If you are a Leaseholder and have a dispute with your freeholder, you may be able to resolve your dispute by applying to the Leasehold Valuation Tribunal (“LVT”).

LVTs consist of a panel of three members being a solicitor, a valuer and a non-specialist lay person. LVTs are independent and impartial and are similar to a legal hearing but are less formal than going to court.

The types of dispute that the LVT are able to consider are:

• To decide the price to be paid when a leaseholder wants to buy, extend or renew the lease of their home and the value cannot be agreed with the leaseholder;

• To adjudicate in disputes about the right of first refusal procedure (which gives leaseholders the right of first refusal to buy the freehold when the landlord wishes to sell it) and the compulsory acquisition of the landlord's interest in blocks of flats;

• To decide whether the amount the leaseholder pays for services or repairs, namely the service charge, is “reasonable”.

• The LVT can't usually force the freeholder to refund any money the leaseholder has already paid or order the freeholder to pay the leaseholders legal costs.

• To appoint a manager. The freeholder would still own the property but would lose the right to manage it.

Attending the LVT

The LVT makes its decision based upon the information the leaseholder and the freeholder provide. Both sides will have the chance to present their sides of the story. It often takes several weeks after the hearing before a written decision comes through the post and as many LVTs have waiting lists, the whole process may take up to a year.

Enforcing the LVT decision

Most freeholders will follow the LVTs decision. If the freeholder refuses to follow the LVTs decision, the LVT does not have the power to force the freeholder to comply with its decision. However, the LVTs decision is considered binding and the leaseholder can apply for a court order to force the freeholder to follow the LVTs decision.

Cost of the LVT

Application fees vary from £300 to £500, but if the leaseholder is in receipt of welfare benefits, the leaseholder may obtain a discount or may not have to pay any fees at all.

Some freeholders try to include their legal costs in future service charges. All leaseholders should check their lease to see if it states that the freeholder can do this. If it does, the LVT can make an order preventing the freeholder from doing so.