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LEASEHOLD REFORM NEWS
BBC Breakfast Biased Reporting
22 November - Leasehold Reform Campaigning
The BBC 1 Breakfast News programme of this day had a long section promoting Leasehold Reform. The tone of the report was completely focussed on a few anecdotal interviews with leaseholders unhappy with their service charges. The report then switched the the studio guest, who was the CEO of a Leasehold Reform campaigning group.
At no point did the BBC mention that leaseholders can already take over the management of their homes under Right To Manage legislation. Nor were the leaseholders with large one-off service charge bills asked for what purpose the significant sums were required. There was no mention of the requirement that any works costing more than £250 per flat must be signalled in advance so the leaseholders can challenge the work and put forward alternative contractors.
The report ended by listing all of the countries that do not have leasehold property laws. It concluded that as England and Wales are unique in this structure, the law nust be changed. Oddly, the BBC never uses this line of argument against the NHS! There was no representative of Freeholders to stand up against this disgracefully biased reporting.
Election Called
The election has been called. Last Friday, the Leasehold Reform Bill was rushed through. However, the most controversial section, regarding the abolition of Ground Rent, was entirely absent!
The bill does contain some useful terms, including standardisation of lease extension length, greater transparency of service charges and the banning of insurance commissions. Broadly, we suppport these measures in their efforts to "clean-up" the industry.
For further details from the Government itself, click here
EG (Estates Gazette) LEGAL EXPERTS AGREE WITH US
Guy Fetherstonhaugh KC and Jonathan Gaunt KC, writing in EG magazine of 9 March 2024 explains very clearly that an annual ground rent represents a reduction in the original lease premium, stating "were there no ground rent, the premium would be higher, to the tenant's detriment - it is as simple as that."
The pair are mystified about the "government's antipathy towards ground rents", noting that "leaseholders under existing leases will reap a windfall if ground rents are abolished". They quantify this windfall at £27.3bn.
However, Fetherstonhaugh and Gaunt believe that any such policy is unlikely to survive a challenge under the European Convention on Human Rights, commenting that "case law has established that the deprivation of property without any compensation is nearly always unlawful...."
Sunday Times
24 March 2024
The attached article announces that the Treasury is vetoing Michael Gove's plan to abolish ground rents.
Although it is not specified, we suspect this could be because the Government can see a possible compensation bill of £27bln pounds, payable to the existing owners of the freeholds, for the confiscation of their assets.
This would of course represent a terrible use of public funds. The beneficiaries would be leaseholders who have always had the right to purchase their freeholds themselves, but have never done so.
Sunday Times Letters
31 March 2024
Our letter achieved title spot in the Letters page of the Sunday Times. It is very positive now the media have realised that cancelling ground rents is not just about giving a windfall to leaseholders
FREEHOLD AND LEASEHOLD RESEARCH GROUP
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