Public health preparedness and response: implementation of the International Health Regulations (2005): report by the Director-General
This Chapter has effect for the purpose of conferring on qualifying tenants of flats contained in premises to which this Chapter applies on the relevant date the right, exercisable subject to and in accordance with this Chapter, to have the freehold of those premises acquired on their behalf— and that right is referred to in this Chapter as “the right to collective enfranchisement”.
by a person or persons appointed by them for the purpose, and
at a price determined in accordance with this Chapter;
Where the right to collective enfranchisement is exercised in relation to any such premises (“the relevant premises”)—
the qualifying tenants by whom the right is exercised shall be entitled, subject to and in accordance with this Chapter, to have acquired, in like manner, the freehold of any property which is not comprised in the relevant premises but to which this paragraph applies by virtue of subsection (3); and
section 2 has effect with respect to the acquisition of leasehold interests to which paragraph (a) or (b) of subsection (1) of that section applies.
Subsection (2)(a) applies to any property if . . . at the relevant date either—
it is appurtenant property which is demised by the lease held by a qualifying tenant of a flat contained in the relevant premises; or
it is property which any such tenant is entitled under the terms of the lease of his flat to use in common with the occupiers of other premises (whether those premises are contained in the relevant premises or not).
The right of acquisition in respect of the freehold of any such property as is mentioned in subsection (3)(b) shall, however, be taken to be satisfied with respect to that property if, on the acquisition of the relevant premises in pursuance of this Chapter, either—
there are granted by the person who owns the freehold of that property— such permanent rights as will ensure that thereafter the occupier of the flat referred to in that provision has as nearly as may be the same rights as those enjoyed in relation to that property on the relevant date by the qualifying tenant under the terms of his lease; or
over that property, or
over any other property,
there is acquired from the person who owns the freehold of that property the freehold of any other property over which any such permanent rights may be granted.
A claim by qualifying tenants to exercise the right to collective enfranchisement may be made in relation to any premises to which this Chapter applies despite the fact that those premises are less extensive than the entirety of the premises in relation to which those tenants are entitled to exercise that right.
Any right or obligation under this Chapter to acquire any interest in property shall not extend to underlying minerals in which that interest subsists if—
the owner of the interest requires the minerals to be excepted, and
proper provision is made for the support of the property as it is enjoyed on the relevant date.
In this section—
“appurtenant property”, in relation to a flat, means any garage, outhouse, garden, yard or appurtenances belonging to, or usually enjoyed with, the flat;
the tenant may, unless he has been subsequently notified by the landlord of a different address in England and Wales for the purposes of this section, give the notice to the landlord—
such information relating to his interest in the relevant premises or (as the case may be) in any such property . . ., or
(so far as known to him) such information relating to any interest derived (whether directly or indirectly) out of that interest,
which forms part of a building, and
the property comprised in one of those leases consists of either the flat or a part of it (in either case with or without any appurtenant property), and
the participating tenants are required to give a notice under subsection (3) or (5), and
the property comprised in every other lease consists of either a part of the flat (with or without any appurtenant property) or appurtenant property only,
as a result of the resignation or death referred to in that subsection there is no nominee purchaser for the time being,
In this Chapter “the relevant date”, in relation to any claim to exercise the right to collective enfranchisement, means the date on which notice of the claim is given under section 13.
Where the right to collective enfranchisement is exercised in relation to any premises to which this Chapter applies (“the relevant premises”), then, subject to and in accordance with this Chapter— and any interest so acquired on behalf of those tenants shall be acquired in the manner mentioned in paragraphs (a) and (b) of section 1(1).
there shall be acquired on behalf of the qualifying tenants by whom the right is exercised every interest to which this paragraph applies by virtue of subsection (2); and
those tenants shall be entitled to have acquired on their behalf any interest to which this paragraph applies by virtue of subsection (3);
Paragraph (a) of subsection (1) above applies to the interest of the tenant under any lease which is superior to the lease held by a qualifying tenant of a flat contained in the relevant premises.
Paragraph (b) of subsection (1) above applies to the interest of the tenant under any lease (not falling within subsection (2) above) under which the demised premises consist of or include— where the acquisition of that interest is reasonably necessary for the proper management or maintenance of those common parts, or (as the case may be) that property, on behalf of the tenants by whom the right to collective enfranchisement is exercised.
any common parts of the relevant premises, or
any property falling within section 1(2)(a) which is to be acquired by virtue of that provision,
Where the demised premises under any lease falling within subsection (2) or (3) include any premises other than— the obligation or (as the case may be) right under subsection (1) above to acquire the interest of the tenant under the lease shall not extend to his interest under the lease in any such other premises.
a flat contained in the relevant premises which is held by a qualifying tenant,
any common parts of those premises, or
any such property as is mentioned in subsection (3)(b),
Where the qualifying tenant of a flat is a public sector landlord and the flat is let under a secure tenancy or an introductory tenancy or a secure contract (or an introductory standard contract), then if— the interest of that public sector landlord as tenant under that lease shall not be liable to be acquired by virtue of subsection (1) to the extent that it is an interest in the flat or in any appurtenant property; and the interest of a public sector landlord as tenant under any lease out of which the qualifying tenant’s lease is indirectly derived shall, to the like extent, not be liable to be so acquired (so long as the tenant under every lease intermediate between that lease and the qualifying tenant’s lease is a public sector landlord).
the condition specified in subsection (6) is satisfied, and
the lease of the qualifying tenant is directly derived out of a lease under which the tenant is a public sector landlord,
The condition referred to in subsection (5)(a) is that either— and in subsection (5) “appurtenant property” has the same meaning as in section 1.
the qualifying tenant is the immediate landlord under the secure tenancy or, as the case may be, the introductory tenancy or the secure contract (or the introductory standard contract), or
he is the landlord under a lease which is superior to the secure tenancy or, as the case may be, the introductory tenancy or the secure contract (or the introductory standard contract) and the tenant under that lease, and the tenant under every lease (if any) intermediate between it and the secure tenancy or the introductory tenancy or the secure contract (or the introductory standard contract), is also a public sector landlord;
In this section “the relevant premises” means any such premises as are referred to in subsection (1).
Subject to section 4, this Chapter applies to any premises if—
they consist of a self-contained building or part of a building . . .;
they contain two or more flats held by qualifying tenants; and
the total number of flats held by such tenants is not less than two-thirds of the total number of flats contained in the premises.
For the purposes of this section a building is a self-contained building if it is structurally detached, and a part of a building is a self-contained part of a building if— and for this purpose “relevant services” means services provided by means of pipes, cables or other fixed installations.
it constitutes a vertical division of the building and the structure of the building is such that that part could be redeveloped independently of the remainder of the building; and
the relevant services provided for occupiers of that part either—
are provided independently of the relevant services provided for occupiers of the remainder of the building, or
could be so provided without involving the carrying out of any works likely to result in a significant interruption in the provision of any such services for occupiers of the remainder of the building;
This Chapter does not apply to premises falling within section 3(1) if—
any part or parts of the premises is or are neither—
occupied, or intended to be occupied, for residential purposes, nor
comprised in any common parts of the premises; and
the internal floor area of that part or of those parts (taken together) exceeds 25 per cent. of the internal floor area of the premises (taken as a whole).
Where in the case of any such premises any part of the premises (such as, for example, a garage, parking space or storage area) is used, or intended for use, in conjunction with a particular dwelling contained in the premises (and accordingly is not comprised in any common parts of the premises), it shall be taken to be occupied, or intended to be occupied, for residential purposes.
For the purpose of determining the internal floor area of a building or of any part of a building, the floor or floors of the building or part shall be taken to extend (without interruption) throughout the whole of the interior of the building or part, except that the area of any common parts of the building or part shall be disregarded.
This Chapter does not apply to premises falling within section 3(1) if the premises are premises with a resident landlord and do not contain more than four units.
Where different persons own the freehold of different parts of premises within subsection (1) of section 3, this Chapter does not apply to the premises if any of those parts is a self-contained part of a building for the purposes of that section.
This Chapter does not apply to premises falling within section 3(1) if the freehold of the premises includes track of an operational railway; and for the purposes of this subsection—
“track” includes any land or other property comprising the permanent way of a railway (whether or not it is also used for other purposes) and includes any bridge, tunnel, culvert, retaining wall or other structure used for the support of, or otherwise in connection with, track,
“operational” means not disused, and
“railway” has the same meaning as in any provision of Part 1 of the Railways Act 1993 (c. 43) for the purposes of which that term is stated to have its wider meaning.
Subject to the following provisions of this section, a person is a qualifying tenant of a flat for the purposes of this Chapter if he is tenant of the flat under a long lease . . . .
Subsection (1) does not apply where— and in paragraph (b) “charitable housing trust” means a housing trust within the meaning of the Housing Act 1985 which is a charity ....
the lease is a business lease; or
the immediate landlord under the lease is a charitable housing trust and the flat forms part of the housing accommodation provided by it in the pursuit of its charitable purposes; or
the lease was granted by sub-demise out of a superior lease other than a long lease . . . , the grant was made in breach of the terms of the superior lease, and there has been no waiver of the breach by the superior landlord;
No flat shall have more than one qualifying tenant at any one time.
Accordingly—
where a flat is for the time being let under two or more leases to which subsection (1) applies, any tenant under any of those leases which is superior to that held by any other such tenant shall not be a qualifying tenant of the flat for the purposes of this Chapter; and
where a flat is for the time being let to joint tenants under a lease to which subsection (1) applies, the joint tenants shall (subject to paragraph (a) and subsection (5)) be regarded for the purposes of this Chapter as jointly constituting the qualifying tenant of the flat.
Where apart from this subsection— then, whether that person is tenant of the flats referred to in paragraphs (a) and (b) under a single lease or otherwise, there shall be taken for those purposes to be no qualifying tenant of any of those flats.
a person would be regarded for the purposes of this Chapter as being (or as being among those constituting) the qualifying tenant of a flat contained in any particular premises consisting of the whole or part of a building, but
that person would also be regarded for those purposes as being (or as being among those constituting) the qualifying tenant of each of two or more other flats contained in those premises,
For the purposes of subsection (5) in its application to a body corporate any flat let to an associated company (whether alone or jointly with any other person or persons) shall be treated as if it were so let to that body; and for this purpose “associated company” means another body corporate which is (within the meaning of section 1159 of the Companies Act 2006) that body’s holding company, a subsidiary of that body or another subsidiary of that body’s holding company.
A company is a RTE company in relation to premises if—
it is a private company limited by guarantee, and
its articles of association state that its object, or one of its objects, is the exercise of the right to collective enfranchisement with respect to the premises.
But a company is not a RTE company if it is a commonhold association (within the meaning of Part 1 of the Commonhold and Leasehold Reform Act 2002).
And a company is not a RTE company in relation to premises if another company which is a RTE company in relation to— has given a notice under section 13 with respect to the premises, or any premises containing or contained in the premises, and the notice continues in force in accordance with subsection (11) of that section.
the premises, or
any premises containing or contained in the premises,
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For the purposes of this Chapter a qualifying tenant of a flat satisfies the residence condition at any time when the condition specified in subsection (2) is satisfied with respect to him.
That condition is that the tenant has occupied the flat as his only or principal home— whether or not he has used it also for other purposes.
for the last twelve months, or
for periods amounting to three years in the last ten years,
For the purposes of subsection (2)— but any occupation by a company or other artificial person, or (where the tenant is a corporation sole) by the corporator, shall not be regarded as occupation for the purposes of that subsection.
any reference to the tenant’s flat includes a reference to part of it; and
it is immaterial whether at any particular time the tenant’s occupation was in right of the lease by virtue of which he is a qualifying tenant or in right of some other lease or otherwise;
In the case of a lease held by joint tenants—
the condition specified in subsection (2) need only be satisfied with respect to one of the joint tenants; and
subsection (3) shall apply accordingly (the reference to the lease by virtue of which the tenant is a qualifying tenant being read for this purpose as a reference to the lease by virtue of which the joint tenants are a qualifying tenant).
Before the execution of a relevant conveyance to a company which is a RTE company in relation to any premises the following persons are entitled to be members of the company—
qualifying tenants of flats contained in the premises, and
if the company is also a RTM company which has acquired the right to manage the premises, landlords under leases of the whole or any part of the premises.
In this section—
On the execution of a relevant conveyance to the RTE company, any member of the company who is not a participating member ceases to be a member.
In this Chapter “participating member”, in relation to a RTE company, means a person who is a member by virtue of subsection (1)(a) of this section and who—
has given a participation notice to the company before the date when the company gives a notice under section 13 or during the participation period, or
is a participating member by virtue of either of the following two subsections.
A member who is the assignee of a lease by virtue of which a participating member was a qualifying tenant of his flat is a participating member if he has given a participation notice to the company within the period beginning with the date of the assignment and ending 28 days later (or, if earlier, on the execution of a relevant conveyance to the company).
And if the personal representatives of a participating member are a member, they are a participating member if they have given a participation notice to the company at any time (before the execution of a relevant conveyance to the company).
In this section “participation notice”, in relation to a member of the company, means a notice stating that he wishes to be a participating member.
For the purposes of this section a participation notice given to the company during the period— is of no effect unless a copy of the participation notice has been given during that period to the person who (in accordance with section 9) is the reversioner in respect of the premises.
beginning with the date when the company gives a notice under section 13, and
ending immediately before a binding contract is entered into in pursuance of the notice under section 13,
For the purposes of this section “the participation period” is the period beginning with the date when the company gives a notice under section 13 and ending— whichever is the earlier.
six months, or such other time as the Secretary of State may by order specify, after that date, or
immediately before a binding contract is entered into in pursuance of the notice under section 13,
In this section references to assignment include an assent by personal representatives, and assignment by operation of law where the assignment is to a trustee in bankruptcy or to a mortgagee under section 89(2) of the Law of Property Act 1925 (c. 20)(foreclosure of leasehold mortgage); and references to an assignee shall be construed accordingly.
In this Chapter “long lease” means (subject to the following provisions of this section)—
a lease granted for a term of years certain exceeding 21 years, whether or not it is (or may become) terminable before the end of that term by notice given by or to the tenant or by re-entry, forfeiture or otherwise;
a lease for a term fixed by law under a grant with a covenant or obligation for perpetual renewal (other than a lease by sub-demise from one which is not a long lease) or a lease taking effect under section 149(6) of the Law of Property Act 1925 (leases terminable after a death or marriage or the formation of a civil partnership);
a lease granted in pursuance of the right to buy conferred by Part V of the Housing Act 1985 or in pursuance of the right to acquire on rent to mortgage terms conferred by that Part of that Act; or
a shared ownership lease, whether granted in pursuance of that Part of that Act or otherwise, where the tenant’s total share is 100 per cent. or
a lease granted in pursuance of that Part of that Act as it has effect by virtue of section 17 of the Housing Act 1996 (the right to acquire)
A lease terminable by notice after a death, a marriage or the formation of a civil partnership is not to be treated as a long lease for the purposes of this Chapter if—
the notice is capable of being given at any time after the death or marriage of , or the formation of a civil partnership by, the tenant;
the length of the notice is not more than three months; and
the terms of the lease preclude both—
its assignment otherwise than by virtue of section 92 of the Housing Act 1985 (assignments by way of exchange), and
the sub-letting of the whole of the premises comprised in it.
Where the tenant of any property under a long lease . . . , on the coming to an end of that lease, becomes or has become tenant of the property or part of it under any subsequent tenancy (whether by express grant or by implication of law), then that tenancy shall be deemed for the purposes of this Chapter (including any further application of this subsection) to be a long lease irrespective of its terms.
Where— this Chapter shall apply as if the term originally granted had been one exceeding 21 years.
a lease is or has been granted for a term of years certain not exceeding 21 years, but with a covenant or obligation for renewal without payment of a premium (but not for perpetual renewal), and
the lease is or has been renewed on one or more occasions so as to bring to more than 21 years the total of the terms granted (including any interval between the end of a lease and the grant of a renewal),
References in this Chapter to a long lease include—
any period during which the lease is or was continued under Part I of the Landlord and Tenant Act 1954 or under Schedule 10 to the Local Government and Housing Act 1989;
any period during which the lease was continued under the Leasehold Property (Temporary Provisions) Act 1951.
“premises with a resident landlord” shall be construed in accordance with section 10;
there were a single lease of that property, and
that lease were a long lease;
to any person who owns a freehold interest in the relevant premises,
no application for an order under that subsection is made within the period specified in subsection (2) of that section, or
to any person falling within subsection (3)(a), (b) or (c),
such an application is so made but is subsequently withdrawn,
to any person who owns a freehold interest in any such property as is mentioned in subsection (3)(c),
In this section—
whichever is the later; but if at any time during that period of six months a request of a kind mentioned in subsection (2)(c) above is pending or granted, an application under subsection (1) above may, subject to subsection (2) above, be made within the period of— as the case may be.
as from the date of the death of the tenant, and
so long as his lease remains vested in them.
at the address last furnished to the tenant as the landlord’s address for service in accordance with section 48 of that Act (notification of address for service of notices on landlord); or
if no such address has been furnished, at the address last furnished to the tenant as the landlord’s address in accordance with section 47 of that Act (landlord’s name and address to be contained in demands for rent).
any event which in accordance with any provision of Chapter II of Part II of the Inheritance Tax Act 1984 (exempt transfers) is a chargeable event, including any such provision as applied by section 78(3) of that Act (conditionally exempt occasions); or
is prescribed by or under this Part for the giving of any other notice or the making of any application, and
would otherwise expire during the period beginning with the date of the giving of the notice under subsection (3) and ending with the date when the particulars specified in subsection (5)(b) are notified to the reversioner,
“conveyance” includes assignment, transfer and surrender, and related expressions shall be construed accordingly;
of the death of the tenant, and
with respect to any interests of that person (whether in those premises or in any other property) which are liable to acquisition on behalf of those tenants by virtue of section 1(1) or (2)(a) or section 2(1), or
with respect to any interests of those landlords which are so liable to acquisition by virtue of any of those provisions,
section 19(2) of the Landlord and Tenant Act 1954 (“the 1954 Act”), or
as to whether or not the personal representatives are electing to withdraw from participation in the proposed acquisition;
paragraph 16(2) of Schedule 10 to the Local Government and Housing Act 1989 (“the 1989 Act”),
The Secretary of State shall by regulations make provision about the content and form of the articles of association of RTE companies.
A RTE company may adopt provisions of the regulations for its articles.
The regulations may include provision which is to have effect for a RTE company whether or not it is adopted by the company.
A provision of the articles of a RTE company has no effect to the extent that it is inconsistent with the regulations.
The regulations have effect in relation to articles—
irrespective of the date of the articles, but
subject to any transitional provisions of the regulations.
Section 20 of the Companies Act 2006 (default application of model articles) does not apply to a RTE company.
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For the purposes of this Chapter a lease of a flat is a lease at a low rent if either no rent was payable under it in respect of the flat during the initial year or the aggregate amount of rent so payable during that year did not exceed the following amount, namely—
where the lease was entered into before 1st April 1963, two-thirds of the letting value of the flat (on the same terms) on the date of the commencement of the lease;
where— two-thirds of the rateable value of the flat on the appropriate date; or
the lease was entered into either on or after 1st April 1963 but before 1st April 1990, or on or after 1st April 1990 in pursuance of a contract made before that date, and
the flat had a rateable value at the date of the commencement of the lease or else at any time before 1st April 1990,
in any other case, £1,000 if the flat is in Greater London or £250 if elsewhere.
For the purposes of subsection (1)—
“the initial year”, in relation to any lease, means the period of one year beginning with the date of the commencement of the lease;
“the appropriate date” means the date of the commencement of the lease or, if the flat in question did not have a rateable value on that date, the date on which the flat first had a rateable value;
section 25(1), (2) and (4) of the Rent Act 1977 (rateable value etc.) shall apply, with any necessary modifications, for the purpose of determining the amount of the rateable value of a flat on a particular date;
“rent” means rent reserved as such, and there shall be disregarded any part of the rent expressed to be payable in consideration of services to be provided, or of repairs, maintenance or insurance to be effected by the landlord, or to be payable in respect of the cost thereof to the landlord under the lease or a superior landlord; and
there shall be disregarded any term of the lease providing for suspension or reduction of rent in the event of damage to property demised, or for any penal addition to the rent in the event of a contravention of or non-compliance with the terms of the lease or an agreement collateral thereto.
In subsection (1)(a) above the reference to letting value shall be construed in like manner as, under the law of England and Wales, the reference to letting value is to be construed where it appears in the proviso to section 4(1) of the Leasehold Reform Act 1967 (meaning of “low rent”).
Accordingly, in determining the letting value of a flat at any time for the purposes of subsection (1)(a) above, regard shall be had to whether, and (if so) in what amount, a premium might then have been lawfully demanded as the whole or part of the consideration for the letting.
Where, by virtue of section 7(4), a lease which has been renewed on one or more occasions is to be treated as a long lease for the purposes of this Chapter, then for the purpose of determining under this section whether it is for those purposes a long lease at a low rent—
the lease shall be deemed to have been entered into on the date of the last renewal of the lease; and
that date shall be deemed to be the date of the commencement of the lease.
Subsection (2)(a) above shall have effect in relation to any shared ownership lease falling within section 7(1)(d) as if the reference to the date of commencement of the lease were a reference to the date on which the tenant’s total share became 100 per cent; and section 7(7) shall apply for the interpretation of this subsection.
In this section any reference to a flat let under a lease includes a reference to any appurtenant property (within the meaning of section 1) which on the relevant date is let with the flat to the tenant under the lease.
Where, in connection with any claim to exercise the right to collective enfranchisement in relation to any premises the freehold of the whole of which is owned by the same person, it is not proposed to acquire any interests other than— that person shall be the reversioner in respect of the premises for the purposes of this Chapter.
the freehold of the premises, or
any other interests of the person who owns the freehold of the premises,
Where, in connection with any such claim as is mentioned in subsection (1), it is proposed to acquire interests of persons other than the person who owns the freehold of the premises to which the claim relates, then—
the reversioner in respect of the premises shall for the purposes of this Chapter be the person identified as such by Part I of Schedule 1 to this Act; and
the person who owns the freehold of the premises every person who owns any freehold interest which it is proposed to acquire by virtue of section 1(2)(a),, and every person who owns any leasehold interest which it is proposed to acquire under or by virtue of section 2(1)(a) or (b), shall be a relevant landlord for those purposes.
Subject to the provisions of Part II of Schedule 1, the reversioner in respect of any premises shall, in a case to which subsection (2) or (2A) applies, conduct on behalf of all the relevant landlords all proceedings arising out of any notice given with respect to the premises under section 13 (whether the proceedings are for resisting or giving effect to the claim in question).
In the case of any claim to exercise the right to collective enfranchisement in relation to any premises the freehold of the whole of which is not owned by the same person—
the reversioner in respect of the premises shall for the purposes of this Chapter be the person identified as such by Part IA of Schedule 1 to this Act, and
every person who owns a freehold interest in the premises, every person who owns any freehold interest which it is proposed to acquire by virtue of section 1(2)(a), and every person who owns any leasehold interest which it is proposed to acquire under or by virtue of section 2(1)(a) or (b), shall be a relevant landlord for those purposes.
Schedule 2 (which makes provision with respect to certain special categories of landlords) has effect for the purposes of this Chapter.
For the purposes of this Chapter any premises falling within section 3(1) are premises with a resident landlord at any time if—
the premises are not, and do not form part of, a purpose-built block of flats;
the same person has owned the freehold of the premises since before the conversion of the premises into two or more flats or other units; and
at that time occupies a flat contained in the premises as his only or principal home, and
has so occupied such a flat throughout a period of not less than twelve months ending with that time.
he, or an adult member of his family, has occupied a flat or other unit contained in the premises as his only or principal home throughout the period of twelve months ending with that time.
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immediately before the date when the freeholder acquired his interest in the premises the premises were (or, had this Chapter then been in force, would have been) such premises for the purposes of this Chapter; and
the freeholder, or an adult member of the freeholder’s family—
entered into occupation of a flat contained in the premises within the period of 28 days beginning with that date, and
has occupied such a flat as his only or principal home throughout the period beginning with the time when he so entered into occupation and ending with the relevant time.
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Where the freehold of any premises is held on trust, subsection (1) applies as if—
the requirement in paragraph (b) were that the same person has had an interest under the trust (whether or not also a trustee) since before the conversion of the premises, and
paragraph (c) referred to him or an adult member of his family.
For the purposes of this section a person is an adult member of another’s family if that person is— and in paragraph (b) any reference to a person’s son or daughter includes a reference to any stepson or stepdaughter of that person, and “son-in-law” and “daughter-in-law” shall be construed accordingly.
the other’s spouse or civil partner; or
a son or daughter or a son-in-law or daughter-in-law of the other, or of the other’s spouse or civil partner, who has attained the age of 18; or
the father or mother of the other, or of the other’s spouse or civil partner;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In this section— . . . “purpose-built block of flats” means a building which as constructed contained two or more flats. “qualifying flat”, in relation to a relevant person, or an adult member of a relevant person’s family, means a flat the freehold of the whole of which is owned by the relevant person.
“wholly-owned subsidiary” has the meaning given by section 736 of the Companies Act 1985.
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A qualifying tenant of a flat may give— a notice requiring the recipient to give the tenant (so far as known to the recipient) the name and address of every person who owns a freehold interest in the relevant premises and the name and address of every other person who has an interest to which subsection (2) applies.
to any immediate landlord of his, or
to any person receiving rent on behalf of any immediate landlord of his,
In relation to a qualifying tenant of a flat, this subsection applies to the following interests, namely—
the freehold of any property not contained in the relevant premises—
which is demised by the lease held by the tenant, or
which the tenant is entitled under the terms of his lease to use in common with other persons; and
any leasehold interest in the relevant premises or in any such property which is superior to that of any immediate landlord of the tenant.
