Proposed property tribunal fees cause alarm

Government proposals to introduce property tribunal fees are causing serious concern within the leasehold sector. The Ministry of Justice (MOJ) has held a consultation into new or increased fees in a range of court and tribunal proceedings. These include the First-tier Tribunal (Property Chamber), where it is proposed applicants will pay £100 to issue proceedings and £200 for their matter to be listed for a hearing. Leasehold enfranchisement and valuation cases, however, would be subject to fees of £400 to issue and £2,000 for a hearing. Currently the Tribunal is free, and litigants must bear their own costs except in exceptional circumstances, such as unreasonable conduct. Alex Greenslade, founder and Honorary Secretary of Association of Leasehold Enfranchisement Practitioners (ALEP), said the proposals were “rushed, premature and based on wholly inadequate data”. “After consultation with our members, we are proposing alternatives including a sliding scale fee system, which would be based on the amount of the purchase price or premium set out in the leaseholder’s initial claim or notice,” he said. “We have agreed to present this proposal to the MOJ following an emergency meeting of ALEP’s Advisory Committee on 21 September. “We are also campaigning for the MOJ to consider exempt cases, such as those for Absentee Landlord Claims and Paper Hearings, and have requested a postponement of the introduction of fees until a proper consultation has been carried out.” The MOJ consultation, which had a closing date of 15th September for replies, follows previous consultations by the coalition government.