Freeholders begin the challenge of the High Court on reforms

A group of landlords is launching a judicial review in the High Court to challenge the government’s efforts to improve the freehold and leasehold system of the property ownership.

Some of the rich landlords and two charities of the country, which own freehold leases of thousands of properties – mainly flats – argue that the law brought by the final orthodox government violates their human rights.

They say that the measures in a law passed in 2024 are contrary to their right to enjoy personal property, as lies in the European Convention of Human Rights (ECHR).

But the leaseholders are worried that the hearing will maintain reforms, and complain that their voice does not represent in the court.

The hearing is scheduled to begin in the High Court from Tuesday and it is expected to run by Friday.

When the Legends and Freehold Reform Act (LAFRA) was rapidly tracked through Parliament before the 2024 general election, the possibility of new laws to “strengthen” the rights of leasehold flats and house owners was widely welcomed by Lijold campaigners.

Among other things, the purpose of the Act is simple to expand a lease – the owners’ right to stay in the housing – and buying a freehold. This will also cheaper the process for leaseholders.

But many freeholders are challenging some aspects of new laws related to value calculation for the expansion of the lease.

In earlier court documents, it was claimed that they could lose hundreds of crore pounds and argue that changes leave them without adequate compensation.

Some people also argue that it prevents them from investing in areas where they have qualities and they can influence the community and their charitable.

They also say that changing the way the volume is calculated between lease holders and freeholders will transfer funds to larger landlords, which own several flats in Central London.

But leaseholders are afraid that the legal challenge may improve for years.

England and Wales have an estimated 4.5 million owners of leasehold assets. Scotland abolished leaseholds in the 1980s, and the leasehold system in Northern Ireland is slightly different.

57-year-old Phil Jones bought his two-bedroom leasehold flat in West Cliff-On-C 25 years ago. He recently came to know that his ground fare doubles every 10 years and is now at £ 500 per year.

He said that his freeholder said that if Phil pays 60,000 pounds, the ground fares could be removed, which he cannot do.

He says that it makes their flat unwanted as hostage companies will not lend to a property with doubling ground rent clause in their lease.

“Life is on hold,” he said. “I am stuck here. Its effect is on us, it is very unfair.”

He questioned how freeholders can bring such a case when the law has already been given royal consent, or has become a law.

“All the parties have decided, all this has passed, it was in the king’s speech, just do it,” he said.

The law was introduced at the center of the case when former Orthodox Minister Michael Gov was the Housing Secretary. The Labor Government has promised to go further, but Mr. Jones is worried that it will delay the changes that can benefit them.

Labor has promised to end the leaseholds completely by the end of Parliament and bring it into a normal model. It also wants to regulate ground rent.

But it still has not implemented all laws in Lafra and says that a new bill will be introduced later this year.

The government has been cautious about setting a difficult time limit when the legal challenge is pending.

The leasehold groups are also angry that their application was not allowed to be part of the case to speak on behalf of flat owners.

Founder of free leaseholders Harry Scoffin said: “Despite our best efforts to intervene, not a single leaseholder’s voice will be heard in the High Court. Is how it is going to run democracy?

“We urge the government not to make a cave for this campaign to intimidate the rich and press to eliminate the system on the feudal lease, as he promised in his manifesto.”

There are six contenders representing many freeholders in the case, including the Kadogan Group, a family -owned company, which has land in London for 300 years; The Grosvenner Group is owned by the Duke of Westminster and John Leone Charity.

Charity uses its revenue from property to grant grants to organizations that help under privileged children.

It states that there will be “unexpected results” of changes in laws that actually benefit rich leaseholder landlords, who own flats in their property portfolio in St. John’s Wood, while charity will lose revenue.

Charity says it usually supports leasehold reform, but is asking to be free from changes.

CEO Dr. Lynn Gaitan said: “This improvement draws a rug from under those who require the most support in the capital.

“Without exemption, we will lose at least 10% of charity’s income. It will put educational, mental health, emotional support and young programs at risk.”

The leasehold system is back in the Middle Ages, but as we know the system came in the 1920s.

Both the previous conservative and current labor governments called it “feudal” and vowed to improve it, but the campaigners say they have waited for decades for change.

Deputy Prime Minister Angela Rener told MPs on Monday: “This week will hear challenges to some of the High Court [2024] Improvement in the Act, and we will strongly defend those challenges, and we will wait for the court’s decision. ,

The government said that it could not comment further on the ongoing litigation.

We contacted other freeholders or their legal representatives for the comment, but they did not get the official response.

Additional Reporting by Phil Handry