delete The Valuation of Minor Intermediate Leasehold Interests (England) Regulations 2017
These Regulations establish standardized formulas for calculating the price payable for minor superior tenancies (under the Leasehold Reform Act 1967) and the value of minor intermediate leasehold interests (under the Leasehold Reform, Housing and Urban Development Act 1993) in England. The formulas use profit rent (R), a maturity rate derived from National Loans Fund interest rates (Y), and the number of years remaining (n). The Regulations also require the Secretary of State to conduct periodic reviews every 5 years, assessing whether objectives remain appropriate and could be achieved with less onerous provision.
These Regulations impose mandatory price-control formulas that replace market-determined valuations in leasehold transactions. Regulated pricing mechanisms of this type distort price signals, prevent parties from negotiating terms suited to their specific circumstances, and create bureaucratic compliance burdens. The formulas cannot account for the unique characteristics of individual leasehold interests, producing systematically incorrect valuations. Such technical regulations are precisely the type likely to have been gold-plated from EU directives, adding unnecessary complexity. The mandatory 5-year review requirement perpetuates ongoing regulatory supervision rather than allowing the market to determine valuation methods. Removal would restore flexibility to private contracting and allow professional valuers and parties to negotiate terms appropriate to each transaction.