lease variations
📖 What is lease variations? Meaning and definition
Lease variations involve altering the specific terms of a tenancy agreement, known as a lease. This process is typically undertaken to modernise occupational leases or to address issues such as service charge adjustments. Applications for lease variations can be made under specific sections of the Landlord and Tenant Act 1987, depending on whether the application is for individual leases or a majority of leases within a property.
For instance, an application under section 37 of the Landlord and Tenant Act 1987 allows a majority of parties to seek an order varying two or more long leases of flats where the landlord is the same person. This means that if several leaseholders in a building wish to change a common term in their leases, they can apply together to the appropriate tribunal.
Alternatively, section 35 of the 1987 Act allows for the variation of individual leases. A party to a lease can make an application under this section, and other parties to the lease can make counter-applications for alternative variations. Section 36 of the Act also allows any other party to a lease to make an application to the tribunal in the event of an original application under section 35.
These variations are determined by a First-tier Tribunal (Property Chamber), which will consider the application and issue a decision and order. The tribunal's role is to ensure that any proposed changes are fair and legally sound, often dealing with the application on paper unless an oral hearing is requested by the parties involved.
📋 Requirements
- The leases must be long leases of flats.
- The landlord for the leases must be the same person.
- An application can be made by a majority of parties for variation of two or more leases (under section 37).
- An application can be made by any party to a lease for variation of an individual lease (under section 35).
- Counter-applications for variations can be made by other parties to a lease (under section 35 and 36).
📝 Procedure
- An application for lease variation is submitted to the appropriate tribunal, such as the First-tier Tribunal (Property Chamber).
- The tribunal may direct that the application be dealt with on paper, or an oral hearing may be requested.
- The applicant submits a hearing bundle containing relevant documents.
- The tribunal considers the application and any counter-applications.
- The tribunal issues a determination and order varying the leases, or dismissing the application.
💡 Examples
- A group of leaseholders in a block of flats applies to the tribunal to vary their leases to update outdated clauses regarding maintenance responsibilities.
- A landlord seeks to vary the leases of several flats to modernise the terms related to service charge calculations and payment schedules.
- A single leaseholder applies to vary their individual lease to correct an error in the property description, with the landlord making a counter-application for a different set of variations.
- The tribunal allows lease variations to adjust service charge contributions across a property with multiple flats and a courtyard area.
📚 Legal basis
- Landlord and Tenant Act 1987
❓ Frequently asked questions
What is the difference between a lease variation under section 35 and section 37 of the Landlord and Tenant Act 1987?
Section 35 allows for the variation of individual leases, typically initiated by one party to a lease. Section 37, however, is for applications by a majority of parties to vary two or more long leases of flats where they share the same landlord.
Who can apply for a lease variation?
Either a landlord or a leaseholder can apply for a lease variation. Under section 37, it's usually a majority of parties, while under section 35, any party to a lease can apply.
Do all lease variations require tribunal approval?
The case excerpts show that applications for lease variations under sections 35, 36, and 37 of the Landlord and Tenant Act 1987 are made to the appropriate tribunal for an order varying the leases.
What kind of changes can be made through lease variations?
Lease variations can be used to modernise occupational leases, adjust service charge provisions, or correct other terms within the lease agreement, as seen in the tribunal cases.
What happens if there's a disagreement about a proposed lease variation?
If there's a disagreement, the tribunal will consider all applications and counter-applications. They will then make a decision and issue an order based on the evidence and legal arguments presented by the parties.
Can I vary my lease without involving other leaseholders?
Yes, if your application is for the variation of your individual lease, you can apply under section 35 of the Landlord and Tenant Act 1987. This does not require the involvement of a majority of other leaseholders.
How long does the lease variation process take?
The duration of the process can vary. Some applications may be dealt with on paper, while others might involve hearings. The tribunal will set directions, and the time taken depends on the complexity of the case and the tribunal's schedule.