The Association of Leasehold Enfranchisement Practitioners (ALEP) has written to the Housing, Communities and Local Government Select Committee following oral evidence from director Mark Chick on 10 March.
The letter highlights technical issues with the Leasehold & Freehold Reform Act 2024 (LAFRA), including ground rents, valuation reform, and delays to key enfranchisement provisions.
ALEP is seeking publication of proposed amendments, clarification of areas requiring revision, and an update on consultation progress for capitalisation and deferment rates.
ALEP argues that if specialist enfranchisement practitioners are able to review proposed changes before introduction, there is a better chance of avoiding further implementation problems later.
Mark Chick, ALEP director and Senior Partner at Bishop & Sewell LLP said: “Reform in this area is both necessary and welcome, but it needs to be operable. The legal and valuation framework must be clear enough for leaseholders, freeholders and professional advisers to understand how the system will work in reality. Where government has identified flaws or intends to rely on further regulations, those points should be visible and open to scrutiny now rather than after the event.”
ALEP states that the valuation aspects of the draft Commonhold & Leasehold Reform Bill are deeply intertwined with LAFRA and should not be treated as a separate technical afterthought. Among the issues it identifies are the position of non-participants in collective enfranchisement claims, the treatment of former freeholders in a post-enfranchisement commonhold structure and the handling of intermediate leases.
It warns that too much appears likely to be left to delegated powers and future regulations, despite the significance of those details to cost, fairness and take-up. ALEP calls for key valuation mechanisms to be clarified in primary legislation where possible, particularly where they could determine whether later participants gain an unintended advantage over those who initially bore the cost and risk of acquiring the freehold.
Chick added: “While the prospect of leasehold reform is politically attractive in headline terms, its ultimate success in delivery depends on the technical aspects. As we have seen with LAFRA, when it comes to the law relating to enfranchisement, the key is very much in the detail. We welcome the chance to continue our dialogue with government during the course of this bill to ensure workable outcomes for all involved.”
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