Leasehold enfranchisement valuation rates
This consultation seeks views on prescribing the valuation rates used in leasehold enfranchisement claims under the Leasehold and Freehold Reform Act 2024.
The Leasehold and Freehold Reform Act 2024 (LFRA 2024) will make several significant changes to the current statutory enfranchisement processes through which leaseholders can buy the freehold of their property or extend their lease in England and Wales.
The LFRA 2024 will set a Standard Valuation Method for calculating how much the leaseholder must pay to buy the freehold, extend their lease or to buy out their ground rent.
It also provides new powers for the Secretary of State to prescribe the applicable deferment rates and capitalisation rates used in the calculation of the price paid for enfranchisement.
The rates consultation seeks views on exercising the powers to set the deferment and capitalisation rates. It asks questions about different approaches to setting the rates.
We are also consulting on leasehold enfranchisement process costs exceptions.