Any qualifying tenant of a flat may give to any person who owns a freehold interest in the relevant premises a notice requiring him to give the tenant (so far as known to him) the name and address of every person, apart from the tenant, who is—
a tenant of the whole of the relevant premises, or
a tenant or licensee of any separate set or sets of premises contained in the relevant premises, or
a tenant or licensee of the whole or any part of any common parts so contained or of any property not so contained—
which is demised by the lease held by a qualifying tenant of a flat contained in the relevant premises, or
which any such qualifying tenant is entitled under the terms of his lease to use in common with other persons.
Where a notice is given by a qualifying tenant under subsection (4), the following rights shall be exercisable by him in relation to the recipient of the notice, namely—
a right, on giving reasonable notice, to be provided with a list of documents to which subsection (6) applies;
a right to inspect, at any reasonable time and on giving reasonable notice, any documents to which that subsection applies; and
a right, on payment of a reasonable fee, to be provided with a copy of any documents which are contained in any list provided under paragraph (a) or have been inspected under paragraph (b).
This subsection applies to any document in the custody or under the control of the recipient of the notice under subsection (4)—
sight of which is reasonably required by the qualifying tenant in connection with the making of such a claim as is mentioned in that subsection; and
which, on a proposed sale by a willing seller to a willing buyer of the recipient’s interest in the relevant premises or (as the case may be) in any such property as is mentioned in subsection (3)(c), the seller would be expected to make available to the buyer (whether at or before contract or completion).
Any person who— shall comply with that requirement within the period of 28 days beginning with the date of the giving of the notice referred to in paragraph (a) or (as the case may be) with the date of the making of the requirement referred to in paragraph (b).
is required by a notice under any of subsections (1) to (4) to give any information to a qualifying tenant, or
is required by a qualifying tenant under subsection (5) to supply any list of documents, to permit the inspection of any documents or to supply a copy of any documents,
Where— then (unless that disposal or acquisition has already been notified to the qualifying tenant in accordance with subsection (7)) he shall notify the qualifying tenant of that disposal or acquisition within the period of 28 days beginning with the date when it occurred.
a person has received a notice under subsection (4), and
within the period of six months beginning with the date of receipt of the notice, he—
disposes of any interest (whether legal or equitable) in the relevant premises or in any such property as is mentioned in subsection (3)(c) otherwise than by the creation of an interest by way of security for a loan, or
acquires any such interest (otherwise than by way of security for a loan),
In this section— and any reference to an interest in the relevant premises includes an interest in part of those premises.
“the relevant premises”, in relation to any qualifying tenant of a flat, means—
either the whole or a material part of which lies above or below some other part of the building;
(in a case to which section 9(1) applies) the person who owns the freehold of the premises cannot be found or his identity cannot be ascertained, or
(in a case to which section 9(2) or (2A) applies) each of the relevant landlords is someone who cannot be found or whose identity cannot be ascertained,
Any notice given by a qualifying tenant under section 11(4) shall, in addition to any other requirement imposed in accordance with that provision, require the recipient to give the tenant—
the information specified in subsection (2) below; and
(so far as known to the recipient) the information specified in subsection (3) below.
The information referred to in subsection (1)(a) is—
whether the recipient has received in respect of any premises containing the tenant’s flat—
a notice under section 13 in the case of which the relevant claim is still current, or
a copy of such a notice; and
if so, the date on which the notice under section 13 was given and the name and address of the nominee purchaser for the time being appointed for the purposes of section 15 in relation to that claim.
The information referred to in subsection (1)(b) is—
whether the tenant’s flat is comprised in any property in the case of which any of paragraphs (a) to (d) of section 31(2) is applicable; and
if paragraph (b) or (d) of that provision is applicable, the date of the application in question.
Where— the recipient shall, within the period of 28 days beginning with the date of receipt of the notice under section 13 or (as the case may be) the copy, notify the tenant of the date on which the notice was given and of the name and address of the nominee purchaser for the time being appointed for the purposes of section 15 in relation to the relevant claim.
within the period of six months beginning with the date of receipt of a notice given by a tenant under section 11(4), the recipient of the notice receives in respect of any premises containing the tenant’s flat—
a notice under section 13, or
a copy of such a notice, and
the tenant is not one of the qualifying tenants by whom the notice under section 13 is given,
Where— the recipient shall, within the period of 28 days beginning with the date of the granting, refusal or withdrawal of the application, notify the tenant that it has been granted, refused or withdrawn.
the recipient of a notice given by a tenant under section 11(4) has, in accordance with subsection (1) above, informed the tenant of any such application as is referred to in subsection (3)(b) above; and
within the period of six months beginning with the date of receipt of the notice, the application is either granted or refused by the Commissioners of Inland Revenue or is withdrawn by the applicant,
In this section “the relevant claim”, in relation to a notice under section 13, means the claim in respect of which that notice is given; and for the purposes of subsection (2) above any such claim is current if—
that notice continues in force in accordance with section 13(11), or
a binding contract entered into in pursuance of that notice remains in force, or
where an order has been made under section 24(4)(a) or (b) or 25(6)(a) or (b) with respect to any such premises as are referred to in subsection (2)(a) above, any interests which by virtue of the order fall to be vested in the nominee purchaser have yet to be so vested.
A claim to exercise the right to collective enfranchisement with respect to any premises is made by the giving of notice of the claim under this section.
A notice given under this section (“the initial notice”)— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
must
in a case to which section 9(2) applies, be given to the reversioner in respect of those premises; and
in a case to which section 9(2A) applies, be given to the person specified in the notice as the recipient; and
must be given by a number of qualifying tenants of flats contained in the premises as at the relevant date which—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
is not less than one-half of the total number of flats so contained;
The initial notice must—
specify and be accompanied by a plan showing—
the premises of which the freehold is proposed to be acquired by virtue of section 1(1),
any property of which the freehold is proposed to be acquired by virtue of section 1(2)(a), and
any property . . . over which it is proposed that rights (specified in the notice) should be granted . . . in connection with the acquisition of the freehold of the specified premises or of any such property so far as falling within section 1(3)(a);
contain a statement of the grounds on which it is claimed that the specified premises are, on the relevant date, premises to which this Chapter applies;
specify—
any leasehold interest proposed to be acquired under or by virtue of section 2(1)(a) or (b), and
any flats or other units contained in the specified premises in relation to which it is considered that any of the requirements in Part II of Schedule 9 to this Act are applicable;
specify the proposed purchase price for each of the following, namely—
the freehold interest in the specified premises, or, if the freehold of the whole of the specified premises is not owned by the same person, each of the freehold interests in those premises
the freehold interest in any property specified under paragraph (a)(ii), and
any leasehold interest specified under paragraph (c)(i);
state the full names of all the qualifying tenants of flats contained in the specified premises and the addresses of their flats, and contain . . . in relation to each of those tenants, . . . —
such particulars of his lease as are sufficient to identify it, including the date on which the lease was entered into, the term for which it was granted and the date of the commencement of the term,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
state the full name or names of the person or persons appointed as the nominee purchaser for the purposes of section 15, and an address in England and Wales at which notices may be given to that person or those persons under this Chapter; and
specify the date by which the reversioner must respond to the notice by giving a counter-notice under section 21.
In a case to which section 9(2A) applies, the initial notice must specify— as the recipient of the notice.
a person who owns a freehold interest in the premises, or
if every person falling within paragraph (a) is a person who cannot be found or whose identity cannot be ascertained, a relevant landlord,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The date specified in the initial notice in pursuance of subsection (3)(g) must be a date falling not less than two months after the relevant date.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the freehold interest in the specified premises,
the freehold interest in any property specified under subsection (3)(a)(ii), and
any leasehold interest specified under subsection (3)(c)(i),
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
he is a fellow or professional associate of the Royal Institution of Chartered Surveyors or of the Incorporated Society of Valuers and Auctioneers or satisfies such other requirement or requirements as may be prescribed by regulations made by the Secretary of State; and
he is reasonably believed by the qualifying tenants to have ability in, and experience of, the valuation of premises of the particular kind, and in the particular area, in question;
Where any premises have been specified in a notice under this section, no subsequent notice which specifies the whole or part of those premises may be given under this section so long as the earlier notice continues in force.
Where any premises have been specified in a notice under this section and— no subsequent notice which specifies the whole or part of those premises may be given under this section within the period of twelve months beginning with the date of the withdrawal or deemed withdrawal of the earlier notice or with the time when the order under section 23(1) becomes final (as the case may be).
that notice has been withdrawn, or is deemed to have been withdrawn, under or by virtue of any provision of this Chapter or under section 74(3), or
in response to that notice, an order has been applied for and obtained under section 23(1),
In subsections (8) and (9) any reference to a notice which specifies the whole or part of any premises includes a reference to a notice which specifies any premises which contain the whole or part of those premises; and in those subsections and this “specifies” means specifies under subsection (3)(a)(i).
Where a notice is given in accordance with this section, then for the purposes of this Chapter the notice continues in force as from the relevant date—
until a binding contract is entered into in pursuance of the notice, or an order is made under section 24(4)(a) or (b) or 25(6)(a) or (b) providing for the vesting of interests in the nominee purchaser;
if the notice is withdrawn or deemed to have been withdrawn under or by virtue of any provision of this Chapter or under section 74(3), until the date of the withdrawal or deemed withdrawal, or
until such other time as the notice ceases to have effect by virtue of any provision of this Chapter.
In this Chapter “the specified premises”, in relation to a claim made under this Chapter, means— and similarly references to any property or interest specified in the initial notice under subsection (3)(a)(ii) or (c)(i) shall, if it is subsequently agreed or determined under this Chapter that any less extensive property or interest should be acquired in pursuance of the notice, be read as references to that property or interest.
the premises specified in the initial notice under subsection (3)(a)(i), or
if it is subsequently agreed or determined under this Chapter that any less extensive premises should be acquired in pursuance of the notice in satisfaction of the claim, those premises;
Schedule 3 to this Act (which contains restrictions on participating in the exercise of the right to collective enfranchisement, and makes further provision in connection with the giving of notices under this section) shall have effect.
In relation to any claim to exercise the right to collective enfranchisement, the participating tenants are (subject to the provisions of this section and Part I of Schedule 3) the following persons, namely—
in relation to the relevant date, the qualifying tenants by whom the initial notice is given; and
in relation to any time falling after that date, such of those qualifying tenants as for the time being remain qualifying tenants of flats contained in the specified premises.
Where the lease by virtue of which a participating tenant is a qualifying tenant of his flat is assigned to another person, the assignee of the lease shall, within the period of 14 days beginning with the date of the assignment, notify the nominee purchaser—
of the assignment, and
as to whether or not the assignee is electing to participate in the proposed acquisition.
Where a qualifying tenant of a flat contained in the specified premises— then (subject to paragraph 8 of Schedule 3) he may elect to participate in the proposed acquisition, but only with the agreement of all the persons who are for the time being participating tenants; and, if he does so elect, he shall notify the nominee purchaser forthwith of his election.
is not one of the persons by whom the initial notice was given, and
is not such an assignee of the lease of a participating tenant as is mentioned in subsection (2),
Where a person notifies the nominee purchaser under subsection (2) or (3) of his election to participate in the proposed acquisition, he shall be regarded as a participating tenant for the purposes of this Chapter—
as from the date of the assignment or agreement referred to in that subsection; and
so long as he remains a qualifying tenant of a flat contained in the specified premises.
Where in accordance with subsection (4) or (5) any assignee or personal representatives of a participating tenant (“the tenant”) is or are to be regarded as a participating tenant for the purposes of this Chapter, any arrangements made between the nominee purchaser and the participating tenants and having effect immediately before the date of the assignment or (as the case may be) the date of death shall have effect as from that date—
with such modifications as are necessary for substituting the assignee or (as the case may be) the personal representatives as a party to the arrangements in the place of the tenant; or
in the case of an assignment by a person who remains a qualifying tenant of a flat contained in the specified premises, with such modifications as are necessary for adding the assignee as a party to the arrangements.
Where the nominee purchaser receives a notification under subsection (2), (3) or (5), he shall, within the period of 28 days beginning with the date of receipt of the notification—
give a notice under subsection (8) to the reversioner in respect of the specified premises, and
give a copy of that notice to every other relevant landlord.
A notice under this subsection is a notice stating—
in the case of a notification under subsection (2)—
the date of the assignment and the name and address of the assignee,
that the assignee has or (as the case may be) has not become a participating tenant in accordance with subsection (4), and
if he has become a participating tenant (otherwise than in a case to which subsection (6)(b) applies), that he has become such a tenant in place of his assignor;
in the case of a notification under subsection (3), the name and address of the person who has become a participating tenant in accordance with subsection (4); and
in the case of a notification under subsection (5)—
the date of death of the deceased tenant,
the names and addresses of the personal representatives of the tenant, and
that in accordance with that subsection those persons are or (as the case may be) are not to be regarded as a participating tenant.
Every notice under subsection (8)—
shall identify the flat with respect to which it is given; and
if it states that any person or persons is or are to be regarded as a participating tenant, shall be signed by the person or persons in question.
In this section references to assignment include an assent by personal representatives and assignment by operation of law, where the assignment is— and references to an assignee shall be construed accordingly.
to a trustee in bankruptcy, or
to a mortgagee under section 89(2) of the Law of Property Act 1925 (foreclosure of leasehold mortgage),
Nothing in this section has effect for requiring or authorising anything to be done at any time after a binding contract is entered into in pursuance of the initial notice.
The nominee purchaser shall conduct on behalf of the participating tenants all proceedings arising out of the initial notice, with a view to the eventual acquisition by him, on their behalf, of such freehold and other interests as fall to be so acquired under a contract entered into in pursuance of that notice.
In relation to any claim to exercise the right to collective enfranchisement with respect to any premises, the nominee purchaser shall be such person or persons as may for the time being be appointed for the purposes of this section by the participating tenants; and in the first instance the nominee purchaser shall be the person or persons specified in the initial notice in pursuance of section 13(3)(f).
The appointment of any person as the nominee purchaser, or as one of the persons constituting the nominee purchaser, may be terminated by the participating tenants by the giving of a notice stating that that person’s appointment is to terminate on the date on which the notice is given.
Any such notice must be given—
to the person whose appointment is being terminated, and
to the reversioner in respect of the specified premises.
Any such notice must in addition either— and the appointment of any person by way of replacement for the person whose appointment is being terminated shall not be valid unless his name is specified, or is one of those specified, under paragraph (a) or (b).
specify the name or names of the person or persons constituting the nominee purchaser as from the date of the giving of the notice, and an address in England and Wales at which notices may be given to that person or those persons under this Chapter; or
state that the following particulars will be contained in a further notice given to the reversioner within the period of 28 days beginning with that date, namely—
the name of the person or persons for the time being constituting the nominee purchaser,
if falling after that date, the date of appointment of that person or of each of those persons, and
an address in England and Wales at which notices may be given to that person or those persons under this Chapter;
Where the appointment of any person is terminated in accordance with this section, anything done by or in relation to the nominee purchaser before the date of termination of that person’s appointment shall be treated, so far as necessary for the purpose of continuing its effect, as having been done by or in relation to the nominee purchaser as constituted on or after that date.
Where the appointment of any person is so terminated, he shall not be liable under section 33 for any costs incurred in connection with the proposed acquisition under this Chapter at any time after the date of termination of his appointment; but if— he shall be liable for any costs which are incurred by the nominee purchaser, or for which the nominee purchaser is liable under section 33, in consequence of the failure.
at any such time he is requested by the nominee purchaser for the time being to supply to the nominee purchaser, at an address in England and Wales specified in the request, all or any documents in his custody or under his control that relate to that acquisition, and
he fails without reasonable cause to comply with any such request or is guilty of any unreasonable delay in complying with it,
Where— the person or persons remaining shall for the time being constitute the nominee purchaser.
two or more persons together constitute the nominee purchaser, and
the appointment of any (but not both or all) of them is terminated in accordance with this section without any person being appointed by way of immediate replacement,
in relation to premises in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and
a notice given under subsection (3) contains such a statement as is mentioned in subsection (5)(b), and
as a result of the termination of the appointment in question there is no nominee purchaser for the time being,
If— the initial notice shall be deemed to have been withdrawn at the end of that period.
the circumstances are as mentioned in subsection (9)(a) and (b), but
the particulars specified in subsection (5)(b) are not notified to the reversioner within the period of 28 days specified in that provision,
A copy of any notice given under subsection (3) or (5)(b) shall be given by the participating tenants to every relevant landlord (other than the reversioner) to whom the initial notice or a copy of it was given in accordance with section 13 and Part II of Schedule 3; and, where a notice under subsection (3) terminates the appointment of a person who is one of two or more persons together constituting the nominee purchaser, a copy of the notice shall also be so given to every other person included among those persons.
Nothing in this section applies in relation to the termination of the appointment of the nominee purchaser (or of any of the persons constituting the nominee purchaser) at any time after a binding contract is entered into in pursuance of the initial notice; and in this Chapter references to the nominee purchaser, so far as referring to anything done by or in relation to the nominee purchaser at any time falling after such a contract is so entered into, are references to the person or persons constituting the nominee purchaser at the time when the contract is entered into or such other person as is for the time being the purchaser under the contract.
The appointment of any person as the nominee purchaser, or as one of the persons constituting the nominee purchaser, may be terminated by that person by the giving of a notice stating that he is resigning his appointment with effect from 21 days after the date of the notice.
Any such notice must be given—
to each of the participating tenants; and
to the reversioner in respect of the specified premises.
Where the participating tenants have received any such notice, they shall, within the period of 56 days beginning with the date of the notice, give to the reversioner a notice informing him of the resignation and containing the following particulars, namely— and the appointment of any person by way of replacement for the person resigning his appointment shall not be valid unless his name is specified, or is one of those specified, under paragraph (a).
the name or names of the person or persons for the time being constituting the nominee purchaser,
if falling after that date, the date of appointment of that person or of each of those persons, and
an address in England and Wales at which notices may be given to that person or those persons under this Chapter;
Subsections (6) to (8) of section 15 shall have effect in connection with a person’s resignation of his appointment in accordance with this section as they have effect in connection with the termination of a person’s appointment in accordance with that section.
Where the person, or one of the persons, constituting the nominee purchaser dies, the participating tenants shall, within the period of 56 days beginning with the date of death, give to the reversioner a notice informing him of the death and containing the following particulars, namely— and the appointment of any person by way of replacement for the person who has died shall not be valid unless his name is specified, or is one of those specified, under paragraph (a).
the name or names of the person or persons for the time being constituting the nominee purchaser,
if falling after that date, the date of appointment of that person or of each of those persons, and
an address in England and Wales at which notices may be given to that person or those persons under this Chapter;
Subsections (6) and (8) of section 15 shall have effect in connection with the death of any such person as they have effect in connection with the termination of a person’s appointment in accordance with that section.
any wholly-owned subsidiary of any person, authority or body mentioned in paragraphs (a) and (b) or of any authority, body or undertakers specified in an order made under paragraph (c);
is prescribed by or under this Part for the giving of any other notice or the making of any application, and
would otherwise expire during the period beginning with the relevant date and ending with the date when the particulars specified in that subsection are notified to the reversioner,
acquiring the landlord’s interest in their house and premises (“the house”) under Part I of the Leasehold Reform Act 1967 by virtue of the provisions of section 1AA of that Act (as inserted by paragraph 1 of Schedule 9 to the Housing Act 1996), or
to be fair and practicable, and
not to give the landlord a degree of control out of proportion to that previously exercised by him or to that required for the purposes of the scheme.
Section 9.
Subject to paragraphs 2 to 4, in a case to which section 9(2) applies, the reversioner in respect of any premises is the person who owns the freehold of those premises.
The court may, on the application of all the relevant landlords of any premises, appoint to be the reversioner in respect of those premises (in place of the person designated by paragraph 1) such person as may have been determined by agreement between them.
If it appears to the court, on the application of a relevant landlord of any premises— the court may appoint to be the reversioner in respect of those premises (in place of the person designated by paragraph 1) such person as it thinks fit.
that the respective interests of the relevant landlords of those premises, the absence or incapacity of the person referred to in paragraph 1 or other special circumstances require that some person other than the person there referred to should act as the reversioner in respect of the premises, or
that the person referred to in that paragraph is unwilling to act as the reversioner,
The court may also, on the application of any of the relevant landlords or of the nominee purchaser, remove the reversioner in respect of any premises and appoint another person in his place, if it appears to the court proper to do so by reason of any delay or default, actual or apprehended, on the part of the reversioner.
A person appointed by the court under any of paragraphs 2 to 4—
must be a relevant landlord; but
may be so appointed on such terms and conditions as the court thinks fit.
Without prejudice to the generality of section 9(3)— Subject to paragraph 7— shall be binding on the other relevant landlords and on their interests in the specified premises or any other property; but in the event of dispute the reversioner or any of the other relevant landlords may apply to the court for directions as to the manner in which the reversioner should act in the dispute. If any of the other relevant landlords cannot be found, or his identity cannot be ascertained, the reversioner shall apply to the court for directions and the court may make such order as it thinks proper with a view to giving effect to the rights of the participating tenants and protecting the interests of other persons, but subject to any such directions— The reversioner, if he acts in good faith and with reasonable care and diligence, shall not be liable to any of the other relevant landlords for any loss or damage caused by any act or omission in the exercise or intended exercise of the authority conferred on him by section 9(3).
Notwithstanding anything in section 9(3) or paragraph 6, any of the other relevant landlords shall, at any time after the giving by the reversioner of a counter-notice under section 21 and on giving notice of his intention to do so to both the reversioner and the nominee purchaser, be entitled— If the nominee purchaser so requires by notice given to the reversioner and any of the other relevant landlords, that landlord shall deal directly with the nominee purchaser for the purpose of deducing, evidencing or verifying the landlord’s title to any property. Any of the other relevant landlords may by notice given to the reversioner require him to apply to the appropriate tribunal for the determination by the tribunal of any of the terms of acquisition so far as relating to the acquisition of any interest of the landlord. Any of the other relevant landlords may also, on giving notice to the reversioner and the nominee purchaser, require that the price payable for the acquisition of his interest shall be paid by the nominee purchaser to him, or to a person authorised by him to receive it, instead of to the reversioner; but if, after being given proper notice of the time and method of completion with the nominee purchaser, either— the reversioner shall be authorised to receive the payment for him, and the reversioner’s written receipt for the amount payable shall be a complete discharge to the nominee purchaser.
It shall be the duty of each of the other relevant landlords— and, if any of the other relevant landlords fails to comply with this sub-paragraph, that relevant landlord shall indemnify the reversioner against any liability incurred by the reversioner in consequence of the failure. Each of the other relevant landlords shall make such contribution as shall be just to the costs and expenses properly incurred by the reversioner in pursuance of section 9(3) which are not recoverable or not recovered from the nominee purchaser or any other person.
The authority given to the reversioner by section 9(3) shall not extend to the bringing of proceedings under section 23(1) on behalf of any of the other relevant landlords, or preclude any of those landlords from bringing proceedings under that provision on his own behalf.
Subject to paragraphs 5B to 5D, in a case to which section 9(2A) applies, the reversioner in respect of any premises is the person specified in the initial notice in accordance with section 13(2A) as the recipient.
The court may, on the application of all the relevant landlords of any premises, appoint to be the reversioner in respect of those premises (in place of the person designated by paragraph 5A) such person as may have been determined by agreement between them.
If it appears to the court, on the application of a relevant landlord of any premises— the court may appoint to be the reversioner in respect of those premises (in place of the person designated by paragraph 5A) such person as it thinks fit.
that the respective interests of the relevant landlords of those premises, the absence or incapacity of the person referred to in paragraph 5A or other special circumstances require that some person other than the person there referred to should act as the reversioner in respect of the premises, or
that the person referred to in that paragraph is unwilling to act as the reversioner,
The court may also, on the application of any of the relevant landlords or of the nominee purchaser, remove the reversioner in respect of any premises and appoint another person in his place, if it appears to the court proper to do so by reason of any delay or default, actual or apprehended, on the part of the reversioner.
A person appointed by the court under any of paragraphs 5B to 5D—
must be a relevant landlord; but
may be so appointed on such terms and conditions as the court thinks fit.
acquiring the landlord’s interest in any premises (“the premises”) in accordance with Chapter I of this Part of this Act in circumstances in which, but for section 117(1) of the Commonhold and Leasehold Reform Act 2002 and the repeal by that Act of paragraph 3 of Schedule 9 to the Housing Act 1996, they would have been entitled to acquire it by virtue of the amendments of that Chapter made by that paragraph,
Sections 9 and 40.
In this Schedule— In paragraphs 5 to 8 any reference to a premium payable on the grant of a lease includes a reference to any other amount payable by virtue of Schedule 13 in connection with its grant.
