Lease Extension Policies for Residential Properties

Lord Young of Cookham Excerpts

Tuesday 30th July 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend for his championing of Crown leaseholders and the Scilly Isles, and for this offer to visit. You do not have to be a Foreign Office Minister to go to beautiful and exotic places. The undertaking confirms that the Crown will act by analogy, but it is well established that Acts of Parliament for England and Wales do not bind the Crown unless the Act expressly states that this is the case or does so by necessary implication. Instructing the Duke of Cornwall is probably a bit beyond my ministerial powers. The undertaking for the Act delivers similar improvements to those that leaseholders would have if the Leasehold and Reform Act 2024 were to bind the Crown directly. The difference is therefore largely a matter of delivery. Binding the Crown to the Act’s provisions is therefore felt to be unnecessary.

[Lord Young of Cookham (Con)]

But does the Minister remember the debate on an amendment to the then leasehold Bill in my name on this very subject? Although as she said, in a nutshell, the Crown Estate is not bound by the law on enfranchisement, it voluntarily agreed 30 years ago, when I was the responsible Minister, to abide by its provisions. It has broadly done so in respect of freeholds that it originally owned, but it is not doing so in respect of freeholds that it acquires by an obscure process known as escheat. I believe this is contrary to the agreement that I reached with it 30 years ago, so will the Minister agree to support my amendment to the Crown Estates Bill to close this loophole?

[Baroness Taylor of Stevenage (Lab)]

My Lords, as the noble Lord says, when property becomes ownerless, the land and buildings escheat to the Crown. That includes the Crown Estate and the royal duchies of Lancaster and Cornwall. If a purchaser is interested, the Crown can sell it so it goes back into private ownership, or the leaseholders are able to collectively purchase the freehold from the Crown. The Government recognise very much that when a freehold becomes ownerless it causes significant problems for leaseholders, but ownerless goods and escheat are complex areas of law, as I have discovered since I heard the noble Lord’s original discussion on this, and need to be considered very carefully. The Law Commission has flagged ownerless land as a possible project for inclusion in its 14th programme of law reform; I think we will be very interested to see what comes out of that review.