The Association of Leasehold Enfranchisement Practitioners (ALEP) has written to the Housing, Communities and Local Government Select Committee following oral evidence from director Mark Chick on 10 March.
The letter highlights technical issues with the Leasehold and Freehold Reform Act 2024 (LAFRA), including ground rents, valuation reforms and delays to key franchise provisions.
ALEP is seeking the publication of the proposed amendments, clarification of areas requiring amendment and an update on consultation progress for capitalization and deferral rates.
ALEP argues that if expert franchise practitioners are able to review proposed changes before introduction, there is a better chance of avoiding implementation problems later.
Mark Chick, Director of ALEP and Senior Partner at Bishop & Sewell LLP, said: “Reform in this area is necessary and welcome, but it needs to be driven. The legal and assessment framework must be clear enough for leaseholders, freeholders and professional advisers to understand how the system will actually work. Where the Government has identified loopholes or intends to rely on further rules, those points should be visible now rather than after the event and investigated. Should be open to.”
ALEP says that the valuation aspects of the draft Commonhold and Leasehold Reform Bill are deeply intertwined with LAFRA and should not be treated as a separate technical consideration. The issues it identifies include the status of non-participants in collective franchise claims, the treatment of former freeholders in the general post-suffrage structure and the management of intermediate leases.
It warns that despite the importance of those details to costs, fairness and take-up, too much is likely to be left to delegated powers and future rules. ALEP calls for key assessment mechanisms to be made explicit in primary legislation where possible, particularly where they may determine whether later participants receive a windfall benefit over those who initially incurred the cost and risk of acquiring the freehold.
Chick said: “While the prospect of leasehold reform is politically attractive in terms of title, its ultimate success in delivery depends on technical aspects. As we have seen with LAFRA, when it comes to franchise-related legislation, the key is in the very detail. We welcome the opportunity to continue our dialogue with the Government over the course of this Bill to ensure practical outcomes for everyone involved.”
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