Where— all such proceedings arising out of the relevant notice as would apart from this sub-paragraph be taken by or in relation to that landlord (“the mortgagor”) shall, as regards his interest, be conducted by and through the mortgagee as if he were that landlord; but this sub-paragraph shall not, in its application to a Chapter I landlord, affect the operation in relation to the mortgagee of section 35 or Schedule 8. Where sub-paragraph (1) above applies to a Chapter I landlord, then (without prejudice to the generality of that sub-paragraph) any application under section 23(1) that would otherwise be made by the mortgagor (whether alone or together with any other person or persons) shall be made by the mortgagee as if he were the mortgagor. Where— the person referred to in paragraph (a) shall not make any application under section 23(1) without the consent of the mortgagee, and the mortgagee may by notice given to that person require that, as regards his interest, this paragraph shall apply, either generally or so far as it relates to section 23, as if the mortgagee were a mortgagee in possession. Where— the relevant notice or a copy of it shall be regarded as duly given to that landlord if it is given to the mortgagee or to any such receiver; but whichever of the landlord, the mortgagee and any such receiver are not the recipient of the notice shall be given a copy of it by the recipient. Sub-paragraph (4) has effect in relation to a debenture holders’ charge as if any reference to the mortgagee were a reference to the trustees for the debenture holders; but, where the relevant notice is given to a Chapter I or Chapter II landlord whose interest is subject to any such charge and there is no trustee for the debenture holders, the landlord shall forthwith send it or a copy of it to any receiver appointed by virtue of the charge. Where— then (subject to sub-paragraph (7)), the landlord shall forthwith inform the mortgagee (unless the notice was given to him or a receiver appointed by virtue of the mortgage) that the notice has been given, and shall give him such further information as may from time to time be reasonably required from the landlord by the mortgagee. Sub-paragraph (6) does not apply to a debenture holders’ charge.
Where the interest of a Chapter I or Chapter II landlord is vested in a person as custodian trustee, then for the purposes of Chapter I or (as the case may be) Chapter II the interest shall be deemed to be vested in the managing trustees or committee of management as owners of that interest, except as regards the execution of any instrument disposing of or otherwise affecting that interest.
This paragraph applies where a Chapter I or Chapter II landlord lacks capacity (within the meaning of the Mental Capacity Act 2005) to exercise his functions as a landlord. For the purposes of the Chapter concerned, the landlord's place is to be taken—
the landlord’s receiver appointed under Part VII of that Act or Part VIII of the Mental Health Act 1959, or
(if no such receiver is acting for him) any person authorised in that behalf,
Where the interest of a Chapter I landlord is subject to a trust of land, any sum payable to the landlord by way of the price payable for the interest on its acquisition in pursuance of Chapter I shall be dealt with as if it were proceeds of sale arising under the trust. Where the interest of a Chapter II landlord is subject to a trust of land—
Where the interest of a Chapter II landlord is subject to a settlement (within the meaning of the Settled Land Act 1925), the purposes authorised— shall include the payment of compensation by the landlord on the termination of a new lease granted under Chapter II or section 93(4) (whether the payment is made in pursuance of an order under section 61 or in pursuance of an agreement made in conformity with paragraph 5 of Schedule 14 without an application having been made under that section).
by section 73 of that Act for the application of capital money, and
by section 71 of that Act as purposes for which money may be raised by mortgage,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The provisions of this paragraph shall have effect as regards Chapter I or Chapter II landlords who are ecclesiastical landlords; and in this paragraph “ecclesiastical landlord” means— In relation to an interest of an ecclesiastical landlord, the consent of the Church Commissioners shall be required , if their consent would be required if the transaction were carried out under ... Part 2 of the Church Property Measure 2018 or the Cathedrals Measure 2021, to sanction— ... Where the Chapter of a cathedral has an interest in property which forms part of the endowment of a cathedral church— In the case of a diocesan board of finance— In this paragraph—
Section 13.
A qualifying tenant of a flat shall not participate in the giving of a relevant notice of claim if the notice is given—
after the tenant has given notice terminating the lease of the flat (other than a notice that has been superseded by the grant, express or implied, of a new tenancy); or
during the subsistence of an agreement for the grant to the tenant of a future tenancy of the flat, where the agreement is one to which paragraph 17 of Schedule 10 to the Local Government and Housing Act 1989 applies.
A qualifying tenant of a flat shall not participate in the giving of a relevant notice of claim if the notice is given more than four months after a landlord’s notice terminating the tenant’s lease of the flat has been given under section 4 of the Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 (whether or not the notice has effect to terminate the lease). Where in the case of any qualifying tenant of a flat— the landlord’s notice shall cease to have effect on that date. Where this sub-paragraph applies to a landlord’s notice, the earliest date which may be specified in the notice as the date of termination shall be— Where— section 7(2) of the Landlord and Tenant Act 1954 shall apply in relation to the notice with the substitution, for references to the period of two months ending with the date of termination specified in the notice and the beginning of that period, of references to the period of three months beginning with the date of the giving of the notice and the end of that period.
A qualifying tenant of a flat shall not participate in the giving of a relevant notice of claim if at the time when it is given he is obliged to give up possession of his flat in pursuance of an order of a court or will be so obliged at a date specified in such an order. Except with the leave of the court, a qualifying tenant of a flat shall not participate in the giving of a relevant notice of claim at a time when any proceedings are pending to enforce a right of re-entry or forfeiture terminating his lease of the flat. Leave shall only be granted under sub-paragraph (2) if the court is satisfied that the tenant does not wish to participate in the giving of such a notice of claim solely or mainly for the purpose of avoiding the consequences of the breach of the terms of his lease in respect of which proceedings are pending. If— the tenant’s lease shall be deemed for the purposes of the claim to be a subsisting lease despite the existence of those proceedings and any order made afterwards in those proceedings; and, if the claim is effective, the court in which those proceedings were brought may set aside or vary any such order to such extent and on such terms as appear to that court to be appropriate.
A qualifying tenant of a flat shall not participate in the giving of a relevant notice of claim if on the date when the notice is given— Where— the tenant shall cease to be entitled to participate in the making of the claim by virtue of being a qualifying tenant of the flat, and shall accordingly cease to be a participating tenant in respect of the flat.
Where a relevant notice of claim is given, any notice terminating the lease of any flat held by a participating tenant, whether it is— shall be of no effect if it is given or served during the currency of the claim.
a notice given by the tenant, or
a landlord’s notice given under section 4 of the Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989,
Where a relevant notice of claim is given, then during the currency of the claim and for three months thereafter the lease of any flat held by a participating tenant shall not terminate— but if the claim is not effective, and but for this sub-paragraph the lease would have so terminated before the end of those three months, the lease shall so terminate at the end of those three months. Sub-paragraph (1) shall not be taken to prevent an earlier termination of the lease in any manner not mentioned in that sub-paragraph, and shall not affect— The reference in sub-paragraph (2) to section 16(2) of, and paragraph 9 of Schedule 5 to, the Landlord and Tenant Act 1954 includes a reference to those provisions as they apply in relation to Schedule 10 to the Local Government and Housing Act 1989.
Where a relevant notice of claim is given, then during the currency of the claim— If leave is granted under sub-paragraph (1), the tenant shall cease to be entitled to participate in the making of the claim by virtue of being a qualifying tenant of the flat referred to in that sub-paragraph, and shall accordingly cease to be a participating tenant in respect of the flat.
Where a relevant notice of claim is given, a qualifying tenant of a flat may not subsequently make an election under section 14(3)— Where a relevant notice of claim is given, then except with the leave of the court, a qualifying tenant of a flat may not subsequently make an election under section 14(3) at a time when any proceedings are pending to enforce a right of re-entry or forfeiture terminating his lease of the flat. Leave shall only be granted under sub-paragraph (2) if the court is satisfied that the tenant does not wish to make such an election solely or mainly for the purpose of avoiding the consequences of the breach of the terms of his lease in respect of which proceedings are pending. If— the tenant’s lease shall be deemed for the purposes of the claim to be a subsisting lease despite the existence of those proceedings and any order made afterwards in those proceedings; and, if the claim is effective, the court in which those proceedings were brought may set aside or vary any such order to such extent and on such terms as appear to that court to be appropriate. References in this paragraph and paragraph 9 below to making an election under section 14(3) are references to making such an election to participate in the making of the claim in respect of which the relevant notice of claim is given.
This paragraph applies to a qualifying tenant of a flat who, following the giving of a relevant notice of claim, makes an election under section 14(3). Where in the case of any such tenant— the landlord’s notice shall cease to have effect on that date. Paragraph 8(5) above applies for the purposes of this paragraph.
For the purposes of this Part of this Schedule— For the purposes of sub-paragraph (1)(d) the date when a notice is set aside, or would (if valid) cease to have effect, in consequence of an order of a court shall be taken to be the date when the order becomes final.
This Part of this Schedule has effect where a notice under section 13 is given in a case to which section 9(2) or (2A) applies.
In a case to which section 9(2) applies,the qualifying tenants by whom the initial notice is given shall, in addition to giving the initial notice to the reversioner in respect of the specified premises, give a copy of the notice to every other person known or believed by them to be a relevant landlord of those premises. The initial notice shall state whether copies are being given in accordance with sub-paragraph (1) to anyone other than the recipient and, if so, to whom.
In a case to which section 9(2A) applies, the qualifying tenants by whom the initial notice is given shall, in addition to giving the initial notice to the person specified in it as the recipient, give a copy of the notice to every other person known or believed by them to be a relevant landlord of the specified premises. The initial notice shall state whether copies are being given in accordance with sub-paragraph (1) to anyone other than the person specified in it as the recipient and, if so, to whom.
Subject to sub-paragraph (2), a recipient of the initial notice or of a copy of it (including a person receiving a copy under this sub-paragraph) shall forthwith give a copy to any person who— Sub-paragraph (1) does not apply where the recipient is neither the reversioner nor another relevant landlord. Where a person gives any copies of the initial notice in accordance with sub-paragraph (1), he shall—
Where— the initial notice shall cease to have effect at the end of that period. Where— he shall be liable for any loss thereby occasioned to the qualifying tenants by whom the initial notice was given or to the reversioner or any other relevant landlord.
The initial notice shall not be invalidated by any inaccuracy in any of the particulars required by section 13(3) or by any misdescription of any of the property to which the claim extends. Where the initial notice— the notice may, with the leave of the court and on such terms as the court may think fit, be amended so as to exclude or include the property or interest in question. Where the initial notice is so amended as to exclude any property or interest, references to the property or interests specified in the notice under any provision of section 13(3) shall be construed accordingly; and, where it is so amended as to include any property or interest, the property or interest shall be treated as if it had been specified under the provision of that section under which it would have fallen to be specified if its acquisition had been proposed at the relevant date.
It is hereby declared that, where at the relevant date any of the persons by whom the initial notice is given— the notice shall not be invalidated on that account, so long as the notice was in fact properly given by a sufficient number of qualifying tenants of flats contained in the premises as at the relevant date, and not less than one-half of the qualifying tenants by whom it was so given then satisfied the residence condition. For the purposes of sub-paragraph (1) a sufficient number is a number which—
Section 21.
This paragraph applies where before the date of the giving of a counter-notice under section 21 the reversioner or any other relevant landlord— A copy of every notice which, or a copy of which, has been received as mentioned in sub-paragraph (1)(a), and a copy of every counter-notice which has been given as mentioned in sub-paragraph (1)(b), shall either—
Subject to sub-paragraph (3), this paragraph applies where on or after the date of the giving of a counter-notice under section 21 the reversioner or any other relevant landlord receives— A copy of every notice which, or a copy of which, is received as mentioned in sub-paragraph (1)(a) or (b) shall be given to the nominee purchaser by the reversioner as soon as possible after the time when the notice or copy is received by the reversioner or (as the case may be) the other relevant landlord. This paragraph does not apply if the notice or copy is received by the reversioner or (as the case may be) the other relevant landlord otherwise than at a time when—
Without prejudice to the generality of paragraph 8(1)(a) of Schedule 1, the duty imposed by that provision shall extend to requiring any relevant landlord (other than the reversioner) who— to furnish a copy of the notice or counter-notice to the reversioner as soon as possible after the time when the notice or copy is received or (as the case may be) the counter-notice is given by the relevant landlord. In this paragraph “relevant notice” and “relevant counter-notice” mean respectively any notice of which a copy is required to be given to the nominee purchaser by the reversioner in accordance with this Schedule and any counter-notice of which a copy is required to be so given.
Sections 24 and 25.
In this Schedule “a vesting order” means an order made by the court under section 24(4)(a) or (b) or section 25(6)(a) or (b). In this Schedule “the relevant terms of acquisition”, in relation to any such order, means the terms of acquisition referred to in section 24(4)(a) or (b) or section 25(6)(a) or (b), as the case may be.
Where any interests are to be vested in the nominee purchaser by virtue of a vesting order, then on his paying into court the appropriate sum in respect of each of those interests there shall be executed by such person as the court may designate a conveyance which— The conveyance shall be effective to vest in the nominee purchaser the interests expressed to be conveyed, subject to and in accordance with the terms of the conveyance.
In the case of any vesting order, the appropriate sum which in accordance with paragraph 2(1) is to be paid into court in respect of any interest is the aggregate of— In this paragraph “the transferor”, in relation to any interest, means the person from whom the interest is to be acquired by the nominee purchaser.
Where any interest is vested in the nominee purchaser in accordance with this Schedule, the payment into court of the appropriate sum in respect of that interest shall be taken to have satisfied any claims against the nominee purchaser or the participating tenants, or the personal representatives or assigns of any of them, in respect of the price payable under this Chapter for the acquisition of that interest.
In the provisions specified in sub-paragraph (2) references to a binding contract being entered into in pursuance of the initial notice shall be read as including references to the making of a vesting order. Those provisions are— Where, at any time after a vesting order is made but before the interests falling to be vested in the nominee purchaser by virtue of the order have been so vested, any acquiring authority (within the meaning of section 30) serves notice to treat as mentioned in subsection (1)(a) of that section, the vesting order shall cease to have effect. Where sub-paragraph (3) applies to any vesting order, then on the occasion of the compulsory acquisition in question the compensation payable in respect of any interest in the specified premises (whether or not the one to which the notice to treat relates) shall be determined on the basis of the value of the interest subject to and with the benefit of the rights and obligations arising from the initial notice and affecting the interest. In section 38(2) (except so far as it provides for the interpretation of references to the proposed acquisition by the nominee purchaser) the reference to a contract entered into in pursuance of the initial notice shall be read as including a reference to a vesting order.
Section 32.
In this Schedule— . . . “intermediate leasehold interest” means the interest of the tenant under a lease which is superior to the lease held by a qualifying tenant of a flat contained in the specified premises, to the extent that— any such interest is to be acquired by the nominee purchaser by virtue of section 2(1)(a), and it is an interest in the specified premises; ... Parts II to IV of this Schedule have effect subject to the provisions of Parts V and VI (which relate to interests with negative values).
Subject to the provisions of this paragraph, where the freehold of the whole of the specified premises is owned by the same person the price payable by the nominee purchaser for the freehold of those premises shall be the aggregate of— Where the amount arrived at in accordance with sub-paragraph (1) is a negative amount, the price payable by the nominee purchaser for the freehold shall be nil.
Subject to the provisions of this paragraph, the value of the freeholder’s interest in the specified premises is the amount which at the relevant date that interest might be expected to realise if sold on the open market by a willing seller (with no person who falls within sub-paragraph (1A) buying or seeking to buy) on the following assumptions— A person falls within this sub-paragraph if he is— It is hereby declared that the fact that sub-paragraph (1) requires assumptions to be made as to the matters specified in paragraphs (a) to (d) of that sub-paragraph does not preclude the making of assumptions as to other matters where those assumptions are appropriate for determining the amount which at the relevant date the freeholder’s interest in the specified premises might be expected to realise if sold as mentioned in that sub-paragraph. In determining that amount there shall be made such deduction (if any) in respect of any defect in title as on a sale of the interest on the open market might be expected to be allowed between a willing seller and a willing buyer. Where a lease of any flat or other unit contained in the specified premises is to be granted to the freeholder in accordance with section 36 and Schedule 9, the value of his interest in those premises at the relevant date so far as relating to that flat or other unit shall be taken to be the difference as at that date between— and each of those values shall, so far as is appropriate, be determined in like manner as the value of the freeholder’s interest in the whole of the specified premises is determined for the purposes of paragraph 2(1)(a). The value of the freeholder’s interest in the specified premises shall not be increased by reason of— Sub-paragraph (5) shall not have the effect of preventing an increase in value of the freeholder’s interest in the specified premises in a case where the increase is attributable to any such leasehold interest with a negative value as is mentioned in paragraph 14(2).
The marriage value is the amount referred to in sub-paragraph (2), and the freeholder’s share of the marriage value is 50 per cent. of that amount. Subject to sub-paragraph (2A), the marriage value is any increase in the aggregate value of the freehold and every intermediate leasehold interest in the specified premises, when regarded as being (in consequence of their being acquired by the nominee purchaser) interests under the control of the participating tenants, as compared with the aggregate value of those interests when held by the persons from whom they are to be so acquired, being an increase in value— Where at the relevant date the unexpired term of the lease held by any of those participating members exceeds eighty years, any increase in the value of the freehold or any intermediate leasehold interest in the specified premises which is attributable to his potential ability to have a new lease granted to him as mentioned in sub-paragraph (2)(a) is to be ignored. For the purposes of sub-paragraph (2) the value of the freehold or any intermediate leasehold interest in the specified premises when held by the person from whom it is to be acquired by the nominee purchaser and its value when acquired by the nominee purchaser— Accordingly, in so determining the value of an interest when acquired by the nominee purchaser—
Where the freeholder will suffer any loss or damage to which this paragraph applies, there shall be payable to him such amount as is reasonable to compensate him for that loss or damage. This paragraph applies to— Without prejudice to the generality of paragraph (b) of sub-paragraph (2), the kinds of loss falling within that paragraph include loss of development value in relation to the specified premises to the extent that it is referable as mentioned in that paragraph. In sub-paragraph (3) “development value”, in relation to the specified premises, means any increase in the value of the freeholder’s interest in the premises which is attributable to the possibility of demolishing, reconstructing, or carrying out substantial works of construction on, the whole or a substantial part of the premises. Where the freeholder will suffer loss or damage to which this paragraph applies, then in determining the amount of compensation payable to him under this paragraph, it shall not be material that—
Where different persons own the freehold of different parts of the specified premises— Subject to sub-paragraph (3), the price payable by the nominee purchaser for the freehold of part of the specified premises shall be the aggregate of— Where the amount arrived at in accordance with sub-paragraph (2) is a negative amount, the price payable by the nominee purchaser for the freehold of the part shall be nil.
In its application in accordance with paragraph 5A(2)(a), paragraph 3 shall have effect with the following modifications. In sub-paragraph (1)(a)(ii), there shall be inserted at the end “so far as relating to the part of the premises in which the freeholder’s interest subsists”. In sub-paragraph (1A), after paragraph (a) there shall be inserted— In sub-paragraph (4)—
In its application in accordance with paragraph 5A(2)(b), paragraph 4 shall have effect with the following modifications. In sub-paragraph (2)— In sub-paragraph (3)— In sub-paragraph (4)(a), after “3(1)”, where it first occurs, there shall be inserted “as applied by paragraph 5A(2)(a)”.
Where the nominee purchaser is to acquire one or more intermediate leasehold interests— Where in the case of any intermediate leasehold interest the amount arrived at in accordance with sub-paragraph (1)(b) is a negative amount, the price payable by the nominee purchaser for the interest shall be nil.
Subject to sub-paragraph (2), paragraph 3 shall apply for determining the value of any intermediate leasehold interest for the purposes of paragraph 6(1)(b)(i) with such modifications as are appropriate to relate that paragraph to a sale of the interest in question subject (where applicable) to any leases intermediate between that interest and any lease held by a qualifying tenant of a flat contained in the specified premises. In its application in accordance with sub-paragraph (1), paragraph 3(1A) shall have effect with the addition after paragraph (a) of— The value of an intermediate leasehold interest which is the interest of the tenant under a minor intermediate lease is to be calculated in accordance with regulations made by the appropriate national authority instead of in accordance with sub-paragraph (1). “A minor intermediate lease” means a lease complying with the following requirements, namely— and, in the case of a lease which is in immediate reversion on two or more leases, those requirements must be complied with in connection with each of the sub-leases. Where a minor intermediate lease is in immediate reversion on two or more leases— “Profit rent” means an amount equal to that of the rent payable under the lease on which the minor intermediate lease is in immediate reversion, less that of the rent payable under the minor intermediate lease. Where the minor intermediate lease or that on which it is in immediate reversion comprises property other than a flat held by a qualifying tenant, then in sub-paragraph (5) the reference to the rent payable under it means so much of that rent as is apportioned to any such flat. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For the purposes of this paragraph the expectation of possession carried by a lease in relation to a lease (“the sub-lease”) on which it is in immediate reversion is the expectation of possession which it carries at the relevant date after the sub-lease, on the basis that— In a case where before the relevant date for the purposes of this Chapter the landlord of any such qualifying tenant as is mentioned in sub-paragraph (9)(a) had given notice to quit terminating the tenant’s sub-lease on a date earlier than that date, the date specified in the notice to quit shall be substituted for the date specified in that provision. In sub-paragraph (2) “appropriate national authority” means—
Where the owner of the intermediate leasehold interest will suffer any loss or damage to which this paragraph applies, there shall be payable to him such amount as is reasonable to compensate him for that loss or damage. This paragraph applies to— Without prejudice to the generality of paragraph (b) of sub-paragraph (2), the kinds of loss falling within that paragraph include loss of development value in relation to the specified premises to the extent that it is referable as mentioned in that paragraph. In sub-paragraph (3) “development value”, in relation to the specified premises, means any increase in the value of the interest in the premises of the owner of the intermediate leasehold interest which is attributable to the possibility of demolishing, reconstructing or carrying out substantial works of construction on, the whole or a substantial part of the premises.
This paragraph applies where paragraph 2 applies and— The amount payable to the freeholder in respect of his share of the marriage value shall be divided between the freeholder and the owners of the intermediate leasehold interests in proportion to the value of their respective interests in the specified premises (as determined for the purposes of paragraph 2(1)(a) or paragraph 6(1)(b)(i), as the case may be). Where the owner of an intermediate leasehold interest is entitled in accordance with sub-paragraph (2) to any part of the amount payable to the freeholder in respect of the freeholder’s share of the marriage value, the amount to which he is so entitled shall be payable to him by the freeholder.
This paragraph applies where paragraph 5A applies and— The amount payable to the freeholder of the part in respect of his share of the marriage value shall be divided between the freeholder and the owners of the intermediate leasehold interests which subsist in that part in proportion to the value of their respective interests in the part (as determined for the purposes of paragraph 5A(2)(a) or paragraph 6(1)(b)(i), as the case may be). Where an intermediate leasehold interest subsists not only in the part of the specified premises in which the freeholder’s interest subsists (“the relevant part”) but also in another part of those premises— Where the owner of an intermediate leasehold interest is entitled in accordance with sub-paragraph (2) to any part of the amount payable to the freeholder in respect of the freeholder’s share of the marriage value, the amount to which he is so entitled shall be payable to him by the freeholder.
Where the nominee purchaser is to acquire any freehold interest in pursuance of section 1(2)(a) or (4) or section 21(4), then (subject to sub-paragraph (3) below) the price payable for that interest shall be the aggregate of— Where the nominee purchaser is to acquire any leasehold interest by virtue of section 2(1) other than an intermediate leasehold interest, or he is to acquire any leasehold interest in pursuance of section 21(4), then (subject to sub-paragraph (3) below) the price payable for that interest shall be the aggregate of— Where in the case of any interest the amount arrived at in accordance with sub-paragraph (1) or (2) is a negative amount, the price payable by the nominee purchaser for the interest shall be nil.
In the case of any such freehold interest as is mentioned in paragraph 10(1), paragraph 3 shall apply for determining the value of the interest with such modifications as are appropriate to relate it to a sale of the interest subject (where applicable) to any leases intermediate between that interest and any lease held by a qualifying tenant of a flat contained in the specified premises. In the case of any such leasehold interest as is mentioned in paragraph 10(2), then— In its application in accordance with sub-paragraph (1) or (2) above, paragraph 3(6) shall have effect as if the reference to paragraph 14(2) were a reference to paragraph 18(2). In its application in accordance with sub-paragraph (2) above, paragraph 3(1A) shall have effect with the addition after paragraph (a) of—
Where any such freehold interest as is mentioned in paragraph 10(1) is an interest in any such property as is mentioned in section 1(3)(a)— Where— the amount payable to the owner of the freehold interest in respect of his share of the marriage value in respect of that property shall be divided between the owner of that interest and the owners of the leasehold interests in proportion to the value of their respective interests in that property (as determined for the purposes of paragraph 10(1) or (2), as the case may be). Where the owner of any such leasehold interest (“the intermediate landlord”) is entitled in accordance with sub-paragraph (2) to any part of the amount payable to the owner of any freehold interest in respect of his share of the marriage value in respect of any property, the amount to which the intermediate landlord is so entitled shall be payable to him by the owner of that freehold interest.
Where the owner of any such freehold or leasehold interest as is mentioned in paragraph 10(1) or (2) (“relevant interest”) will suffer any loss or damage to which this paragraph applies, there shall be payable to him such amount as is reasonable to compensate him for that loss or damage. This paragraph applies to— Without prejudice to the generality of paragraph (b) of sub-paragraph (2), the kinds of loss falling within that paragraph include loss of development value in relation to the property in which the relevant interest subsists to the extent that it is referable to his ownership of any interest in other property. In sub-paragraph (3) “development value”, in relation to the property in which the relevant interest subsists, means any increase in the value of the relevant interest which is attributable to the possibility of demolishing, reconstructing or carrying out substantial works of construction on, the whole or a substantial part of the property.
