When leasehold property disputes reach the First-tier Tribunal (FTT), the way each party conducts themselves can make all the difference. Whether you’re a leaseholder questioning the reasonableness of charges, or a managing agent or freeholder defending a challenge, how the case is handled, procedurally and evidentially, will often determine the outcome.
In recent years, the tribunals have become increasingly vocal in criticising parties who fail to follow directions, provide evidence, or properly engage with the process. These cases serve as a stark warning that poor preparation and non-compliance can prove costly, both financially and reputationally.
The Common Pitfalls
One of the most frequent mistakes seen in disputes, such as service charge reasonableness challenges, is a failure to properly comply with tribunal directions. For example, managing agents or freeholders may not provide key documentation, such as invoices or contractor estimates, within the set timeframe. Others might submit only partial evidence or offer vague, formulaic responses to leaseholder claims.
Tribunals have little patience for this. A pattern has emerged where respondents who fail to provide a clear statement of case or witness evidence are barred from presenting further evidence at the hearing. Where a respondent is barred from relying on further evidence, the Tribunal will determine the matter on the basis of the material properly before it. In practice, this can lead to significant reductions in service charge recovery.
In some cases, where the Tribunal considers that a party has behaved unreasonably in the conduct of proceedings, it may make a costs order under Rule 13. This can include requiring the defaulting party to contribute towards the other side’s legal costs.
Lessons for Leaseholders
Leaseholders, too, must approach tribunal proceedings carefully. Simply asserting that a charge is “unreasonable” will rarely be enough. The tribunal expects leaseholders to provide some evidence or argument to show that a particular cost is questionable — for example, where the works appear excessive or lack supporting invoices.
Once a leaseholder raises a credible challenge, the burden then shifts to the freeholder or managing agent to demonstrate that the charge was reasonable and properly incurred. Without clear documentation or transparent communication, that becomes a difficult task.
Lessons for Managing agents and Freeholders
For those responsible for managing blocks, tribunal proceedings require full engagement and proactive compliance. Directions must be followed carefully, documents disclosed in full, and witness statements properly prepared.
Respondents who adopt a dismissive or reactive approach risk losing the ability to present their case, even where the underlying charges may have been reasonable. The tribunal expects transparency and professionalism — qualities that reflect not just on the outcome of a case, but on the reputation of the managing agent or freeholder involved.
Why you should use a Specialist Solicitor
Whether you are bringing or defending a leasehold property dispute, working with a specialist leasehold solicitor can make a decisive difference. Here’s why:
- Navigating complexity: Leasehold property law combines lease interpretation, statutory reasonableness, and strict procedural rules. A specialist understands how to apply all three effectively.
- Procedural compliance: A solicitor experienced in FTT matters ensures every tribunal direction, disclosure requirement, and evidential burden is met — avoiding costly procedural missteps.
- Strategic advantage: Knowing when and how to prepare specialist documentation, when to seek further information, and how to present a persuasive case are all key elements of a successful outcome.
- Cost control and risk management: Misconduct in proceedings can lead to cost penalties. A specialist helps protect you from unnecessary exposure and ensures that your position is properly represented.
Tailored advice: Every block and lease is different. A specialist solicitor provides tailored guidance to ensure your approach aligns with your specific lease terms and circumstances.
Conclusion
Tribunal proceedings are not just about who is “right” — they’re about who is prepared. Cases have repeatedly shown that failure to follow directions, provide evidence, or engage meaningfully with the process can lead to heavy losses for managing agents and freeholders, even where the underlying service charges might have been justified.
At Brady Solicitors, we have represented leaseholders, freeholders and managing agents in disputes and understand the importance of getting it right from the start. Our specialist team ensures your case is properly prepared, your obligations are met, and your position is protected.
