What costs are involved in property litigation?

Court Fees

In property litigation, one of the initial costs you will encounter are court fees. These fees vary depending on the type of claim you are making and the value of the property involved. For example, filing a claim in the County Court or High Court requires an initial fee, which is typically proportional to the claim value. For small claims, this fee is relatively modest, but for larger claims, it can be significant. Additional fees may be incurred if the case progresses to hearings or trials, often increasing in line with the complexity and duration of the proceedings.

Legal Fees

Legal representation is another significant cost factor in property litigation. Solicitors charge for their time and expertise, which can range from providing basic advice to handling the case through court proceedings. Barristers might also be engaged for advocacy in court, adding to the costs. Typically, legal fees are charged either as an hourly rate or a fixed fee, depending on the complexity of the case and the arrangements made. It's important to discuss and understand fee structures with your legal representative from the outset, including any potential for additional costs if the case becomes protracted or more complex than initially anticipated.

Expert Witness Fees

In property litigation cases, expert witnesses are often required to provide professional opinions or technical assessments. These experts might be surveyors, valuers, or other specialists whose input is critical to presenting a strong case. Hiring these experts involves additional fees, which cover their time to prepare reports, participate in meetings, and, if necessary, attend court to give evidence. The cost will depend on the expert’s qualifications, the level of detail required in their reports, and the number of hours they commit to your case.

Disbursements

Disbursements are costs incurred by your legal team on your behalf, such as photocopying, postage, and travel expenses. While these costs are generally much smaller than legal or court fees, they can add up over time, especially in long-running cases. It’s wise to keep an eye on these expenditures and ensure you receive detailed accounts periodically, so you understand where your money is being spent.

Potential Cost Orders

A unique aspect of litigation costs is the risk of being ordered to pay the other side's costs if you lose. In the UK legal system, the losing party is often required to cover a significant portion of the winning party's legal costs. This is known as a ‘costs order’. Understanding this risk is essential when deciding to pursue litigation, particularly in property disputes where costs can escalate quickly.

Alternative Dispute Resolution Costs

Sometimes, parties in a property dispute may opt for alternative dispute resolution (ADR) methods, such as mediation or arbitration, to avoid the higher costs associated with court proceedings. While ADR can be less expensive, it still involves costs, including fees for mediators or arbitrators, and legal fees for preparing and attending ADR sessions. These costs should be considered when assessing overall litigation expenses.