With only a short while to go until Publication, it will be very interesting to see what the Law Commission’s report on the options for reforming the law in relation to valuations will look like.
Some of us did make some predictions see my comments on the Bishop & Sewell website see the link:
Law Commission’s Report on Reform of the Enfranchisement Process
We do need to bear in that these will be options for reform – in other words a range of different paths that the government could go down to change the law. As the actual choice of how to implement any reform is a political one, the Law Commission are only going to be laying out ‘options’ that the government can choose from.
Having said that, government has throughout this process made it clear that it is committed to making it ‘cheaper and easier’ for leaseholders to extend their lease or buy their freehold.
Let’s see what the announcement will bring!
“I really like this proposal” !
That means the freeholders will not !!!
Sub-option (2) Capping the treatment of ground rent
They propose that there could be a cap on the level of the ground rent that is taken into account when calculating the value of “the term”. That cap could be set at 0.1% of the freehold value of the property. This would help leaseholders that had onerous or high ground rents.
The Labour Party said it intended to end ground rents completely for new leasehold homes, cap ground rents at 0.1% of a property’s value for existing leaseholders.
The best of way to help existing leaseholders in my opinion