Leaseholders Urged to Act Quickly as Planning Changes Will Raise Freehold Costs

New planning reforms will increase the cost for leaseholders seeking to buy the freehold of their building, with experts advising immediate action.

New Permitted Development Rights to Add Costs for Leaseholders

The expansion of permitted development rights will allow freeholders to add two storeys to residential blocks, affecting leaseholders' ability to enfranchise.

‘Hope Value’ Set to Drive Up Enfranchisement Premiums

The introduction of a positive presumption for “hope value” in property valuations will likely lead to a significant increase in the enfranchisement premium for leaseholders.

Leaseholders May Face Additional Costs for Structural Assessments

Leaseholders could incur costs to determine whether their building can support additional storeys, which will impact the cost of enfranchisement.

Freeholders Could Delay Roof Space Leases to Inflate Prices

Freeholders may delay granting roof space leases to create uncertainty and increase the enfranchisement price, making it more difficult for leaseholders to buy the freehold.

Urgency for Leaseholders to Act Before Planning Reforms Take Effect

With changes set to be implemented soon, leaseholders are advised to act now to avoid incurring higher costs when trying to buy the freehold of their building.