When dealing with Leasehold Enfranchisement matters, both the Landlord and the Tenant must agree on the premium payable and the terms of the new lease or transfer. These terms must be agreed within 6 months of the Landlord serving a Counter Notice and if this is not agreed, an Application to the First Tier Tribunal must be made to prevent the matter being deemed withdrawn.
The Application is normally made by the Tenant as if they do not do this within the 6 month deadline, they will not be able to start the process of extending their lease or buying the freehold for another 12 months. This could mean incurring higher costs and paying an increased premium.
In July 2016, the Civil Proceedings, First Tier Tribunal, Upper Tribunal and Employment Tribunal Fees (Amendment) Order 2016 came into effect which introduces Application and hearing fees handled by the First Tier Tribunal (Property Chamber).
As of 25th July 2016, Application fee to the Tribunal for Leasehold Enfranchisement matters such as Lease Extensions and Freehold Purchases will be £100. A hearing fee of £200 has also been introduced which will be payable once the matter has been listed for a hearing.
The introduction of these new fees, whilst relatively low, is likely to have a knock on effect on the nature of negotiations between the Landlord and the Tenant and possibly the strategies used by each party.
For further information on extending your Lease and purchasing your Freehold contact Rebecca Mignogna on 020 8546 6630 or rebecca@arcadialaw.co.uk