New Government Unveils Major Property Law Reform in King’s Speech

In the latest King’s Speech, the monarch set out the newly-elected government’s plans for the forthcoming parliament. With over 35 bills in total, the policy platform signals the intention of the government to live up to their election slogan for ‘change’. Some of the most eye-catching announcements are related to property law reform, the subject of today’s article.

So, let’s take a brief look at what the government have planned for property law reform, starting with reform to the rental sector.

Renters’ Rights Bill

The Renters’ Rights Bill is a key facet of the Labour Party’s manifesto commitment to ‘level the playing field between landlord and tenant’. Many of the policies included already formed part of the Renters (Reform) Bill. Nonetheless, the bill will do the following:

Abolish Section 21 no fault evictions
Empowering tenants to challenge rent increases designed to force them out ‘by the back door’
Applying Awaab’s law to the private sector, meaning the punishment of agents or landlords who don’t fix damp and mould problems quickly
The creation of a digital national database of landlords and their properties
Stopping agents and landlords from encouraging bidding wars
Applying a Decent Homes Standard to the private rented sector
Give tenants the right to request a pet which landlords cannot unreasonably refuse. Landlords will however be able to request insurance to cover potential damage from pets
Make it illegal for landlords to discriminate against tenants who have children or are in receipt of benefits
Strengthen local councils’ enforcement powers

This Bill will strengthen protections in the private rented sector for the 11 million private tenants in England and Wales.

The Leasehold and Commonhold Reform Bill

Further changes will be introduced to reform leasehold and commonhold, with the aim of providing homeowners with greater rights, powers and protections over their homes. This will be done through the implementation of the Leasehold and Freehold Reform Act 2024 which was passed by the previous government.

However, the government aim on going a step further than the Conservative government by seeking to “bring the feudal leasehold system to an end” by introducing a new legal framework to reinvigorate commonhold. New leasehold flats will also be banned so that commonhold becomes the default tenure.

The steps the government will take to reform leasehold include the following:

Enacting remaining Law Commission recommendations to bolster leaseholders’ fundamental rights to extend their leasehold as well as buy their freehold.
Modernising the commonhold legal framework and restrict the sale of new leasehold flats
Regulating ground rents for existing leaseholders
Bringing the injustice of so-called ‘fleecehold’ private estates and unfair costs to an end
End forfeiture, preventing leaseholders from losing savings in their home due to small unpaid debts

These reforms in the draft bill are in addition to the measures included in the Leasehold and Freehold Reform Act including:

Banning the sale of new leasehold houses
Make it cheaper and easier to extend a lease or buy the freehold
Expands rights for leaseholders to manage their building
Greater transparency for leaseholders
Scrapping the presumption that leaseholders pay their freeholders’ legal costs
Expanding rights of redress

The Planning and Infrastructure Bill

Finally, the government intend to supercharge growth in the economy through supply side reforms related to planning reform. They identify the current planning regime as a “major brake on economic growth”, ensuring the importance of the Planning and Infrastructure Bill in relation to their economic strategy. The Planning and Infrastructure Bill will therefore:

Streamline the delivery process for critical infrastructure
Further reform compulsory purchase compensation rules
Improve local planning decision making
Increase local planning authorities’ capacity
Use development to fund nature recovery

Our thoughts

Overall, the reforms made by the government so early into their time in office will be welcomed by many across the country. Despite the bold action on renters’ rights, implementing many of the policies the Conservatives failed to deliver on, it seems that the government has slightly toned down its rhetoric from when it was in opposition when it comes to reforming leasehold.

Originally, Labour pledged to abolish leasehold within the first 100 days of government, before dropping this in April. However, some within the industry have welcomed this, seeing this as a sign that the government is taking its time with leasehold reform, which seems sensible given its complexities. Despite this, they have continued to indicate their desire to “bring the feudal leasehold system to an end” but without a defined timeframe. Leaseholders will hope that their actions speak as loudly as their words.

On planning and infrastructure, the government have signalled their intent to tackle “nimbyism” by specifically mentioning their desire to take on local planning, which they hope will help to speed up and streamline the planning process.

One legal concern raised is that the property law reform aims to enable construction on less desirable green belt areas, known as the “grey belt.” We recognise the potential controversies of nimbyism as mentioned above but would like to point out the importance of building more homes to ensure housing accessibility and affordability for future generations.

