First-tier Tribunal Rules Lack of Jurisdiction Over Freeholder Service Charge Dispute

OUTCOME: Dismissed

© CROWN COPYRIGHT

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : LON/OOAP/LSC/2025/0774 Property : 12 [ADDRESS] [POSTCODE] Applicant : [redacted] : In person Respondent : [redacted] : [COUNSEL] [NAME], in-house solicitor Type of Application :

For a service charge determination pursuant to Section 27A of the Landlord and Tenant Act 1985

Tribunal Members :

Judge P Korn Ms R Kershaw BSc Date of hearing : 16 March 2026 Date of Decision : 16 March 2026

DECISION

Description of hearing

The hearing was a face-to-face hearing.

2 Decision of the tribunal

(1) The tribunal has no jurisdiction in relation to this application. (2) The tribunal makes no cost orders. Introduction 1. The Applicant seeks a service charge determination pursuant to section 27A of the Landlord and Tenant Act 1985.

2. Specifically, the Applicant challenges the payability of major works charges totalling £2,340.74.

3. The Respondent did not engage with this application until the day of the hearing. At the hearing, [COUNSEL] [NAME], an in-house solicitor for the Respondent, explained that the application had gone to the wrong team within the Respondent’s office and that he had only received the hearing bundle on the weekend immediately prior to the hearing (which was on a Monday). Jurisdiction 4. At the hearing Mr [APPELLANT] said that the Applicant was the freehold owner of the Property, and the Applicant confirmed that this was the case.

5. After a short adjournment, the tribunal told the Applicant that as she was a freeholder the tribunal did not have jurisdiction in this case. Section 27A of the Landlord and Tenant Act 1985 only related to the reasonableness of service charges levied on tenants/leaseholders and did not apply to estate charges levied on freeholders. In due course the relevant parts of the Leasehold and Freehold Reform Act 2024 would be in force which would give freeholders the right to challenge the reasonableness of certain charges at the appropriate tribunal, but those provisions were not yet in force.

6. Therefore, the tribunal does not have jurisdiction to deal with the application.

Name:

Judge P Korn

Date:

16 March 2026

3 RIGHTS OF APPEAL

A. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber) a written application for permission must be made to the First-tier Tribunal at the regional office dealing with the case.

B. The application for permission to appeal must arrive at the regional office within 28 days after the Tribunal sends written reasons for the decision to the person making the application.

C. If the application is not made within the 28 day time limit, such application must include a request for extension of time and the reason for not complying with the 28 day time limit; the Tribunal will then look at such reason and decide whether to allow the application for permission to appeal to proceed despite not being within the time limit.

D. The application for permission to appeal must identify the decision of the Tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal, and state the result the party making the application is seeking.

APPENDIX 1

List of Applicants (all of them leaseholders)

[NAME] 1 [NAME] 2 [NAME] 3 [NAME] 4 [NAME] 5 [NAME]

104A [NAME]

106B

4 APPENDIX 2

Appendix of relevant legislation

Landlord and Tenant Act 1985 (as amended) Section 18 (1) In the following provisions of this Act "service charge" means an amount payable by a tenant of a dwelling as part of or in addition to the rent - (a) which is payable, directly or indirectly, for services, repairs, maintenance, improvements or insurance or the landlord's costs of management, and (b) the whole or part of which varies or may vary according to the relevant costs. (2) The relevant costs are the costs or estimated costs incurred or to be incurred by or on behalf of the landlord, or a superior landlord, in connection with the matters for which the service charge is payable. (3) For this purpose - (a) "costs" includes overheads, and (b) costs are relevant costs in relation to a service charge whether they are incurred, or to be incurred, in the period for which the service charge is payable or in an earlier or later period. Section 19 (1) Relevant costs shall be taken into account in determining the amount of a service charge payable for a period - (a) only to the extent that they are reasonably incurred, and (b) where they are incurred on the provisions of services or the carrying out of works, only if the services or works are of a reasonable standard; and the amount payable shall be limited accordingly. (2) Where a service charge is payable before the relevant costs are incurred, no greater amount than is reasonable is so payable, and after the relevant costs have been incurred any necessary adjustment shall be made by repayment, reduction or subsequent charges or otherwise. Section 27A (1) An application may be made to the appropriate tribunal for a determination whether a service charge is payable and, if it is, as to - (a) the person by whom it is payable,

5 (b) the person to whom it is payable, (c) the amount which is payable, (d) the date at or by which it is payable, and (e) the manner in which it is payable. (2) Subsection (1) applies whether or not any payment has been made. (3) An application may also be made to the appropriate tribunal for a determination whether, if costs were incurred for services, repairs, maintenance, improvements, insurance or management of any specified description, a service charge would be payable for the costs and, if it would, as to - (a) the person by whom it would be payable, (b) the person to whom it would be payable, (c) the amount which would be payable, (d) the date at or by which it would be payable, and (e) the manner in which it would be payable. (4) No application under subsection (1) or (3) may be made in respect of a matter which - (a) has been agreed or admitted by the tenant, (b) has been, or is to be, referred to arbitration pursuant to a post-dispute arbitration agreement to which the tenant is a party, (c) has been the subject of determination by a court, or (d) has been the subject of determination by an arbitral tribunal pursuant to a post-dispute arbitration agreement. (5) But the tenant is not to be taken to have agreed or admitted any matter by reason only of having made any payment (6) An agreement by the tenant of a dwelling … is void in so far as it purports to provide for a determination – (a) in a particular manner, or (b) on particular evidence.