Document downloads - Leasehold enfranchisement
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Leasehold reform valuation in England and Wales
Published August 2015
Effective from 1 December 2015
Archived 12 March 2024
RICS is aware of current and pending government and regulatory reform of residential leasehold.
Valuers are reminded that they need to be aware of the latest market and legal position prior to undertaking work related to this area.
RICS are currently reviewing leasehold reform valuation guidance for members. The 2015 guidance has now been withdrawn.
Valuation undertaken by RICS members must continue to be undertaken in accordance with RICS Valuation – Global Standards, noting that some elements of leasehold reform valuation such as ‘Providing valuation advice expressly in preparation for, or during the course of, negotiations or litigation’ (PS1 section 5), are excepted from mandatory technical standards.
Leasehold reform valuations are specialist in nature and valuers must be appropriately qualified and competent.
RICS continues to engage with government, industry and valuation professionals on leasehold reform matters and has made a number of statements, including:
- Reforming Ground Rents in England and Wales
- Residential ground rent investment – UK valuation leaders forum commentary
Former editions are provided for information purposes only. -
Comparable evidence in property valuation (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
Covering most types of real estate asset, this information paper discusses the use of comparable evidence in property valuation and aims to outline the principles of comparable evidence use, encourage consistency in its application worldwide, address issues of availability and the use of comparable evidence under challenging market conditions and consider the potential sources of comparable evidence.
This information paper also discusses the use of comparable evidence in different circumstances and markets, whether volatile or inactive, as well as in developing markets, where comparable evidence is often more difficult to obtain and less familiar to valuers.
Although applicable to land and buildings used for commercial, industrial, residential, agricultural and associated purposes, this publication does not cover the use of comparable evidence in the valuation of plant and equipment. Business assets or personal property are also outside the scope of this information paper, however, many of the principles described may be relevant to these types of asset. -
Section 5 offer notice
Section 5 requires the landlord to serve an offer notice on the qualifying tenants of the flats contained in the property. Each offer notice must comply with the requirements set out in the subsection of Section 5 that relates to the particular proposed disposal:
Section 5A: a proposed contract to create or transfer an estate or interest in land (not applicable to the grant of an option or right of pre-emption);
Section 5B: a proposed sale at a public auction to be held in England and Wales;
Section 5C: a proposed grant of an option or right of pre-emption;
Section 5D: a proposed disposal not made in pursuance of a contract, option or right of pre-emption.
Where the disposal is wholly or partly non-monetary, the requirements of Section 5E must be complied with.
These document templates are provided as samples only. It is the user's responsibility to check and adapt them as necessary to suit the particular instruction and prevailing circumstances. -
RICS Valuation – Global Standards 2017 (ARCHIVED)
This document has been archived and is available on isurv for information purposes only.
The RICS Valuation – Global Standards 2017 took effect from 1 July 2017, the same date as the IVS 2017.
The accompanying Basis for Conclusions explains the rationale behind the more significant changes made in the final version of the Red Book 2017. Specifically, it addresses the main refinements made in consequence of the responses received to the public consultation. It has been produced purely to assist the reader and does not form part of the standards.
Following the publication of the new edition of IVS, an updated Red Book takes effect from 31 January 2020 in line with the IVS. -
Valuation of residential leasehold properties for secured lending purposes
Published 27 May 2021
Effective from 1 July 2021
Reissued May 2023
This professional standard is intended to support valuers undertaking valuations for secured lending purposes on residential leaseholds in England and Wales.
The guidance supplements RICS Valuation – Global Standards (Red Book Global Standards), the UK national supplement 2018, and mortgage specification in appendix 10 of the 2014 edition of the latter, as revised in 2015.
The guidance has particular application for valuing diminishing lease terms of less than 80 years remaining, when marriage value becomes payable and, in many markets, there starts to be a material impact on market value.
Although the publication refers to the process for lease extension and enfranchisement, it is not a guidance note for undertaking valuations to that end.
RICS is aware of pending government and regulatory reform of residential leasehold, and it plans to update the contents of this guidance note in due course to take account of such reform. Readers of guidance related to leasehold should therefore familiarise themselves with the latest position before applying any advice.
This document was reissued in May 2023 as a professional standard. It had previously been published in May 2021 as a guidance note. No material changes have been made to the document.