Tribunal fees for enfranchisement cases a backwards step for leasehold reform

The government's proposed introduction of tribunal fees in enfranchisement cases has been criticised as 'short-sighted' and a backward step for leasehold reform by the Association of Leasehold Enfranchisement Practitioners (ALEP).

The consultation, Enhanced fees for divorce, possession claims and general applications in civil proceedings and consultation on further fees proposal, centres on the government's drive to modernise the courts and reduce costs to the taxpayer.

ALEP, however, has rejected the Ministry of Justice's (MoJ) proposals. The association says they are wholly unfair to leaseholders and will firmly strengthen the position of freeholders.

The group is concerned there is inadequate data upon which the fee structure is based; there has been a lack of consultation; fees will severely infringe leaseholders' access to justice; and it fears freeholders will have no incentive to negotiate fair terms with leaseholders.

Formed of more than 180 member organisations, including barristers, enfranchisement intermediaries, managing agents, solicitors, and surveyors working in the residential leasehold sector, ALEP has sought to engage government on inconsistencies in leasehold reform legislation, and seeks to make it easier for leaseholders to exercise their rights.

The association's founder, Alex Greenslade, commented: 'ALEP is commercially minded and accepts that the Ministry of Justice must raise income, but this proposal - which in our mind was perfectly timed to coincide with the summer holiday period - has been rushed, is premature, is based on wholly inadequate data, and could well be a backward step for leasehold reform and justice.'

He continued: 'After consultation with our members, who have been particularly vociferous, 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.

ALEP said it would be campaigning for the MoJ to consider exempting cases, such as those for absentee landlord claims and for paper hearings, and has requested a postponement of the introduction of fees until a proper consultation has been carried out.

The association added that it would consider challenging the legality of the proposed fees regime by way of a judicial review.

ALEP is the latest practitioner group to criticise an increase of court fees. In recent weeks the Law Society, the Bar Council, the Chartered Institute of Legal Executives (CILEx), and the Forum of Insurance Lawyers (FOIL) have added their voices for a rethink of government policy.

John van der Luit-Drummond is deputy editor for Solicitors Journal
john.vanderluit@solicitorsjournal.co.uk | @JvdLD