The Leasehold and Freehold Reform Bill is currently working its way through Parliament. It is proposing some radical leasehold reforms heavily in the leaseholder’s favour. These include significant changes to the landlord’s ability to recover costs when leaseholders exercise their legal rights to enfranchise or extend their leases for flats and houses. Before we delve into the somewhat complex proposals, it is useful to have an overview of the current position.
Current position
The Leasehold Reform Act 1967 governs the rights of qualifying tenants to acquire the freehold or a 50-year lease extension of their house. Pursuant to s 9 of the 1967 Act, the landlord is entitled to recover their reasonable costs in relation to most aspects of the claim, including investigating the right to acquire or extend, as well as the conveyancing and the valuation costs. The Leasehold Reform Housing and Urban
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