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Home Office pause granting leave to victims of trafficking

The Home Office has recently updated its guidance concerning leave to remain for victims of trafficking and modern slavery by announcing a temporary suspension of all decisions related to recovery from harm. The exact reason for this pause is unclear, but it may be due to ongoing litigation, the need for direction from the new government, or both.

Presently, Temporary Permission to Stay for Victims of Human Trafficking or Slavery (VTS) can be obtained where the relevant Competent Authority has made a positive conclusive grounds decision that an individual is a victim of modern slavery, and the Home Office consider leave is necessary in order to:

1. Assist the person in their recovery from any physical or psychological harm arising from the relevant exploitation – Section 65(4)(a) of the Nationality and Borders Act (NAB) makes it clear that permission to stay is not necessary for this purpose if the Secretary of State considers that the person’s need for assistance is capable of being met in either a country of which the person is a national or citizen or a country which is one to which the person may be removed in accordance with an agreement between that country and the UK.

2. Enable the person to seek compensation in respect of the relevant exploitation – Section 65(4)(b) of the NAB Act makes it clear that permission to stay is not necessary for this purpose if the Secretary of State considers that the person is capable of seeking compensation from outside the UK and it would be reasonable for the person to do so in the circumstances

3. Enable the person to co-operate with a public authority in connection with an investigation or criminal proceedings in respect of the relevant exploitation

The updated guidance now includes the following notice: ‘We are pausing all decisions that consider grants of temporary permission to stay for victims of human trafficking or slavery (VTS) until further notice. This is a temporary pause whilst we consider our approach to granting VTS where there is a need to assist in recovery from physical or psychological harm with regards to the victim’s experience of exploitation.’

Our thoughts

This suspension may cause concern among those who have been waiting for many years for a decision on their trafficking leave. However, it is possible that this pause will lead to a revised approach, which would be a positive development given the significant challenges and low approval rates currently faced by survivors seeking leave under the existing rules.

Have questions? Get in touch today!

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How Could the Labour Government’s New Deal for Working People Transform Employment Law?

A new government means a change in direction, and after 14 years of Conservative Government, it is unsurprising that the Labour government is keen to implement its policy agenda quickly. The UK economy has struggled since Covid, particularly when it comes to productivity, which ranks poorly compared with countries such as Germany, France, and the United States.

Part of the blame for the UK’s poor productivity has been attributed to the number of people who have dropped out of working altogether since Covid, a uniquely British phenomenon which hasn’t been reflected elsewhere. Long-term sickness is at record levels, rising sharply after the beginning of the pandemic in 2020. The newly-elected government will therefore hope to improve workers’ rights in order to encourage people to come back to work.

Employment law is an issue which affects all of us who work, so cannot be ignored ahead of some of the more high-profile issues such as immigration and housing. Let’s take a look at what the new government has planned.

Employment law

In their manifesto, Labour announced that they will introduce what they call a “New Deal for Working People” within 100 days. This ‘New Deal’ includes the following reforms.

Banning exploitative zero hours contracts

Zero hours contracts have received criticism from unions and politicians alike over the instability they offer in terms of work. However, this is sometimes countered by some of those working in zero hour contract jobs, who say that it gives them flexibility in their work.

Instead, Labour have promised to end ‘one sided’ flexibility and ensure that all jobs provide a “baseline level of security and predictability”. In practise, this will mean ensuring that everyone has the right to a contract at work which reflects the number of hours they regularly work based on a 12-week reference period.

Ending fire and rehire

The Labour government have also promised to end fire and rehire, a controversial practise which allows some employers to threaten employees with termination of their contracts in order to change an employee’s terms and conditions.

This will be done by reforming the law to prevent abuse by employers and strength the code of practise.

Introducing day one employment rights to parental leave, sick pay and protection from unfair dismissal

Labour have also proposed introducing what they describe as basic individual rights from day one for all workers, such as unfair dismissal parental leave and sick pay. Currently, workers have limited rights to appeal against dismissal if they have been with their current employer for less than 2 years.

Despite this, employers will still be able to remove employees for reasons of fair dismissal, allowing employers to continue operating probationary periods to assess new hires.

Merging employee and worker status

Another significant proposal made by the Labour Party is to move from a three-tiered system of employment status made up of employees, self-employed people and workers, to a two-part employment status framework of workers and the self-employed.

Pay

Significant changes are also set to be made to pay. Let’s take a look at a few of these.

