More challenges to come as Hands takes government to task over LEFRA—Property Week
Partner Shabnam Ali-Khan has been quoted in an article in Property Week which explores the latest challenge to the Leasehold and Freehold Reform Act brought by Annington Properties last month.
While some provisions of the Act became law in July, the majority are still to be enacted in secondary legislation, including those that introduce a mechanism to calculate compensation payable to landlords when they are subject to claim for the enfranchisement of a lease. This mechanism only applies to ground rents, which Annington’s leases are not, prompting the company to take action on the basis this loophole could affect it.
Commenting on how the case brings to light flaws in the new legislation, Shabnam Ali-Khan says:
The valuation principles need further consideration to ensure fairness and clarity across the market. Many leaseholders are even more confused now and having to make tough decisions on whether to wait to extend their lease or get on with it now.”
We receive numerous enquiries from potential leaseholders and freeholders on the reform and the current state of play. It is increasingly difficult for practitioners to navigate this for clients and potential clients as the position remains unclear."
The article is available to read at Property Week by subscription only.
Shabnam Ali-Khan is a partner in the residential property team specialising in lease extension and enfranchisement matters.
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