The Central London LVT has recently changed its practice and procedure relating to lease extension and freehold purchase claims. Most of these came into effect as of January 2007 but the changes relating to listing are being applied only to new cases (i.e. applications received since the start of this year).
Under the new procedures once an application is made the Tribunal will write to the parties acknowledging receipt of the application and will offer the parties (if they both agree) an opportunity for further negotiations to take place. To take advantage of this both sides must confirm their agreement in writing within 14 days of the Tribunal’s request. If this is done, no further steps will be taken to list the matter for a further period of 3 months.
Once this period expires the tribunal will send out a listing questionnaire. The format of this is being expanded slightly to contain slightly more information with the intention of reducing clashes of available dates for the parties and their representatives.
The tribunal then issues directions (the steps the parties must take to get the matter ready for a final hearing). These will now include a requirement to circulate a draft lease or transfer with a timetable much earlier on in the process. This should assist in narrowing issues relating to drafting.
As we all know the vast majority of applications before the Tribunal settle without the need for a final hearing. However dealing with these cases causes the Tribunal a significant administrative burden.
The Tribunal has therefore indicated it will only vacate hearings when it is clear that all the terms of the acquisition have been agreed (i.e. in accordance with the provisions of s.24 or s.48 of the 1993 Act as appropriate).
This means that settlement must mean exactly that and the parties’ advisors must confirm that the price and the terms of the acquisition, including the lease or transfer itself, have been finalised.
The old practice of simply writing to the tribunal confirming that the figures have been agreed and asking them to vacate the hearing will therefore have to cease.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
