Everything you need to know before a First-tier Property Tribunal
Facing a property dispute and not sure what’s next? If reaching a conclusion between yourself and the other party has proven difficult, you can make an application for a First-Tier Property Tribunal in order to settle your dispute.
What disputes do the first-tier property tribunal chamber deal with?
The purpose of the first-tier tribunal property chamber is to solve common property disputes. Typical disputes they may handle include:
- Leasehold disputes – For example disputes over premium payable for lease extension, lease variation, collective enfranchisement, service charge disputes and disputes over rent increases at “market” or “fair” rates.
- Contested adverse possession claims
- Disputes over whether an HMO licence is required
- Refusal of Right to Buy (when the property is deemed suitable for habitation by an elderly person)
- Disputes over land registry charges|
The most common reason for a first-tier property tribunal is generally disputes over a fair premium for a lease extension, but this is not an exhaustive list and there is a wide range of reasons why it may be necessary to apply for a tribunal.
What can I do if my freeholder is charging an unfair premium for a lease extension?
You don’t have to accept an unfair rate for a lease extension. If you’re obtaining an informal lease extension (by negotiating with your freeholder directly), there is technically no limit to how much they can charge to extend your lease. If they’re refusing to negotiate with you, you may have no choice but to serve a section 42 notice on them and take the statutory route. If you take the statutory route, the premium you will pay is decided by a formula, which calculates a premium based on the value of the lease and the number of years it has remaining. You will need to instruct a surveyor therefore to obtain an accurate evaluation of your lease. However, if your freeholder disagrees with your surveyor’s valuation and insists you pay more for your lease extension, you can take them to a first-tier property tribunal.
How do I apply for a first-tier property tribunal in England and Wales?
The application you will need to make depends on the matter. The Gov.UK website has a list of the application forms you will need depending on your matter, which you can download and complete. Once you’ve completed the form, you should send it to the First-tier Property Tribunal Chamber. If you would like advice regarding which form you need to fill out, speak to a member of our team on 020 8840 6640.
What happens at a first-tier property tribunal?
A first-tier tribunal is not dissimilar from a typical Court hearing, save for the fact it is generally smaller and less formal. Decisions will usually be made together by a chairman, a specialist property surveyor or lawyer, and someone without any specialised knowledge in property law. The chairman may also instruct a surveyor to provide additional information regarding the property. You can instruct someone to represent you at the tribunal (this representative does not need to be a solicitor) or represent yourself. However, it is a good idea to seek legal advice from a property dispute solicitor in any case, especially if you are a leaseholder. The decision made at a first-tier property tribunal will be based on:
- The matter’s importance to each of the relevant parties
- The complexity of the matter at hand
- The costs invoked by their decision and the financial capabilities of each party
How long does it take the first-tier property tribunal to make a decision?
In most cases, you will receive a written response from the first-tier property tribunal within 6 weeks of the hearing, though in some cases an outcome may be reached by the end of the hearing. Here’s a rough timeline of the average first-tier property tribunal process:
- An application is made to the tribunal – The tribunal will then respond with a proposed date and time for the hearing.
- The day of the tribunal arrives – In most cases, there will only need to be one hearing. A decision could be reached during the tribunal itself, but otherwise you may need to wait for the tribunal’s decision.
- You receive written notice of the tribunal’s decision – You should expect to receive written confirmation of the tribunal’s decision within 6 weeks of the tribunal date.
- If you want to appeal the decision – You will need to write back to the tribunal to request permission to appeal within 28 days of the tribunal having sent notice of their decision. You may need to pay an application fee depending on what the dispute was over. If you’ve been given permission, the tribunal will get in contact with you to schedule a hearing.
How much does a first-tier property tribunal cost?
There will be an application fee, which will generally be around £100 for most matters. You will also need to pay the legal fees for any legal advice or legal representation you instruct. If you are a leaseholder, it is also important to check the terms of your lease. Some leases include a clause stating that the landlord may claim professional costs for instructing legal representation from your service charge or directly from you.
Can the first-tier property tribunal award costs?
Although each party is generally expected to pay for their own legal fees for a first-tier property tribunal, you could be awarded costs in some circumstances. As mentioned above, if you are a landlord and your lessee’s lease entitles you to claim professional costs, you may be entitled to claim as such. Alternatively, you may be able to claim costs if it is determined that it was unreasonable for a party to bring, defend or conduct a case before the tribunal. Plus, tenants or landlords can claim ‘wasted costs’ if a party or their representative has behaved in such a way that your legal costs have increased – for example, if their behaviour unnecessarily delayed the tribunal or meant that another hearing had to be held. To claim costs, you will need to apply for a Costs Order at least within 28 days of receiving written notice of the tribunal’s decision, though you can make an application for costs at any point during the proceedings.
What can I do if I’m unsatisfied with the outcome of a First-tier property tribunal?
As mentioned prior, the first-tier property tribunal should send you a written outcome confirming their decision, which will usually contain the reasons why they have made that decision. You can apply to have the decision set aside if there was a problem in the way in which the proceedings occurred (for example, if a document relating to the matter was not sent in a reasonable amount of time), or you can appeal the decision if you think the decision made by the Tribunal was incorrect. You should write to the Tribunal within 28 days of the date on which written notice of the tribunal’s decision was sent.
Do I have to go to a tribunal to settle my property dispute?
There is no need at all to go to a first-tier property tribunal and it is generally best avoided if possible. If you and the other party are struggling to reach a suitable agreement, a mediator can provide a knowledgeable, unbiased opinion and assist you with finding an arrangement which best satisfies your requirements. They cannot decide on a solution to the dispute for you or the other party, so nothing will be put into force that you haven’t agreed to.
Do I need a solicitor for a first-tier property tribunal?
While there is no legal requirement to instruct a property dispute solicitor, it is generally a good idea – especially if you are a leaseholder, as most freeholders will typically instruct a legal team. Our experienced property dispute solicitors can provide an insight of the likely outcome of your matter for you from the beginning and help you make your case as strong as possible before the tribunal.
How Starck Uberoi Solicitors Can Help
For whatever reason you need to attend a first-tier property tribunal, our expert property solicitors can help. Our property team share over 30 years’ experience in handling a wide range of different property disputes and can advise you on the strengths of your case from the outset. We are well-known for consistently achieving favourable outcomes on behalf of our client and provide pragmatic, jargon-free support from start to end of your matter. To book an appointment with one of our property dispute solicitors lawyers, give us a call on 020 8840 6640 or email solicitor@starckuberoi.co.uk.
Our Brentford solicitors, are located on the High Street in a grand three-story building, just a short distance from Brentford County Court. Our Belgravia solicitors are located Just a 5 minute walk from Victoria tube station in Grosvenor Gardens. Our Ealing solicitors are only a short walk from both Ealing Broadway and South Ealing and our Richmond solicitors have the pleasure of overlooking the picturesque Richmond Green. Finally our solicitors in Canterbury are located in the within the UNESCO World Heritage Site of Canterbury Cathedral.
Our partner, Raminder Uberoi, can also provide a Notary Public service at any of our London offices.
