Leasehold and Freehold Reform Bill

Debate between Baroness Scott of Bybrook and Baroness Deech

Committee stage
Wednesday 24th April 2024 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, I thank my noble friends Lord Howard and Lord Moylan for their amendments in this group. Amendments 26 and 27 would require marriage value or possible hope value to be payable by a leaseholder who has fewer than 80 years remaining on their lease on the passage of the Act.

The Government’s stated objective is to make it cheaper and easier for leaseholders to extend their lease or acquire their freehold. We want them to attain greater security of tenure. The amendments are directly counter to our objective. In particular, they would prevent us from helping the trapped leaseholder—that is, a leaseholder with a short lease who is unable to afford to extend because of the prohibitive marriage value payable, and so is trapped with an asset of diminishing value.

We do not believe that the leaseholder should have to pay marriage value. For the freeholder, the marriage value that is payable under the current law is a windfall created by the freehold and leasehold interests being married earlier than they otherwise would have been—namely, at the end of the lease. It is a sum that the freeholder would not receive if the lease ran its course. Parliament has previously determined that the value should be split equally and the leaseholder should pay half of it to the freeholder on enfranchisement, but we do not believe that freeholders should continue to receive that windfall.

The leaseholder needs to enfranchise, because by its very nature a lease is a wasting asset. Without either extending their lease or buying their freehold, they will suffer financial loss as the lease runs down or lose possession when it has fully run down. Nor has the lease- holder meaningfully chosen to enter such an arrangement, since leasehold is very often the only available form of tenure outside the rented sector at certain price points or in certain locations. The lease- holder’s need to enfranchise is born out of their insecurity of tenure; that is, out of the inherent injustice of the leasehold system. Our objective is to enable them to obtain greater security and to address that inherent injustice. By not having to pay marriage value to the freeholder, the leaseholder’s ability to obtain security of tenure is much improved.

A third party who bought the landowner’s interest would not pay marriage value, and we do not think it is right that the leaseholder should pay more than that same interest. Requiring leaseholders to pay more than a third party—or, in other words, enabling the freeholder to profit from the sale to a leaseholder by comparison to a third party—is to punish the leaseholder for their need to enfranchise, and therefore to affirm the very injustice we are trying to address.

The noble Earl, Lord Lytton, and many other noble Lords brought up compensation. Under our valuation scheme, the freeholder is compensated as if the lease simply ran its course. We believe that this is adequate compensation; it is sufficient to reflect their legitimate property interests.

Amendments 26 and 27 would also further complicate an already complex system. They would create a new two-tier system, with different rules for leases that were under 80 years at the time of the Act and those that fell under 80 years thereafter. This is undesirable, as it runs contrary to our stated aim to simplify this complex tenure.

Before I move on to Amendment 29, I will answer one or two specifics. First, the issue of human rights has been brought up by a number of noble Lords. The Government consider that all provisions in the Bill are compatible with the relevant convention rights and that in the case of the provisions engaging Article 8 and A1P1 any interference is justified and proportionate. There is a GOV.UK page where noble Lords can read further information on that should they wish.

The noble Baroness, Lady Deech, also brought up phasing, which is important. Following Royal Assent, we will allow time for a smooth transition to a new system, while making sure that leaseholders and freehold home owners on private and mixed-tenure estates— which is an issue—can benefit from it as soon as reasonably possible. We will also support leaseholders, freeholders, landlords and agents to adjust to and understand the new rules. We will work with delivery partners to make sure that the necessary support is in place, including through the publication of appropriate guidance.

[Baroness Deech (CB)]

I am grateful to the Minister for those comments. It reminds me that in the case of the 1925 legislation, the centenary of which approaches us, there were six different statutes with a long lead-in time. Apparently, many solicitors gave up practice entirely because they could not cope with the new law, so it is good to know this will be gently introduced.

On human rights, I am all in favour of the European convention; I would not want to drop it. I just find it rather dismaying that if the possible claimant were a hedge fund manager or a rich freeholder then we should not worry about them. The point about the European Convention on Human Rights is, whether you like the claimant or not, the thing must be taken as a whole; we cannot pick and choose. I would like some disassociation from the notion that hedge fund managers and rich freeholders should not have their rights considered under that convention.

Holocaust Memorial

Debate between Baroness Scott of Bybrook and Baroness Deech

Thursday 22nd June 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, the memorial is a manifesto commitment which has cross-party support and has been endorsed by all living Prime Ministers. The Chief Rabbi, who sits on the UK Holocaust Memorial Foundation comittee, is fully behind the Government’s proposals, as are leading representatives of the Jewish community, other faith and community leaders, survivors, refugees and the wider public. Their voices were heard at the planning inquiry, emphasising the importance of the memorial and learning centre as a way of providing Holocaust victims and the remaining survivors the prominence in this city that they deserve.

