LEFT IN THE DARK

Successive governments have regrettably complicated and confused what they refer to, totally inaccurately I might say, as a feudal, leasehold system.  Even as I write this in late October 2025 we are embroiled in a mire of legal uncertainty brought about by the ongoing judicial review relating to the Leasehold and Freehold Reform Act, 2024.  Will those controversial issues concerning marriage value, recoverable, landlord costs and the capping of ground rents found in that legislation be implemented and if so when? 

As things presently stand we are waiting for what will likely be a freeholder appeal to the very recent High Court ruling that all those favourable, leaseholder outcomes found in the act should be allowed to be implemented.  Any such appeal needs to be made within 21 days of the ruling so we shouldn’t have to wait long.  It must be said that it’s not looking too good for the freeholders at this moment and the odds of this appeal happening look pretty short but what do I know?  If it is to be allowed and works its way up through or around the Court of Appeal to the Supreme Court and maybe even on to Strasburg this could take years.  That said even if it dies here and there is no appeal (unlikely) or it is disallowed (more likely but far from certain) we’ll be left with the government facing the challenge of introducing that secondary legislation that was always envisaged to make the act workable.  This from a government who were never involved in its incredibly rushed passage through parliament in the wash-up to the Tories’ demise and have always claimed to have their own, separate (and obviously ‘better’ but no doubt customarily unworkable*) agenda.  [*Forgive the scepticism of a very ageing valuer].

Feeling confident?  Me neither and trust me when I say that we professional, leaseholder practitioners are just as much in the dark as are our hapless clients.  So what can I do as a mere valuer pawn in the game?  Aside that is from speculating that the game is very probably far from finished with absolutely no certainty of outcome.  Meanwhile of course the world continues to turn and individual circumstance will inevitably arise that force the question to be asked.  To extend or not to extend?  My input, such as it is, would necessarily be limited to setting out the broad strokes of such legal implications as might possibly now arise and how I can possibly assist in the interim.

The possible implications

I’m going to limit this to the individual leaseholder context as the collective issue would be beyond any sensible review of this nature.  Clearly those three main facets of the ‘24 act would, on the face of it at least, be beneficial to leaseholders generally and in particular those with shorter terms and/or over-engineered ground rents.  That’s were the act to be implemented in its present form with no material variation - however long that might take!  Would there be a sting in the tail though with the distinct possibility of some tactical reduction in deferment rate for which there is, I should say, a pretty persuasive, technical case?  Marriage value was essentially the pragmatic sop to the freeholders back in ’93 so there is a precedent for this sort of thing.  Squeezing that rate down, in dribs and drabs no doubt, would be a very significant ouch for anyone with a lease in the eighties or nineties say and, depending on how far it went, it could wipe away some or possibly all of that marriage value advantage that was looking so attractive to the sub-80 people.  To give you some idea if it should come down from the present 5.0% to maybe 3.5% or even 3.75% (and there are as I say very credible arguments for it) it would potentially see the former have their premiums doubled and the latter lose all that hard-won marriage value gain.  Still, I’m sure the government know what they’re doing* {*….. forgive again].

In short black and white it is not and the room is still very dark to my eyes anyway.

My assistance

All I can really offer here is the best help I can give in seeking to limit the damage of premium payment to anyone who should wish to proceed with an application in the prevailing circumstances and to provide some certainty as to my fee charges for doing so.  Happily now in my semi-retirement mode I can offer my services without attracting VAT which you might think is a good start.  Beyond that, however, I can offer some pretty reasonable fixed fees for each and every stage in the new lease application process; the valuation, the negotiations and, heaven forbid, the tribunal scenario.

For anyone who may be interested, whether you be leaseholder or solicitor, I would be happy to provide my fixed fee schedules in all of the above so please just let me know if you would like to receive same and I will gladly forward a copy.