Where— is a negative amount, the value of the interest for those purposes shall be nil. Where sub-paragraph (1) applies to any intermediate leasehold ainterest whose value is a negative amount (“the negative interest”), then for the relevant purposes any interests in the specified premises superior to the negative interest and having a positive value shall be reduced in value— In a case where sub-paragraph (1) applies to two or more intermediate leasehold interests whose values are negative amounts, sub-paragraph (2) shall apply separately in relation to each of those interests— Where sub-paragraph (2) applies— any reduction in value made under that sub-paragraph shall be apportioned between the immediately superior interests. For the purposes of sub-paragraph (2) an interest has a positive value if (apart from that sub-paragraph) its value for the relevant purposes is a positive amount. In this Part of this Schedule “the relevant purposes”—
Where (as determined in accordance with paragraph 4(3) and (4)) the value of any interest— is a negative amount, then for the purposes of paragraph 4(2) the value of the interest when so held or acquired shall be nil. Where sub-paragraph (1) above applies to any intermediate leasehold interest whose value when held or acquired as mentioned in paragraph (a) or (b) of that sub-paragraph is a negative amount, paragraph 14(2) to (4) shall apply for determining for the purposes of paragraph 4(2) the value when so held or acquired of other interests in the specified premises, as if— References in paragraph 16 or 17 to paragraph 14(2) or (3) do not extend to that provision as it applies in accordance with sub-paragraph (2) above. References in this paragraph to paragraph 4(2), (3) or (4) extend to that provision as it applies in accordance with paragraph 5A(2)(b).
Where paragraph 14(1) applies to an interest, the value of the interest for the purposes of paragraph 9(2) shall be nil, unless sub-paragraph (2) below applies. In a case where paragraph 14(1) applies to a freeholder’s interest in the specified premises and to every intermediate leasehold interest— In a case where— the value of the superior interest for the purposes of paragraph 9(2) shall be the value which (in accordance with paragraph 14(2)) it has for the relevant purposes. In a case where— the value of the superior interest for the purposes of paragraph 9(2) shall be the value which it has for the relevant purposes apart from paragraph 14(2).
Where— there shall be payable to the owner of the superior interest so much of the amount of compensation as is equal to the amount of the reduction or, if less than that amount, the whole of the amount of compensation. Where— sub-paragraph (1) shall apply in the first instance as if the reference to the owner of the superior interest were to the owner of such of the superior interests as is furthest from the negative interest, and then, as respects any remaining amount of compensation, as if that reference were to the owner of such of the superior interests as is next furthest from the negative interest, and so on. In sub-paragraph (1) or (2) “relevant inferior interest”, in relation to any interest whose value is reduced as mentioned in that sub-paragraph (“the superior interest”), means— but sub-paragraph (1) shall apply in the first instance in relation to any amount of compensation payable to the owner of that negative interest, and then, for the purpose of offsetting (so far as possible) any reduction remaining to be offset in accordance with sub-paragraph (1) or (2), in relation to any amount of compensation payable to the owner of the interest immediately superior to that negative interest, and so on in order of proximity to it. To the extent that an amount of compensation is payable to the owner of any interest by virtue of this paragraph— In a case where paragraph 14(2) applies separately in relation to two or more negative interests in accordance with paragraph 14(3), the preceding provisions of this paragraph shall similarly apply separately in relation to the reductions made on account of each of those interests, and shall so apply— Where any reduction in value under sub-paragraph (2) of paragraph 14 is apportioned in accordance with sub-paragraph (3A) of that paragraph, any amount of compensation payable by virtue of this paragraph shall be similarly apportioned.
Where— is a negative amount, the value of the interest for the relevant purposes shall be nil. Where, in the case of any property, sub-paragraph (1) applies to any leasehold interest in the property whose value is a negative amount (“the negative interest”), then for the relevant purposes any interests in the property superior to the negative interest and having a positive value shall, if they are interests which are to be acquired by the nominee purchaser, be reduced in value— In a case where sub-paragraph (1) applies to two or more leasehold interests in any property whose values are negative amounts, sub-paragraph (2) shall apply separately in relation to each of those interests— For the purposes of sub-paragraph (2) an interest has a positive value if (apart from that sub-paragraph) its value for the relevant purposes is a positive amount. In this Part of this Schedule “the relevant purposes”—
Where (as determined in accordance with paragraph 4(3) and (4)) the value of any interest— is a negative amount, then for the purposes of paragraph 4(2) the value of the interest when so held or acquired shall be nil. Where, in the case of any property, sub-paragraph (1) above applies to any leasehold interest in the property whose value when held or acquired as mentioned in paragraph (a) or (b) of that sub-paragraph is a negative amount, paragraph 18(2) to (4) shall apply for determining for the purposes of paragraph 4(2) the value when so held or acquired of other interests in the property, as if— In this paragraph any reference to any provision of paragraph 4 is a reference to that provision as it applies in accordance with paragraph 12(1). References in paragraph 20 or 21 to paragraph 18(2) or (3) do not extend to that provision as it applies in accordance with sub-paragraph (2) above.
Where paragraph 18(1) applies to any interest in any property to which paragraph 12(1) applies, the value of the interest for the purposes of paragraph 12(2) shall be nil, unless sub-paragraph (2) below applies. Where, in the case of any property, paragraph 18(1) applies to every interest which is to be acquired by the nominee purchaser— Where in the case of any property— the value of the superior interest for the purposes of paragraph 12(2) shall be the value which (in accordance with paragraph 18(2)) it has for the relevant purposes. Where in the case of any property— the value of the superior interest for the purposes of paragraph 12(2) shall be the value which it has for the relevant purposes apart from paragraph 18(2).
Where in the case of any property— there shall be payable to the owner of the superior interest so much of the amount of compensation as is equal to the amount of the reduction or, if less than that amount, the whole of the amount of compensation. Where in the case of any property— sub-paragraph (1) shall apply in the first instance as if the reference to the owner of the superior interest were to the owner of such of the superior interests as is furthest from the negative interest, and then, as respects any remaining amount of compensation, as if that reference were to the owner of such of the superior interests as is next furthest from the negative interest, and so on. In sub-paragraph (1) or (2) “relevant inferior interest”, in relation to any interest whose value is reduced as mentioned in that sub-paragraph (“the superior interest”), means— but sub-paragraph (1) shall apply in the first instance in relation to any amount of compensation payable to the owner of that negative interest, and then, for the purpose of offsetting (so far as possible) any reduction remaining to be offset in accordance with sub-paragraph (1) or (2), in relation to any amount of compensation payable to the owner of such interest falling within paragraph (b) above as is nearest to that negative interest, and so on in order of proximity to it. To the extent that an amount of compensation is payable to the owner of any interest by virtue of this paragraph— In a case where paragraph 18(2) applies separately in relation to two or more negative interests in accordance with paragraph 18(3), the preceding provisions of this paragraph shall similarly apply separately in relation to the reductions made on account of each of those interests, and shall so apply—
Section 34.
In this Schedule—
“the relevant premises” means, in relation to the conveyance of any interest, the premises in which the interest subsists;
“the freeholder” means, in relation to the conveyance of a freehold interest, the person whose interest is to be conveyed;
“other property” means property of which the freehold is not to be acquired by the nominee purchaser under this Chapter; and
“the appropriate time” means, in relation to the conveyance of a freehold interest, the time when the interest is to be conveyed to the nominee purchaser.
The conveyance shall not exclude or restrict the general words implied in conveyances under section 62 of the Law of Property Act 1925, or the all-estate clause implied under section 63 of that Act, unless— The freeholder shall not be bound— and in the absence of agreement to the contrary the freeholder shall be entitled to be indemnified by the nominee purchaser in respect of any costs incurred by him in complying with the covenant implied by virtue of section 2(1)(b) of that Act (covenant for further assurance). In this paragraph “tenant’s incumbrances” includes any interest directly or indirectly derived out of a lease, and any incumbrance on a lease or any such interest (whether or not the same matter is an incumbrance also on any interest reversionary on the lease); and “incumbrances” has the same meaning as it has for the purposes of section 34 of this Act.
This paragraph applies to rights of any of the following descriptions, namely— and the provisions required to be included in the conveyance by virtue of sub-paragraph (2) are accordingly provisions relating to any such rights. The conveyance shall include provisions having the effect of—
Any such conveyance shall include—
such provisions (if any) as the nominee purchaser may require for the purpose of securing to him and the persons deriving title under him rights of way over other property, so far as the freeholder is capable of granting them, being rights of way that are necessary for the reasonable enjoyment of the relevant premises; and
such provisions (if any) as the freeholder may require for the purpose of making the relevant premises subject to rights of way necessary for the reasonable enjoyment of other property, being property in which he is to retain an interest after the acquisition of the relevant premises.
As regards restrictive covenants, the conveyance shall include— In this paragraph “restrictive covenant” means a covenant or agreement restrictive of the user of any land or building.
Section 35.
In this Schedule—
Where in accordance with section 35(1) a conveyance will operate to discharge any interest from a mortgage to secure the payment of money, it shall be the duty of the nominee purchaser to apply the consideration payable, in the first instance, in or towards the redemption of any such mortgage (and, if there are more than one, then according to their priorities). If any amount payable in accordance with sub-paragraph (1) to the person entitled to the benefit of a mortgage is not so paid, nor paid into court in accordance with paragraph 4, the relevant interest shall remain subject to the mortgage as regards the amount in question, and to that extent section 35(1) shall not apply. Subject to sub-paragraph (4), sub-paragraph (1) shall not apply to a debenture holders’ charge, that is to say, a charge (whether a floating charge or not) in favour of the holders of a series of debentures issued by a company or other body of persons, or in favour of trustees for such debenture holders; and any such charge shall be disregarded in determining priorities for the purposes of sub-paragraph (1). Sub-paragraph (3) shall not have effect in relation to a charge in favour of trustees for debenture holders which, at the date of the conveyance by virtue of which the relevant interest is acquired by the nominee purchaser, is (as regards that interest) a specific and not a floating charge.
For the purpose of determining the amount payable in respect of any mortgage under paragraph 2(1)— For the purpose of discharging any interest from a mortgage to which paragraph 2(1) applies, a person may be required to accept three months or any longer notice of the intention to pay the whole or part of the principal secured by the mortgage, together with interest to the date of payment, notwithstanding that the terms of the security make other provision or no provision as to the time and manner of payment; but he shall be entitled, if he so requires, to receive such additional payment as is reasonable in the circumstances—
Where under section 35(1) any interest is to be discharged from a mortgage and, in accordance with paragraph 2(1), a person is or may be entitled in respect of the mortgage to receive the whole or part of the consideration payable, then if— the nominee purchaser may pay into court on account of the consideration payable the amount, if known, of the payment to be made in respect of the mortgage or, if that amount is not known, the whole of that consideration or such lesser amount as the nominee purchaser thinks right in order to provide for that payment. Payment may be made into court in accordance with sub-paragraph (1)(b) where the difficulty arises for any of the following reasons, namely— Without prejudice to sub-paragraph (1)(a), the whole or part of the consideration payable shall be paid into court by the nominee purchaser if, before execution of the conveyance referred to in paragraph 2(1), notice is given to him— and where payment into court is to be made by reason only of a notice under this sub-paragraph, and the notice is given with reference to proceedings in a court specified in the notice other than the county court, payment shall be made into the court so specified.
Where any interest is discharged by section 35(1) from a mortgage (without the obligations secured by the mortgage being satisfied by the receipt of the whole or part of the consideration payable), the discharge of that interest from the mortgage shall not prejudice any right or remedy for the enforcement of those obligations against other property comprised in the same or any other security, nor prejudice any personal liability as principal or otherwise of the landlord or any other person. Nothing in this Schedule or section 35 shall be construed as preventing a person from joining in the conveyance referred to in paragraph 2(1) for the purpose of discharging the relevant interest from any mortgage without payment or for a lesser payment than that to which he would otherwise be entitled; and, if he does so, the persons to whom the consideration payable ought to be paid shall be determined accordingly.
Section 36.
In this Schedule— In this Schedule any reference to a flat or other unit, in the context of the grant of a lease of it, includes any yard, garden, garage, outhouses and appurtenances belonging to or usually enjoyed with it and let with it immediately before the appropriate time.
This paragraph applies where immediately before the appropriate time any flat falling within sub-paragraph (1A) is let under a secure tenancy or an introductory tenancy or a secure contract (or an introductory standard contract) and either— A flat falls within this sub-paragraph if— Sub-paragraph (1)(b) has effect whether any such intermediate landlord, or the immediate landlord under the secure tenancy or the introductory tenancy or the secure contract (or the introductory standard contract), is or is not a qualifying tenant of the flat. Where this paragraph applies, the nominee purchaser shall grant to the freeholder a lease of the flat in accordance with section 36 and paragraph 4 below. In this paragraph any reference to a flat includes a reference to a unit (other than a flat) which is used as a dwelling.
This paragraph applies where immediately before the appropriate time any flat falling within sub-paragraph (1A) is let by a housing association under a tenancy other than a secure tenancy or secure contract and— A flat falls within this sub-paragraph if— Where this paragraph applies, the nominee purchaser shall grant to the freeholder (that is to say, the housing association) a lease of the flat in accordance with section 36 and paragraph 4 below. In this paragraph any reference to a flat includes a reference to a unit (other than a flat) which is used as a dwelling.
Any lease granted to the freeholder in pursuance of paragraph 2 or 3, and any agreement collateral to it, shall conform with the provisions of Part IV of this Schedule except to the extent that any departure from those provisions is agreed to by the nominee purchaser and the freeholder with the approval of the appropriate tribunal. The appropriate tribunal shall not approve any such departure from those provisions unless it appears to the tribunal that it is reasonable in the circumstances. In determining whether any such departure is reasonable in the circumstances, the tribunal shall have particular regard to the interests of the tenant under the secure tenancy or introductory tenancy or the secure contract (or introductory standard contract) referred to in paragraph 2(1) or (as the case may be) under the housing association tenancy referred to in paragraph 3(1). Subject to the preceding provisions of this paragraph, any such lease or agreement as is mentioned in sub-paragraph (1) may include such terms as are reasonable in the circumstances.
In this Part of this Schedule, the following terms have the same meaning as in the Renting Homes (Wales) Act 2016 (anaw 1)—
“introductory standard contract” (see section 16 of that Act);
“secure contract” (see section 8 of that Act).
Subject to sub-paragraph (3), this paragraph applies to any unit falling within sub-paragraph (1A) which is not immediately before the appropriate time a flat let to a person who is a qualifying tenant of it. A unit falls within this sub-paragraph if— Where this paragraph applies, the nominee purchaser shall, if the freeholder by notice requires him to do so, grant to the freeholder a lease of the unit in accordance with section 36 and paragraph 7 below. This paragraph does not apply to a flat or other unit to which paragraph 2 or 3 applies.
Sub-paragraph (2) applies where, immediately before the freehold of a flat or other unit contained in the specified premises is acquired by the nominee purchaser— If the freeholder of the flat or other unit (“the relevant unit”) by notice requires the nominee purchaser to do so, the nominee purchaser shall grant to the freeholder a lease of the relevant unit in accordance with section 36 and paragraph 7 below; and, on the grant of such a lease to the freeholder, he shall be deemed to have surrendered any lease of the relevant unit held by him immediately before the appropriate time. Sections 5, 7 and 8 shall apply for the purpose of determining whether, for the purposes of sub-paragraph (1)(b)above, the freeholder is a qualifying tenant of a unit other than a flat as they apply for the purpose of determining whether a person is a qualifying tenant of a flat.
Any lease granted to the freeholder in pursuance of paragraph 5 or 6, and any agreement collateral to it, shall conform with the provisions of Part IV of this Schedule except to the extent that any departure from those provisions— The appropriate tribunal shall not direct any such departure from those provisions unless it appears to the tribunal that it is reasonable in the circumstances. In determining whether any such departure is reasonable in the circumstances, the tribunal shall have particular regard to the interests of any person who will be the tenant of the flat or other unit in question under a lease inferior to the lease to be granted to the freeholder. Subject to the preceding provisions of this paragraph, any such lease or agreement as is mentioned in sub-paragraph (1) may include such terms as are reasonable in the circumstances.
The lease shall be a lease granted for a term of 999 years at a peppercorn rent.
The lease shall not exclude or restrict the general words implied under section 62 of the Law of Property Act 1925, unless the exclusion or restriction is made for the purpose of preserving or recognising an existing right or interest of any person.
This paragraph applies to rights of any of the following descriptions, namely— and the provisions required to be included in the lease by virtue of sub-paragraph (2) are accordingly provisions relating to any such rights. The lease shall include provisions having the effect of—
The lessor shall not be bound to enter into any covenant for title beyond—
those implied from the grant, and
those implied under Part I of the Law of Property (Miscellaneous Provisions) Act 1994 in a case where a disposition is expressed to be made with limited title guarantee.
The lease shall include—
such provisions (if any) as the lessee may require for the purpose of securing to him, and persons deriving title under him, rights of way over other property (so far as the lessor is capable of granting them), being rights of way that are necessary for the reasonable enjoyment of the demised premises; and
such provisions (if any) as the lessor may require for the purpose of making the demised premises subject to rights of way necessary for the reasonable enjoyment of other property, being property in which the lessor acquires an interest at the appropriate time.
The lease shall include, so far as the lessor is capable of granting them, the like rights to use in common with others any premises, facilities or services as are enjoyed immediately before the appropriate time by any tenant of the demised premises.
The lease shall include such provisions (if any) as the lessor may require to secure that the lessee is bound by, or to indemnify the lessor against breaches of, restrictive covenants (that is to say, covenants or agreements restrictive of the use of any land or premises) affecting the demised premises immediately before the appropriate time and enforceable for the benefit of other property.
The lease shall include covenants by the lessor— The lease shall include a covenant requiring the lessor—
The lease shall include a covenant by the lessee to ensure that the interior of the demised premises is kept in good repair (including decorative repair).
The lease may require the lessee to bear a reasonable part of the costs incurred by the lessor in discharging or insuring against the obligations imposed by the covenants required by paragraph 14(1) or in discharging the obligation imposed by the covenant required by paragraph 14(2)(a). Where a covenant required by paragraph 14(1) or (2)(a) has been modified to any extent in accordance with paragraph 4 or 7, the reference in sub-paragraph (1) above to the obligations or (as the case may be) the obligation imposed by that covenant shall be read as a reference to the obligations or obligation imposed by that covenant as so modified.
Except where the demised premises consist of or include any unit let or intended for letting on a business lease, the lease shall not include any provision prohibiting or restricting the assignment of the lease or the sub-letting of the whole or part of the demised premises. Where the demised premises consist of or include any such unit as is mentioned in sub-paragraph (1), the lease shall contain a prohibition against— without the prior written consent of the lessor (such consent not to be unreasonably withheld).
The lease shall not include any provision for the lease to be terminated otherwise than by forfeiture on breach of any term of the lease by the lessee.
Section 37.
It is hereby declared that nothing in any of the provisions specified in sub-paragraph (2) (which impose requirements as to consent or consultation or other restrictions in relation to disposals falling within those provisions) applies to any disposal of a freehold or leasehold interest in any premises which is made in pursuance of this Chapter. The provisions referred to in sub-paragraph (1) are—
This paragraph applies where a lease is granted to a public sector landlord in pursuance of paragraph 2 of Schedule 9. Where— the tenant shall be deemed to have continued without interruption as tenant of the landlord under the secure tenancy or, as the case may be, the introductory tenancy, despite the disposal of the landlord’s interest which immediately preceded the grant of the lease referred to in that sub-paragraph. Where— then for the purposes of sections 87 to 90 of the Housing Act 1985 (succession on death of tenant) that person shall also be a successor in relation to the new tenancy. Where— then, for the purpose of determining whether either of the conditions referred to in sub-paragraph (5) is satisfied, the new tenancy shall not be regarded as a new letting of the flat but shall instead be regarded as a continuation of the secure tenancy or introductory tenancy referred to in paragraph (a) above. Those conditions are— In this paragraph— In this paragraph—
Section 40.
The tenant’s notice under section 42 shall be regarded as given to the competent landlord for the purposes of subsection (2)(a) of that section if it is given to any of the other landlords instead; and references in this Chapter to the relevant date shall be construed accordingly.
Where the tenant’s notice is given to the competent landlord, the tenant shall give a copy of the notice to every person known or believed by him to be one of the other landlords. Where the tenant’s notice is, in accordance with paragraph 1, given to one of the other landlords, the tenant shall give a copy of the notice to every person (apart from the recipient of the notice) known or believed by the tenant to be either the competent landlord or one of the other landlords. The tenant’s notice shall state whether copies are being given in accordance with this paragraph to anyone other than the recipient and, if so, to whom.
Subject to sub-paragraph (2), a recipient of the tenant’s notice or of a copy of it (including a person receiving a copy under this sub-paragraph)— Sub-paragraph (1) does not apply where the recipient is neither the competent landlord nor one of the other landlords. Where a person gives any copies of the tenant’s notice in accordance with sub-paragraph (1)(a), he shall—
Where— the tenant’s notice shall cease to have effect at the end of that period. Where— he shall be liable for any loss thereby occasioned to the tenant or to the competent landlord or any of the other landlords.
Any counter-notice given to the tenant by the competent landlord must specify the other landlords on whose behalf he is acting.
Without prejudice to the generality of section 40(2)— shall be binding on the other landlords and on their interests in the property demised by the tenant’s lease or any other property; but in the event of dispute the competent landlord or any of the other landlords may apply to the court for directions as to the manner in which the competent landlord should act in the dispute. Subject to paragraph 7(2), the authority given to the competent landlord by section 40(2) shall extend to receiving on behalf of any other landlord any amount payable to that person by virtue of Schedule 13. If any of the other landlords cannot be found, or his identity cannot be ascertained, the competent landlord shall apply to the court for directions and the court may make such order as it thinks proper with a view to giving effect to the rights of the tenant and protecting the interests of other persons; but, subject to any such directions, the competent landlord shall proceed as in other cases. The competent landlord, if he acts in good faith and with reasonable care and diligence, shall not be liable to any of the other landlords for any loss or damage caused by any act or omission in the exercise or intended exercise of the authority given to him by section 40(2).
Notwithstanding anything in section 40(2), any of the other landlords shall, at any time after the giving by the competent landlord of a counter-notice under section 45 and on giving notice to both the competent landlord and the tenant of his intention to be so represented, be entitled to be separately represented— Any of the other landlords may also, on giving notice to the competent landlord and the tenant, require that any amount payable to him by virtue of Schedule 13 shall be paid by the tenant to him, or to a person authorised by him to receive it, instead of to the competent landlord; but if, after being given proper notice of the time and method of completion with the tenant, either— the competent landlord shall be authorised to receive the payment for him, and the competent landlord’s written receipt for the amount payable shall be a complete discharge to the tenant.
It shall be the duty of each of the other landlords (subject to paragraph 7) to give the competent landlord all such information and assistance as he may reasonably require; and, if any of the other landlords fails to comply with this sub-paragraph, that landlord shall indemnify the competent landlord against any liability incurred by him in consequence of the failure. Each of the other landlords shall make such contribution as shall be just to costs and expenses which are properly incurred by the competent landlord in pursuance of section 40(2) but are not recoverable or not recovered from the tenant.
The authority given to the competent landlord by section 40(2) shall not extend to the bringing of proceedings under section 47(1) on behalf of any of the other landlords, or preclude any of those landlords from bringing proceedings under that provision on his own behalf as if he were the competent landlord. In section 45(2)(c) any reference to the competent landlord shall include a reference— and in section 47(1) and (2) references to the landlord shall be construed accordingly; but if any of the other landlords intends to make such an application as is mentioned in section 45(2)(c), whether alone or together with any other person or persons, his name shall be stated in the counter-notice.
Where a lease is executed under section 56 or 93(4) or in pursuance of any order made under this Chapter, then (subject to sub-paragraph (3)) that instrument shall have effect for the creation of the tenant’s new lease of his flat, and for the operation of the rights and obligations conferred and imposed by it, as if there had been a surrender and re-grant of any subsisting lease intermediate between the interest of the competent landlord and the existing lease; and the covenants and other provisions of that instrument shall be framed and take effect accordingly. Section 57(2) shall apply to the new lease on the basis that account is to be taken of obligations imposed on any of the other landlords by virtue of that or any superior lease; and section 59(3) shall apply on the basis that the reference there to the tenant’s landlord includes the immediate landlord from whom the new lease will be held and all superior landlords, including any superior to the competent landlord. Where a lease of the tenant’s flat superior to the existing lease is vested in the tenant or a trustee for him, the new lease shall include an actual surrender of that superior lease without a re-grant, and it shall accordingly be disregarded for the purposes of the preceding provisions of this paragraph.
Where by reason of section 58(2) it is necessary to make any payment to discharge the tenant’s flat from a mortgage affecting the interest of any landlord, then if the competent landlord is not the landlord liable or primarily liable in respect of the mortgage, he shall not be required to make that payment otherwise than out of money made available for the purpose by the landlord so liable, and it shall be the duty of that landlord to provide for the mortgage being discharged.
Section 42.
A notice given by a qualifying tenant of a flat under section 42 shall be of no effect if it is given—
after the tenant has given notice terminating the lease of the flat (other than a notice that has been superseded by the grant, express or implied, of a new tenancy); or
during the subsistence of an agreement for the grant to the tenant of a future tenancy of the flat, where the agreement is one to which paragraph 17 of Schedule 10 to the Local Government and Housing Act 1989 applies.
Subject to sub-paragraph (2), a notice given by a qualifying tenant of a flat under section 42 shall be of no effect if it is given more than two months after a landlord’s notice terminating the tenant’s lease of the flat has been given under section 4 of the Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 (whether or not the notice has effect to terminate the lease). Sub-paragraph (1) does not apply where the landlord gives his written consent to a notice being given under section 42 after the end of those two months. Where in the case of a qualifying tenant of a flat who gives a notice under section 42— the landlord’s notice shall cease to have effect on that date. Where this sub-paragraph applies to a landlord’s notice, the earliest date which may be specified in the notice as the date of termination shall be— Where— section 7(2) of the Landlord and Tenant Act 1954 shall apply in relation to the notice with the substitution, for references to the period of two months ending with the date of termination specified in the notice and the beginning of that period, of references to the period of three months beginning with the date of the giving of the notice and the end of that period.
