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Written by Tarah Welsh, a housing reporter, a recent legal challenge has been initiated by a group of landowners in the High Court to contest the government’s efforts to reform the freehold and leasehold system of property ownership. This challenge is based on claims that the legislation introduced in 2024 infringes on their human rights under the European Convention of Human Rights. The group argues that the new laws contradict their right to enjoy private property, specifically concerning the freehold leases of numerous properties, predominantly flats.
The judicial review is set to commence at the High Court and is anticipated to span from Tuesday to Friday. While the Leasehold and Freehold Reform Act (LAFRA) was welcomed by leasehold campaigners for aiming to strengthen the rights of leasehold flat and house owners, some freeholders are challenging aspects of the new laws, particularly regarding price calculations for a lease extension. The freeholders argue that these changes could result in significant financial losses and prevent them from investing in areas where their properties are situated.
Leaseholders, on the other hand, are apprehensive that this legal challenge may impede the reform process and prolong their struggles with leasehold properties. One leaseholder, Phil Jones, expressed his frustration over the increasing ground rent of his leasehold flat, rendering it unsellable due to mortgage restrictions. Despite the Royal Assent received by the legislation, concerns persist regarding the delays caused by legal disputes initiated by the landowners.
The political landscape surrounding leasehold reform features contrasting perspectives, with the Labour government proposing further actions to abolish leasehold and implement a commonhold model. However, the government remains cautious about setting strict deadlines amidst the ongoing legal challenge. Leasehold groups have voiced discontent over being excluded from the case as representatives of flat owners. The impact of the legal challenge extends to entities like the John Lyon’s Charity, which foresees substantial revenue loss should the reform not accommodate exemptions for certain organizations
Read the full article from The BBC here: Read More
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