Leasehold reform in England and Wales

RICS is aware of current and pending government and regulatory reform of residential leasehold, and 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 will look to review the contents of the subject guidance at a suitable later date. Leasehold reform valuations are specialist in nature and valuers need to be appropriately qualified and competent.

The third edition guidance note, published in August 2015, is effective from 1 December 2015. It applies only in England and Wales and is written on the basis of the law as at 1 June 2015.

(A minor error in example 5 was noted in the initial version published. The figure on the penultimate line of page 20 should have read £495,000 not £495,200. This has now been corrected.)

The purpose of this guidance note is to assist valuers in providing leasehold reform valuation advice whether they are acting for the freeholder (landlord), intermediate landlord or tenant. The provisions are highly complex, so this guidance note can only provide a brief outline of the most basic principles.

Former editions are provided for information purposes only.