A notice given by a qualifying tenant of a flat under section 42 shall be of no effect if at the time when it is given he is obliged to give up possession of his flat in pursuance of an order of a court or will be so obliged at a date specified in such an order. Except with the leave of the court, a qualifying tenant of a flat shall not give a notice under section 42 at a time when any proceedings are pending to enforce a right of re-entry or forfeiture terminating his lease of the flat. Leave shall only be granted under sub-paragraph (2) if the court is satisfied that the tenant does not wish to give such a notice solely or mainly for the purpose of avoiding the consequences of the breach of the terms of his lease in respect of which proceedings are pending. If— the tenant’s lease shall be deemed for the purposes of the claim to be a subsisting lease despite the existence of those proceedings and any order made afterwards in those proceedings; and, if the claim is effective, the court in which those proceedings were brought may set aside or vary any such order to such extent and on such terms as appear to that court to be appropriate.
Where by a notice given under section 42 a tenant makes a claim to acquire a new lease of a flat, any notice terminating the tenant’s lease of the flat, whether it is— shall be of no effect if it is given or served during the currency of the claim.
a notice given by the tenant, or
a landlord’s notice given under section 4 of the Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989,
Where by a notice under section 42 a tenant makes a claim to acquire a new lease of a flat, then during the currency of the claim and for three months thereafter the lease of the flat shall not terminate— but if the claim is not effective, and but for this sub-paragraph the lease would have so terminated before the end of those three months, the lease shall so terminate at the end of those three months. Sub-paragraph (1) shall not be taken to prevent an earlier termination of the lease in any manner not mentioned in that sub-paragraph, and shall not affect—
Where by a notice under section 42 a tenant makes a claim to acquire a new lease of a flat, then during the currency of the claim— but where leave is granted, the notice shall cease to have effect.
no proceedings to enforce any right of re-entry or forfeiture terminating the lease of the flat shall be brought in any court without the leave of that court, and
leave shall only be granted if the court is satisfied that the notice was given solely or mainly for the purpose of avoiding the consequences of the breach of the terms of the tenant’s lease in respect of which proceedings are proposed to be brought;
A tenant who, in proceedings to enforce a right of re-entry or forfeiture or a right to damages in respect of a failure to comply with any terms of his lease, applies for relief under section 16 of the Landlord and Tenant Act 1954 is not thereby precluded from making a claim to acquire a new lease under this Chapter; but if he gives notice under section 16(2) of that Act (under which the tenant is relieved from any order for recovery of possession or for payment of damages, but the tenancy is cut short), any notice given by him under section 42 with respect to property comprised in his lease shall be of no effect or, if already given, shall cease to have effect. Sub-paragraph (1) shall apply in relation to proceedings relating to a superior tenancy with the substitution for the references to section 16 and to section 16(2) of the Landlord and Tenant Act 1954 of references to paragraph 9 and to paragraph 9(2) of Schedule 5 to that Act.
For the purposes of this Part of this Schedule— For the purposes of sub-paragraph (1)(c) the date when a notice is set aside, or would (if valid) cease to have effect, in consequence of an order of a court shall be taken to be the date when the order becomes final. The references in this Schedule— include references to those provisions as they apply in relation to Schedule 10 to the Local Government and Housing Act 1989 (security of tenure on ending of long residential tenancies).
The tenant’s notice shall not be invalidated by any inaccuracy in any of the particulars required by section 42(3) or by any misdescription of any of the property to which the claim extends. Where the tenant’s notice— the notice may, with the leave of the court and on such terms as the court may think fit, be amended so as to exclude or include the property in question.
Section 56.
In this Schedule—
The premium payable by the tenant in respect of the grant of the new lease shall be the aggregate of—
the diminution in value of the landlord’s interest in the tenant’s flat as determined in accordance with paragraph 3,
the landlord’s share of the marriage value as determined in accordance with paragraph 4, and
any amount of compensation payable to the landlord under paragraph 5.
The diminution in value of the landlord’s interest is the difference between— Subject to the provisions of this paragraph, the value of any such interest of the landlord as is mentioned in sub-paragraph (1)(a) or (b) is the amount which at the relevant date that interest might be expected to realise if sold on the open market by a willing seller (with neither the tenant nor any owner of an intermediate leasehold interest buying or seeking to buy) on the following assumptions— In sub-paragraph (2) “the relevant lease” means either the tenant’s existing lease or the new lease, depending on whether the valuation is for the purposes of paragraph (a) or paragraph (b) of sub-paragraph (1). It is hereby declared that the fact that sub-paragraph (2) requires assumptions to be made as to the matters specified in paragraphs (a) to (d) of that sub-paragraph does not preclude the making of assumptions as to other matters where those assumptions are appropriate for determining the amount which at the relevant date any such interest of the landlord as is mentioned in sub-paragraph (1)(a) or (b) might be expected to realise if sold as mentioned in sub-paragraph (2). In determining any such amount there shall be made such deduction (if any) in respect of any defect in title as on a sale of that interest on the open market might be expected to be allowed between a willing seller and a willing buyer. The value of any such interest of the landlord as is mentioned in sub-paragraph (1)(a) or (b) shall not be increased by reason of—
The marriage value is the amount referred to in sub-paragraph (2), and the landlord’s share of the marriage value is 50 per cent. of that amount. Subject to sub-paragraph (2A), the marriage value is the difference between the following amounts, namely— Where at the relevant date the unexpired term of the tenant’s existing lease exceeds eighty years, the marriage value shall be taken to be nil. For the purposes of sub-paragraph (2)—
Subject to the provisions of this paragraph, the value of the interest of the tenant under the existing lease is the amount which at the relevant date that interest might be expected to realise if sold on the open market by a willing seller (with neither the landlord nor any owner of an intermediate leasehold interest buying or seeking to buy) on the following assumptions— It is hereby declared that the fact that sub-paragraph (1) requires assumptions to be made in relation to particular matters does not preclude the making of assumptions as to other matters where those assumptions are appropriate for determining the amount which at the relevant date the interest of the tenant under his existing lease might be expected to realise if sold as mentioned in that sub-paragraph. In determining any such amount there shall be made such deduction (if any) in respect of any defect in title as on a sale of that interest on the open market might be expected to be allowed between a willing seller and a willing buyer. Subject to sub-paragraph (5), the value of the interest of the tenant under his existing lease shall not be increased by reason of— Sub-paragraph (4) shall not apply to any transaction which falls within paragraph (a) of that sub-paragraph if—
Subject to the provisions of this paragraph, the value of the interest to be held by the tenant under the new lease is the amount which at the relevant date that interest (assuming it to have been granted to him at that date) might be expected to realise if sold on the open market by a willing seller (with the owner of any interest superior to the interest of the tenant not buying or seeking to buy) on the following assumptions— It is hereby declared that the fact that sub-paragraph (1) requires assumptions to be made in relation to particular matters does not preclude the making of assumptions as to other matters where those assumptions are appropriate for determining the amount which at the relevant date the interest to be held by the tenant under the new lease might be expected to realise if sold as mentioned in that sub-paragraph. In determining any such amount there shall be made such deduction (if any) in respect of any defect in title as on a sale of that interest on the open market might be expected to be allowed between a willing seller and a willing buyer. Subject to sub-paragraph (5), the value of the interest to be held by the tenant under the new lease shall not be decreased by reason of— Sub-paragraph (4) shall not apply to any transaction which falls within paragraph (a) of that sub-paragraph if—
Where the landlord will suffer any loss or damage to which this paragraph applies, there shall be payable to him such amount as is reasonable to compensate him for that loss or damage. This paragraph applies to— Without prejudice to the generality of paragraph (b) of sub-paragraph (2), the kinds of loss falling within that paragraph include loss of development value in relation to the tenant’s flat to the extent that it is referable as mentioned in that paragraph. In sub-paragraph (3) “development value”, in relation to the tenant’s flat, means any increase in the value of the landlord’s interest in the flat which is attributable to the possibility of demolishing, reconstructing, or carrying out substantial works of construction affecting, the flat (whether together with any other premises or otherwise).
In connection with the grant of the new lease to the tenant there shall be payable by the tenant to the owner of any intermediate leasehold interest an amount which is the aggregate of—
the diminution in value of that interest as determined in accordance with paragraph 7; and
any amount of compensation payable to him under paragraph 9.
The diminution in value of any intermediate leasehold interest is the difference between— Each of those values shall be determined, as at the relevant date, in accordance with paragraph 8.
Subject to sub-paragraph (2), paragraph 3(2) to (6) shall apply for determining the value of any intermediate leasehold interest for the purposes of any provision of this Schedule with such modifications as are appropriate to relate those provisions of paragraph 3 to a sale of the interest in question subject to the tenant’s lease for the time being and to any leases intermediate between the interest in question and that lease. The value of an intermediate leasehold interest which is the interest of the tenant under a minor intermediate lease is to be calculated in accordance with regulations made by the appropriate national authority instead of in accordance with sub-paragraph (1). “A minor intermediate lease” means a lease complying with the following requirements, namely— “Profit rent” means an amount equal to that of the rent payable under the lease on which the minor intermediate lease is in immediate reversion, less that of the rent payable under the minor intermediate lease. Where the minor intermediate lease or that on which it is in immediate reversion comprises property other than the tenant’s flat, then in sub-paragraph (4) the reference to the rent payable under it means so much of that rent as is apportioned to that flat. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For the purposes of this paragraph the expectation of possession carried by a lease is the expectation which it carries at the relevant date of possession after the tenant’s lease, on the basis that— In a case where before the relevant date for the purposes of this Chapter the immediate landlord of the tenant had given notice to quit terminating the tenant’s lease on a date earlier than that date, the date specified in the notice to quit shall be substituted for the date specified in sub-paragraph (8)(a) above. In sub-paragraph (2) “appropriate national authority” means—
Paragraph 5 shall apply in relation to the owner of any intermediate leasehold interest as it applies in relation to the landlord.
This paragraph applies in a case where— The amount payable to the landlord in respect of his share of the marriage value shall be divided between the landlord and the owners of any such intermediate interests in proportion to the amounts by which the values of their respective interests in the flat will be diminished in consequence of the grant of the new lease. For the purposes of sub-paragraph (2)— Where the owner of any intermediate leasehold interest is entitled in accordance with sub-paragraph (2) to any part of the amount payable to the landlord in respect of the landlord’s share of the marriage value, the amount to which he is so entitled shall be payable to him by the landlord.
Section 61.
This Schedule has effect where a tenant of a flat is entitled to be paid compensation under section 61, or would be so entitled on the landlord obtaining an order for possession, or where an application for such an order is dismissed or withdrawn. In this Schedule— and (except in the case of the reference in paragraph 5(1)(b) to the flat as a dwelling) references to the flat held by the tenant under the new lease shall be construed in accordance with subsection (5) of that section.
Where an order for possession is made— on such date as may, when the amount of compensation has been determined either by agreement between the landlord and the tenant or by the appropriate tribunal, be fixed by order of the court made on the application of either the landlord or the tenant. Where the application for possession was made by virtue of section 61(2)(a), then— In fixing the date referred to in sub-paragraph (1) the court shall have regard to the conduct of the parties and to the extent to which the landlord has made reasonable preparations for proceeding with the redevelopment (including the obtaining of, or preparations relating to the obtaining of, any requisite permission or consent, whether from any authority whose permission or consent is required under any enactment or from the owner of an interest in any property). The court may by order direct that the whole or part of the compensation payable to the tenant shall be paid into court, if the court thinks it expedient to do so for the purpose of ensuring that the sum paid is available for meeting any mortgage on the tenant’s interest in the flat in question, or for the purpose of division, or for any other purpose.
On the termination of a lease under an order for possession there shall terminate also any immediate or derivative sub-lease, and the tenant shall be bound to give up possession of the flat in question to the landlord except in so far as he is precluded from doing so by the rights of other persons to retain possession under or by virtue of any enactment. Where a sub-lease of property comprised in the lease has been created after the date of the application for possession, no person shall in respect of that sub-lease be entitled under any of the following provisions (which relate to retaining possession on the termination of a superior tenancy), namely— to retain possession of that property after the termination of the lease under the order for possession. In exercising its jurisdiction under section 61 or this Schedule the court shall assume that the landlord, having obtained an order for possession, will not be precluded from obtaining possession by the right of any person to retain possession by virtue of— or otherwise. A person in occupation of any property under a sub-lease liable to terminate under sub-paragraph (1) may, with the leave of the court, appear and be heard on any application for possession or any application under paragraph 2.
Where an order has been made by the county court under paragraph 2, that court ... shall have jurisdiction to hear and determine any proceedings brought by virtue of the order to recover possession of the property or to recover the compensation.
The amount payable to a tenant, by virtue of an order for possession, by way of compensation for loss of his flat shall be the amount which at the valuation date the new lease, if sold on the open market by a willing seller, might be expected to realise on the following assumptions— It is hereby declared that the fact that sub-paragraph (1) requires assumptions to be made as to the matters specified in paragraphs (a) to (c) of that sub-paragraph does not preclude the making of assumptions as to other matters where those assumptions are appropriate for determining the amount which at the valuation date the new lease might be expected to realise if sold as mentioned in that sub-paragraph. In determining any such amount there shall be made such deduction (if any) in respect of any defect in title as on a sale of that interest on the open market might be expected to be allowed between a willing seller and a willing buyer. In this paragraph “the valuation date” means the date when the amount of the compensation payable to the tenant is determined as mentioned in paragraph 2(1).
PartI of the Landlord and Tenant Act 1927 (compensation for improvements on termination of business tenancies) shall not apply on the termination of the new lease or any sub-lease in accordance with this Schedule; and a request for a new tenancy under section26 of the Landlord and Tenant Act 1954 in respect of the new lease or any sub-lease shall be of no effect if made after the application for possession, or, if already made, shall cease to have effect on the making of that application. Where a sub-lease terminating with the new lease in accordance with paragraph 3 is one to which Part II of the Landlord and Tenant Act 1954 applies, the compensation payable to the tenant shall be divided between him and the sub-tenant in such proportions as may be just, regard being had to their respective interests in the flat in question and to any loss arising from the termination of those interests and not incurred by imprudence. Where the amount of the compensation payable to the tenant is agreed between him and the landlord without the consent of a sub-tenant entitled under sub-paragraph (2) to a share in the compensation, and is shown by the sub-tenant to be less than might reasonably have been obtained by the tenant, the sub-tenant shall be entitled under sub-paragraph (2) to recover from the tenant such increased share as may be just.
The landlord shall not be concerned with the application of the amount payable to the tenant by way of compensation under an order for possession, but (subject to any statutory requirements as to payment of capital money arising under a settlement or a trust of land and to any order under paragraph 2(4) for payment into court) the written receipt of the tenant shall be a complete discharge for the amount payable. The landlord shall be entitled to deduct from the amount so payable to the tenant—
Where a landlord makes an application for possession, and it is made to appear to the court that in relation to matters arising out of that application (including the giving up of possession of the flat or the payment of compensation) the landlord or the tenant has been guilty of any unreasonable delay or default, the court may— Where an application for possession is dismissed or withdrawn, and it is made to appear to the court— the court may order that no further application for possession of the flat made by the landlord shall be entertained if it is made within the period of five years beginning with the date of the order.
Where— the sum received shall be dealt with as if it were proceeds of sale arising under the trust.
the new lease is subject to a trust of land, and
compensation is paid by the landlord on the termination of the new lease (whether the payment is made in pursuance of an order for possession or in pursuance of an agreement made in conformity with paragraph 5 above without an application having been made under section 61),
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the tenant under the new lease is a university or college to which the Universities and College Estates Act 1925 applies, and
compensation is paid as mentioned in paragraph 9(b) above,
Where— the sum received shall be treated as part of that endowment.
the tenant under the new lease is the Chapter of a cathedral and the lease comprises property which forms part of the endowment of a cathedral church, and
compensation is paid as mentioned in paragraph 9(b) above,
Where— the sum received shall be paid to the Church Commissioners to be applied for purposes for which the proceeds of any disposition of property by agreement would be applicable under any enactment or Measure authorising such a disposition or disposing of the proceeds of such a disposition. In this paragraph—
Section 66.
any other separate set of premises which is constructed or adapted for use for the purposes of a dwelling; or
Subject to subsection (2) below, the price payable for a house and premises on a conveyance under section 8 above shall be the amount which at the relevant time the house and premises, if sold in the open market by a willing seller (with the tenant and members of his family who reside in the house not buying or seeking to buy), might be expected to realise on the following assumptions:— The reference in this subsection to members of the tenant’s family shall be construed in accordance with section 7(7) of this Act. For the purpose of determining whether the rateable value of the house and premises is above £1000 in Greater London, or £500 elsewhere, the rateable value shall be adjusted to take into account any tenant’s improvements in accordance with Schedule 8 to the Housing Act 1974. Notwithstanding subsection (1) above, the price payable for a house and premises where the right to acquire the freehold arises by virtue of any one or more of the provisions of sections 1A and 1B above shall be determined in accordance with subsection (1A) above; but in any such case— and in a case where the provision (or one of the provisions) by virtue of which the right to acquire the freehold arises is section 1A(1) above, subsection (1A) above shall apply with the omission of the assumption set out in paragraph (b) of that subsection. The price payable for the house and premises shall be subject to such deduction (if any) in respect of any defect in the title to be conveyed to the tenant as on a sale in the open market might be expected to be allowed between a willing seller and a willing buyer. On ascertaining the amount payable, or likely to be payable, as the price for a house and premises in accordance with this section (but not more than one month after the amount payable has been determined by agreement or otherwise), the tenant may give written notice to the landlord that he is unable or unwilling to acquire the house and premises at the price he must pay; and thereupon— Where a person gives notice of his desire to have the freehold of a house and premises under this Part of this Act, then unless the notice lapses under any provision of this Act excluding his liability, there shall be borne by him (so far as they are incurred in pursuance of the notice) the reasonable costs of or incidental to any of the following matters:— but so that this subsection shall not apply to any costs if on a sale made voluntarily a stipulation that they were to be borne by the purchaser would be void. The landlord’s lien (as vendor) on the house and premises for the price payable shall extend—
Section 117(2).
Section 158(2).
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may be done by any member of the Agency, or of its staff, who has been authorised for the purpose, whether generally or specially, by the Agency; or
may be done by any committee or sub-committee of the Agency which has been so authorised.
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Section 158(2).
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the period beginning with the commencement of this Schedule and ending with the next following 31st March; and
each successive period of twelve months;
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shall permit any person authorised by the Secretary of State to inspect and make copies of the accounts, books, documents or papers of the Agency; and
shall afford such explanation of them as that person or the Secretary of State may reasonably require.
Section 161(4).
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Section 169.
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has been vested in or acquired by the Agency under this Part of this Act; and
is for the time being held by the Agency for the purposes of its objects,
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Section 187(1).
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In subsection (1A) of section 21 of the Leasehold Reform Act 1967 (jurisdiction of leasehold valuation tribunals), for the words from “be” onwards there shall be substituted the words “ comply with any requirements imposed by regulations under subsection (4A)(a) or (b) below ”.
After section 12 of the Land Compensation Act 1973 (tenants entitled to enfranchisement or extension under Leasehold Reform Act 1967) there shall be inserted the following section—
In subsection (1) of section 25 of the Local Government Act 1974 (authorities subject to investigation), after paragraph (be) there shall be inserted the following paragraph—. In subsection (7) of section 26 of that Act (matters subject to investigation) after paragraph (b) there shall be inserted the following paragraph—. In Schedule 5 to that Act (matters not subject to investigation) after paragraph 7 there shall be inserted the following paragraph—
In subsection (1)(b) of section 74 of the Rent Act 1977 (regulations), for the words from “by rent officers” onwards there shall be substituted the words—.
In subsection (5) of section 1 of the Derelict Land Act 1982 (powers of Secretary of State), in the definition of “ the prescribed percentage ”, for paragraphs (b) and (c) there shall be substituted the following paragraph—
After subsection (2A) of section 33 of the National Heritage Act 1983 (general functions of the Historic Buildings and Monuments Commission for England) there shall be inserted the following subsection—
In subsection (3) of section 101 of the Housing Act 1985 (rent not to be increased on account of tenant’s improvements), for paragraph (a) there shall be substituted the following paragraph—.
In subsection (2) of section 130 of that Act (reduction of discount where previous discount given), after paragraph (aa) there shall be inserted the following paragraph—.
For subsection (3) of section 140 of that Act (landlord’s first notice to complete) there shall be substituted the following subsection—
Immediately before section 153A of that Act (tenant’s notices of delay) there shall be inserted the following italic cross heading—. In subsection (1) of that section— In subsection (3) of that section—
In subsection (1) of section 153B of that Act (payments of rent attributable to purchase price etc.), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”. In subsection (2) of that section, for the words “any of paragraphs (c) to (e)” there shall be substituted the words “ paragraph (d) or (e) ”. In subsection (3) of that section, for the words “the tenant’s initial contribution for the grant of a shared ownership lease” there shall be substituted the words “ the tenant’s initial payment ”.
In subsection (2) of section 158 of that Act (consideration for reconveyance or surrender under section 157), after paragraph (a) there shall be inserted the following paragraph—.
In subsection (1) of section 164 of that Act (Secretary of State’s general power to intervene), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”. In subsection (4) of that section, for the words “the right to a mortgage or the right to be granted a shared ownership lease” there shall be substituted the words “ or the right to acquire on rent to mortgage terms ”. In subsection (5) of that section, for the words “the right to a mortgage and the right to be granted a shared ownership lease” there shall be substituted the words “ and the right to acquire on rent to mortgage terms ”.
In subsection (1) of section 167 of that Act (power to give directions as to covenants and conditions), after paragraph (b) there shall be inserted the wordsor .
In subsection (2) of section 170 of that Act (power to give assistance in connection with legal proceedings), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.
In subsection (2) of section 171C of that Act (modifications of Part V in relation to preserved right), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.
In subsection (2) of section 177 of that Act (errors and omissions in notices), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”. In subsection (3) of that section, for the entries relating to section 147 and paragraph 1(3) of Schedule 8 there shall be substituted the following entry— “ section 146 (landlord’s notice admitting or denying right to acquire on rent to mortgage terms). ”
For section 178 of that Act there shall be substituted the following section—
In subsection (1) of section 179 of that Act (provisions restricting right to buy etc. of no effect), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.
In subsection (1) of section 181 of that Act (jurisdiction of county court), for the words “a shared ownership lease granted in pursuance of this Part” there shall be substituted the words “ a conveyance or grant executed in pursuance of the right to acquire on rent to mortgage terms ”.
In subsection (2) of section 184 of that Act (land let with or used for purposes of dwelling-house), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”. In subsection (3) of that section, for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.
district valuer section 622 final payment paragraph 1 of Schedule 6A initial payment and interim payment section 143B and paragraph 6 of Schedule 6A landlord’s share section 148 and paragraph 7 of Schedule 6A minimum initial payment and maximum initial payment section 143B prescribed section 614 right to acquire on rent to mortgage terms section 143
In subsection (2) of section 4 of the Landlord and Tenant Act 1987 (relevant disposals), after paragraph (d) there shall be inserted the following paragraph—.
In subsection (2) of section 13 of that Act (determination by rent assessment committees of questions relating to purchase notices), for the words from “be” to “particulars,” there shall be substituted the words “ comply with such requirements (if any) as to the form of, or the particulars to be contained in, any such application ”.
In subsection (5)(a) of section 1 of the Town and Country Planning Act 1990 (subsections (1) to (4) of that section have effect subject to sections 5 to 8), for “8” there shall be substituted “ 8A ”.
After section 8 of that Act (local planning authority in housing action area) there shall be inserted the following section—
In subsection (1) of section 72 of the Planning (Listed Buildings and Conservation Areas) Act 1990 (general duty as respects conservation areas in exercise of planning functions), for the words “powers under” there shall be substituted the words “ functions under or by virtue of ”. In subsection (2) of that section there shall be added at the end “ and sections 70 and 73 of the Leasehold Reform, Housing and Urban Development Act 1993 ”.
In paragraphs 2 and 4 of Schedule 4 to that Act (further provisions as to exercise of functions by different authorities), for the words “and 8” there shall be substituted the words “ 8 and 8A ”.
