If you are a leaseholder
Beyond the indicated ‘late 2028’ for the ground rent Cap we still do not know exactly when marriage value is to be abolished and when the other proposals relating to the valuation of lease extensions and freehold purchases are to become operational. Although the Government has made a firm commitment to doing this, it looks like these changes could take even longer than the Ground rent cap.
If you have a lease above 80 years unexpired and a ground rent below £250pa and you want to extend your lease, there are not many reasona to wait for the changes to become operational. However, you must take professional advice before making a decision.
If you have a lease below 80 years unexpired and or a high rising ground rent which is (or will) rise above £250pa – unless you have a pressing reason to extend your lease or collectively purchase your freehold and you can wait until late 2028 at the earliest, it might be better to wait for all the proposals to become law
If you are a freeholder
You will need to speak to your professionla advisors to confirm what impact this may have on the value of your freehold interests – inevitably it will most likely mean you will receive lower premiums when leaseholders want to extend their leases or purchase their freehold. We still do not know what the procedures will be for leaseholders who want to change to commonhold and how freeholders are to be financially compensated for the loss of their freehold interest
Leaseholder or freeholder? Speak to Any Marsden at Marsden Surveyors if you have any questions about these proposals and what it means to you http://www.marsdensurveyors.co.uk