Tribunal fees introduced for lease extensions and collective enfranchisement
After a consultation by the government, fees have been introduced for applications to the First-tier Tribunal (Property Chamber) (FTT). Previously there were no fees for FTT applications.
During the enfranchisement process the parties have 6 months from the date of the landlord’s counter notice to agree all the matters in dispute. Should the parties fail to agree within that time period then the right to enfranchise is lost for 1 year unless one of the parties makes a protective application to the FTT. In many cases there is little that can be done to compel an unwilling freeholder to the negotiating table without an FTT application, therefore in practice it would almost always be the leaseholder making the application.
The fees are currently set at £100 for making the FTT application, and a further £200 once the tribunal hearing date is listed. These are much lower figures than were initially proposed by the government. It is entirely possible these figures will be revised upwards in the near future, and in future may be based on the value of the enfranchisement in that particular case.
For the time being, however, leaseholders wishing to extend their lease or enfranchise their freehold should budget for these extra fees.
The fees to appeal to the Upper Tribunal remain the same at 2% of the agreed or determined premium.