Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government whether they will take into account the European Convention on Human Rights when assessing their proposals for comprehensive leasehold reform, including the abolition of marriage value.
Answered by Lord Greenhalgh
The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service.
Under the current system, too many leaseholders find the process for extending their lease or buying their freehold (a process known as enfranchisement) too complex, lacking transparency and prohibitively expensive.
We will reform the process of enfranchisement valuation that leaseholders must follow to calculate the cost of extending their lease or buying their freehold. The Government will abolish marriage value, cap the treatment of ground rents at 0.1% of the freehold value, and prescribe rates for the calculations at market value.
These changes to the enfranchisement valuation process will result in substantial savings for some leaseholders, particularly those with less than 80 years left on their lease. Our reforms to enfranchisement valuation also ensure that sufficient compensation is paid to landlords to reflect their legitimate property interests.
In line with usual practice, the Government’s intention would be to publish an impact assessment and a section 19(1)(a) Human Rights Act 1988 statement on our leasehold reforms as part of taking primary legislation through Parliament.
The Leasehold Reform (Ground Rents) Bill, introduced into Parliament on 12 May, will make homeownership fairer and more transparent for thousands of future leaseholders, by legislating to prevent landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent.
The Government considers the provisions of the Leasehold Reform (Ground Rent) Bill are compatible with the European Convention on Human Rights (ECHR).
Specifically, we consider that the Bill engages with the following ECHR rights: Article 6: right to a fair trial; and Article 1 of Protocol 1: protection of property, that the proposals are compatible with the ECHR, and that any interferences can be justified.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made, if any, of the application of the European Convention on Human Rights to the rights of freeholders.
Answered by Lord Greenhalgh
The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service.
Under the current system, too many leaseholders find the process for extending their lease or buying their freehold (a process known as enfranchisement) too complex, lacking transparency and prohibitively expensive.
We will reform the process of enfranchisement valuation that leaseholders must follow to calculate the cost of extending their lease or buying their freehold. The Government will abolish marriage value, cap the treatment of ground rents at 0.1% of the freehold value, and prescribe rates for the calculations at market value.
These changes to the enfranchisement valuation process will result in substantial savings for some leaseholders, particularly those with less than 80 years left on their lease. Our reforms to enfranchisement valuation also ensure that sufficient compensation is paid to landlords to reflect their legitimate property interests.
In line with usual practice, the Government’s intention would be to publish an impact assessment and a section 19(1)(a) Human Rights Act 1988 statement on our leasehold reforms as part of taking primary legislation through Parliament.
The Leasehold Reform (Ground Rents) Bill, introduced into Parliament on 12 May, will make homeownership fairer and more transparent for thousands of future leaseholders, by legislating to prevent landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent.
The Government considers the provisions of the Leasehold Reform (Ground Rent) Bill are compatible with the European Convention on Human Rights (ECHR).
Specifically, we consider that the Bill engages with the following ECHR rights: Article 6: right to a fair trial; and Article 1 of Protocol 1: protection of property, that the proposals are compatible with the ECHR, and that any interferences can be justified.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made of the claims by some large freeholders and hedge funds that the abolition of (1) ground rents, and (2) marriage value, will breach their human and property rights under the European Convention on Human Rights.
Answered by Lord Greenhalgh
The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service.
Under the current system, too many leaseholders find the process for extending their lease or buying their freehold (a process known as enfranchisement) too complex, lacking transparency and prohibitively expensive.
We will reform the process of enfranchisement valuation that leaseholders must follow to calculate the cost of extending their lease or buying their freehold. The Government will abolish marriage value, cap the treatment of ground rents at 0.1% of the freehold value, and prescribe rates for the calculations at market value.
These changes to the enfranchisement valuation process will result in substantial savings for some leaseholders, particularly those with less than 80 years left on their lease. Our reforms to enfranchisement valuation also ensure that sufficient compensation is paid to landlords to reflect their legitimate property interests.
In line with usual practice, the Government’s intention would be to publish an impact assessment and a section 19(1)(a) Human Rights Act 1988 statement on our leasehold reforms as part of taking primary legislation through Parliament.
