A powerful group of landowners is today launching a legal challenge to the previous government’s Leasehold and Freehold Reform Act.

The six parties involved include Cadogan Estates and Grosvenor Group, which between them own large swathes of prime London real estate.

Contesting

They are contesting the 2024 Act on three points, which they say infringe their rights under the European Convention on Human Rights.

If successful after the four-day hearing, the challenge could mean the Act has to be withdrawn or rewritten by Parliament.

The three points being challenged are:

• The removal of the requirement on leaseholders with leases of less than 80 years to pay 50% of the ‘marriage value’ to the freeholder.
• The exclusion of ground rents of more than 0.1% of the freehold vacant possession value from being included in the calculation of the price payable for the extension.
• And the removal of the requirement for the leaseholder to pay the freeholder’s costs for an extension.

(Source: Liam Spender and LeaseholdKnowledge.com)

Liam Spender, Trustee at charity the Leasehold Knowledge Partnership and solicitor at Velitor Law, says “it is a claim brought by a group of some of the richest property owners in Britain aiming to overturn a law designed to help ordinary residential leaseholders and brought in by a government with a manifesto commitment to enact that law”.

There will be no real progress on LAFRA [Leasehold and Freehold Reform Act] until this case is resolved.”

“The freeholders seem not to see (or to want to see) how unattractive it is for some of the richest organisations in Britain (if not the world) to be bleating about their human rights infringed,” he adds.

There is a danger, he says, that “the government and freeholders are locked in a court case that is likely to drag on for years”.

“There will be no real progress on LAFRA [Leasehold and Freehold Reform Act] until this case is resolved.”

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