The Law Commission’s report on enfranchisement reform published today strives to find a solution to the difficult balance between making the process simpler and cheaper for tenants yet at the same time respect that landlords must be compensated fairly.
The commission has proposed three broad schemes with associated reforms:
1) assumes leaseholder in never in the market [abolish marriage value entirely];
2) assumes the leaseholder is not now in the market but maybe in the future [adopts a form of discounted marriage value referred to as hope value]; and:
3) assumes the leaseholder is in the market [adopts marriage value per the current status quo]
which will give the Government much food for thought as to how it will intend to amend the current law.
Options for reforming valuation in leasehold enfranchisement published by Law Commission