Planning Deregulation to Increase Enfranchisement Costs for Leaseholders

New government reforms allowing rooftop developments without planning permission will raise the cost for leaseholders wanting to buy their building's freehold.

‘Hope Value’ Will Drive Up the Cost of Buying Freeholds

The introduction of “hope value” into the valuation process will increase the enfranchisement premium, making it more expensive for leaseholders to purchase their freehold.

Leaseholders Face Additional Costs for Structural Assessments

As part of the reforms, leaseholders may need to pay for structural assessments to determine if their buildings can support additional storeys, further increasing costs.

Freeholders Could Delay Roof Space Leases to Inflate Costs

Freeholders may withhold roof space leases, knowing that the possibility of rooftop development will raise the enfranchisement cost, causing a delay in the process.

Legal Uncertainty Over Feasibility of Adding Extra Storeys

A key issue for leaseholders is whether their building can physically support additional storeys, with legal battles potentially determining the outcome.

Urgency for Leaseholders to Act Before Reforms Take Effect

With planning reforms set to come into effect soon, leaseholders are urged to act quickly to avoid paying higher costs when attempting to buy the freehold of their building.