The Law Commission has been hard at work in the area of leasehold reform and, in particular, enfranchisement. In January the commission proposed three schemes for a new regime to calculate the cost of enfranchisement. Within each scheme they also proposed further sub-options for reform.
The second round of proposals dealing with procedure and cost were expected in March 2020. These proposals were expected to make the process simpler and cheaper for leaseholders but it seems that the current Covid-19 crisis has delayed their announcement.
Whilst it would seem sensible for leaseholders to wait for the reforms they are in fact taking advantage of the sudden fall in the market. Since the valuation date is fixed at the date of service of the notice, leaseholders are deciding to make claims now rather wait for the proposed reforms to become law.
This article considers the various questions surrounding the reforms including whether claims should be delayed.
The Property Litigation Association has been instrumental in providing a comprehensive response to the Law Commission’s consultation on making enfranchisement easier, quicker and cheaper.