The Leasehold Reform (Ground Rents) Bill, introduced into Parliament on 12 May, will make homeownership fairer and more transparent for thousands of future leaseholders, by legislating to prevent landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent.
The Government considers the provisions of the Leasehold Reform (Ground Rent) Bill are compatible with the European Convention on Human Rights (ECHR).
Specifically, we consider that the Bill engages with the following ECHR rights: Article 6: right to a fair trial; and Article 1 of Protocol 1: protection of property, that the proposals are compatible with the ECHR, and that any interferences can be justified.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government, further to the Written Answer by Lord Greenhalgh on 25 January (HL12025), whether 90 year lease extensions will still be an option after the proposed forthcoming leasehold reforms.
Answered by Lord Greenhalgh
The Government remains committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service.
Through our reforms the length of a statutory lease extension will increase to 990 years, replacing the current 90 years for flats and 50 years for houses. Long leases provide long term security for leaseholders and saves them from paying for multiple lease extensions.
The Law Commission’s report on enfranchisement contains recommendations relating to lease extensions that are not on statutory terms. We will respond to the Law Commission’s remaining recommendations on enfranchisement as well as commonhold and right to manage in due course.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made of the number of leaseholders who will be able to afford extending their leaseholds by 990 years.
Answered by Lord Greenhalgh
Long leases provide long term security for leaseholders and save them money by avoiding the need for multiple lease extensions
The Government remains committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service.
Our reforms seek to achieve this, by taking account of the legitimate rights of freeholders but addressing historic imbalance to ensure fairness for leaseholders. We will continue to ensure we meet this objective as we bring forward reforms.
In line with usual practice, the Government’s intention would be to publish an impact assessment on our leasehold reforms as part of taking primary legislation through Parliament.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made of the impact that proposals to extend leases to a minimum of 990 years could have on the interests of freeholders.
Answered by Lord Greenhalgh
Long leases provide long term security for leaseholders and save them money by avoiding the need for multiple lease extensions
The Government remains committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service.
Our reforms seek to achieve this, by taking account of the legitimate rights of freeholders but addressing historic imbalance to ensure fairness for leaseholders. We will continue to ensure we meet this objective as we bring forward reforms.
In line with usual practice, the Government’s intention would be to publish an impact assessment on our leasehold reforms as part of taking primary legislation through Parliament.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made of the affordability of leaseholders extending their leases by 990 years.
Answered by Lord Greenhalgh
Long leases provide long term security for leaseholders and save them money by avoiding the need for multiple lease extensions
The Government remains committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service.
Our reforms seek to achieve this, by taking account of the legitimate rights of freeholders but addressing historic imbalance to ensure fairness for leaseholders. We will continue to ensure we meet this objective as we bring forward reforms.
In line with usual practice, the Government’s intention would be to publish an impact assessment on our leasehold reforms as part of taking primary legislation through Parliament.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government, further to the Written Statement by the Secretary of State for Housing, Communities and Local Government on 11 January (HCWS695), whether leaseholders will retain the right to extend their leases by 90 years.
Answered by Lord Greenhalgh
The Government remains committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service.
Through our reforms the length of a statutory lease extension will increase to 990 years, replacing the current 90 years for flats and 50 years for houses. Long leases provide long term security for leaseholders now and in the future and save money by avoiding the need for multiple lease extensions.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made of the effect of their proposed leasehold reforms on the break-up of large freehold estates in major cities like London.
Answered by Lord Greenhalgh
The Government remains committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service.
Our reforms seek to achieve this, by taking account of the legitimate rights of freeholders but addressing historic imbalance to ensure fairness for leaseholders. We will continue to ensure we meet this objective as we bring forward reforms.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made of the impact that the extension of leases by 990 years by all leaseholders in a block of flats would have on the viability of commonhold.
Answered by Lord Greenhalgh
The Government will establish a new Commonhold Council as a partnership of industry, leaseholders and Government that will prepare homeowners and the market for the widespread take-up of commonhold
Long leases provide long term security for leaseholders now and in the future and save money by avoiding the need for multiple lease extensions. Through our reforms, the length of a statutory lease extension will increase to 990 years, from 90 years (for flats) and 50 years (for houses). Leaseholders will be able to extend their lease as often as they wish with zero ground rent.