Leasehold
May 1, 2024

Leaseholders are left in limbo as hopes for reform fade

When Secretary of State Michael Gove made a statement about getting rid of the leasehold system back in January 2023...

When Secretary of State Michael Gove made a statement about getting rid of the leasehold system back in January 2023 it raised expectations for significant changes among leaseholders. Gove’s goal was to align his reforms with the governments agenda for “Levelling Up”. However recent indications suggest that with the election on the horizon any relief might be a long way off.

Initially leaseholders were optimistic about reforms that would simplify the processes of extending and buying out leases in line with Law Commission recommendations. This could have substantially reduced burdens by cutting premiums in half. Expectations were high.. Now discussions mainly revolve around changes like capping ground rents and giving leaseholders more control over their decisions. There are doubts whether these measures will have any impact on lease renewals or buyouts.

Some leaseholders with lower than 80 years remaining on their leases had delayed negotiations earlier hoping for premiums as part of anticipated reforms. However scaled down plans and the approaching 2025 election deadline have left things for now.

While our team of chartered valuers continues to assist clients in negotiating deals and saving amounts compared to do it yourself efforts comprehensive reforms seem distant.

The journey toward leasehold reform is facing more challenges than expected. Nonetheless by collaborating with surveyors leaseholders can still find ways to reduce renewal costs today.