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Section 187(2). Chapter Short title Extent of repeal 9 & 10 Eliz. 2. c. 33. The Land Compensation Act 1961. In section 23(3), the word “or” at the end of paragraph (b). 1975 c. 24. The House of Commons Disqualification Act 1975. In Schedule 1, in Part II, the entry relating to the English Industrial Estates Corporation. 1975 c. 25. The Northern Ireland Assembly Disqualification Act 1975. In Schedule 1, in Part II, the entry beginning “The Industrial Estates Corporations”. 1980 c. 51. The Housing Act 1980. In section 141, “3,”. In Schedule 21, paragraph 3. 1980 c. 65. The Local Government, Planning and Land Act 1980. Section 99A(2). Section 165(3). 1981 c. 13. The English Industrial Estates Corporation Act 1981. The whole Act. 1982 c. 52. The Industrial Development Act 1982. In section 15(1), paragraph (d) and the word “and” immediately preceding it. In Part II of Schedule 2, paragraph 17. 1983 c. 29. The Miscellaneous Financial Provisions Act 1983. In Schedule 2, the entry relating to the English Industrial Estates Corporation Act 1981. 1985 c. 25. The Industrial Development Act 1985. Sections 1 to 4. Section 6(2). 1985 c. 68. The Housing Act 1985. Section 27C. Section 124(3). Section 128(6). Sections 132 to 135. In section 137, in subsection (1), the words “or the right to a mortgage” and, in subsection (2), paragraph (b). In section 138(1), the words “and to the amount to be left outstanding or advanced on the security of the dwelling-house”. Section 139(3). In section 140(5), the words “and to the amount to be left outstanding or advanced on the security of the dwelling-house”. Section 142. In section 153A(1), paragraphs (c) and (d). In section 153B(1), paragraph (c). Section 164(6). Section 166(6). In section 169(3), paragraph (b) and the word “and” immediately preceding that paragraph. In section 171C(2), paragraph (b). In section 171H, in subsection (1), the words “or the right to a mortgage” and, in subsection (2), paragraph (b). In section 177, in subsection (2)(b) the words “or the Corporation” and in subsection (3), the entries relating to section 135 and paragraph 5 of Schedule 9. In section 180, the words “the Corporation” and “Corporation”. In section 181(1), the words “and paragraph 11 of Schedule 8”. In section 182(1), the words “or the right to a mortgage”. In section 187, the definition of “total share”. In section 188, the entries beginning “additional share and additional contribution”, “effective discount”, “full mortgage”, “initial share and initial contribution”, “prescribed percentage”, “right to be granted a shared ownership lease”, “right to further advances”, “right to a mortgage” and “total share”. In Schedule 6, in paragraphs 16B(4) and 16C(4), paragraph (c) and the word “and” immediately preceding that paragraph. Schedules 7 to 9. 1985 c. 71. The Housing (Consequential Provisions) Act 1985. In section 6(3), “12”. In Schedule 2, paragraph 12. 1986 c. 63. The Housing and Planning Act 1986. In Schedule 5, paragraph 5. 1987 c. 26. The Housing (Scotland) Act 1987. In section 17, in subsection (1), the words “and exercised by”. In section 61, in subsection (10)(b), sub-paragraphs (i) and (ii). In section 62, in subsection (3)(b), the words “continuous” and “immediately”. 1987 c. 31. The Landlord and Tenant Act 1987. Section 25(3). In section 29(2), the words from “and (c)” onwards. 1988 c. 50. The Housing Act 1988. Section 41(1). In section 69(2), the words from “on grounds” onwards. In section 79(2)(b), the words “in accordance with section 84 below”. In Schedule 9, paragraph 12(2). 1989 c. 42. The Local Government and Housing Act 1989. In section 80(1), the words from “and for any year” onwards. Section 164. In Schedule 11, paragraph 51. 1990 c. 11. The Planning (Consequential Provisions) Act 1990. In Schedule 2, paragraph 47.
If— the initial notice shall be deemed to have been withdrawn at the end of that period.
the circumstances are as mentioned in subsection (7)(a) and (b), but
the participating tenants fail to give a notice under subsection (3) or (as the case may be) subsection (5) within the period of 56 days specified in that subsection,
Where a notice under subsection (1) is given by a person who is one of two or more persons together constituting the nominee purchaser, a copy of the notice shall be given by him to every other person included among those persons; and a copy of any notice given under subsection (3) or (5) shall be given by the participating tenants to every relevant landlord (other than the reversioner) to whom the initial notice or a copy of it was given in accordance with section 13 and Part II of Schedule 3.
Nothing in this section applies in relation to the resignation or death of the nominee purchaser (or any of the persons together constituting the nominee purchaser) at any time after a binding contract is entered into in pursuance of the initial notice.
Once the initial notice or a copy of it has been given in accordance with section 13 or Part II of Schedule 3 to the reversioner or to any other relevant landlord, that person and any person authorised to act on his behalf shall, in the case of— in which he has a freehold or leasehold interest which is included in the proposed acquisition by the nominee purchaser, have a right of access thereto for the purpose of enabling him to obtain a valuation of that interest in connection with the notice or if it is reasonable in connection with any other matter arising out of the claim to exercise the right to collective enfranchisement.
any part of the specified premises, or
any part of any property specified in the notice under section 13(3)(a)(ii),
Once the initial notice has been given in accordance with section 13, the nominee purchaser and any person authorised to act on his behalf shall have a right of access to— where such access is reasonably required by the nominee purchaser in connection with any matter arising out of the notice.
any part of the specified premises, or
any part of any property specified in the notice under section 13(3)(a)(ii),
A right of access conferred by this section shall be exercisable at any reasonable time and on giving not less than 10 days’ notice to the occupier of any premises to which access is sought (or, if those premises are unoccupied, to the person entitled to occupy them).
If at any time during the period beginning with the relevant date and ending with the time when a binding contract is entered into in pursuance of the initial notice — the existence of that agreement or shareholding shall be notified to the reversioner by the nominee purchaser as soon as possible after the agreement or shareholding is made or established or, if in existence on the relevant date, as soon as possible after that date.
there subsists between the nominee purchaser and a person other than a participating tenant any agreement (of whatever nature) providing for the disposal of a relevant interest, or
if the nominee purchaser is a company, any person other than a participating tenant holds any share in that company by virtue of which a relevant interest may be acquired,
If— the nominee purchaser and the participating tenants shall be jointly and severally liable to pay the amount to the reversioner or (as the case may be) the other relevant landlord.
the nominee purchaser is required to give any notification under subsection (1) but fails to do so before the price payable to the reversioner or any other relevant landlord in respect of the acquisition of any interest of his by the nominee purchaser is determined for the purposes of Schedule 6, and
it may reasonably be assumed that, had the nominee purchaser given the notification, it would have resulted in the price so determined being increased by an amount referable to the existence of any agreement or shareholding falling within subsection (1)(a) or (b),
In subsection (1) “relevant interest” means any interest in, or in any part of, the specified premises or any property specified in the initial notice under section 13(3)(a)(ii).
Paragraph (a) of subsection (1) does not, however, apply to an agreement if the only disposal of such an interest for which it provides is one consisting in the creation of an interest by way of security for a loan.
Where the initial notice has been registered in accordance with section 97(1), then so long as it continues in force— and any transaction shall be void to the extent that it purports to effect any such disposal or any such grant of a lease as is mentioned in paragraph (a) or (b).
any person who owns the freehold of the whole or any part of the specified premises or the freehold of any property specified in the notice under section 13(3)(a)(ii) shall not—
make any disposal severing his interest in those premises or in that property, or
grant out of that interest any lease under which, if it had been granted before the relevant date, the interest of the tenant would to any extent have been liable on that date to acquisition by virtue of section 2(1)(a) or (b); and
no other relevant landlord shall grant out of his interest in the specified premises or in any property so specified any such lease as is mentioned in paragraph (a)(ii);
Where the initial notice has been so registered and at any time when it continues in force— subsection (3) below shall apply in relation to that disposal.
any person who owns the freehold of the whole or any part of the specified premises or the freehold of any property specified in the notice under section 13(3)(a)(ii) disposes of his interest in those premises or that property, or
any other relevant landlord disposes of any interest of his specified in the notice under section 13(3)(c)(i),
Where this subsection applies in relation to any such disposal as is mentioned in subsection (2)(a) or (b), all parties shall for the purposes of this Chapter be in the same position as if the person acquiring the interest under the disposal— and, if any subsequent disposal of that interest takes place at any time when the initial notice continues in force, this subsection shall apply in relation to that disposal as if any reference to the person making the disposal included any predecessor in title of his.
had become its owner before the initial notice was given (and was accordingly a relevant landlord in place of the person making the disposal), and
had been given any notice or copy of a notice given under this Chapter to that person, and
had taken all steps which that person had taken;
Where immediately before the relevant date there is in force a binding contract relating to the disposal to any extent— of any interest of his falling within subsection (2)(a) or (b), then, so long as the initial notice continues in force, the operation of the contract shall be suspended so far as it relates to any such disposal.
by any person who owns the freehold of the whole or any part of the specified premises or the freehold of any property specified in the notice under section 13(3)(a)(ii),
by any other relevant landlord,
Where— then (without prejudice to the general law as to the frustration of contracts) the person referred to in paragraph (a) or (b) of that subsection shall, together with all other persons, be discharged from the further performance of the suspended contract so far as it relates to any such disposal as is mentioned in subsection (4).
the operation of a contract has been suspended under subsection (4) (“the suspended contract”), and
a binding contract is entered into in pursuance of the initial notice,
In subsections (4) and (5) any reference to a contract (except in the context of such a contract as is mentioned in subsection (5)(b)) includes a contract made in pursuance of an order of any court; but those subsections do not apply to any contract providing for the eventuality of a notice being given under section 13 in relation to the whole or part of the property in which any such interest as is referred to in subsection (4) subsists.
The reversioner in respect of the specified premises may, within the period of 21 days beginning with the relevant date, give the nominee purchaser a notice requiring him, in the case of any person by whom the initial notice was given, to deduce the title of that person to the lease by virtue of which it is claimed that he is a qualifying tenant of a flat contained in the specified premises.
The nominee purchaser shall comply with any such requirement within the period of 21 days beginning with the date of the giving of the notice.
Where— the initial notice shall be deemed to have been withdrawn at the end of that period.
the nominee purchaser fails to comply with a requirement under subsection (1) in the case of any person within the period mentioned in subsection (2), and
the initial notice would not have been given in accordance with section 13(2)(b) if— had been neither included among the persons who gave the notice nor included among the qualifying tenants of the flats referred to in that provision,
that person, and
any other person in the case of whom a like failure by the nominee purchaser has occurred,
The reversioner in respect of the specified premises shall give a counter-notice under this section to the nominee purchaser by the date specified in the initial notice in pursuance of section 13(3)(g).
The counter-notice must comply with one of the following requirements, namely—
state that the reversioner admits that the participating tenants were on the relevant date entitled to exercise the right to collective enfranchisement in relation to the specified premises;
state that, for such reasons as are specified in the counter-notice, the reversioner does not admit that the participating tenants were so entitled;
contain such a statement as is mentioned in paragraph (a) or (b) above but state that an application for an order under subsection (1) of section 23 is to be made by such appropriate landlord (within the meaning of that section) as is specified in the counter-notice, on the grounds that he intends to redevelop the whole or a substantial part of the specified premises.
If the counter-notice complies with the requirement set out in subsection (2)(a), it must in addition—
state which (if any) of the proposals contained in the initial notice are accepted by the reversioner and which (if any) of those proposals are not so accepted, and specify—
in relation to any proposal which is not so accepted, the reversioner’s counter-proposal, and
any additional leaseback proposals by the reversioner;
if (in a case where any property specified in the initial notice under section 13(3)(a)(ii) is property falling within section 1(3)(b)) any such counter-proposal relates to the grant of rights or the disposal of any freehold interest in pursuance of section 1(4), specify— as the case may be;
the nature of those rights and the property over which it is proposed to grant them, or
the property in respect of which it is proposed to dispose of any such interest,
state which interests (if any) the nominee purchaser is to be required to acquire in accordance with subsection (4) below;
state which rights (if any) any relevant landlord, desires to retain— on the grounds that the rights are necessary for the proper management or maintenance of property in which he is to retain a freehold or leasehold interest; and
over any property in which he has any interest which is included in the proposed acquisition by the nominee purchaser, or
over any property in which he has any interest which the nominee purchaser is to be required to acquire in accordance with subsection (4) below,
include a description of any provisions which the reversioner or any other relevant landlord considers should be included in any conveyance to the nominee purchaser in accordance with section 34 and Schedule 7.
The nominee purchaser may be required to acquire on behalf of the participating tenants the interest in any property of any relevant landlord, if the property— in the event of his interest in the specified premises or (as the case may be) in any other property being acquired by the nominee purchaser under this Chapter.
would for all practical purposes cease to be of use and benefit to him, or
would cease to be capable of being reasonably managed or maintained by him,
Where a counter-notice specifies any interest in pursuance of subsection (3)(c), the nominee purchaser or any person authorised to act on his behalf shall, in the case of any part of the property in which that interest subsists, have a right of access thereto for the purpose of enabling the nominee purchaser to obtain, in connection with the proposed acquisition by him, a valuation of that interest; and subsection (3) of section 17 shall apply in relation to the exercise of that right as it applies in relation to the exercise of a right of access conferred by that section.
Every counter-notice must specify an address in England and Wales at which notices may be given to the reversioner under this Chapter.
The reference in subsection (3)(a)(ii) to additional leaseback proposals is a reference to proposals which relate to the leasing back, in accordance with section 36 and Schedule 9, of flats or other units contained in the specified premises and which are made either—
in respect of flats or other units in relation to which Part II of that Schedule is applicable but which were not specified in the initial notice under section 13(3)(c)(ii), or
in respect of flats or other units in relation to which Part III of that Schedule is applicable.
Schedule 4 (which imposes requirements as to the furnishing of information by the reversioner about the exercise of rights under Chapter II with respect to flats contained in the specified premises) shall have effect.
Where— the court shall by order make a declaration to that effect.
the reversioner in respect of the specified premises has given the nominee purchaser a counter-notice under section 21 which (whether it complies with the requirement set out in subsection (2)(b) or (c) of that section) contains such a statement as is mentioned in subsection (2)(b) of that section, but
the court is satisfied, on an application made by the nominee purchaser, that the participating tenants were on the relevant date entitled to exercise the right to collective enfranchisement in relation to the specified premises,
Any application for an order under subsection (1) must be made not later than the end of the period of two months beginning with the date of the giving of the counter-notice to the nominee purchaser.
If on any such application the court makes an order under subsection (1), then (subject to subsection (4)) the court shall make an order—
declaring that the reversioner’s counter-notice shall be of no effect, and
requiring the reversioner to give a further counter-notice to the nominee purchaser by such date as is specified in the order.
Subsection (3) shall not apply if—
the counter-notice complies with the requirement set out in section 21(2)(c), and
either—
an application for an order under section 23(1) is pending, or
the period specified in section 23(3) as the period for the making of such an application has not expired.
Subsections (3) to (5) of section 21 shall apply to any further counter-notice required to be given by the reversioner under subsection (3) above as if it were a counter-notice under that section complying with the requirement set out in subsection (2)(a) of that section.
If an application by the nominee purchaser for an order under subsection (1) is dismissed by the court, the initial notice shall cease to have effect at the time when the order dismissing the application becomes final.
Where the reversioner in respect of the specified premises has given a counter-notice under section 21 which complies with the requirement set out in subsection (2)(c) of that section, the court may, on the application of any appropriate landlord, by order declare that the right to collective enfranchisement shall not be exercisable in relation to those premises by reason of that landlord’s intention to redevelop the whole or a substantial part of the premises.
The court shall not make an order under subsection (1) unless it is satisfied—
that not less than two-thirds of all the long leases on which flats contained in the specified premises are held are due to terminate within the period of five years beginning with the relevant date; and
that for the purposes of redevelopment the applicant intends, once the leases in question have so terminated— the whole or a substantial part of the specified premises; and
to demolish or reconstruct, or
to carry out substantial works of construction on,
that he could not reasonably do so without obtaining possession of the flats demised by those leases.
Any application for an order under subsection (1) must be made within the period of two months beginning with the date of the giving of the counter-notice to the nominee purchaser; but, where the counter-notice is one falling within section 22(1)(a), such an application shall not be proceeded with until such time (if any) as an order under section 22(1) becomes final.
Where an order under subsection (1) is made by the court, the initial notice shall cease to have effect on the order becoming final.
Where an application for an order under subsection (1) is dismissed by the court, the court shall make an order—
declaring that the reversioner’s counter-notice shall be of no effect, and
requiring the reversioner to give a further counter-notice to the nominee purchaser by such date as is specified in the order.
Where— then (subject to subsection (8)), the reversioner shall give a further counter-notice to the nominee purchaser within the period of two months beginning with the appropriate date.
the reversioner has given such a counter-notice as is mentioned in subsection (1), but
either—
no application for an order under that subsection is made within the period referred to in subsection (3), or
such an application is so made but is subsequently withdrawn,
In subsection (6) “the appropriate date” means—
if subsection (6)(b)(i) applies, the date immediately following the end of the period referred to in subsection (3); and
if subsection (6)(b)(ii) applies, the date of withdrawal of the application.
Subsection (6) shall not apply if any application has been made by the nominee purchaser under section 22(1).
Subsections (3) to (5) of section 21 shall apply to any further counter-notice required to be given by the reversioner under subsection (5) or (6) above as if it were a counter-notice under that section complying with the requirement set out in subsection (2)(a) of that section.
In this section “appropriate landlord”, in relation to the specified premises, means—
the reversioner or any other relevant landlord; or
any two or more persons falling within paragraph (a) who are acting together.
Where the reversioner in respect of the specified premises has given the nominee purchaser— but any of the terms of acquisition remain in dispute at the end of the period of two months beginning with the date on which the counter-notice or further counter-notice was so given, the appropriate tribunal may, on the application of either the nominee purchaser or the reversioner, determine the matters in dispute.
a counter-notice under section 21 complying with the requirement set out in subsection (2)(a) of that section, or
a further counter-notice required by or by virtue of section 22(3) or section 23(5) or (6),
Any application under subsection (1) must be made not later than the end of the period of six months beginning with the date on which the counter-notice or further counter-notice was given to the nominee purchaser.
Where— but a binding contract incorporating those terms has not been entered into by the end of the appropriate period specified in subsection (6), the court may, on the application of either the nominee purchaser or the reversioner, make such order under subsection (4) as it thinks fit.
the reversioner has given the nominee purchaser such a counter-notice or further counter-notice as is mentioned in subsection (1)(a) or (b), and
all of the terms of acquisition have been either agreed between the parties or determined by the appropriate tribunal under subsection (1),
The court may under this subsection make an order— and Schedule 5 shall have effect in relation to any such order as is mentioned in paragraph (a) or (b) above.
providing for the interests to be acquired by the nominee purchaser to be vested in him on the terms referred to in subsection (3);
providing for those interests to be vested in him on those terms, but subject to such modifications as—
may have been determined by the appropriate tribunal, on the application of either the nominee purchaser or the reversioner, to be required by reason of any change in circumstances since the time when the terms were agreed or determined as mentioned in that subsection, and
are specified in the order; or
providing for the initial notice to be deemed to have been withdrawn at the end of the appropriate period specified in subsection (6);
Any application for an order under subsection (4) must be made not later than the end of the period of two months beginning immediately after the end of the appropriate period specified in subsection (6).
For the purposes of this section the appropriate period is—
where all of the terms of acquisition have been agreed between the parties, the period of two months beginning with the date when those terms were finally so agreed;
where all or any of those terms have been determined by the appropriate tribunal under subsection (1)—
the period of two months beginning with the date when the decision of the tribunal under that subsection becomes final, or
such other period as may have been fixed by the tribunal when making its determination.
In this section “the parties” means the nominee purchaser and the reversioner and any relevant landlord who has given to those persons a notice for the purposes of paragraph 7(1)(a) of Schedule 1.
In this Chapter “the terms of acquisition”, in relation to a claim made under this Chapter, means the terms of the proposed acquisition by the nominee purchaser, whether relating to— or otherwise, and includes any such terms in respect of any interest to be acquired in pursuance of section 1(4) or 21(4).
the interests to be acquired,
the extent of the property to which those interests relate or the rights to be granted over any property,
the amounts payable as the purchase price for such interests,
the apportionment of conditions or other matters in connection with the severance of any reversionary interest, or
the provisions to be contained in any conveyance,
Where the initial notice has been given in accordance with section 13 but— the court may, on the application of the nominee purchaser, make an order determining the terms on which he is to acquire, in accordance with the proposals contained in the initial notice, such interests and rights as are specified in it under section 13(3).
the reversioner has failed to give the nominee purchaser a counter-notice in accordance with section 21(1), or
if required to give the nominee purchaser a further counter-notice by or by virtue of section 22(3) or section 23(5) or (6), the reversioner has failed to comply with that requirement,
The terms determined by the court under subsection (1) shall, if Part II of Schedule 9 is applicable, include terms which provide for the leasing back, in accordance with section 36 and that Part of that Schedule, of flats or other units contained in the specified premises.
The court shall not make any order on an application made by virtue of paragraph (a) of subsection (1) unless it is satisfied—
that the participating tenants were on the relevant date entitled to exercise the right to collective enfranchisement in relation to the specified premises; and
if applicable, that the requirements of Part II of Schedule 3 were complied with as respects the giving of copies of the initial notice.
Any application for an order under subsection (1) must be made not later than the end of the period of six months beginning with the date by which the counter-notice or further counter-notice referred to in that subsection was to be given to the nominee purchaser.
Where— the court may, on the application of either the nominee purchaser or the reversioner, make such order under subsection (6) as it thinks fit.
the terms of acquisition have been determined by an order of the court under subsection (1), but
a binding contract incorporating those terms has not been entered into by the end of the appropriate period specified in subsection (8),
The court may under this subsection make an order— and Schedule 5 shall have effect in relation to any such order as is mentioned in paragraph (a) or (b) above.
providing for the interests to be acquired by the nominee purchaser to be vested in him on the terms referred to in subsection (5);
providing for those interests to be vested in him on those terms, but subject to such modifications as—
may have been determined by the appropriate tribunal, on the application of either the nominee purchaser or the reversioner, to be required by reason of any change in circumstances since the time when the terms were determined as mentioned in that subsection, and
are specified in the order; or
providing for the initial notice to be deemed to have been withdrawn at the end of the appropriate period specified in subsection (8);
Any application for an order under subsection (6) must be made not later than the end of the period of two months beginning immediately after the end of the appropriate period specified in subsection (8).
For the purposes of this section the appropriate period is—
the period of two months beginning with the date when the order of the court under subsection (1) becomes final, or
such other period as may have been fixed by the court when making that order.
Where in a case to which section 9(2) applies— the court may, on the application of the qualifying tenants in question, make an order dispensing with the need to give such a notice or (as the case may be) a copy of such a notice to that person.
not less than two-thirds of the qualifying tenants of flats contained in any premises to which this Chapter applies desire to make a claim to exercise the right to collective enfranchisement in relation to those premises, and
paragraph (b) of subsection (1) does not apply, but
a notice of that claim or (as the case may be) a copy of such a notice cannot be given in accordance with section 13 or Part II of Schedule 3 to any person to whom it would otherwise be required to be so given because he cannot be found or his identity cannot be ascertained,
If , in a case to which section 9(2) applies, that person is the person who owns the freehold of the premises, then on the application of those tenants, the court may, in connection with an order under subsection (2), make an order appointing any other relevant landlord to be the reversioner in respect of the premises in place of that person; and if it does so references in this Chapter to the reversioner shall apply accordingly.
The court shall not make an order on any application under subsection (1) , (2) or (3A) unless it is satisfied—
that on the date of the making of the application the premises to which the application relates were premises to which this Chapter applies; and
that on that date the applicants would not have been precluded by any provision of this Chapter from giving a valid notice under section 13 with respect to those premises.
Where in a case to which section 9(2A) applies— the court may, on the application of the qualifying tenants in question, make an order dispensing with the need to give a copy of such a notice to that person.
not less than two-thirds of the qualifying tenants of flats contained in any premises to which this Chapter applies desire to make a claim to exercise the right to collective enfranchisement in relation to those premises, and
paragraph (b) of subsection (1) does not apply, but
a copy of a notice of that claim cannot be given in accordance with Part II of Schedule 3 to any person to whom it would otherwise be required to be so given because he cannot be found or his identity cannot be ascertained,
Before making any such order the court may require the applicants to take such further steps by way of advertisement or otherwise as the court thinks proper for the purpose of tracing the person or persons in question; and if, after an application is made for a vesting order under subsection (1) and before any interest is vested in pursuance of the application, the person or (as the case may be) any of the persons referred to in paragraph (a) or (b) of that subsection is traced, then no further proceedings shall be taken with a view to any interest being so vested, but (subject to subsection (6))—
the rights and obligations of all parties shall be determined as if the applicants had, at the date of the application, duly given notice under section 13 of their claim to exercise the right to collective enfranchisement in relation to the premises to which the application relates; and
the court may give such directions as the court thinks fit as to the steps to be taken for giving effect to those rights and obligations, including directions modifying or dispensing with any of the requirements of this Chapter or of regulations made under this Part.
An application for a vesting order under subsection (1) may be withdrawn at any time before execution of a conveyance under section 27(3) and, after it is withdrawn, subsection (5)(a) above shall not apply; but where any step is taken (whether by the applicants or otherwise) for the purpose of giving effect to subsection (5)(a) in the case of any application, the application shall not afterwards be withdrawn except— and the court shall not give leave unless it appears to the court just to do so by reason of matters coming to the knowledge of the applicants in consequence of the tracing of any such person.
with the consent of every person who is the owner of any interest the vesting of which is sought by the applicants, or
by leave of the court,
Where an order has been made under subsection (2) or (3A)dispensing with the need to give a notice under section 13, or a copy of such a notice, to a particular person with respect to any particular premises, then if— the notice must contain a statement of the effect of the order.
a notice is subsequently given under that section with respect to those premises, and
in reliance on the order, the notice or a copy of the notice is not to be given to that person,
Where a notice under section 13 contains such a statement in accordance with subsection (7) above, then in determining for the purposes of any provision of this Chapter whether the requirements of section 13 or Part II of Schedule 3 have been complied with in relation to the notice, those requirements shall be deemed to have been complied with so far as relating to the giving of the notice or a copy of it to the person referred to in subsection (7) above.
