Impact of the Renter’s Rights Bill on superior landlords?
Hi, for any leasehold property surely the superior landlord is the Freeholder(s)? Many Leaseholders have to obtain written permission (and even pay a fee for the privilege) of renting out a leasehold property.
If the superior landlord is the freeholder(s), and thus under the proposed Renter’s Rights Bill responsible for rent repayment orders and the possibility of double fines, why on earth would a Freeholder(s) ever grant a Leaseholder permission to rent out their property (can be a flat or a house) AND will the superior landlord need to be party to the Tenancy Agreement?
Thanks,
Judith
Editor’s Note: The Renters’ Rights Bill says: Strengthen rent repayment orders by extending them to superior landlords, doubling the maximum penalty and ensuring repeat offenders have to repay the maximum amount.
More information can be found here >> https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a
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Member Since October 2013 - Comments: 1642 - Articles: 3
11:33 AM, 30th September 2024, About 2 years ago
This is a very interesting question.
Member Since May 2017 - Comments: 766
11:51 AM, 30th September 2024, About 2 years ago
I don’t suppose the dim wits have thought about that
Member Since October 2022 - Comments: 410
11:56 AM, 30th September 2024, About 2 years ago
Added to this is share of freehold when the residue of a superior lease the Headlease transferred to a Residents Management company limited by shares with one £1 voting share per qualifying leaseholder
are also co-freeholders . The RMC nominee charitable trust. The SL/HL interest is the Landlord in the RMC named party in tripartite underleases.
Member Since October 2013 - Comments: 1642 - Articles: 3
12:38 PM, 30th September 2024, About 2 years ago
So many unintentional consequences to come of this ill-conceived and poorly thought through ideological nonsense.
Member Since October 2022 - Comments: 410
4:12 PM, 30th September 2024, About 2 years ago
Rakusen (Respondent) v Jepson & Ors (Applicants) 2023 – Immediate and Superior Landlords beware – Painsmith.co.uk
Re Rent Reform Bill
Member Since January 2015 - Comments: 1450 - Articles: 1
11:32 AM, 1st October 2024, About 2 years ago
Reply to the comment left by Kizzie at 30/09/2024 – 16:12
The Court found that an RRO could NOT be made against a superior landlord.
So freeholders and Lessees who are also joint freeholders can breathe!
Member Since October 2020 - Comments: 1179
6:33 PM, 1st October 2024, About 2 years ago
The Renters Rights Bill proposes to overturn Rakusen v Jepson and make superior landlords liable for some rent repayment orders.
My understanding is that whilst the proposed legislation as it currently stands would technically apply to freeholders and leaseholders with leases of 21 years or more, the court should not apply the RRO as they are not receiving the rack rent for the property. However, unless the legislation is tightened up to make crystal clear that it does not affect freeholders and long leaseholders, then I foresee those that have consent to let requirements in their leases simply being refused outright.
Member Since October 2022 - Comments: 410
7:39 PM, 1st October 2024, About 2 years ago
I read from the Jepson case that in my case where the residue of the superior lease is transferred to the RMC a maintenance trust acting obo of the Lessor which holds the superior lease interest so it is a superior lessor LL with a direct underlease contract with a letting covenant with each individual leaseholder who are also co-freeholders and so are superior landlords and are also lessees each with a tripartite underlease contract each registered with Absolute Title on the Charges Register of the Superior lease. And the MT is an exempt charity.