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Leasehold: Costs

Answer

The Leasehold and Freehold Reform Act 2024 includes provisions that will make it cheaper and easier for existing leaseholders to extend their lease or buy their freehold.

As set out in my Written Ministerial Statement of 21 November 2024 (HCWS244), the government intends to act quickly to provide homeowners with greater rights, powers, and protections over their homes by implementing the Act’s provisions.

These include an amended valuation scheme that leaseholders must follow to calculate how much they should pay to enfranchise. The method set by the Act for the valuation process removes the requirement for marriage value to be paid, caps the treatment of ground rents in the valuation calculation at 0.1% of the freehold value and allows Government to prescribe the rates used to calculate the enfranchisement premium. Rates will be set by the Secretary of State in secondary legislation, and we will consult on valuation rates this summer.

The Act also includes a new statutory right to a 990-year lease extension for leaseholders of both houses and flats and makes extending a lease cheaper for leaseholders by requiring each side to pay their own process costs, such as valuation and solicitor's fees.

The implementation of the Leasehold and Freehold Reform Act 2024 will require an extensive programme of secondary legislation and we will set out the details in due course.

Secondary information

Type

Written question

Reference

44852

Session

2024-26

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Leasehold and Commonhold Reform
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Subjects

Costs Leasehold

Link

View this Written question on www.parliament.uk