Residential Leasehold Consultation Update

The outcome of a consultation exercise conducted by the Department for Communities and Local Government on proposals for increasing leasehold upper value limits has been announced. Upper value limits determine eligibility of residential long leaseholders to rights to remain in their flats at the end of their lease terms or to extend their lease under existing legislation. Although with just 17 responses, there was a low level of response to the consultation, there was general support for updating the value limits. In the light of the overall response, the Government has decided that - subject to a revised Impact Assessment legislation on these value limits should proceed in 2012 with a view to implementation in 2014. This will give businesses and leaseholders time to become aware of and plan for the new limit.