The government has extended its consultation on leasehold enfranchisement valuation rates, pushing back the closing date for representations from 23 September to 21 October 2026. It will likely mean the draft legislation being further delayed into 2027.
The Leasehold and Freehold Reform Act 2024 (LFRA) promises a simpler and cheaper route for leaseholders to extend their lease or buy a share of the freehold. One of its headline measures is the creation a standard valuation method for calculating how much leaseholders must pay to buy their freehold, extend a lease or buy out their ground rent.
Whilst the legislation gives powers to the Secretary of State to set applicable deferment and capitalisation rates used to calculate the price paid for enfranchisement, it did not set those rates.
The consultation on leasehold enfranchisement valuation rates, opened in July this year, sought views on exercising those powers and approaches to setting rates.
Research exploring recent tribunal decisions on leasehold enfranchisement valuation rates, published by Estates Gazette (12 September), found existing rates ranging from 4.5% to 9%, mostly clustered between 6% and 7%, so where the proscribed figures land will be keenly watched and felt by landlords.
No reason for the extension to the consultation has been given, but it is perhaps the sheer technical difficulty of setting one rate that works fairly across leases of differing lengths and property that is behind the decision.
However, this extension to this consultation will undoubtedly add further delays, creating continued uncertainty for both landlords and leaseholders.
The consultation can be found here.
Mark Chick is the Joint Head of our expert Landlord & Tenant team.
If you have a query concerning leasehold property, then please contact the experts at Bishop & Sewell’s Landlord & Tenant team by emailing leasehold@bishopandsewell.co.uk or call on 020 7631 4141.
The above is accurate as at 15 September 2026.
The information above may be subject to change. The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
