Context
The Hillcrest estate in Highgate, with 84 years remaining on leases, seeks clarity on Government reforms to avoid the costs of extending leases under current law.
Question
Leaseholders on the Hillcrest estate in my constituency have written to me because they have 84 years left on their leases. They are unsure whether they should wait for the government reforms—which they welcome—or proceed with lease extension now to avoid the costs of incurring marriage value. Their fear is that they will extend under the current law and then better terms will be brought in by new legislation. May I ask him urgently to provide further clarity on the timings of the proposed reforms?
Answer from The Minister for Housing and Planning (Matthew Pennycook)
I appreciate fully that leaseholders with leases approaching 80 years remaining want clarity on when the enfranchisement provisions in the 2024 Act will be brought into force. To bring those provisions into force, we need to not only consult on valuation rates but rectify through primary legislation the small number of serious flaws in the 2024 Act that the previous Government bequeathed to us. The latter is obviously a more challenging proposition than the former, but we intend to make the necessary fixes as soon as possible so that leaseholders can begin to benefit from the new valuation process.
Not addressed: Specific timing of implementation was not provided
How: Rectify Through Primary Legislation, Consult On Valuation Rates
Was this summary accurate? Tell us
How accurate was this summary? (1 = poor, 5 = spot on)