On 9 January 2020, the Law Commission published a report setting out options to reduce leasehold enfranchisment costs.

The report puts forward three key schemes for determining the premium, each of which will make enfranchisement cheaper.

The Law Commission has been asked by the government to review the law in order to make the residential leasehold sector more transparent and fair. 

The commission received over 1,100 responses to its consultation paper published in September 2018.

Leaseholders advocated sweeping reform to lower enfranchisement costs, the commission said. However landlords and investors, including charities and pension providers, expressed opposing views.

The options include:

  • capping the level of ground rent to calculate the premium
  • creating an online calculator to work out the cost of enfranchisement.