Making the minimum wage a “genuine living wage”

To do this, Labour would change the remit of the Low Pay Commission so that the minimum wage takes into account the cost of living in addition to median wages and economic conditions.

While the minimum wage currently differs depending on a person’s age, up to a maximum of £11.44 for those aged 21 and over, this would be equalised for all age groups. As a result, under 18s currently earning £6.40 an hour would earn the same as those aged 21 or over.

Sick pay

The Labour Party would also reform sick pay to “strengthen” statutory sick pay, remove the lower earnings limit so that it is available to all workers and remove the waiting period.

Unpaid internships

Unpaid internships will be banned unless they are part of an education or training course.

While it is currently illegal for employers to not pay workers at least the national minimum wage, there are exemptions for those doing an internship of less than a year for a UK-based higher education course, those who are volunteering at a charity or voluntary organisation, or those who are work-shadowing.

Unpaid internships are often criticised as a barrier to those from poorer backgrounds, with those from wealthier backgrounds able to be supported by their family when undertaking an unpaid internship in order to get into a specific industry.

Our thoughts

The aforementioned changes would have a seismic impact in the workforce if implemented. For example, the change to making unfair dismissal a day-one right will force employers to carry out a fair procedure in all dismissal cases regardless of how long someone has been employed. The merging of worker and employee statuses would also greatly expand rights to those classified as workers. For instance, workers do not currently benefit from the right to unfair dismissal protection.

Nevertheless, it is worth bearing in mind that some of the government’s other proposals, such as the merging of employee and worker status, would take longer than others.

At Lisa’s Law, we will keep you updated on any changes the government makes to employment law to help keep you in the loop, whether you are an employer or an employee.

Have questions? Get in touch today!

Call us on 020 7928 0276, phone calls are operating as usual and we will be taking calls from 9:30am to 6:00pm.

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Clarification provided on 548 days absence requirement for Indefinite Leave to Remain applications – could you be eligible?

The Home Office has updated their guidance on continuous residence to provide further clarification in relation to the 548 days absence requirement for 10 year settlement applications.

A person can apply for indefinite leave to remain in the UK if they have accumulated 10 years lawful continuous residence in the UK. Prior to 11^th April 2024, a person’s continuous residence is considered broken if their absences during that 10 year period exceeded 18 months (548 days).

However, since 11^th April 2024, this is no longer the case and this requirement ahs been removed. The Home Office have received many enquiries from applicants requesting clarification as to whether this requirement applies if the 10 year period is a combination of time spent before 11^th April 2024 and after 11^th April 2024.

The Home Office has yesterday updated their guidance and confirmed that the period before 11^th April 2024 and the period after will be assessed individually. The period before will be considered under the old rules and therefore the 548 day total absence requirement will be considered, whilst the period after will not.

To provide clarification, please see the examples below:

Example

A person first obtained first leave to remain on 1^st July 2016. He would like to apply for ILR on 1^st July 2026.

The Home Office will consider the person’s absences between 1^st July 2016 – 10^th April 2024 to ensure that they have not exceeded absences totalling 548 days in that period.

If they have been absent after 11^th April 2024, then this can be disregarded and does not form part of the calculation.

Please note that the absence requirement of not being away for more than 6 months (184 days) at any given time applies to absences both prior and post 11^th April 2024.

Should you have any queries, then please do not hesitate to contact us and our Immigration team will be happy to help.

Have questions? Get in touch today!

Call us on 020 7928 0276, phone calls are operating as usual and we will be taking calls from 9:30am to 6:00pm.

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Labour Government Launches New UK Border Security Command

The newly elected Labour government has announced a whole raft of changes since coming to power on 5^th July. Among these changes include the scrapping of the high-profile Rwanda policy as well as the topic of today’s news article, the launching of a new UK Border Security Command (BSC).

According to the Home Office, the Border Security Command aims to strengthen Britain’s border security and “smash the criminal smuggling gangs making millions out of small boats crossings”. A Border Security Commander will be recruited in the coming weeks to oversee the direction across agencies including the National Crime Agencies, intelligence agencies, the police, as well as Immigration Enforcement and Border Force.

Collaboration with European partners

In addition to this, the Border Security Command will also bring in more investigators, experts and analysts in an attempt to tackle organised immigration crime. Many of these will be based across Europe and work with Europol as well as European police forces. This underlines a new approach by the Starmer government, in contrast with the previous one, with an increased willingness to work alongside Britain’s neighbouring countries already apparent.

