exemption from consultation
📖 What is exemption from consultation? Meaning and definition
When landlords plan major works or services that will incur significant costs for leaseholders, they typically must follow a consultation process under Section 20 of the Landlord and Tenant Act 1985. This process ensures leaseholders are informed and have an opportunity to comment on the proposed works and costs. However, in specific circumstances, a landlord can apply to the First-tier Tribunal (Property Chamber) for an 'exemption from consultation', also known as 'dispensation'.
If the Tribunal grants dispensation, it means the landlord is excused from some or all of these consultation requirements. This does not mean the leaseholders are exempt from paying for the works, nor does it confirm that the costs are reasonable. The Tribunal's decision only addresses the consultation process itself.
Exemptions are often granted in cases where works are urgent or unforeseen, making it impractical to complete the full consultation process without causing further issues or delays. Examples from actual cases include urgent removal of a shrub growing out of brickwork, fire safety assessments (such as the EWS1 process and intrusive inspections), and the supply and fitting of Uninterruptable Power Supply (UPS) batteries in a car park plant room. The Tribunal will consider the specific reasons for the urgency and whether leaseholders would be prejudiced by the lack of consultation.
The application for dispensation is made under Section 20ZA of the Landlord and Tenant Act 1985. Even if dispensation is granted, leaseholders still retain the right to challenge the reasonableness and payability of the service charge costs at a later date. The Tribunal explicitly states that granting dispensation does not determine whether any service charge costs are reasonable or payable.
📋 Requirements
- The application must be made to the First-tier Tribunal (Property Chamber).
- The landlord must demonstrate reasons why the consultation requirements should be dispensed with, often due to urgency.
- The application is made under Section 20ZA of the Landlord and Tenant Act 1985.
📝 Procedure
- The landlord (Applicant) submits an application to the First-tier Tribunal (Property Chamber).
- The Tribunal considers the application, sometimes without a hearing.
- The Tribunal issues a decision, either granting or refusing the dispensation.
- If granted, the Tribunal may specify that the landlord must send a copy of the determination to all liable leaseholders.
💡 Examples
- A property management company applied for dispensation to urgently remove a shrub growing out of the brickwork at the top of a building, which was granted by the Tribunal.
- A landlord sought and received an exemption from consultation for works required to undertake an EWS1 process, including an intrusive inspection for a fire safety assessment of the building.
- Dispensation was granted for the supply and fitting of UPS batteries in a car park plant room, allowing the landlord to proceed without the usual consultation.
- A landlord applied to dispense with consultation for fire safety works at a residential property, and the Tribunal allowed the application.
📚 Legal basis
- Landlord and Tenant Act 1985
❓ Frequently asked questions
What does 'dispense with the requirement to consult' mean?
It means the landlord is legally allowed to carry out certain works or services without following the standard consultation process with leaseholders, usually due to urgency or other specific circumstances approved by a Tribunal.
Does an exemption mean I have to pay for the works without question?
No, an exemption only deals with the consultation process. It does not mean the costs are automatically reasonable or payable. You can still challenge the reasonableness and payability of the service charge costs at a later date.
Why would a landlord apply for an exemption from consultation?
Landlords typically apply for an exemption when works are urgent, unforeseen, or if following the full consultation process would cause significant delay, risk, or further damage, such as in cases of fire safety or structural issues.
Who grants these exemptions?
Exemptions from consultation are granted by the First-tier Tribunal (Property Chamber), which is a specialist court dealing with residential property disputes.
What is Section 20ZA of the Landlord and Tenant Act 1985?
Section 20ZA is the specific part of the Landlord and Tenant Act 1985 that allows a landlord to apply to the Tribunal for dispensation from the consultation requirements.
Can I object to a landlord's application for dispensation?
Yes, as a leaseholder, you are typically a respondent in such an application and have the opportunity to make representations to the Tribunal regarding why dispensation should not be granted or what conditions should be attached.