Landlord Explainer: Recovery of Fixed Costs

December 11, 2024

If you are successful in your possession claim following a first hearing, this will likely mean the court makes an order for possession and costs.

The costs order will typically only be for ‘fixed costs’, which is usually around £400 (i.e. enough to cover the court fee). If there is a costs provision in the tenancy agreement, it may be possible to argue at the hearing for further legal costs. If you want to seek to recover this, a schedule of costs should be prepared. Please note you are still unlikely to receive much more than the ‘fixed’ sum for legal costs incurred up to a first possession hearing.

Unfortunately, if the tenant does not automatically pay the costs ordered, you would need to enforce the costs order to recover the same. This may not be worthwhile and landlords should consider the following:

  • The value of the costs order vs the costs enforcing the same;
  • Does the defendant even have the means to pay? Do they have assets of their own?
  • Can you locate the defendant? If not, a tracing agent may be necessary.
  • Time and effort required to pursue enforcement.

If you have a significant costs order, or would like to enforce a money judgement (for rent arrears), it may be worthwhile. Landlords should still consider whether the defendant has the means to pay, even if the debt is large.

Enforcement

First, send a formal letter requesting the payment. Include details of the order and the deadline by which to pay.

If the debt is still not paid, you have the following options for enforcement:

  • Apply for a writ of execution and obtain a Bailiff appointment
  • Apply for an attachment of earnings order
  • Apply for a charging order securing the debt against the defendant’s property (e.g. if he is a homeowner)
  • Bankruptcy proceedings (in severe cases of debt)

You should also consider if mediation/ negotiation is possible. This could include setting up a payment plan.

Please contact our team at LandlordSolicitors.com if you have any debt recovery queries and/ or would like to discuss your property dispute. You can call us today on 0330 043 6162

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We know that legal issues with your property can be an extremely stressful experience. At LandlordSolicitors.com our experienced landlord solicitors and advisors are ready to help and find a way to resolve your issue. Call us on 0330 043 6162 or contact us online to schedule a free consultation today. LandlordSolicitors.com, 2 Clive House, Prospect Hill, Redditch, B97 4BS.