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The Ministry of Justice has published a consultation paper on a number of new fee proposals. This follows consultations by the coalition government in December 2013 and January 2015. The current consultation proposes new or increased fees in a range of court and tribunal proceedings and the detailed proposals can be found in chapters 3 and 4 of the paper. For the First-tier Tribunal (Property Chamber), particularly relevant for leasehold and park homes matters, the proposal is that applicants will generally pay £100 to issue proceedings and £200 for their matter to be listed for a hearing. However, for leasehold enfranchisement and valuation cases the proposed fees are £400 to issue and a hearing fee of £2,000. The Minister's letter as well as information about the wider subject areas for the new proposals and earlier consultations can be found here. The closing date for replies to the consultation is 15 September 2015.

What is a lease?

A lease is a ‘right to occupy’ a property for a period of time. It is the usual way to own a flat or maisonette. It forms a binding agreement between a freeholder/landlord (the Lessor) and leaseholder/tenant (the Lessee) setting out the rights and obligations for occupying the premises.

Who is the Leaseholder, Lessee and Tenant?

This is the person allowed to occupy the dwelling for the duration of the lease. You will be responsible for a portion of all services, repairs, improvements, maintenance or insurance or landlord’s management costs as DETAILED IN THE LEASE.

Who is the Freeholder, Lessor and Landlord?

This is the owner of the land on which the property sits. It is the person to whom ground rent is paid each year. This person has the right to nominate a managing agent to arrange services to the block including building insurance and communal cleaning.

What is a head lease?

This is specific to the superior landlord and leasehold. It is the binding contract between Lessor and Lessee, which confers the right to use the leasehold. There is no limit to the number of leases that can relate a property, however each subsequent lessee/ tenant has to adhere to the terms of the original lease i.e. head lease.

What are service charges?

These are the costs for which the Lessee is responsible to pay a proportion which is set out in the lease. The lease must be the basis for any invoices sent – including interest charges or penalty fees levied by the managing agent. Service charges include the management fee, building insurance and cost of services/works to the common parts of the building.

What is a lease?

Who is the Leaseholder, Lessee and Tenant?

Who is the Freeholder, Lessor and Landlord?

What is a head lease?

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