Legislation – Leasehold and Freehold Reform Act 2024

Leasehold and Freehold Reform Act 2024, Section 37 is up to date with all changes known to be in force on or before 03 April 2026. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

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Part 2Leasehold enfranchisement and extension

Price payable on enfranchisement or extension

37Enfranchisement or extension: new method for calculating price payable

(1)

Where this section applies to the acquisition of a freehold or grant of a lease, the price payable is—

(a)

the market value, and

(b)

the other compensation (if any).

(2)

Schedule 4 sets out—

(a)

how the market value is to be determined — see Parts 1 to 5 and 7 of the Schedule, and

(b)

how to divide the market value into shares (where loss is suffered by certain landlords other than the landlord transferring the freehold or granting the lease) — see Part 6 of the Schedule.

(3)

Schedule 5 sets out when other compensation is payable and how to determine its amount.

(4)

Schedule 6 contains interpretation provision applicable to Schedules 4 and 5.

(5)

Schedule 7 contains amendments of the LRA 1967 and the LRHUDA 1993 that are consequential on sections 35 and 36, this section and Schedules 4 to 6.

(6)

These are the provisions under which this section applies to the acquisition of a freehold or grant of a lease—

(a)

section 9(A1) of the LRA 1967 (transfer of a freehold house under the LRA 1967);

(b)

section 14A(1) of the LRA 1967 (grant of an extended lease of a house under the LRA 1967);

(c)

section 32(1) of the LRHUDA 1993 (collective enfranchisement of a building under the LRHUDA 1993);

(d)

section 56(1)(b) of the LRHUDA 1993 (grant of a new lease of a flat under the LRHUDA 1993).

(7)

This section has effect subject to the following provisions (which provide for the adjustment of the price payable where property is in the area of a management scheme)—

(a)

section 19(10)(b) of the LRA 1967;

(b)

section 70(12)(b) and (c) of the LRHUDA 1993.

(8)

In this Part—

(a)

“transfer of a freehold house under the LRA 1967” means the conveyance or transfer of the freehold of a house and any other premises under Part 1 of the LRA 1967;

(b)

“grant of an extended lease of a house under the LRA 1967” means the grant of an extended lease of a house and any other premises under Part 1 of the LRA 1967;

(c)

“collective enfranchisement of a building under the LRHUDA 1993” means the acquisition by a nominee purchaser of a freehold and any other interests under Chapter 1 of Part 1 of the LRHUDA 1993;

(d)

“grant of a new lease of a flat under the LRHUDA 1993” means the grant of a new lease under Chapter 2 of Part 1 of the LRHUDA 1993.