Are the costs of the landlord applying to the First Tier Tribunal to challenge the validity of the tenant’s section 42 notice recoverable from the tenant under the Leasehold Reform, Housing and Urban Development Act 1993?The Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) allows an individual qualifying tenant to acquire a new lease for an additional term of 90 years at a peppercorn rent by giving notice under LRHUDA 1993, s 42 of his claim to exercise the right. By LRHUDA 1993, s 45 the landlord may give a counter-notice by the date specified in the section 42 notice either admitting the right to acquire a new lease or not admitting it. An admission is binding but where there is a challenge to the validity of the section 42 notice (for example because the tenant has failed to provide the required information or is not a qualifying tenant) the landlord will serve a counter-notice not admitting that right.LRHUDA 1993, s 46 provides that where such a counter-notice has been given the court will consider on the application of the landlord whether the tenant had the right to acquire a new lease and if it is satisfied that the tenant does not have the right, will make a declaration to that effect. The landlord must make such an application not later than the end of the period of two months following the giving of the counter-notice. The effect of a declaration is that the tenant’s notice ceases to have effect.LRHUDA 1993, s 60 makes provision for the tenant to pay the reasonable costs of and incidental to any investigation reasonably undertaken of the right to a new lease, any valuation for the purposes of LRHUDA 1993, s 56 and the grant of a new lease, but does not specify that the costs of a section 46 application are payable by the tenant. LRHUDA 1993, s 60(5) however specifies that a tenant shall not be liable under the section for any costs which a party to any proceedings before a tribunal incurs in connection with the proceedings.As a result a landlord can recover the reasonable costs covered by LRHUDA 1993, s 56, which will include the investigation undertaken as to the right to a new lease, and which costs may include advice in this regard, but will not be able to recover their costs generally of the proceedings relating to the validity challenge. The tenant however will not be able to serve a fresh notice for a period of 12 months.The Tribunal retains a discretion under rule 13 of the First-tier Tribunal’s procedural rules to make an order in respect of costs where a person has acted unreasonably in bringing, defending or conducting proceedings in residential property or leasehold cases, though this is a somewhat narrow provision.See generally Practice Notes: Guide to lease extensions of flats under the Leasehold Reform, Housing and Urban Development Act 1993.