[Baroness Deech (CB)]

My Lords—

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[Baroness Deech (CB)]

My Lords, I declare an interest as honorary president of the National Jewish Assembly. I support the noble Lord, Lord Lee, in drawing attention to the almost total lack of consultation on the memorial. All efforts to open dialogue and to have discussions and round tables have been met with silence, and sometimes abuse. Victoria Tower Gardens is a green enclave, and the dangers of digging down two storeys with piledrivers, which could cause unimaginable damage, have not been taken on board when there are decent alternative sites with as much dignity and more space. I speak for a number of Holocaust survivors in this.

[Baroness Scott of Bybrook (Con)]

I know how strongly the noble Baroness feels about this issue, and I respect everything she has to say. We have had meetings and we are willing to have more; she only has to get in touch with me. However, the planning inquiry in October 2022 enabled all interested parties to express their views on the proposed Holocaust memorial and learning centre, and a full list of witnesses is available in the planning inspector’s report on GOV.UK. Officials regularly meet organisations representing survivors of the Holocaust and Nazi persecution and those representing the survivors of subsequent genocides to discuss the latest developments, and we will continue to do so.

Pensions: Gender Gap

Debate between Baroness Scott of Bybrook and Baroness Deech

Tuesday 13th July 2021 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, it is important that all savers can easily access their pension savings, so that they can plan to retire when they want. We are introducing pension dashboards to help make accessing pensions information much easier. We are also introducing shorter, simpler pension statements to help all members of the automatic enrolment scheme engage with their pension savings.

[Baroness Deech (CB) [V]]

Some 200,000 women have been underpaid their state pensions for up to 20 years. I might be one of them. I declare an interest as the proud recipient of £6.79 a week. Yet there is little movement on the part of the DWP, and I and those others cannot find out. Letters go unanswered and messages say, “Don’t contact us, we’ll contact you”. How long will it take to achieve repayment?

[Baroness Scott of Bybrook (Con)]

My Lords, the DWP is working extremely hard on making sure that these underpayments are repaid. It is putting in a new team of 360 people to work through it, and we hope that all those underpayments will be paid by the end of 2024.

Racism

Debate between Baroness Scott of Bybrook and Baroness Deech

Monday 15th March 2021 Lords Chamber

[Baroness Scott of Bybrook (Con)]

As I have said, the commission has one final meeting to finalise its report. After that, the report will go to the Prime Minister and then it will come back for us to look at its recommendations.

[Baroness Deech (CB) [V]]

My Lords, David Baddiel’s latest book is called Jews Don’t Count. Bigotry against Jews and Israel is rampant in our universities, from the top of the administrations through the academics to the students, as evidenced by the Community Security Trust. The problem is institutional—for example, at Bristol University right now. The Universities UK report last November on racial harassment ignored it. Will the Minister make sure that the Office for Students uses its current consultation on harassment on campus to bring forward plans to address anti-Semitism?

[Baroness Scott of Bybrook (Con)]

We certainly will, and I will take that back to the department on behalf of the noble Baroness.

Divorce, Dissolution and Separation Act 2020

Debate between Baroness Scott of Bybrook and Baroness Deech

Tuesday 13th October 2020 Lords Chamber

[Baroness Scott of Bybrook (Con)]

The 20-week rule is an important part of the Act and the Family Procedure Rule Committee is going through all the issues required. I cannot tell the noble Baroness exactly when this will happen, but it will be an important part of the procedure that will come into being in autumn 2021.

[Baroness Deech (CB) [V]]

My Lords, during the debates on the passage of the then Bill, it was acknowledged that the most divisive, bitter, wasteful and expensive element of a divorce is the financial settlement and that the law on this needs reform. Without this, the new divorce law will not achieve its stated objective of no fault. The noble and learned Lord, Lord Keen, gave a commitment on 16 March that the law on financial provision will be reviewed. Can the Minister update the House on its progress?

[Baroness Scott of Bybrook (Con)]

Yes, the noble and learned Lord, Lord Keen, did say that. The Lord Chancellor has set up a working group to assess any evidence to change the law on financial provision for divorce. This review will be led by evidence, which is yet to be gathered, on whether there are problems with the current law. The Ministry of Justice is considering the membership and terms of reference of that working group.