leaseholder consultation
📖 What is leaseholder consultation? Meaning and definition
Leaseholder consultation is a statutory requirement, typically under the Landlord and Tenant Act 1985, designed to protect leaseholders from unexpected or unreasonable costs for major works. Landlords are generally required to consult leaseholders before carrying out 'qualifying works' or incurring 'qualifying long-term agreements' where the cost to any one leaseholder exceeds a certain amount. This process involves providing leaseholders with details of the proposed works, estimated costs, and an opportunity to make observations or nominate contractors.
However, there are circumstances where a landlord might seek 'dispensation' from these consultation requirements. This usually happens when works are urgent, such as fire safety upgrades or essential roof repairs, and following the full consultation process would cause undue delay or risk. In such cases, the landlord applies to the First-tier Tribunal (Property Chamber) for an order to dispense with the consultation.
The Tribunal's role when considering dispensation is not to determine whether the works themselves are reasonable or whether the costs are payable. Instead, the Tribunal focuses solely on whether it is reasonable to bypass the consultation requirements. Leaseholders are typically given an opportunity to object to the dispensation application, and if no objections are received, the Tribunal may grant the dispensation, allowing the landlord to proceed with the works without having completed the full consultation process. This ensures urgent works can be carried out while still acknowledging the leaseholders' rights, even if those rights are modified in specific circumstances.
📋 Requirements
- The works must be 'qualifying works' or involve 'qualifying long-term agreements'.
- The landlord must apply to the First-tier Tribunal for dispensation if consultation is to be bypassed.
- Leaseholders must be notified of the dispensation application and given a chance to object.
- The Tribunal must deem it reasonable to dispense with the statutory consultation requirements.
📝 Procedure
- Landlord identifies the need for major works or a long-term agreement.
- Landlord applies to the First-tier Tribunal for dispensation from consultation requirements, often due to urgency.
- The Tribunal directs the landlord to send the application details to each leaseholder.
- Leaseholders are given a deadline to return a pro-forma indicating agreement or objection to the application.
- The Tribunal determines whether to grant dispensation, usually if no objections are received.
💡 Examples
- A landlord applied to the Tribunal for dispensation from consulting leaseholders for urgent fire safety upgrades, citing the immediate need for the works.
- Leaseholders were sent directions and a pro-forma to indicate if they agreed or disagreed with an application to dispense with consultation for roof repairs.
- The Tribunal granted dispensation for urgent fire safety works after the landlord confirmed the application had been hand-delivered to leaseholders and displayed in common parts, and no objections were received.
- A landlord sought retrospective dispensation for roof repair works, meaning the works had already been carried out before the consultation process was completed.
📚 Legal basis
- Landlord and Tenant Act 1985
❓ Frequently asked questions
What does 'dispensation' mean in leaseholder consultation?
Dispensation means the First-tier Tribunal has granted permission for the landlord to bypass the usual consultation requirements, often because the works are urgent and following the full process would cause unacceptable delays.
Do I have to agree to the works if dispensation is granted?
Granting dispensation only means the landlord doesn't have to follow the full consultation procedure. It does not mean you automatically agree to the works or their cost. The reasonableness of the costs can still be challenged later.
What if I object to a dispensation application?
If you object to a dispensation application, you should notify both the applicant (landlord) and the Tribunal by the specified deadline. The Tribunal will then consider your objection when making its decision.
Does dispensation mean I can't challenge the cost of the works?
No, dispensation only concerns the consultation process. The Tribunal's decision on dispensation does not concern whether any service charge costs will be reasonable or payable. You may still be able to challenge the reasonableness of the costs at a later stage.
How will I know if my landlord is seeking dispensation?
The Tribunal will direct the landlord to send you a copy of the dispensation application and any Tribunal directions. This ensures you are informed and have an opportunity to respond.