Furthermore, the government will introduce early legislation to introduce new counter terror powers and stronger measures which seek to tackle organised immigration crime. This mention of early legislation suggests that such power will be introduced within the King’s Speech, which will take place on Wednesday 17^th July and sets out the programme of legislation that the Government intend to pursue in the forthcoming parliamentary session.

Yvette Cooper, the Home Secretary added:

Criminal smuggling gangs are making millions out of small boat crossings, undermining our border security and putting lives at risk. We can’t carry on like this. We need to tackle the root of the problem, going after these dangerous criminals and bringing them to justice.

The Border Security Command will be a major step change in UK enforcement efforts to tackle organised immigration crime, drawing on substantial resource to work across Europe and beyond to disrupt trafficking networks and to coordinate with prosecutors in Europe to deliver justice.

Our thoughts

The new government have acted swiftly to scrap the Rwanda policy, dismissing it as a gimmick. Instead, they have decided to redirect that funding towards the newly created Border Security Command. While the prospect of “smashing the gangs” does sound like a potentially fruitful avenue to reduce small boat crossings, it is worth pointing out that countries like Italy and Greece who have prosecuted people smugglers in the past haven’t necessarily succeeded in deterring migrants. Whether the Starmer government will have more success in doing so remains to be seen.

Despite their huge parliamentary majority, the biggest since 1997, Labour will be under big pressure to ensure that their actions speaker louder than their words. The Conservative government’s poor record on illegal migration, and their inability to control legal migration as promised, was a decisive factor in losing them the election. We will see how the government fare in this endeavour, and of course will keep you updated on immigration news going forward.

Have questions? Get in touch today!

Call us on 020 7928 0276, phone calls are operating as usual and we will be taking calls from 9:30am to 6:00pm.

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Landmark High Court Decision for Migrants on Section 3c Leave

In a ground-breaking ruling, the High Court has delivered a significant judgment that impacts thousands of migrants in the UK. The case, R (Refugee and Migrant Forum of Essex and London) v SSHD [2024] EWHC 1374 (Admin), challenges the Home Office’s failure to provide proof of immigration status to individuals with leave to remain under section 3C of the Immigration Act 1971.

Having Section 3C leave under the Immigration Act 1971 means that if you submit an application to extend your stay in the UK before your visa expires, you will not be treated as an overstayer while you wait for a decision. However, to date there has never been any documentation issued to those with Section 3C leave.

Fundamentally, this judgment has far-reaching implications for migrants, employers, and the digital transformation of immigration documents.

A Victory for Migrants

The High Court found that the Home Secretary had acted unreasonably (Wednesbury unreasonable) by not providing digital proof of immigration status to individuals under section 3C of the Immigration Act 1971.

The practical implications of this decision are substantial. Migrants with leave to remain under section 3C will now be entitled to receive digital confirmation of their immigration status. This means easier access to ‘e-Visas,’ which can be quickly and conveniently verified by employers, landlords, and other entities. This change addresses significant delays and complications that migrants previously faced when proving their right to work or rent property.

The Court’s Findings

The court’s ruling addressed four main grounds of challenge:

Failure to Provide Documentary Proof: The court rejected the argument that the Home Secretary had frustrated statutory objectives by not issuing proof of status, as it was never the statute’s purpose to provide such documents.

Irrationality: The court found that it was irrational not to provide digital proof of status, acknowledging that while there may be reasons not to issue hard copy documents, there is no justification for not providing digital proof.

Public Sector Equality Duty (PSED): The court held that the duty to have ‘due regard’ to equality was procedural and not outcome-focused, finding that the Home Secretary had shown sufficient regard in this context.

Welfare of Children: The court concluded that the Home Secretary had failed to consider the welfare of children adequately, as lack of status proof could negatively impact children involved in immigration applications.

Our comments

The case highlighted the delays and difficulties faced by migrants due to the lack of proof of their immigration status. One of the claimants shared personal hardships, explaining how her employment was disrupted on two occasions because her right to work was questioned during the period she was under section 3C leave, causing her to miss several weeks of work.

This issue affects hundreds of thousands of migrants who, without proper documentation, are vulnerable. This policy can lead to denial of work, housing, and access to services. Evidence revealed that migrants often spend over a year under section 3C leave, exacerbating these issues.

