1. LVT PRACTICE & PROCEDURE Liz Gibbons Community Housing Cymru Group Leaseholder Network Meeting 19 th May 2014 www.lease-advice.org

2. Dealing with a failure to pay the service charge ? Failure to pay a valid service charge demand amounts to a breach of the terms of the lease Is there a penalty provision? Generating an administrative charge Interest on arrears Charges for chaser letters Costs of enforcement recoverable from the leaseholder How to claim Summary of rights and obligations for administrative charges Writing to the lender? Which forum? County Court vs Leasehold Valuation Tribunal (LVT) www.lease-advice.org

3. LVT vs County Court Concurrent jurisdiction of both to deal with non payment of service charges and look at reasonableness Pros of court Better for the landlord? Speed - efficiency Better position for landlord on costs? Scary for the leaseholder Generalist forum Ability to seek transfer Pros of LVT Better for the leaseholder? Better position for leaseholder on costs? Specialist forum www.lease-advice.org

4. Statutory authority Landlord and Tenant Act 1985 Housing Act 1996 Commonhold and Leasehold Reform Act 2002 Leasehold Valuation Tribunals (Procedure) (Wales) Regulations 2004 www.lease-advice.org

5. Completing the application form Enough but not too much Use standard forms provided by LVT where available (See: Welsh Residential Property Tribunal website) Reg 3(8) Failure to comply may be dispensed with or relaxed if particulars and documents are enough to enable the application to be determined and no prejudice will, or is likely to, be caused to any party to the application www.lease-advice.org

6. Particulars of application – service charges Recognised tenants association Brief description of relevant property Copy of the lease Service charges Past, current and future years in question Dates to avoid Experts Witnesses Paper hearing/track preference Section 20C Justification Venue requirements Statements of truth www.lease-advice.org

7. Who serves documents? Reg 5 Respondents Secretary of RTA Where service charges Notice Any person who the LVT considers is likely to be significantly affected by the application Any other person the LVT considers appropriate www.lease-advice.org

8. Pre trial review Reg 12 14 days notice Be prepared!! Identify areas of agreement/disagreement Consider appropriate directions Witness statements, expert reports, seeking disclosure, skeleton arguments, Scott Schedule, bundles preparation www.lease-advice.org

9. Pre trial review LVT is under an obligation to Give any direction that appears necessary or desirable for securing the just, expeditious and economical disposal of proceedings Endeavour to secure that the parties make all such admissions and agreements as ought reasonably to be made by them in relation to the proceedings; and Record in any order made at the PTR any such admission or agreement or any refusal to make such admission or agreement www.lease-advice.org

10. Adjournments or postponement of hearing Reg 15 Presumption against adjournment or postponement save where LVT considers it is reasonable to do so having regard to The grounds for the request The time at which the request was made; and The convenience of the other parties Reg 16(2) Production of new document at the hearing Presumption of an adjournment www.lease-advice.org

11. Striking out / dismissal of applications Reg 11 Frivolous, vexatious or otherwise an abuse of process of the LVT Application by Respondent or LVT’s own initiative Notice LVT minded to dismiss application Grounds on which they are minded to do so Date before which the applicant may request to appear before and be heard by the LVT on the question whether the application should be dismissed (21 days) www.lease-advice.org

12. Bundles Applicant prepares Unless otherwise agreed Typically six copies Three for panel One for witness One for respondent One for you No later than seven days before hearing www.lease-advice.org

13. Bundle contents Include Application Statement of case All parties Leases Or typical specimens Accounts concerned and any supporting documentation Expert’s reports Other evidence on which either party might seek to rely www.lease-advice.org

14. Hearing panel Three person panel Surveyor Lawyer Lay person www.lease-advice.org

15. Tribunal procedures Reg 14(7)(a) Preliminary matters Jurisdiction etc Applicant evidence Respondent evidence Closing statements Costs matters www.lease-advice.org

16. Hearing procedures Tribunal is part-inquisitorial Expect questions Read statements Reserved decision www.lease-advice.org

17. Things to remember Short opening statement is welcomed by the panel Address chair as ‘sir’ or ‘madam’ Rules of evidence do not apply No rules on rights of audience www.lease-advice.org

18. Evidence – without it, case can be dismissed! No rules of evidence Continued cross examination Leaseholder needs only to establish a prima facie case Yorkbrook Investments Ltd v Batten (1986) 18 HLR 25 CA www.lease-advice.org

19. Evidence - service charges Consider checklist Lease Service charge demands Evidence of admissions Consultation (s20) Response to requests for information (sections 21/22) Reasonableness Section 19 Expert reports? Comparisons? Photographs? www.lease-advice.org

20. Post hearing Reasons for the decision - recorded in a document asap Correction of slips/clerical mistakes Enforcement Determination may be enough If not, register decision at County Court CPR 70.5 and CPR PD 70 Can be made without notice Court form N322A Name Address Amount unpaid Copy of LVT decision www.lease-advice.org

21. Appeals - timing and practicalities Apply to the LVT for permission 21 days from receipt of reasons Requests for more time within the 21 days Application to the UT for permission 14 days from LVT refusal Can request more time with reasons Urgency direction can be reduced If permission granted Notice of appeal and documents to be filed within 28 days Upper Tribunal Practice Directions http://www.justice.gov.uk/tribunals/lands/rules-and-legislation http://www.justice.gov.uk/tribunals/lands/rules-and-legislation Own rules as to costs If not - Judicial Review - exceptional circs www.lease-advice.org

22. Appeals - grounds UT PD 4.2 LVT wrongly interpreted/applied the law LVT wrongly applied or misinterpreted or disregarded a relevant principle of valuation or other professional practice LVT took account of irrelevant considerations, or failed to take account of relevant consideration or evidence, or there was a substantial procedural defect The point(s) at issue of potentially wide implication www.lease-advice.org

23. Questions? The Leasehold Advisory Service 020 7383 9800/02920 782222 info@lease-advice.org www.lease-advice.org Maple House, 149 Tottenham Court Road London W1T 7BN/c/o Care & Repair Cymru, 2 Ocean Way, Cardiff, CF24 5TG