Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what guidance has been given by (a) his Department and (b) LEASE relating to leasehold enfranchisement for (i) residential dwellings, (ii) non-residential hereditaments and (iii) hybrid properties, and what plans there are to update the guidance in light of legislative changes.

My Department publishes guidance on gov.uk for residential and commercial leaseholders, including a ‘How to Lease’ guide for residential leaseholders.

The government-funded Leasehold Advisory Service (LEASE) provides extensive guidance and free initial legal advice for leaseholders on residential leasehold enfranchisement, including through its website here.

The government is committed to implementing measures in the Leasehold and Freehold Reform Act 2024 to make enfranchisement cheaper and easier.

The Act sets the method for calculating the price of a statutory lease extension or freehold acquisition, known as the valuation process. It removes the requirement for marriage value to be paid, caps the treatment of ground rents in the valuation calculation at 0.1% of the freehold value, and allows government to prescribe the rates used to calculate the enfranchisement premium.

Valuation rates used to calculate the enfranchisement premium will be set by the Secretary of State in secondary legislation. We will consult on valuation rates and commence the relevant provisions as soon as possible.

As per my Written Ministerial Statement of 21 November 2024 (HCWS244), primary legislation will be required to rectify a small number of specific flaws in the 2024 Act before the Act’s enfranchisement provisions are commenced.