Leaseholders Urged to Act Quickly Amid Planning System Changes

With new planning reforms on the horizon, leaseholders looking to buy the freehold of their building are being advised to act now to avoid paying significantly more in the future.

New Permitted Development Rights Could Impact Enfranchisement Costs

The government’s expansion of permitted development rights could make it more expensive for leaseholders to buy the freehold of their building due to the increased value of potential rooftop development.

Hope Value’ Could Lead to Higher Enfranchisement Premiums

The inclusion of ‘hope value’ in the valuation of leasehold enfranchisement could increase the premium for leaseholders wanting to buy their freehold, as the potential for rooftop development is now seen as more likely.

Leaseholders Face Higher Costs for Structural Assessments

Leaseholders may incur additional costs for determining if their building can structurally support additional floors, which will affect the overall enfranchisement price.

Freeholders May Delay Roof Space Leases to Increase Enfranchisement Costs

The planning changes could lead freeholders to hold off on creating roof space leases, as the potential for extra development increases the enfranchisement price and complicates the process for leaseholders.

Legal Uncertainty Around Feasibility of Additional Storeys

A key concern is whether it is physically possible to add extra storeys to some buildings, with leaseholders potentially facing significant costs to prove that their building cannot support further development.