Date Published 17 June 2024
Leasehold reform 2024: What you need to know about the Online Leasehold Extension Calculator
Major leasehold reforms are currently being decided by Parliament.
Here we explain the latest – including recent rumours about ground rent proposals, whether they go far enough, what will change and when and what that all means for you.
To calculate the premium at present, it requires a surveyor to undertake a valuation of the property and lease looking at the reduction in the value of the Freeholder's interest in the flat, marriage value, compensation for any losses, the ground rent income they will lose and the loss the Freeholder suffers due to the extra 90 years they will have to wait for the ownership of the flat.
It is not a set calculation and is subjective. The Bill proposes a set calculator so that the premium reflects the freeholder's legitimate property interest.
One of the discussions in the House of Lords was how this calculator would be implemented and the rates that will be used. The plan currently is for the Secretary of State to set the rates and calculator after the Bill has been passed.
Until the rates are set in secondary legislation, we cannot ascertain whether this will have a positive or negative for leaseholders.
