The Government has finally announced plans to move forward with leasehold reform and has announced the necessary consultations relating to how premiums to extend a lease or purchase freehold are calculated.
They propose a two-pronged approach – making the provisions of the 2024 Leasehold and Freehold Reform Bill operable and at the same time to push forward the changes to leasehold announced in the Leasehold and Commonhold Reform Bill 2026 – together these will increase the rights of leaseholders and will help them achieve the goal to make lease extensions and freehold purchases both cheaper and quicker.
Today they have announced the consolation process for the valuation parts of the 2024 Act which are to be prescribed by the Government in order to simplify the process and in theory make it cheaper for leaseholders.
They are also consulting on the proposals to end the leaseholder’s obligation to pay the freeholder’s professional costs when extending a lease or buying the freehold.
In the 2024 Act in some exceptional circumstances there are provisions for leaseholders to pay towards these costs and the Government has opened a consultation today around this proposal to see how much would be considered a fair contribution and in what circumstances such payments should be made.
In addition, they have proposed more transparency in Freehold – Leasehold situations in relation to service charges. Freeholders will now have to produce a yearly report outlining the condition of the building and any future costs needed to keep it in repair. Other provisions are set to come in in 2027 to make service charges more transparent.
The valuation consultations opened yesterday and will close at 11.59pm on 23rd September 2026.
However as in recent times the Government has still not given a firm date as to when the changes to leasehold law will be implemented beyond a commitment to bring them in ‘as soon as possible.’
It does refer the current legal challenge to the abolition of marriage value but it does not comment on whether this will further delays matters.
It appears the Government is doing all it can to push through the much publicized leasehold reform – but as yet there is still no firm indication as to when they will be implemented.
https://www.gov.uk/government/news/stronger-leasehold-protections-in-crackdown-on-hidden-fees