Clause 6 - Permitted rent: leases replacing pre-commencement leases

Part of Leasehold Reform (Ground Rent) Bill [Lords] – in a Public Bill Committee am 10:45 am ar 7 Rhagfyr 2021.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Mike Amesbury Mike Amesbury Shadow Minister (Housing, Communities and Local Government) 10:45, 7 Rhagfyr 2021

To pick up on the point of my hon. Friend the Member for Garston and Halewood on “voluntary”, a freeholder might offer a seemingly reasonable deal to voluntarily and formally extend a lease, but there is a real risk that elements of that could have a premium applied and ground rent could continue. What reassurance is there that that cannot happen? We have seen lots of examples of that. The mis-selling of leasehold properties was mentioned, which the Competition and Markets Authority has investigated and seen evidence of, and which we are all familiar with from constituents. If there is any possibility of a loophole here to do that, unfortunately there are people in this field who will do it, so again it is about that reassurance that the measure closes down those potential loopholes.