This decision not only affirms the rights of migrants under section 3C but also pressures the Home Office to expedite the digitisation of Biometric Residence Permits (BRPs) and other status documents. Failure to implement these changes swiftly could lead to further legal challenges.

The High Court’s ruling marks a pivotal step toward ensuring that migrants have reliable and timely proof of their status, enhancing their ability to work, live, and integrate into UK society without unnecessary obstacles.

Have questions? Get in touch today!

Call us on 020 7928 0276, phone calls are operating as usual and we will be taking calls from 9:30am to 6:00pm.

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A Guide to Section 21 Notice: No-Fault Evictions in the UK

In the UK, landlords generally need to evict a tenant by using either a Section 21 notice, Section 8 notice, or both.

If a tenant has breached the terms of the tenancy, the landlord can use the Section 8 notice. Otherwise, the Section 21 notice (also known as a no-fault eviction) is generally required to evict without fault.

Section 8 is usually simple and straightforward. For this article, we will focus on the Section 21 notice of no-fault eviction.

Situations where you can use a Section 21 notice to evict a tenant include:

1. At the end of the fixed term of the rental contract, if you have a written contract.

2. In the absence of a fixed end date for the duration of the lease, this is also known as a “fixed-term” lease.

Before issuing a Section 21 notice, the landlord must provide the following information to the tenant:

1. Energy Performance Certificate in relation to the property.

2. A guide to ‘How to Rent’ from the UK government.

3. If the property has natural gas installed, an up-to-date natural gas safety certificate is required.

What protections do tenants have when it comes to Section 21 notices?

Tenants have certain rights and protections before their landlord can issue a Section 21 notice. The landlord can’t legally use a Section 21 notice to evict the tenant if:

1. The lease contract started less than 4 months ago or the fixed term has not expired, unless the contract contains a clause that allows for early termination of the lease.

2. The property is classified as a multi-use residential (HMO) but does not have an HMO license issued by the local government.

3. The lease commenced after April 2007, but the landlord did not put the tenant’s deposit into a security deposit protection scheme.

4. For leases commencing after October 2015, the landlord did not use Form 6a or a letter containing the same information.

5. The local government has issued an improvement notice to the property in the past 6 months.

6. The local government has issued a notice in the last 6 months stating that emergency repairs are to be made to the property.

7. The landlord has not returned illegal fees or deposits.

As long as one of the situations we just described happens, the landlord cannot use the Section 21 notice to evict the tenant.

How long does it take for a landlord who meets all the conditions to use Section 21 to evict a tenant? How much notice is required, and what if the tenant insists on not leaving?

First of all, the length of the notice period depends on the nature of the breach of the terms of the lease. Generally, the notice period is at least two months, but if you have a fixed-term rental contract, the notice period must be the same as the lease period.

If the tenant refuses to leave, the landlord can apply to the court for a compulsory possession order.

In deciding whether to grant mandatory grounds for possession, the court will take into account different circumstances. For example, if the landlord needs to take possession of the house because it was once used as a primary residence, or now plans to use it as a primary residence, then this reason is usually accepted.

There are other reasons, such as if the property is subject to a mortgage, or the lease is not more than 8 months and was previously a holiday let. Keep in mind, however, that the court will also consider circumstances at its discretion, such as the tenant being in rental arrears or destruction of the property, which may be grounds for granting possession.

The new Labour government will abolish Section 21 with immediate effect?

In their 2024 manifesto, Labour pledged to immediately abolish Section 21 eviction powers. However, due to the Renters Reform Bill being dropped in the run-up to the election, the new Labour government will need to start again with primary legislation. This could be a straightforward bill focused solely on repealing Section 21 or part of a broader Renters Reform Bill 2.0 with additional changes.

The new legislation would need to pass through both houses of parliament, receive Royal Assent, and then undergo an implementation and transition period before taking effect. It’s expected that Section 21 notices served before the new legislation’s enactment would likely remain valid, following standard transitional arrangements for existing tenancies, as outlined in Labour’s amendments to the Renters Reform Bill.

Have questions? Get in touch today!

Call us on 020 7928 0276, phone calls are operating as usual and we will be taking calls from 9:30am to 6:00pm.