Rules of court shall make provision—
for requiring notice of any application under subsection (3) to be served by the persons making the application on any person who the applicants know or have reason to believe is a relevant landlord; and
for enabling persons served with any such notice to be joined as parties to the proceedings.
A vesting order under section 26(1) is an order providing for the vesting of any such interests as are referred to in paragraph (i) or (ii) of that provision—
in such person or persons as may be appointed for the purpose by the applicants for the order, and
on such terms as may be determined by the appropriate tribunal to be appropriate with a view to the interests being vested in that person or those persons in like manner (so far as the circumstances permit) as if the applicants had, at the date of their application, given notice under section 13 of their claim to exercise the right to collective enfranchisement in relation to the premises with respect to which the order is made.
If the appropriate tribunal so determines in the case of a vesting order under section 26(1), the order shall have effect in relation to interests which are less extensive than those specified in the application on which the order was made.
Where any interests are to be vested in any person or persons by virtue of a vesting order under section 26(1), then on his or their paying into court the appropriate sum in respect of each of those interests there shall be executed by such person as the court may designate a conveyance which— and that conveyance shall be effective to vest in the person or persons to whom the conveyance is made the interests expressed to be conveyed, subject to and in accordance with the terms of the conveyance.
is in a form approved by the appropriate tribunal, and
contains such provisions as may be so approved for the purpose of giving effect so far as possible to the requirements of section 34 and Schedule 7;
In connection with the determination by the appropriate tribunal of any question as to the interests to be conveyed by any such conveyance, or as to the rights with or subject to which they are to be conveyed, it shall be assumed (unless the contrary is shown) that any person whose interests are to be conveyed (“the transferor”) has no interest in property other than those interests and, for the purpose of excepting them from the conveyance, any minerals underlying the property in question.
The appropriate sum which in accordance with subsection (3) is to be paid into court in respect of any interest is the aggregate of—
such amount as may be determined by the appropriate tribunal to be the price which would be payable in respect of that interest in accordance with Schedule 6 if the interest were being acquired in pursuance of such a notice as is mentioned in subsection (1)(b); and
any amounts or estimated amounts determined by such a tribunal as being, at the time of execution of the conveyance, due to the transferor from any tenants of his of premises comprised in the premises in which that interest subsists (whether due under or in respect of their leases or under or in respect of agreements collateral thereto).
Where any interest is vested in any person or persons in accordance with this section, the payment into court of the appropriate sum in respect of that interest shall be taken to have satisfied any claims against the applicants for the vesting order under section 26(1), their personal representatives or assigns in respect of the price payable under this Chapter for the acquisition of that interest.
Where any interest is so vested in any person or persons, section 32(5) shall apply in relation to his or their acquisition of that interest as it applies in relation to the acquisition of any interest by a nominee purchaser.
At any time before a binding contract is entered into in pursuance of the initial notice, the participating tenants may withdraw that notice by the giving of a notice to that effect under this section (“a notice of withdrawal”).
A notice of withdrawal must be given— and, if by virtue of paragraph (c) a notice of withdrawal falls to be given to any person falling within that paragraph, it shall state that he is a recipient of the notice.
to the nominee purchaser;
to the reversioner in respect of the specified premises; and
to every other relevant landlord who is known or believed by the participating tenants to have given to the nominee purchaser a notice under paragraph 7(1) or (4) of Schedule 1;
The nominee purchaser shall, on receiving a notice of withdrawal, give a copy of it to every relevant landlord who—
has given to the nominee purchaser such a notice as is mentioned in subsection (2)(c); and
is not stated in the notice of withdrawal to be a recipient of it.
“introductory tenancy” has the same meaning as in Chapter 1 of Part V of the Housing Act 1996,
those persons, and
(subject to subsection (5)) every other person who is not a participating tenant for the time being but has at any time been such a tenant,
“the existing lease”, in relation to a claim by a tenant under this Chapter, means the lease in relation to which the claim is made;
to the reversioner, and
to every other relevant landlord,
retain powers of management in respect of the house or premises, and
have rights against the house or premises in respect of the benefits arising from the exercise elsewhere of his powers of management.
A person falling within paragraph (b) of subsection (4) shall not be liable for any costs by virtue of that subsection if— and in paragraph (a) above the reference to an assignment shall be construed in accordance with section 14(10).
the lease in respect of which he was a participating tenant has been assigned to another person; and
that other person has become a participating tenant in accordance with section 14(4);
Where any liability for costs arises under subsection (4)—
it shall be a joint and several liability of the persons concerned; and
the nominee purchaser shall not be liable for any costs under section 33.
In subsection (4) “relevant costs”, in relation to the reversioner or any other relevant landlord, means costs for which the nominee purchaser would (apart from subsection (6)) be liable to that person under section 33.
“RTM company” has the same meaning as in Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002.
(if paragraph (a) above applies) at the end of that period, or
(if paragraph (b) above applies) on the date of the withdrawal of the application.
Where— the initial notice shall be deemed to have been withdrawn at the end of the period referred to in paragraph (a) or (b) above (as the case may be).
in a case to which subsection (1) of section 24 applies, no application under that subsection is made within the period specified in subsection (2) of that section, or
in a case to which subsection (3) of that section applies, no application for an order under subsection (4) of that section is made within the period specified in subsection (5) of that section,
Where, in a case falling within paragraph (a) or (b) of subsection (1) of section 25, no application for an order under that subsection is made within the period specified in subsection (4) of that section, the initial notice shall be deemed to have been withdrawn at the end of that period.
Where, in a case to which subsection (5) of section 25 applies, no application for an order under subsection (6) of that section is made within the period specified in subsection (7) of that section, the initial notice shall be deemed to have been withdrawn at the end of that period.
The following provisions, namely— also make provision for a notice under section 13 to be deemed to have been withdrawn at a particular time.
section 15(10),
section 16(8),
section 20(3),
section 24(4)(c), and
section 25(6)(c),
Where the initial notice is deemed to have been withdrawn at any time by virtue of any provision of this Chapter, subsections (4) and (5) of section 28 shall apply for the purposes of this section in like manner as they apply where a notice of withdrawal is given under that section, but as if the reference in subsection (4) of that section to the time when a notice or copy is given as there mentioned were a reference to the time when the initial notice is so deemed to have been withdrawn.
Where the initial notice is deemed to have been withdrawn by virtue of section 15(10) or 16(8)—
the liability for costs arising by virtue of subsection (6) above shall be a joint and several liability of the persons concerned; and
the nominee purchaser shall not be liable for any costs under section 33.
In the provisions applied by subsection (6), “relevant costs”, in relation to the reversioner or any other relevant landlord, means costs for which the nominee purchaser is, or would (apart from subsection (7)) be, liable to that person under section 33.
A notice given under section 13 shall be of no effect if on the relevant date—
any acquiring authority has, with a view to the acquisition of the whole or part of the specified premises for any authorised purpose—
served notice to treat on any relevant person, or
entered into a contract for the purchase of the interest of any such person in the premises or part of them, and
the notice to treat or contract remains in force.
In subsection (1) “relevant person”, in relation to the specified premises, means—
the person who owns the freehold of the premises; or, where the freehold of the whole of the premises is not owned by the same person, any person who owns the freehold of part of them or
any other person who owns any leasehold interest in the premises which is specified in the initial notice under section 13(3)(c)(i).
A notice given under section 13 shall not specify under subsection (3)(a)(ii) or (c)(i) of that section any property or leasehold interest in property if on the relevant date—
any acquiring authority has, with a view to the acquisition of the whole or part of the property for any authorised purpose—
served notice to treat on the person who owns the freehold of, or any such leasehold interest in, the property, or
entered into a contract for the purchase of the interest of any such person in the property or part of it, and
the notice to treat or contract remains in force.
A notice given under section 13 shall cease to have effect if, before a binding contract is entered into in pursuance of the notice, any acquiring authority serves, with a view to the acquisition of the whole or part of the specified premises for any authorised purpose, notice to treat as mentioned in subsection (1)(a).
Where any such authority so serves notice to treat at any time after a binding contract is entered into in pursuance of the notice given under section 13 but before completion of the acquisition by the nominee purchaser under this Chapter, then (without prejudice to the general law as to the frustration of contracts) the parties to the contract shall be discharged from the further performance of the contract.
Where subsection (4) or (5) applies in relation to the initial notice or any contract entered into in pursuance of it, then on the occasion of the compulsory acquisition in question the compensation payable in respect of any interest in the specified premises (whether or not the one to which the relevant notice to treat relates) shall be determined on the basis of the value of the interest—
(if subsection (4) applies) subject to and with the benefit of the rights and obligations arising from the initial notice and affecting that interest; or
(if subsection (5) applies) subject to and with the benefit of the rights and obligations arising from the contract and affecting that interest.
In this section—
“acquiring authority”, in relation to the specified premises or any other property, means any person or body of persons who has or have been, or could be, authorised to acquire the whole or part of those premises or that property compulsorily for any purpose; and
“authorised purpose”, in relation to any acquiring authority, means any such purpose.
A notice given under section 13 shall be of no effect if on the relevant date the whole or any part of— is qualifying property.
the specified premises, or
any property specified in the notice under section 13(3)(a)(ii),
For the purposes of this section the whole or any part of the specified premises, or of any property specified as mentioned in subsection (1), is qualifying property if—
it has been designated under section 31(1)(b), (c) or (d) of the Inheritance Tax Act 1984 (designation and undertakings relating to conditionally exempt transfers), whether with or without any other property, and no chargeable event has subsequently occurred with respect to it; or
an application to the Board for it to be so designated is pending; or
it is the property of a body not established or conducted for profit and a direction has been given in relation to it under section 26 of that Act (gifts for public benefit), whether with or without any other property; or
an application to the Board for a direction to be so given in relation to it is pending.
For the purposes of subsection (2) an application is pending as from the time when it is made to the Board until such time as it is either granted or refused by the Board or withdrawn by the applicant; and for this purpose an application shall not be regarded as made unless and until the applicant has submitted to the Board all such information in support of the application as is required by the Board.
A notice given under section 13 shall cease to have effect if, before a binding contract is entered into in pursuance of the notice, the whole or any part of— becomes qualifying property.
the specified premises, or
any property specified in the notice under section 13(3)(a)(ii),
Where a notice under section 13 ceases to have effect by virtue of subsection (4) above—
the nominee purchaser shall not be liable for any costs under section 33; and
the person who applied or is applying for designation or a direction shall be liable—
to the qualifying tenants by whom the notice was given for all reasonable costs incurred by them in the preparation and giving of the notice; and
to the nominee purchaser for all reasonable costs incurred in pursuance of the notice by him or by any other person who has acted as the nominee purchaser.
Where it is claimed that subsection (1) or (4) applies in relation to a notice under section 13, the person making the claim shall, at the time of making it, furnish the nominee purchaser with evidence in support of it; and if he fails to do so he shall be liable for any costs which are reasonably incurred by the nominee purchaser in consequence of the failure.
In subsection (2)—
paragraphs (a) and (b) apply to designation under section 34(1)(a), (b) or (c) of the Finance Act 1975 or section 77(1)(b), (c) or (d) of the Finance Act 1976 as they apply to designation under section 31(1)(b), (c) or (d) of the Inheritance Tax Act 1984; and
paragraphs (c) and (d) apply to a direction under paragraph 13 of Schedule 6 to the Finance Act 1975 as they apply to a direction under section 26 of that Act of 1984.
In this section—
Where, in a case falling within paragraph (a) of subsection (1) of section 22—
“common parts”, in relation to any building or part of a building, includes the structure and exterior of that building or part and any common facilities within it;
any event which in accordance with any provision of Chapter II of Part II of the Inheritance Tax Act 1984 (exempt transfers) is a chargeable event, including any such provision as applied by section 78(3) of that Act (conditionally exempt occasions); or
“long lease” means a lease for a term of years certain exceeding 21 years other than a lease which is terminable before the end of that term by notice given by or to the landlord;
is the tenant’s immediate landlord, and
on the date which is the term date for the purposes of the 1954 Act (namely, the first date after the commencement of the 1954 Act on which, apart from the 1954 Act, the tenancy could have been brought to an end by a notice to quit given by the landlord under the tenancy), or
on the date which is the term date for the purposes of Schedule 10 to the 1989 Act (namely, the first date after the commencement of Schedule 10 to the 1989 Act on which, apart from that Schedule, the tenancy could have been brought to an end by such a notice to quit),
is such a landlord in respect of premises to which Part VI of the Landlord and Tenant Act 1987 (information to be furnished to tenants) applies,
Schedule 6 to this Act (which relates to the determination of the price payable by the nominee purchaser in respect of each of the freehold and other interests to be acquired by him in pursuance of this Chapter) shall have effect.
The lien of the owner of any such interest (as vendor) on the specified premises, or (as the case may be) on any other property, for the price payable shall extend—
to any amounts which, at the time of the conveyance of that interest, are due to him from any tenants of his of premises comprised in the premises in which that interest subsists (whether due under or in respect of their leases or under or in respect of agreements collateral thereto); and
to any amount payable to him by virtue of section 18(2); and
to any costs payable to him by virtue of section 33.
Subsection (2)(a) does not apply in relation to amounts due to the owner of any such interest from tenants of any premises which are to be comprised in the premises demised by a lease granted in accordance with section 36 and Schedule 9.
In subsection (2) the reference to the specified premises or any other property includes a reference to a part of those premises or that property.
Despite the fact that in accordance with Schedule 6 no payment or only a nominal payment is payable by the nominee purchaser in respect of the acquisition by him of any interest he shall nevertheless be deemed for all purposes to be a purchaser of that interest for a valuable consideration in money or money’s worth.
Where a notice is given under section 13, then (subject to the provisions of this section and sections 28(6), 29(7) and 31(5)) the nominee purchaser shall be liable, to the extent that they have been incurred in pursuance of the notice by the reversioner or by any other relevant landlord, for the reasonable costs of and incidental to any of the following matters, namely— but this subsection shall not apply to any costs if on a sale made voluntarily a stipulation that they were to be borne by the purchaser would be void.
any investigation reasonably undertaken—
of the question whether any interest in the specified premises or other property is liable to acquisition in pursuance of the initial notice, or
of any other question arising out of that notice;
deducing, evidencing and verifying the title to any such interest;
making out and furnishing such abstracts and copies as the nominee purchaser may require;
any valuation of any interest in the specified premises or other property;
any conveyance of any such interest;
For the purposes of subsection (1) any costs incurred by the reversioner or any other relevant landlord in respect of professional services rendered by any person shall only be regarded as reasonable if and to the extent that costs in respect of such services might reasonably be expected to have been incurred by him if the circumstances had been such that he was personally liable for all such costs.
Where by virtue of any provision of this Chapter the initial notice ceases to have effect at any time, then (subject to subsection (4)) the nominee purchaser’s liability under this section for costs incurred by any person shall be a liability for costs incurred by him down to that time.
The nominee purchaser shall not be liable for any costs under this section if the initial notice ceases to have effect by virtue of section 23(4) or 30(4).
The nominee purchaser shall not be liable under this section for any costs which a party to any proceedings under this Chapter before the appropriate tribunal incurs in connection with the proceedings.
In this section references to the nominee purchaser include references to any person whose appointment has terminated in accordance with section 15(3) or 16(1); but this section shall have effect in relation to such a person subject to section 15(7).
Where by virtue of this section, or of this section and section 29(6) taken together, two or more persons are liable for any costs, they shall be jointly and severally liable for them.
Any conveyance executed for the purposes of this Chapter, being a conveyance to the nominee purchaser of the freehold of the specified premises , of a part of those premises or of any other property, shall grant to the nominee purchaser an estate in fee simple absolute in those premises , that part of those premises or that property, subject only to such incumbrances as may have been agreed or determined under this Chapter to be incumbrances subject to which that estate should be granted, having regard to the following provisions of this Chapter.
Any such conveyance shall, where the nominee purchaser is to acquire any leasehold interest in the specified premises , the part of the specified premises or (as the case may be) in the other property to which the conveyance relates, provide for the disposal to the nominee purchaser of any such interest.
Any conveyance executed for the purposes of this Chapter shall have effect under section 2(1) of the Law of Property Act 1925 (conveyances overreaching certain equitable interests etc.) to overreach any incumbrance capable of being overreached under section 2(1)—
as if, where the interest conveyed is settled land for the purposes of the Settled Land Act 1925, the conveyance were made under the powers of that Act, and
as if the requirements of section 2(1) as to payment of the capital money allowed any part of the purchase price paid or applied in accordance with section 35 below or Schedule 8 to this Act to be so paid or applied.
For the purposes of this section “incumbrances” includes—
rentcharges, and
(subject to subsection (5)) personal liabilities attaching in respect of the ownership of land or an interest in land though not charged on that land or interest.
Burdens originating in tenure, and burdens in respect of the upkeep or regulation for the benefit of any locality of any land, building, structure, works, ways or watercourse shall not be treated as incumbrances for the purposes of this section; but any conveyance executed for the purposes of this Chapter shall be made subject to any such burdens.
A conveyance executed for the purposes of this Chapter shall not be made subject to any incumbrance capable of being overreached by the conveyance, but shall be made subject (where they are not capable of being overreached) to— except as otherwise provided by subsections (7) and (8) below.
rentcharges redeemable under sections 8 to 10 of the Rentcharges Act 1977, and
those falling within paragraphs (c) and (d) of section 2(3) of that Act (estate rentcharges and rentcharges imposed under certain enactments),
Where any land is to be conveyed to the nominee purchaser by a conveyance executed for the purposes of this Chapter, subsection (6) shall not preclude the person who owns the freehold interest in the land from releasing, or procuring the release of, the land from any rentcharge.
The conveyance of any such land (“the relevant land”) may, with the agreement of the nominee purchaser (which shall not be unreasonably withheld), provide in accordance with section 190(1) of the Law of Property Act 1925 (charging of rentcharges on land without rent owner’s consent) that a rentcharge—
shall be charged exclusively on other land affected by it in exoneration of the relevant land, or
shall be apportioned between other land affected by it and the relevant land.
Except to the extent that any departure is agreed to by the nominee purchaser and the person whose interest is to be conveyed, any conveyance executed for the purposes of this Chapter shall—
as respects the conveyance of any freehold interest, conform with the provisions of Schedule 7, and
as respects the conveyance of any leasehold interest, conform with the provisions of paragraph 2 of that Schedule (any reference in that paragraph to the freeholder being read as a reference to the person whose leasehold interest is to be conveyed , and with the reference to the covenants for title implied under Part I of the Law of Property (Miscellaneous Provisions) Act 1994 being read as excluding the covenant in section 4(1)(b) of that Act (compliance with terms of lease)).
Any such conveyance shall in addition contain a statement that it is a conveyance executed for the purposes of this Chapter; and any such statement shall comply with such requirements as may be prescribed by land registration rules under the Land Registration Act 2002.
Subject to the provisions of Schedule 8, where any interest is acquired by the nominee purchaser in pursuance of this Chapter, the conveyance by virtue of which it is so acquired shall, as regards any mortgage to which this section applies, be effective by virtue of this section— and shall do so without the persons entitled to or interested in the mortgage or in any such order or term of years becoming parties to or executing the conveyance.
to discharge the interest from the mortgage, and from the operation of any order made by a court for the enforcement of the mortgage, and
to extinguish any term of years created for the purposes of the mortgage,
Subject to subsections (3) and (4), this section applies to any mortgage of the interest so acquired (however created or arising) which—
is a mortgage to secure the payment of money or the performance of any other obligation by the person from whom the interest is so acquired or any other person; and
is not a mortgage which would be overreached apart from this section.
This section shall not apply to any such mortgage if it has been agreed between the nominee purchaser and the reversioner or (as the case may be) any other relevant landlord that the interest in question should be acquired subject to the mortgage.
In this section and Schedule 8 “mortgage” includes a charge or lien; but neither this section nor that Schedule applies to a rentcharge.
In connection with the acquisition by him of a freehold interest in the specified premises, the nominee purchaser shall grant to the person from whom the interest is acquired such leases of flats or other units contained in those premises as are required to be so granted by virtue of Part II or III of Schedule 9.
Any such lease shall be granted so as to take effect immediately after the acquisition by the nominee purchaser of the freehold interest concerned.
Where any flat or other unit demised under any such lease (“the relevant lease”) is at the time of that acquisition subject to any existing lease, the relevant lease shall take effect as a lease of the freehold reversion in respect of the flat or other unit.
Part IV of Schedule 9 has effect with respect to the terms of a lease granted in pursuance of Part II or III of that Schedule.
Schedule 10 to this Act (which makes provision with respect to the acquisition of interests from local authorities etc. in pursuance of this Chapter) shall have effect.
In this Chapter (unless the context otherwise requires)—
“the existing lease”, in relation to a claim by a tenant under this Chapter, means the lease in relation to which the claim is made;
if the person who owns the freehold interest in the flat owns , or the persons who own the freehold interests in the flat own, the freehold of the whole of the building in which the flat is contained, that building, or
“management functions” includes functions with respect to the provision of services or the repair, maintenance , improvement or insurance of property;
Any reference in this Chapter (however expressed) to the acquisition or proposed acquisition by the nominee purchaser is a reference to the acquisition or proposed acquisition by the nominee purchaser, on behalf of the participating tenants, of such freehold and other interests as fall to be so acquired under a contract entered into in pursuance of the initial notice.
Any reference in this Chapter to the interest of a relevant landlord in the specified premises is a reference to the interest in those premises by virtue of which he is, in accordance with section 9(2)(b) or (2A)(b), a relevant landlord.
Any reference in this Chapter to agreement in relation to all or any of the terms of acquisition is a reference to agreement subject to contract.
This section applies where a claim to exercise the right to collective enfranchisement in respect of any premises is made on or after 15th January 1999 by tenants of flats contained in the premises and the claim is not effective.
A person who is a participating tenant immediately before the claim ceases to have effect shall be liable to pay compensation if—
the claim was not made at least two years before the term date of the lease by virtue of which he is a qualifying tenant (“the existing lease”), and
any of the conditions mentioned in subsection (3) is met.
The conditions referred to above are—
that the making of the claim caused a notice served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 in respect of the existing lease to cease to have effect and the date on which the claim ceases to have effect is later than four months before the termination date specified in the notice,
that the making of the claim prevented the service of an effective notice under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 in respect of the existing lease (but did not cause a notice served under that provision in respect of that lease to cease to have effect) and the date on which the claim ceases to have effect is a date later than six months before the term date of the existing lease, and
that the existing lease has been continued under paragraph 6(1) of Schedule 3 by virtue of the claim.
Compensation under subsection (2) shall become payable at the end of the appropriate period and be the right of the person who is the tenant’s immediate landlord at that time.
The amount which a tenant is liable to pay under subsection (2) shall be equal to the difference between—
the rent for the appropriate period under the existing lease, and
the rent which might reasonably be expected to be payable for that period were the property to which the existing lease relates let for a term equivalent to that period on the open market by a willing landlord on the following assumptions—
that no premium is payable in connection with the letting,
that the letting confers no security of tenure, and
that, except as otherwise provided by this paragraph, the letting is on the same terms as the existing lease.
For the purposes of subsections (4) and (5), the appropriate period is—
in a case falling within paragraph (a) of subsection (3), the period—
beginning with the termination date specified in the notice mentioned in that paragraph, and
ending with the earliest date of termination which could have been specified in a notice under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 in respect of the existing lease served immediately after the date on which the claim ceases to have effect, or, if the existing lease is terminated before then, with the date of its termination;
in a case falling within paragraph (b) of subsection (3), the period—
beginning with the later of six months from the date on which the claim is made and the term date of the existing lease, and
ending six months after the date on which the claim ceases to have effect, or, if the existing lease is terminated before then, with the date of its termination; and
in a case falling within paragraph (c) of subsection (3), the period for which the existing lease is continued under paragraph 6(1) of Schedule 3.
In the case of a person who becomes a participating tenant by virtue of an election under section 14(3), the references in subsections (3)(a) and (b) and (6)(b)(i) to the making of the claim shall be construed as references to the making of the election.
For the purposes of this section—
references to a claim to exercise the right to collective enfranchisement shall be taken as references to a notice given, or purporting to be given (whether by persons who are qualifying tenants or not), under section 13,
references to the date on which a claim ceases to have effect shall, in the case of a claim made by a notice which is not a valid notice under section 13, be taken as references to the date on which the notice is set aside by the court or is withdrawn or would, if valid, cease to have effect or be deemed to have been withdrawn, that date being taken, where the notice is set aside, or would, if valid, cease to have effect, in consequence of a court order, to be the date when the order becomes final, and
a claim to exercise the right to collective enfranchisement is not effective if it ceases to have effect for any reason other than—
the application of section 23(4), 30(4) or 31(4),
the entry into a binding contract for the acquisition of the freehold and other interests falling to be acquired in pursuance of the claim, or
the making of an order under section 24(4)(a) or (b) or 25(6)(a) or (b) which provides for the vesting of those interests.
Where a tenant’s liability to pay compensation under section 37A relates to a period during which there has been a change in the interest immediately expectant on the determination of his lease, that section shall have effect with the following modifications.
For subsections (4) and (5) there shall be substituted—
Compensation under subsection (2) shall become payable at the end of the appropriate period and there shall be a separate right to compensation in respect of each of the interests which, during that period, have been immediately expectant on the determination of the existing lease.
Compensation under subsection (2) above shall—
in the case of the interest which is immediately expectant on the determination of the existing lease at the end of the appropriate period, be the right of the person in whom that interest is vested at that time, and
in the case of an interest which ceases during the appropriate period to be immediately expectant on the determination of the existing lease, be the right of the person in whom the interest was vested immediately before it ceased to be so expectant.
