Leasehold Enfranchisement Process Costs Exceptions: Consultation

Overview

The Leasehold and Freehold Reform Act 2024 (LFRA 2024) provides a new rule that all parties to a leaseholder’s claim to extend their lease, buy their freehold or buy out their ground rent liability should bear their own non-litigation costs (legal and valuation costs, also referred to as “process costs”), unless one of three limited exceptions applies.  

This consultation seeks views on exercising the powers introduced by the LFRA 2024 that allow the Secretary of State and the Welsh Ministers to implement these exceptions (under which leaseholders will still have to contribute to their landlord’s process costs) in regulations. In particular, it seeks views on the setting of “prescribed amounts”, which will be the maximum amounts payable by leaseholders towards their landlord’s process costs under each exception.  

This consultation also seeks views on a proposed fourth exception for certain third parties to leases, who may face insolvency risks if they are unable to recover process costs incurred as a result of leaseholder claims. 

​Please read the consultation document for full details before sharing your views, including the privacy notice which explains how we will use your data.