Leasehold

Department for Levelling Up, Housing and Communities written question – answered at on 15 May 2023.

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Photo of Justin Madders Justin Madders Shadow Minister (Future of Work), Shadow Minister (Business and Industrial Strategy)

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will make an estimate of the costs incurred to leaseholders who must now seek legal advice and include the protections afforded Building Safety Act 2022 into contractual agreements for those wishing to extent or vary their lease.

Photo of Justin Madders Justin Madders Shadow Minister (Future of Work), Shadow Minister (Business and Industrial Strategy)

To ask the Secretary of State for Levelling Up, Housing and Communities, when he will take legislative steps to reapply the statutory leaseholder protections in the Building Safety Act 2022 to leaseholders wishing to extend or vary their lease.

Photo of Lee Rowley Lee Rowley Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

We are aware of the issue concerning leaseholder protections where leases are extended or varied, and are looking to legislate to resolve this issue as soon as Parliamentary time allows. In the meantime, before pursuing a new lease to extend or vary an existing lease, leaseholders should seek legal advice and to come to an agreement with their landlord to apply the same protections as their existing contractual terms.

The department does not hold information on the costs likely to be incurred by leaseholders who must now seek legal advice, although many lease extensions will, in any event, involve leaseholders seeking such advice. We do expect landlords to make sure that lease extensions, and variations, reflect a qualifying leaseholder's current protections; where landlords are avoiding applying the protections as contractual terms, we are encouraging leaseholders to write to us so that we can follow this up.

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