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How Will the UK Election 2024 Shape Immigration? | Conservative, Labour, and Lib Dem Policies

With the UK general election 2024 fast approaching, here at Lisa’s Law, we would like to talk about the different immigration policies proposed by the main parties running for office.

So, let’s start with the Conservatives. In their manifesto, they have proposed several measures aimed at curbing migration. These include:

1. Health Checks and insurance – this would require migrants to undergo a health check before coming to the UK and either increase the immigration health surcharge or require migrants to purchase health insurance.

2. Another proposal is to increase the visa fees and eliminate the student discount available on the immigration health surcharge.

3. Another proposal is implementing a cap on the number of work and family visas issued.

4. The Conservatives have also proposed adjusting the income requirements for skilled worker and family applications automatically in line with inflation. We all know that the requirement has increased considerably this year already.

To tackle illegal migration, the Conservatives state they will continue with their Rwanda Plan to deport illegal migrants from July.

Our thoughts on the Conservatives’ manifesto are that it presents a tough stance on not only illegal migration but also legal migration, with stricter immigration controls. It may be tough for those on low or modest incomes to afford the increased fees.

Now let’s move on to Labours.

Labour emphasises the need for controlled and managed borders. They are proposing creating a new Border Security Command Unit, staffed with hundreds of specialists tasked to stop and arrest criminal gangs involved in smuggling. They also plan to negotiate a new security agreement with the EU so that they can share real-time intelligence.

Labour also states that they will reform the UK asylum system by hiring additional caseworkers to clear the backlog of applications, end the use of hotels for asylum accommodation, and fast-track removals to safe countries where possible.

Labour has also confirmed that they will scrap the Rwanda plans immediately.

Our thoughts on the plans proposed by Labour are that it appears to be a pragmatic proposal, by committing to scrap the costly Rwanda scheme in favour of direct action against smuggler gangs, prioritising asylum backlogs, and proposing a new system backed with significant investment moving forward.

However, the success of this proposal will come down to whether these plans can be implemented effectively.

Finally, the Liberal Democrats.

The Lib Dems appear to have offered the most promises with a range of significant changes to immigration and asylum policies.

They have said that they would reverse the minimum income requirement threshold that was increased this year for family visas, reduce fees for children applying for British citizenship, and lift the ban on care workers being able to bring their partners and children.

The Lib Dems have also stated they would prevent public agencies from sharing information with the Home Office, repeal the right to rent scheme, limit immigration detention time to 28 days, and allow asylum seekers that have been waiting for a decision for more than 3 months to work.

They also state that they will fund community-sponsored projects to increase social cohesion among refugees.

Our thoughts on the plans proposed by the Liberal Democrats are that it appears to be a more progressive and humanitarian approach compared to the plans proposed by Labour and the Conservatives. The proposals are bold and may face significant challenges when it comes to implementing these policies.

Have questions? Get in touch today!

Call us on 020 7928 0276, phone calls are operating as usual and we will be taking calls from 9:30am to 6:00pm.

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Court Upholds Decision on TOEIC Exam Fraud

The Court of Appeal, Civil Division, has rejected an appeal brought by the appellant against a ruling from the Upper Tribunal (Immigration and Asylum Chamber). This ruling had previously dismissed the appellant’s challenge to a decision from the First-tier Tribunal (Immigration and Asylum Chamber). The Secretary of State had curtailed the appellant’s permission to stay in the UK, alleging that he had cheated on a TOEIC (Test of English for International Communication) exam, which he had used in a prior application.

After losing his leave to remain, the appellant applied for asylum and later sought leave to stay in the UK based on his family and private life. These applications were refused by the Secretary of State, mainly due to suitability concerns. Both the First-tier Tribunal (FTT) and the Upper Tribunal (UT) dismissed his appeals, leading to a further appeal on procedural grounds.

Key Issues and Decisions

The primary issue was whether the hearing at the FTT was unfair because the judge allegedly stepped out of her neutral role and “descended into the arena.” The appellant contended that the judge’s conduct made the hearing procedurally unfair. However, the UT disagreed, concluding that the hearing was fair and that all evidence had been considered properly.

Court’s Analysis

Judges are advised to avoid excessive intervention during witness testimonies to maintain fairness. Each case must be evaluated based on its unique context and facts. The fairness of a hearing is judged objectively, considering that transcripts do not capture nuances like tone and manner of questioning.

