payability
📖 What is payability? Meaning and definition
In UK tenancy law, particularly concerning leasehold properties, 'payability' is a crucial concept. It addresses the legal obligation of a tenant or leaseholder to pay certain charges, most commonly service charges or administration charges. Before a tenant is required to pay, the First-tier Tribunal (Property Chamber) can be asked to determine if the charges are indeed 'payable'. This means the Tribunal will assess whether the landlord has a legal right to demand the payment.
The determination of payability often goes hand-in-hand with assessing the 'reasonableness' of the charges. For example, a Tribunal might be asked to determine both the reasonableness and payability of service charges. Even if a charge is deemed reasonable in amount, it might not be payable if, for instance, the correct legal procedures for demanding it were not followed, or if the lease agreement does not permit such a charge.
When a Tribunal determines a charge is payable, it often specifies the exact amount and a deadline for payment. If charges are found not to be payable, or are disallowed, the tenant is not legally obliged to pay them. This process is vital for self-represented litigants to challenge charges they believe are not legally due, ensuring fairness and adherence to tenancy agreements and relevant legislation.
📋 Requirements
- An application must be made to the First-tier Tribunal (Property Chamber) to determine payability.
- The application typically concerns service charges or administration charges.
- The Tribunal assesses whether there is a legal obligation for the tenant/leaseholder to pay the charges.
- Evidence regarding the charges and the tenancy agreement is usually presented to the Tribunal.
📝 Procedure
- An applicant (tenant or leaseholder) or respondent (landlord) submits an application to the First-tier Tribunal.
- The application specifies the charges in question, such as service charges for particular years.
- The Tribunal schedules a hearing, which may be conducted remotely (e.g., video hearing).
- The Tribunal members, including judges and surveyors, review evidence and arguments from both parties.
- The Tribunal issues a decision determining the reasonableness and payability of the charges.
- If charges are found payable, the decision may specify the amount and a payment deadline.
💡 Examples
- A tenant applied to the Tribunal to determine if the service charges for the past three years were both reasonable and payable, suspecting they were too high and not properly demanded.
- The Tribunal determined that a specific amount of service charges was reasonable and payable, ordering the tenant to pay this sum by a set date.
- A housing association's claim for service charges was disallowed by the Tribunal because there was insufficient evidence to prove their payability.
- A leaseholder challenged their landlord's administration charges, leading the Tribunal to assess their reasonableness and payability under the relevant Act.
📚 Legal basis
- Commonhold and Leasehold Reform Act 2002
- Landlord and Tenant Act 1985
❓ Frequently asked questions
What is the difference between 'reasonable' and 'payable' when it comes to service charges?
A charge being 'reasonable' means the amount itself is fair and justified for the services provided. 'Payable' means there is a legal obligation for you to pay that charge, regardless of its amount. Both must usually be met for a landlord to successfully claim the money.
Who decides if a charge is payable?
The First-tier Tribunal (Property Chamber) is the body that determines the payability of service charges and administration charges in the UK, following an application from either a landlord or a tenant/leaseholder.
Can I refuse to pay a service charge if I think it's not payable?
If you believe a service charge is not payable, you can apply to the First-tier Tribunal for a determination. However, simply refusing to pay without a Tribunal decision could lead to legal action from your landlord, so seeking a determination is the recommended course.
What happens if the Tribunal decides a charge is not payable?
If the Tribunal determines that a charge is not payable, you are not legally obliged to pay it. The landlord cannot then pursue you for that specific charge.
Does 'payability' apply to all types of charges from a landlord?
The excerpts specifically mention service charges and administration charges. While the principle of legal obligation applies broadly, the Tribunal's power to determine 'payability' is most commonly exercised in relation to these types of charges under leasehold and assured tenancy agreements.
How long does it take for the Tribunal to make a decision on payability?
The timeframe can vary depending on the complexity of the case and the Tribunal's caseload. The excerpts show decisions being made several months after the application or hearing date, indicating it is not an instant process.