Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Government Reviews Leasehold Valuation Rates
The government is currently consulting on the deferment and capitalisation rates to be prescribed under the Leasehold and Freehold Reform Act (LAFRA). These rates are used in leasehold enfranchisement valuation.
According to Property118, deferment and capitalisation rates are considered by many investors to be specialist valuation assumptions. However, they are described as among the most important numbers in practice for leasehold enfranchisement.
Letting agents and inventory clerks should be aware that changes to these rates could have significant implications for property valuations and transactions involving leasehold properties. The consultation aims to determine what rates should be set under the new legislation.
Source: Property118