In this case, the FTT’s questioned conduct occurred after the counsel’s examination of each witness. The judge allowed the counsel to ask further questions and then posed her own questions, which were extensive but not hostile. These questions were relevant to the evidence and central issues of the case.

The court found that the FTT’s behaviour during the hearing was within acceptable limits. The judge’s questions did not indicate bias or affect the fairness of the hearing. It was important to ask these questions to address any concerns, ensuring that the appellant and his witnesses had a fair chance to respond.

Ultimately, the UT’s decision that the hearing before the FTT was fair was upheld, and the appeal relating to TOEIC exam fraud was rightly dismissed.

Have questions? Get in touch today!

Call us on 020 7928 0276, phone calls are operating as usual and we will be taking calls from 9:30am to 6:00pm.

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Understanding Leasehold vs Freehold: What Every Buyer Should Know

When purchasing property in the UK, one of the most critical distinctions to understand is whether you are buying a leasehold or freehold property. Each comes with its own set of rights, responsibilities, and implications, which can significantly affect your ownership experience. This article delves into the advantages and disadvantages of leasehold vs freehold properties, helping you make an informed decision in your property purchase.

What is Freehold?

Owning a freehold property means you own the building and the land it stands on outright, with no time limit on ownership. This type of ownership is often considered the most straightforward and desirable because it provides full control over the property and its use.

Advantages of Freehold

1. Complete Ownership:

You own the property and the land it stands on, giving you complete control over it.

2. No Ground Rent or Service Charges:

Unlike leasehold properties, there are no additional annual charges such as ground rent or service charges.

3. Greater Flexibility:

As the freeholder, you can make changes or renovations to the property (subject to planning permissions) without needing consent from a landlord.

4. Long-Term Security:

There is no risk of the lease running out, providing long-term security for the owner and future generations.

What is Leasehold?

In contrast, owning a leasehold property means you own the building but not the land it stands on. The land is owned by a freeholder (landlord), and you have the right to use the property for a specified number of years, as outlined in the lease agreement. Leaseholds are commonly found in flats and apartments, although houses can also be leasehold.

Advantages of Leasehold

1. Lower Purchase Price:

Leasehold properties often come with a lower purchase price compared to freehold properties, making them more accessible to buyers.

2. Maintenance Responsibility:

The freeholder typically manages and maintains the common areas of the building, which can be advantageous for leaseholders who prefer not to handle these responsibilities themselves.

Disadvantages of Leasehold

1. Ground Rent and Service Charges:

Leaseholders are usually required to pay annual ground rent and service charges to the freeholder, which can increase over time.

2. Limited Ownership Period:

Leasehold ownership is time-limited. When the lease expires, ownership of the property reverts to the freeholder unless the lease is extended.

3. Consent for Changes:

Leaseholders often need permission from the freeholder to make significant alterations to the property, which can be restrictive.

4. Lease Extensions:

Extending a lease can be a costly and complex process, especially if the remaining lease term is short.

Key Considerations for Buyers

When deciding between leasehold and freehold, potential buyers should consider several factors:

1. Lease Term:

If purchasing a leasehold property, it’s crucial to check the remaining term of the lease. A short lease (typically less than 80 years) can significantly affect the property’s value and make it difficult to secure a mortgage.

2. Costs:

Evaluate all costs associated with the property, including ground rent, service charges, and potential costs for lease extensions or enfranchisement (buying the freehold).

3. Future Plans:

Consider your long-term plans for the property. If you plan to stay in the property for many years or pass it down to heirs, a freehold might be more suitable.

4. Rights and Responsibilities:

Understand your rights and responsibilities as a leaseholder or freeholder. This includes knowing what you can and cannot do with the property and what obligations you have towards maintenance and repairs.

Conclusion

Understanding the differences between leasehold and freehold properties is essential for making an informed decision in your property purchase. Freehold ownership offers complete control and long-term security, while leasehold ownership, though often more affordable initially, comes with additional responsibilities and potential restrictions.

By carefully considering the terms of ownership, associated costs, and your long-term plans, you can choose the property type that best suits your needs and lifestyle. Lisa’s Law is experienced in dealing with all types of conveyancing, offering professional legal advice at a competitive rate. If you have any enquiries, please get in touch.

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Key Issues and Decisions

Court’s Analysis

What is Freehold?

Advantages of Freehold

What is Leasehold?

Advantages of Leasehold

Disadvantages of Leasehold

Key Considerations for Buyers

Conclusion

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