Practitioners should prepare carefully before making LTA 1985 dispensation applications, say Adam Colenso and Desmond Kilcoyne
Before a landlord carries out costly works on a building in which there are residential leaseholders, the leaseholders are entitled to be consulted about two matters: first, the nature of the proposed works; and, second, the identity of, and likely cost to be charged by, the contractor to be engaged. However, a landlord can avoid consultation if he obtains a “dispensation” from the Leasehold Valuation Tribunal (LVT). A landmark decision of the Lands Tribunal now provides guidance as to how such applications for dispensation are to be approached.
The statutory consultation scheme has undergone change in recent years. New ss 20 and 20ZA of the Landlord and Tenant Act 1985 (LTA 1985) were introduced by s 151 of the Commonhold and Leasehold Reform Act 2002 (CLRA 2002) ss 20/20ZA. Section 20 sets out the consultation requirements with which a landlord must comply by reference to the detailed provisions of the Service Charges (Consultation Requirements) (England) Regulations 2003 (SI 2003/1987)
