5.2 Application to the First-Tier Tribunal: Process and Grounds

Edited by Ashley Connell

Leasehold Enfranchisement Solicitor at Hetts

Why Make an Application to the First-tier Tribunal (FTT) for a Lease Extension

You would typically apply to the First-tier Tribunal (Property Chamber) if, after serving a Section 42 notice on your freeholder (landlord) to extend your lease under the Leasehold Reform, Housing and Urban Development Act 1993, and receiving their counter-notice, you cannot reach an agreement on the premium (price) or other terms of the new lease during negotiations. The FTT provides an independent determination to resolve these disputes, ensuring the process can proceed to completion. For detailed insights into the tribunal’s jurisdiction, see Jurisdiction and Roles of the First-tier and Upper Tribunals.

Procedure for Applying to the FTT

The process for a statutory lease extension involves several steps, with the FTT application being a key stage when negotiations fail. Below is the detailed procedure for applying to the FTT:

1. Making the Application

   Either party (you or the freeholder) can apply if no agreement is reached. Use the prescribed Form Leasehold 9 from the HMCTS website, or a written letter if no form fits exactly, including details such as your name/address, the property, the freeholder's details, reasons for application, desired outcome, and a statement of truth.

   • Attach supporting documents: This includes copies of the lease, notices exchanged, valuation evidence, and any correspondence showing failed negotiations.
   • Submit to the regional FTT office covering your area (e.g., London, Southern, etc.). The tribunal will acknowledge receipt, send copies to the respondent (freeholder), and notify other affected parties (e.g., intermediate landlords or tenants' associations).
   • Pay the application fee: £114 (as of current figures; subject to change).

2. Tribunal Directions and Preparation

   The FTT issues directions: A timetable for exchanging evidence, such as valuation calculations and reports. Valuers for both sides exchange initial figures, then detailed reports with comparables and arguments.

   • Prepare a hearing bundle: You (as applicant) typically compile a single PDF with all documents and evidence.
   • Pay the hearing fee: £227 when the hearing date is set (usually within months of application).

3. The Hearing

   Hearings are public, typically in person or via video link, lasting a few hours to a day. Parties present opening statements, cross-examine valuers, and make closing arguments. The tribunal (usually a judge and a valuer) questions experts.

   No hearing may be needed if decided on papers, but most lease extension cases involve one.

4. Decision and Post-Decision

   The FTT issues a written decision within six weeks, determining the premium and terms. This becomes final after 28 days unless appealed.

   • Complete the new lease: Within two months of the final decision. If not, apply to the county court within a further two months for enforcement (vesting order).
   • Appeals: To the Upper Tribunal (Lands Chamber) within 28 days of receiving written reasons, but only with permission and on points of law or serious irregularity.

If the freeholder fails to serve a counter-notice, you apply directly to the county court (not FTT) for a vesting order within six months of the deadline.

Time Limits: When to Apply and Why

Key deadlines are strict to prevent indefinite delays, but missing them can invalidate your claim:

• Serving Notices: Your Section 42 notice starts the clock. The freeholder's counter-notice must be at least two months later.
• Application Window for FTT: No earlier than two months after the counter-notice (to allow negotiation), but no later than six months after it. Apply around the five-month mark to prepare adequately. Why this timing? It balances negotiation time with urgency to resolve disputes, preventing the freeholder from dragging things out indefinitely. If your lease is short (e.g., under 80 years), apply sooner to avoid rising premiums due to market changes.
• Post-Decision: Two months to enter the new lease, plus two more to seek court enforcement if needed.
• Evidence Exchange: At least seven days before hearing for documents.
• Appeals/Reinstatements: 28 days from relevant notifications.

Why adhere strictly? Missing limits (e.g., the six-month FTT window) means withdrawing and restarting, potentially losing costs and facing higher premiums if property values rise. Apply when negotiations stall significantly, especially over valuation inputs like flat value or ground rent capitalisation, to get an impartial ruling.

Strategic Considerations

Applying to the FTT can be tactical beyond mere dispute resolution:

• Pressuring the Freeholder to Negotiate: Initiating the application signals commitment, often prompting settlement to avoid tribunal costs and time. Warn the freeholder that proceeding will require them to prepare expensive valuation reports and face potential cost awards if deemed unreasonable (e.g., inflated counter-claims). Recent FTT rules allow cost penalties for unreasonable behaviour, deterring extreme positions and encouraging compromise. For instance, if the freeholder's counter-offer is outrageously high, the tribunal may view it as unreasonable, shifting leverage to you.
• Stalling for More Time: The process inherently delays completion—preparing bundles, exchanging reports, and awaiting a hearing/decision can add months. This buys time if you're selling the property (as the claim transfers to the buyer), awaiting market shifts, or gathering funds. However, it's a double-edged sword: delays increase your costs too, and the freeholder isn't liable for your tribunal expenses unless unreasonable.
• When to Use Strategically: If evidence strongly supports your valuation, apply to force a fair outcome. Avoid if disputes are minor, as tribunal costs (fees plus professionals) may outweigh benefits—consider mediation first, which the FTT encourages. Always seek professional advice, as misrepresentation risks cost orders against you.

Note: Fees and rules may update; check GOV.UK or Leasehold Advisory Service for the latest information.