Not wishful thinking after all? The wording of the proposed BSA 2022 amendment to close the enfranchisement loophole has been finessed (we think!)
On 16 October, MPs agreed a fairly substantial amendment to the proposed Levelling-up and Regeneration Bill – new subsections 119(3A) and 119A to the BSA 2022.
The amended wording in s119(3A) creates a new defined term, a “connected replacement lease”. This ensures that an existing lease that already qualifies will continue to be a “qualifying lease” for the purposes of the BSA 2022. To be a connected replacement lease, various qualification criteria must be met (as set out in s119A) but crucially, the definition allows for the lease to have been granted on or after 14 February 2022.
The idea is that these amendments will be treated as having come into force on 28 June 2022 – the same date that the leaseholder protections first came into force.
At first blush, it looks as though this should solve the issue but once digested, enfranchisement practitioners will need to see if there are any devils in there. As some people have commented – with 14 subsections, it is perhaps an invitation to litigate!
The Lords consideration of the amendments is scheduled for 23 October 2023…
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