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

Part of Leasehold Reform (Ground Rent) Bill [Lords] – in a Public Bill Committee at 10:30 am on 7 December 2021.

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Photo of Maria Eagle Maria Eagle Labour, Garston and Halewood 10:30, 7 December 2021

I just want a little clarity from the Minister about the circumstances in which this extensive Clause would apply. Is the Amendment seeking to exclude just the issue of a voluntary lease variation? One might argue, quite plausibly, that any kind of leasehold is entirely voluntary, because the parties to the lease voluntarily sign it—caveat emptor and all that. One can say that any signature of a lease is voluntary in that sense.

The Minister says that a particular issue was raised in the other place about variations not happening if the landlord, in granting one, therefore lost the ground rent he was getting on an existing lease. I think that is the issue that the Minister raised in his succinct manner. However, I worry slightly about the word “voluntary” when it attaches to leases, because one might say that any signature of a lease is voluntary, on the basis that a party has, without being forced, signed it. I just wonder whether he is clear that his amendments will not create the potential for a wider loophole than one would wish in seeking to keep it tight.

I hope the Minister understands the minor point I am trying to make. I am very anxious that we do not inadvertently create broader loopholes in the Bill as a consequence of this. When one uses “voluntary” in relation to signing a lease, one can easily argue that any signature of any variation or lease is voluntary.

Clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

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other place

The House of Lords. When used in the House of Lords, this phrase refers to the House of Commons.

amendment

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clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.

When a bill becomes an Act of Parliament, clauses become known as sections.

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