Feb
25

RICS Consultation: Valuation of residential leasehold properties for secured lending purposes in E&W

The RICS is looking for technical and general feedback on the draft guidance note Valuation of residential leasehold properties for secured lending purposes in England and Wales to ensure it is understandable and covers the key challenges. RICS would like respondents to highlight anything that is missing from the guidance and make sure it suitably highlights good practice and impending reform. 

The draft guidance covers the key challenges in valuing residential leasehold properties such as lease terms and costs of occupancy (e.g. service charge, ground rent). Some leasehold charges have proved controversial in the market and the guidance raises awareness of their implications. The guidance discusses the legislation that allows leaseholders to secure a lease extension or purchase of the freehold under certain circumstances and their implications for valuation. The UK government set out summary proposals committing to further leasehold reform in a written statement of January 2021. At the time of consultation, the UK government has not produced a detailed timetable for proposed reforms. However, the subject guidance brings attention to the issue for valuers and wider stakeholders.  

The consultation closes on 5 March 2021. You can find the consultation page here