dispensation
📖 What is dispensation? Meaning and definition
In the context of UK tenancy law, particularly for leaseholders, a dispensation allows a landlord or property manager to bypass specific consultation procedures that would normally be required before carrying out significant works or entering into long-term contracts. These procedures are outlined in Section 20 of the Landlord and Tenant Act 1985 and are designed to protect leaseholders by ensuring they are informed and can comment on proposed works that will affect their service charges.
The First-tier Tribunal (Property Chamber) is the body that grants such dispensations. This often occurs when there is an urgent need for works, such as a broken boiler or chiller equipment, where following the full consultation process would cause undue delay or risk. The tribunal can grant dispensation retrospectively, meaning after the works have already been carried out, if the circumstances justify it.
When a dispensation is granted, it means the landlord does not have to complete all the steps of the Section 20 consultation. However, the tribunal may attach conditions to the dispensation, for example, regarding which costs can be recharged to leaseholders. The purpose is to balance the need for timely repairs and maintenance with the leaseholders' right to be consulted and protected from unreasonable charges.
For leaseholders, a dispensation means that while the formal consultation process was skipped, the tribunal has reviewed the situation and deemed it appropriate. It does not automatically mean the works or costs are unreasonable, but rather that the procedural requirement to consult was waived.
📋 Requirements
- Application made to the First-tier Tribunal (Property Chamber) under S.20ZA of the Landlord and Tenant Act 1985
- Proposal for major works or a long-term agreement that would normally require consultation
- Circumstances that justify waiving the consultation requirements, such as urgency or unreliability of existing equipment
- The tribunal considers the application and makes a decision based on the specific facts presented
📝 Procedure
- Applicant (landlord or property manager) applies to the Tribunal under S.20ZA of the Landlord and Tenant Act 1985
- The application details the proposed works (e.g., boiler replacement, chiller repair) and the reasons for seeking dispensation
- The Tribunal reviews the application, which may involve a hearing
- The Tribunal issues a decision, either granting or refusing dispensation, potentially with conditions
- The applicant must send a copy of the decision to all leaseholders
💡 Examples
- A property management company applied for dispensation to replace a heating boiler that had become unreliable, allowing them to proceed with the installation without the full consultation process.
- A tribunal granted retrospective dispensation for urgent repairs to chiller equipment servicing a large residential and commercial estate, as the works had already been carried out in September 2019.
- A landlord was granted dispensation for the appointment of a new manager and additional works, but with conditions that certain arbitration and dispensation application costs could not be recharged to leaseholders.
- Dispensation was sought to allow for major works to be carried out on a property comprising 325 flats, a hotel, health club, and commercial units, due to the scale and potential urgency of the repairs.
📚 Legal basis
- Landlord and Tenant Act 1985
❓ Frequently asked questions
What does 'dispensation of consultation requirements' mean?
It means the First-tier Tribunal has given permission for a landlord or property manager to skip the usual legal process of consulting leaseholders before carrying out major works or entering into long-term agreements that affect service charges.
Why would a landlord apply for a dispensation?
Landlords typically apply for dispensation when works are urgent, such as a broken boiler or essential repairs, and following the full consultation process would cause unacceptable delays or risks to residents or the property.
Can dispensation be granted after works have already been done?
Yes, the tribunal can grant 'retrospective dispensation' for works that have already been carried out, if the circumstances at the time justified bypassing the consultation requirements.
Does a dispensation mean I have to pay for the works?
A dispensation only waives the consultation procedure; it does not automatically mean the works or their costs are reasonable. Leaseholders can still challenge the reasonableness of the costs through a separate application to the Tribunal.
What conditions can the Tribunal attach to a dispensation?
The Tribunal can impose conditions, such as specifying that certain costs (like those related to the dispensation application itself or previous disputes) cannot be recharged to leaseholders through service charges or administration charges.
Where can I find the law on dispensation?
The legal basis for dispensation is found in Section 20ZA of the Landlord and Tenant Act 1985, which allows the Tribunal to grant dispensation from the consultation requirements of Section 20 of the same Act.