A covenant to repair is not a covenant to modernise

The Upper Tribunal’s decision in Mountview Estates Plc v W8 Property Ltd [2026] UKUT 196 (LC) provides useful guidance on the condition in which a flat is to be valued when calculating the premium payable for a statutory lease extension.

The case concerned a flat which both parties’ valuers described as “uninhabitable”. The landlord argued that the valuation should nevertheless assume that the flat had been brought up to a clean, modern and readily marketable standard because the lease required the tenant to keep it in “good tenantable repair”.

Draft Commonhold and Leasehold Reform Bill

In January 2026 the Government published the Draft Commonhold and Leasehold Reform Bill, confirming its intention to cap ground rents in existing residential leases at £250 per annum, with a longer-term objective of reducing those rents to a peppercorn. Another proposal by the Bill is to ban the creation of new leaseholds and instead to make commonhold the default mode of flat ownership.

The Bill has been published in draft form only and is subject to pre-legislative scrutiny, consultation and amendment. It is important for leaseholders, landlords and managing agents to understand the effects of the proposals and the likely timescale for their implementation.

Buying a house with an annexe and Stamp Duty Land Tax

Before you bid for a houses with an annex you need to carefully consider the amount of Stamp Duty Land Tax (SDLT) you will have to pay; it is complicated.