The 'right to manage ' provisions which have now come into effect allow long leaseholders to gain greater control over service charges, appoint their own managing agents and choose their own insurers.

Also from 1 October leasehold valuation tribunals (LVTs) have gained new powers to settle disputes over residential leases.

• LVTs form part of the Residential Property Tribunal Service (RPTS) operated by the Office of the Deputy Prime Minister and are intended to provide a less costly means of settling a wide range of disputes between lessees and landlords than resort to the county courts. Their new powers come from the Commonhold and Leasehold Reform Act. This enables them to deal with disputes about:
• service charges ­ LVTs will have much wider powers to decide whether service charges are payable, including ruling on whether costs are reasonable, standards of work are acceptable, and whether lessees have been properly consulted;
• right to manage claims ­ a new right for lessees of flats to manage their own properties is being introduced and tribunals will be able to settle disputes between landlords and right to manage companies.
• administration charges ­ tribunals will be able to decide whether other charges made under a lease, for example for a landlord's costs associated with giving consent to sell the flat, are payable and/or reasonable; and
• variation of leases ­ the power to vary leases, previously exercised by county courts, has been transferred to LVTs.

Applications to the RPTS can cost as little at £50 and are free for some types of dispute.

The Residential Property Tribunal Service can be contacted on:

• Corporate Unit: 020 7446 7750, London
• Property Tribunal Service: 020 7446 7700
• Northern Rent Assessment Panel: 0845 100 2614
• Midland Rent Assessment Panel: 0845 100 2615
• Eastern Rent Assessment Panel: 0845 100 2616
• Southern Rent Assessment Panel: 0845 100 2617

other artilces from the October / November 03 issue

• The news is...tenants can be ruthless too
• Leaseholders gain right of challenge
• In brief
• Rental demand moves ahead
• Deposit action urged
• Summer leaves insurers with that sinking feeling
• HMO properties go missing
• Mould warning
• Remortgaging to boost returns