If a freeholder insists on agreeing their recoverable costs under section 60 of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) before they will agree to a premium, will this preclude the leaseholder from making a post-completion application to the First-tier Tribunal under LRHUDA 1993, s 91(2)(d) to have those costs determined?The Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) makes provision for tenants of flats in a building to acquire the freehold from their landlord and for tenants of flats to obtain the grant of a new lease with an additional 90-year term at a peppercorn rent (LRHUDA 1993, s 56(1)). The procedure operates by the tenant serving a notice containing the information contained in LRHUDA 1993, s 42 (referred to as a section 42 notice). The landlord then serves a counter-notice pursuant to LRHUDA 1993, s 45. If the parties are unable to agree the premium or terms for the new lease, the First-tier Tribunal (Property Chamber) (FTT) can make a determination within strict time limits for an application.By LRHUDA 1993, s 60, a tenant who gives notice under section 42 is liable for the landlord’s reasonable costs of and incidental to any investigation reasonably undertaken of the tenant’s right to a new lease; any valuation obtained for the purpose of fixing the premium; and the grant of a new lease.LRHUDA 1993, s 91 provides that the FTT has jurisdiction to determine any of those matters in dispute that are set out in LRHUDA 1993, s 91(2). At LRHUDA 1993, s 91(2)(d), this includes the amount and liability for costs as set out in LRHUDA 1993, s 60. The jurisdiction of the FTT is to make such a determination ‘in default of agreement’.In this scenario, the landlord is seeking to make it a condition of agreement to a premium that the costs liability under LRHUDA 1993, s 60 is agreed. It is of course open to the parties to reach an agreement in this regard, but the landlord cannot prevent the tenant from making an application for a determination of the premium to the FTT under LRHUDA 1993, s 48 (provided two months from the counter-notice have passed and such application is still in time). If the parties do reach an agreement as to those costs, there will be an agreement and as such the FTT will not have jurisdiction to deal with an assessment of their reasonableness under LRHUDA 1993, s 91. However, the costs and delay arising from the need to make an application may outweigh the benefit of having the FTT assess the reasonableness of the costs.For further guidance, see Practice Note: Guide to lease extensions of flats under the Leasehold Reform, Housing and Urban Development Act 1993.