ALEP has raised concerns over the government’s acknowledgement that known flaws in the Leasehold & Freehold Reform Act 2024 (LAFRA) are delaying commencement of key enfranchisement provisions. In particular, it is seeking publication of the proposed amendments and clarification of the precise areas within the Act that ministers believe require revision. It also wants an update on progress relating to consultation on capitalisation and deferment rates.

ALEP argues that if specialist enfranchisement practitioners are able to review proposed changes before introduction, there is a better chance of avoiding further implementation problems later.

Mark Chick, ALEP director and Senior Partner at Bishop & Sewell LLP said: “Reform in this area is both necessary and welcome, but it needs to be operable. The legal and valuation framework must be clear enough for leaseholders, freeholders and professional advisers to understand how the system will work in reality. Where government has identified flaws or intends to rely on further regulations, those points should be visible and open to scrutiny now rather than after the event.”

ALEP states that the valuation aspects of the draft Commonhold & Leasehold Reform Bill are deeply intertwined with LAFRA and should not be treated as a separate technical afterthought. Among the issues it identifies are the position of non-participants in collective enfranchisement claims, the treatment of former freeholders in a post-enfranchisement commonhold structure and the handling of intermediate leases.

It warns that too much appears likely to be left to delegated powers and future regulations, despite the significance of those details to cost, fairness and take-up. ALEP calls for key valuation mechanisms to be clarified in primary legislation where possible, particularly where they could determine whether later participants gain an unintended advantage over those who initially bore the cost and risk of acquiring the freehold.

In conclusion, Mark Chick says, “While the prospect of leasehold reform is politically attractive in headline terms, its ultimate success in delivery depends on the technical aspects. As we have seen with LAFRA, when it comes to the law relating to enfranchisement, the key is very much in the detail. We welcome the chance to continue our dialogue with government during the course of this bill to ensure workable outcomes for all involved.”

Based in Chelsea, Principia manages around 250 buildings and developments, many of which sit within conservation areas and include some of the most valuable residential assets in the UK. With more than 40 years’ heritage, the business has built a reputation for delivering high-quality, hands-on management in a market defined by complexity, regulation and high client expectations.

The acquisition significantly strengthens LRG’s block management division in the Royal Borough of Kensington and Chelsea, adding a well-established brand with deep local expertise and long-standing client relationships. Principia will continue to operate under its existing name, with its Chelsea office remaining in place. All staff will transfer to LRG, ensuring continuity for clients, including Director, Simone Carlon and Group Partner, Julian Chambers, who will continue to lead the business, supporting the transition and working alongside LRG to drive its next phase of growth.

Matthew Light, Group Mergers & Acquisitions Director at LRG, commented, “Simone and the team have built an exceptional business with a strong reputation across Chelsea and the surrounding areas. We are keen to retain and grow the Principia brand, supporting its continued success while exploring opportunities to expand its reach across other London markets. This is exactly the type of business we look to partner with, established, respected and well positioned for growth.”

Michael Cook, Chief Executive Officer at LRG, commented, “Principia operates in one of the most demanding areas of the UK property market, where the quality of management is critical. Their portfolio, expertise and reputation make them a natural fit for our business. The Principia brand has been built on consistently high standards and strong client relationships, and that identity will remain an important part of the business as we continue to strengthen our presence in Prime Central London.”

Simone Carlon, Director, Principia, commented, “Principia has always focused on delivering a personal, high-quality service in a complex and competitive market. Joining LRG allows us to continue that approach while benefiting from additional scale and support. We are excited about what we can achieve together.”

This acquisition reflects LRG’s continued focus on expanding its full-service estate agency offering, with ongoing interest in partnering with high-quality businesses across sales, lettings and property management.