The amount which the tenant is liable to pay under subsection (2) above in respect of any interest shall be equal to the difference between—
the rent under the existing lease for the part of the appropriate period during which the interest was immediately expectant on the determination of that lease, and
the rent which might reasonably be expected to be payable for that part of that period were the property to which the existing lease relates let for a term equivalent to that part of that period on the open market by a willing landlord on the following assumptions—
that no premium is payable in connection with the letting,
that the letting confers no security of tenure, and
that, except as otherwise provided by this paragraph, the letting is on the same terms as the existing lease.”
In subsection (6), for “(4) and (5)” there shall be substituted “(4) to (5A)”.
This Chapter has effect for the purpose of conferring on a qualifying tenant of a flat ... the right, exercisable subject to and in accordance with this Chapter, to acquire a new lease of the flat on payment of a premium determined in accordance with this Chapter.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the tenant is a qualifying tenant of the flat; and
the tenant has occupied the flat as his only or principal home— whether or not he has used it also for other purposes.
for the last three years, or
for periods amounting to three years in the last ten years,
The following provisions, namely— shall apply for the purposes of this Chapter as they apply for the purposes of Chapter I; and references in this Chapter to a qualifying tenant of a flat shall accordingly be construed by reference to those provisions.
section 5 (with the omission of subsections (5) and (6)),
section 7, . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For the purposes of this Chapter a person can be (or be among those constituting) the qualifying tenant of each of two or more flats at the same time, whether he is tenant of those flats under one lease or under two or more separate leases.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
any reference to the tenant’s flat includes a reference to part of it; and
it is immaterial whether at any particular time the tenant’s occupation was in right of the lease by virtue of which he is a qualifying tenant or in right of some other lease or otherwise;
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the condition in subsection (2)(b) need only be satisfied with respect to one of the joint tenants; and
subsection (5) shall apply accordingly (the reference to the lease by virtue of which the tenant is a qualifying tenant being read for this purpose as a reference to the lease by virtue of which the joint tenants are a qualifying tenant).
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The right conferred by this Chapter on a tenant to acquire a new lease shall not extend to underlying minerals comprised in his existing lease if—
the landlord requires the minerals to be excepted, and
proper provision is made for the support of the premises demised by that existing lease as they are enjoyed on the relevant date.
In this Chapter “the relevant date”, in relation to a claim by a tenant under this Chapter, means the date on which notice of the claim is given to the landlord under section 42.
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In this Chapter “the landlord”, in relation to the lease held by a qualifying tenant of a flat, means the person who is the owner of that interest in the flat which for the time being fulfils the following conditions, namely— and is not itself expectant (whether immediately or not) on an interest which fulfils those conditions.
it is an interest in reversion expectant (whether immediately or not) on the termination of the tenant’s lease, and
it is either a freehold interest or a leasehold interest whose duration is such as to enable that person to grant a new lease of that flat in accordance with this Chapter,
Where in accordance with subsection (1) the immediate landlord under the lease of a qualifying tenant of a flat is not the landlord in relation to that lease for the purposes of this Chapter, the person who for those purposes is the landlord in relation to it shall conduct on behalf of all the other landlords all proceedings arising out of any notice given by the tenant with respect to the flat under section 42 (whether the proceedings are for resisting or giving effect to the claim in question).
Subsection (2) has effect subject to the provisions of Schedule 11 to this Act (which makes provision in relation to the operation of this Chapter in cases to which that subsection applies).
In this section and that Schedule—
“the tenant” means any such qualifying tenant as is referred to in subsection (2) and “the tenant’s lease” means the lease by virtue of which he is a qualifying tenant;
“the competent landlord” means the person who, in relation to the tenant’s lease, is the landlord (as defined by subsection (1)) for the purposes of this Chapter;
“other landlord” means any person (other than the tenant or a trustee for him) in whom there is vested a concurrent tenancy intermediate between the interest of the competent landlord and the tenant’s lease.
Schedule 2 (which makes provision with respect to certain special categories of landlords) has effect for the purposes of this Chapter.
A qualifying tenant of a flat may give— a notice requiring the recipient to state whether the immediate landlord is the owner of the freehold interest in the flat and, if not, to give the tenant such information as is mentioned in subsection (2) (so far as known to the recipient).
to his immediate landlord, or
to any person receiving rent on behalf of his immediate landlord,
That information is—
the name and address of the person who owns the freehold interest in the flat;
the duration of the leasehold interest in the flat of the tenant’s immediate landlord and the extent of the premises in which it subsists; and
the name and address of every person who has a leasehold interest in the flat which is superior to that of the tenant’s immediate landlord, the duration of any such interest and the extent of the premises in which it subsists.
If the immediate landlord of any such qualifying tenant is not the owner of the freehold interest in the flat, the tenant may also—
give to the person who is the owner of that interest a notice requiring him to give the tenant such information as is mentioned in paragraph (c) of subsection (2) (so far as known to that person);
give to any person falling within that paragraph a notice requiring him to give the tenant—
particulars of the duration of his leasehold interest in the flat and the extent of the premises in which it subsists, and
(so far as known to him) such information as is mentioned in paragraph (a) of that subsection and, as regards any other person falling within paragraph (c) of that subsection, such information as is mentioned in that paragraph.
Any notice given by a qualifying tenant under this section shall, in addition to any other requirement imposed in accordance with subsections (1) to (3), require the recipient to state—
whether he has received in respect of any premises containing the tenant’s flat—
a notice under section 13 in the case of which the relevant claim under Chapter I is still current, or
a copy of such a notice; and
if so, the date on which the notice under section 13 was given and the name and address of the nominee purchaser for the time being appointed for the purposes of section 15 in relation to that claim.
For the purposes of subsection (4)—
“the relevant claim under Chapter I”, in relation to a notice under section 13, means the claim in respect of which that notice is given; and
any such claim is current if—
that notice continues in force in accordance with section 13(11), or
a binding contract entered into in pursuance of that notice remains in force, or
where an order has been made under section 24(4)(a) or (b) or 25(6)(a) or (b) with respect to any such premises as are referred to in subsection (4)(a) above, any interests which by virtue of the order fall to be vested in the nominee purchaser for the purposes of Chapter I have yet to be so vested.
Any person who is required to give any information by virtue of a notice under this section shall give that information to the qualifying tenant within the period of 28 days beginning with the date of the giving of the notice.
A claim by a qualifying tenant of a flat to exercise the right to acquire a new lease of the flat is made by the giving of notice of the claim under this section.
A notice given by a tenant under this section (“the tenant’s notice”) must be given—
to the landlord, and
to any third party to the tenant’s lease.
The tenant’s notice must—
state the full name of the tenant and the address of the flat in respect of which he claims a new lease under this Chapter;
contain the following particulars, namely—
sufficient particulars of that flat to identify the property to which the claim extends,
such particulars of the tenant’s lease as are sufficient to identify it, including the date on which the lease was entered into, the term for which it was granted and the date of the commencement of the term,
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specify the premium which the tenant proposes to pay in respect of the grant of a new lease under this Chapter and, where any other amount will be payable by him in accordance with any provision of Schedule 13, the amount which he proposes to pay in accordance with that provision;
specify the terms which the tenant proposes should be contained in any such lease;
state the name of the person (if any) appointed by the tenant to act for him in connection with his claim, and an address in England and Wales at which notices may be given to any such person under this Chapter; and
specify the date by which the landlord must respond to the notice by giving a counter-notice under section 45.
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The date specified in the tenant’s notice in pursuance of subsection (3)(f) must be a date falling not less than two months after the date of the giving of the notice.
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Where a notice under this section has been given with respect to any flat, no subsequent notice may be given under this section with respect to the flat so long as the earlier notice continues in force.
Where a notice under this section has been given with respect to a flat and— no subsequent notice may be given under this section with respect to the flat within the period of twelve months beginning with the date of the withdrawal or deemed withdrawal of the earlier notice or with the time when the order under section 47(1) becomes final (as the case may be).
that notice has been withdrawn, or is deemed to have been withdrawn, under or by virtue of any provision of this Chapter, or
in response to that notice, an order has been applied for and obtained under section 47(1),
Where a notice is given in accordance with this section, then for the purposes of this Chapter the notice continues in force as from the relevant date— but this subsection has effect subject to section 54.
until a new lease is granted in pursuance of the notice;
if the notice is withdrawn, or is deemed to have been withdrawn, under or by virtue of any provision of this Chapter, until the date of the withdrawal or deemed withdrawal; or
until such other time as the notice ceases to have effect by virtue of any provision of this Chapter;
Schedule 12 (which contains restrictions on terminating a tenant’s lease where he has given a notice under this section and makes other provision in connection with the giving of notices under this section) shall have effect.
Where a notice has been given under section 42 with respect to any flat, the rights and obligations of the landlord and the tenant arising from the notice shall enure for the benefit of and be enforceable against them, their personal representatives and assigns to the like extent (but no further) as rights and obligations arising under a contract for leasing freely entered into between the landlord and the tenant.
Accordingly, in relation to matters arising out of any such notice, references in this Chapter to the landlord and the tenant shall, in so far as the context permits, include their respective personal representatives and assigns.
Notwithstanding anything in subsection (1), the rights and obligations of the tenant shall be assignable with, but shall not be capable of subsisting apart from, the lease of the entire flat; and, if the tenant’s lease is assigned without the benefit of the notice, the notice shall accordingly be deemed to have been withdrawn by the tenant as at the date of the assignment.
In the event of any default by the landlord or the tenant in carrying out the obligations arising from the tenant’s notice, the other of them shall have the like rights and remedies as in the case of a contract freely entered into.
In a case to which section 40(2) applies, the rights and obligations of the landlord arising out of the tenant’s notice shall, so far as their interests are affected, be rights and obligations respectively of the competent landlord and of each of the other landlords, and references to the landlord in subsections (1) and (2) above shall apply accordingly.
In subsection (5) “competent landlord” and “other landlord” have the meaning given by section 40(4); and subsection (5) has effect without prejudice to the operation of section 40(2) or Schedule 11.
Once the tenant’s notice or a copy of it has been given in accordance with section 42 or Part I of Schedule 11— that landlord and any person authorised to act on his behalf shall have a right of access to the flat to which the notice relates for the purpose of enabling that landlord to obtain, in connection with the notice, a valuation of his interest in the flat.
to the landlord for the purposes of this Chapter, or
to any other landlord (as defined by section 40(4)),
That right shall be exercisable at any reasonable time and on giving not less than 3 days’ notice to the tenant.
The landlord shall give a counter-notice under this section to the tenant by the date specified in the tenant’s notice in pursuance of section 42(3)(f).
The counter-notice must comply with one of the following requirements—
state that the landlord admits that the tenant had on the relevant date the right to acquire a new lease of his flat;
state that, for such reasons as are specified in the counter-notice, the landlord does not admit that the tenant had such a right on that date;
contain such a statement as is mentioned in paragraph (a) or (b) above but state that the landlord intends to make an application for an order under section 47(1) on the grounds that he intends to redevelop any premises in which the flat is contained.
If the counter-notice complies with the requirement set out in subsection (2)(a), it must in addition—
state which (if any) of the proposals contained in the tenant’s notice are accepted by the landlord and which (if any) of those proposals are not so accepted; and
specify, in relation to each proposal which is not accepted, the landlord’s counter-proposal.
The counter-notice must specify an address in England and Wales at which notices may be given to the landlord under this Chapter.
Where the counter-notice admits the tenant’s right to acquire a new lease of his flat, the admission shall be binding on the landlord as to the matters mentioned in section 39(2)(a) . . . , unless the landlord shows that he was induced to make the admission by misrepresentation or the concealment of material facts; but the admission shall not conclude any question whether the particulars of the flat stated in the tenant’s notice in pursuance of section 42(3)(b)(i) are correct.
Where— the court shall by order make a declaration to that effect.
the landlord has given the tenant a counter-notice under section 45 which (whether it complies with the requirement set out in subsection (2)(b) or (c) of that section) contains such a statement as is mentioned in subsection (2)(b) of that section, and
the court is satisfied, on an application made by the landlord, that on the relevant date the tenant had no right under this Chapter to acquire a new lease of his flat,
Any application for an order under subsection (1) must be made not later than the end of the period of two months beginning with the date of the giving of the counter-notice to the tenant; and if, in a case falling within paragraph (a) of that subsection, either— section 49 shall apply as if the landlord had not given the counter-notice.
no application for such an order is made by the landlord within that period, or
such an application is so made but is subsequently withdrawn,
If on any such application the court makes such a declaration as is mentioned in subsection (1), the tenant’s notice shall cease to have effect on the order becoming final.
If, however, any such application is dismissed by the court, then (subject to subsection (5)) the court shall make an order—
declaring that the landlord’s counter-notice shall be of no effect, and
requiring the landlord to give a further counter-notice to the tenant by such date as is specified in the order.
Subsection (4) shall not apply if—
the counter-notice complies with the requirement set out in section 45(2)(c), and
either—
an application for an order under section 47(1) is pending, or
the period specified in section 47(3) as the period for the making of such an application has not expired.
Subsection (3) of section 45 shall apply to any further counter-notice required to be given by the landlord under subsection (4) above as if it were a counter-notice under that section complying with the requirement set out in subsection (2)(a) of that section.
Where the landlord has given the tenant a counter-notice under section 45 which complies with the requirement set out in subsection (2)(c) of that section, the court may, on the application of the landlord, by order declare that the right to acquire a new lease shall not be exercisable by the tenant by reason of the landlord’s intention to redevelop any premises in which the tenant’s flat is contained; and on such an order becoming final the tenant’s notice shall cease to have effect.
The court shall not make an order under subsection (1) unless it is satisfied—
that the tenant’s lease of his flat is due to terminate within the period of five years beginning with the relevant date; and
that for the purposes of redevelopment the landlord intends, once the lease has so terminated— the whole or a substantial part of any premises in which the flat is contained; and
to demolish or reconstruct, or
to carry out substantial works of construction on,
that he could not reasonably do so without obtaining possession of the flat.
Any application for an order under subsection (1) must be made within the period of two months beginning with the date of the giving of the counter-notice to the tenant; but, where the counter-notice is one falling within section 46(1)(a), such an application shall not be proceeded with until such time (if any) as any order dismissing an application under section 46(1) becomes final.
Where an application for an order under subsection (1) is dismissed by the court, the court shall make an order—
declaring that the landlord’s counter-notice shall be of no effect, and
requiring the landlord to give a further counter-notice to the tenant by such date as is specified in the order.
Where— then (subject to subsection (7)), the landlord shall give a further counter-notice to the tenant within the period of two months beginning with the appropriate date.
the landlord has given such a counter-notice as is mentioned in subsection (1), but
either—
no application for an order under that subsection is made within the period referred to in subsection (3), or
such an application is so made but is subsequently withdrawn,
In subsection (5) “the appropriate date” means—
if subsection (5)(b)(i) applies, the date immediately following the end of the period referred to in subsection (3); and
if subsection (5)(b)(ii) applies, the date of withdrawal of the application.
Subsection (5) shall not apply if any application has been made by the landlord for an order under section 46(1).
Subsection (3) of section 45 shall apply to any further counter-notice required to be given by the landlord under subsection (4) or (5) above as if it were a counter-notice under that section complying with the requirement set out in subsection (2)(a) of that section.
Where the landlord has given the tenant— but any of the terms of acquisition remain in dispute at the end of the period of two months beginning with the date when the counter-notice or further counter-notice was so given, the appropriate tribunal may, on the application of either the tenant or the landlord, determine the matters in dispute.
a counter-notice under section 45 which complies with the requirement set out in subsection (2)(a) of that section, or
a further counter-notice required by or by virtue of section 46(4) or section 47(4) or (5),
Any application under subsection (1) must be made not later than the end of the period of six months beginning with the date on which the counter-notice or further counter-notice was given to the tenant.
Where— but a new lease has not been entered into in pursuance of the tenant’s notice by the end of the appropriate period specified in subsection (6), the court may, on the application of either the tenant or the landlord, make such order as it thinks fit with respect to the performance or discharge of any obligations arising out of that notice.
the landlord has given the tenant such a counter-notice or further counter-notice as is mentioned in subsection (1)(a) or (b), and
all the terms of acquisition have been either agreed between those persons or determined by the appropriate tribunal under subsection (1),
Any such order may provide for the tenant’s notice to be deemed to have been withdrawn at the end of the appropriate period specified in subsection (6).
Any application for an order under subsection (3) must be made not later than the end of the period of two months beginning immediately after the end of the appropriate period specified in subsection (6).
For the purposes of this section the appropriate period is—
where all of the terms of acquisition have been agreed between the tenant and the landlord, the period of two months beginning with the date when those terms were finally so agreed; or
where all or any of those terms have been determined by the appropriate tribunal under subsection (1)—
the period of two months beginning with the date when the decision of the tribunal under subsection (1) becomes final, or
such other period as may have been fixed by the tribunal when making its determination.
In this Chapter “the terms of acquisition”, in relation to a claim by a tenant under this Chapter, means the terms on which the tenant is to acquire a new lease of his flat, whether they relate to the terms to be contained in the lease or to the premium or any other amount payable by virtue of Schedule 13 in connection with the grant of the lease, or otherwise.
Where the tenant’s notice has been given in accordance with section 42 but— the court may, on the application of the tenant, make an order determining, in accordance with the proposals contained in the tenant’s notice, the terms of acquisition.
the landlord has failed to give the tenant a counter-notice in accordance with section 45(1), or
if required to give a further counter-notice to the tenant by or by virtue of section 46(4) or section 47(4) or (5), the landlord has failed to comply with that requirement,
The court shall not make such an order on an application made by virtue of paragraph (a) of subsection (1) unless it is satisfied—
that on the relevant date the tenant had the right to acquire a new lease of his flat; and
if applicable, that the requirements of Part I of Schedule 11 were complied with as respects the giving of copies of the tenant’s notice.
Any application for an order under subsection (1) must be made not later than the end of the period of six months beginning with the date by which the counter-notice or further counter-notice referred to in that subsection was required to be given.
Where— the court may, on the application of either the tenant or the landlord, make such order as it thinks fit with respect to the performance or discharge of any obligations arising out of that notice.
the terms of acquisition have been determined by an order of the court under this section, but
a new lease has not been entered into in pursuance of the tenant’s notice by the end of the appropriate period specified in subsection (7),
Any such order may provide for the tenant’s notice to be deemed to have been withdrawn at the end of the appropriate period specified in subsection (7).
Any application for an order under subsection (4) must be made not later than the end of the period of two months beginning immediately after the end of the appropriate period specified in subsection (7).
For the purposes of this section the appropriate period is—
the period of two months beginning with the date when the order of the court under subsection (1) becomes final, or
such other period as may have been fixed by the court when making that order.
Where— the court may, on the application of the tenant, make a vesting order under this subsection.
a qualifying tenant of a flat desires to make a claim to exercise the right to acquire a new lease of his flat, but
the landlord cannot be found or his identity cannot be ascertained,
Where— the court may, on the application of the tenant, make an order dispensing with the need to give a copy of such a notice to that person.
a qualifying tenant of a flat desires to make such a claim as is mentioned in subsection (1), and
paragraph (b) of that subsection does not apply, but
a copy of a notice of that claim cannot be given in accordance with Part I of Schedule 11 to any person to whom it would otherwise be required to be so given because that person cannot be found or his identity cannot be ascertained,
The court shall not make an order on any application under subsection (1) or (2) unless it is satisfied—
that on the date of the making of the application the tenant had the right to acquire a new lease of his flat; and
that on that date he would not have been precluded by any provision of this Chapter from giving a valid notice under section 42 with respect to his flat.
Before making any such order the court may require the tenant to take such further steps by way of advertisement or otherwise as the court thinks proper for the purpose of tracing the person in question; and if, after an application is made for a vesting order under subsection (1) and before any lease is executed in pursuance of the application, the landlord is traced, then no further proceedings shall be taken with a view to a lease being so executed, but (subject to subsection (5))—
the rights and obligations of all parties shall be determined as if the tenant had, at the date of the application, duly given notice under section 42 of his claim to exercise the right to acquire a new lease of his flat; and
the court may give such directions as the court thinks fit as to the steps to be taken for giving effect to those rights and obligations, including directions modifying or dispensing with any of the requirements of this Chapter or of regulations made under this Part.
An application for a vesting order under subsection (1) may be withdrawn at any time before execution of a lease under section 51(3) and, after it is withdrawn, subsection (4)(a) above shall not apply; but where any step is taken (whether by the landlord or the tenant) for the purpose of giving effect to subsection (4)(a) in the case of any application, the application shall not afterwards be withdrawn except— and the court shall not give leave unless it appears to the court just to do so by reason of matters coming to the knowledge of the tenant in consequence of the tracing of the landlord.
with the consent of the landlord, or
by leave of the court,
Where an order has been made under subsection (2) dispensing with the need to give a copy of a notice under section 42 to a particular person with respect to any flat, then if— the notice must contain a statement of the effect of the order.
a notice is subsequently given under that section with respect to that flat, and
in reliance on the order, a copy of the notice is not to be given to that person,
Where a notice under section 42 contains such a statement in accordance with subsection (6) above, then in determining for the purposes of any provision of this Chapter whether the requirements of Part I of Schedule 11 have been complied with in relation to the notice, those requirements shall be deemed to have been complied with so far as relating to the giving of a copy of the notice to the person referred to in subsection (6) above.
A vesting order under section 50(1) is an order providing for the surrender of the tenant’s lease of his flat and for the granting to him of a new lease of it on such terms as may be determined by the appropriate tribunal to be appropriate with a view to the lease being granted to him in like manner (so far as the circumstances permit) as if he had, at the date of his application, given notice under section 42 of his claim to exercise the right to acquire a new lease of his flat.
If the appropriate tribunal so determines in the case of a vesting order under section 50(1), the order shall have effect in relation to property which is less extensive than that specified in the application on which the order was made.
Where any lease is to be granted to a tenant by virtue of a vesting order under section 50(1), then on his paying into court the appropriate sum there shall be executed by such person as the court may designate a lease which— and that lease shall be effective to vest in the person to whom it is granted the property expressed to be demised by it, subject to and in accordance with the terms of the lease.
is in a form approved by the appropriate tribunal, and
contains such provisions as may be so approved for the purpose of giving effect so far as possible to section 56(1) and section 57 (as that section applies in accordance with subsections (7) and (8) below);
In connection with the determination by the appropriate tribunal of any question as to the property to be demised by any such lease, or as to the rights with or subject to which it is to be demised, it shall be assumed (unless the contrary is shown) that the landlord has no interest in property other than the property to be demised and, for the purpose of excepting them from the lease, any minerals underlying that property.
The appropriate sum to be paid into court in accordance with subsection (3) is the aggregate of—
such amount as may be determined by the appropriate tribunal to be the premium which is payable under Schedule 13 in respect of the grant of the new lease;
such other amount or amounts (if any) as may be determined by such a tribunal to be payable by virtue of that Schedule in connection with the grant of that lease; and
any amounts or estimated amounts determined by such a tribunal as being, at the time of execution of that lease, due to the landlord from the tenant (whether due under or in respect of the tenant’s lease of his flat or under or in respect of any agreement collateral thereto).
Where any lease is granted to a person in accordance with this section, the payment into court of the appropriate sum shall be taken to have satisfied any claims against the tenant, his personal representatives or assigns in respect of the premium and any other amounts payable as mentioned in subsection (5)(a) and (b).
Subject to subsection (8), the following provisions, namely— shall, so far as capable of applying to a lease granted in accordance with this section, apply to such a lease as they apply to a lease granted under section 56; and subsections (6) and (7) of that section shall apply in relation to a lease granted in accordance with this section as they apply in relation to a lease granted under that section.
sections 57 to 59, and
section 61 and Schedule 14,
In its application to a lease granted in accordance with this section—
section 57 shall have effect as if—
any reference to the relevant date were a reference to the date of the application under section 50(1) in pursuance of which the vesting order under that provision was made, and
in subsection (5) the reference to section 56(3)(a) were a reference to subsection (5)(c) above; and
section 58 shall have effect as if—
in subsection (3) the second reference to the landlord were a reference to the person designated under subsection (3) above, and
subsections (6)(a) and (7) were omitted.
At any time before a new lease is entered into in pursuance of the tenant’s notice, the tenant may withdraw that notice by the giving of a notice to that effect under this section (“a notice of withdrawal”).
A notice of withdrawal must be given—
to the landlord for the purposes of this Chapter;
to every other landlord (as defined by section 40(4)); and
to any third party to the tenant’s lease.
Where a notice of withdrawal is given by the tenant to any person in accordance with subsection (2), the tenant’s liability under section 60 for costs incurred by that person shall be a liability for costs incurred by him down to the time when the notice is given to him.
Where— the tenant’s notice shall be deemed to have been withdrawn at the end of the period referred to in paragraph (a) or (b) above (as the case may be).
in a case to which subsection (1) of section 48 applies, no application under that subsection is made within the period specified in subsection (2) of that section, or
in a case to which subsection (3) of that section applies, no application for an order under that subsection is made within the period specified in subsection (5) of that section,
Where, in a case falling within paragraph (a) or (b) of subsection (1) of section 49, no application for an order under that subsection is made within the period specified in subsection (3) of that section, the tenant’s notice shall be deemed to have been withdrawn at the end of that period.
Where, in a case to which subsection (4) of section 49 applies, no application for an order under that subsection is made within the period specified in subsection (6) of that section, the tenant’s notice shall be deemed to have been withdrawn at the end of that period.
The following provisions, namely— also make provision for a notice under section 42 to be deemed to have been withdrawn at a particular time.
section 43(3),
section 48(4), and
section 49(5),
If, at the time when the tenant’s notice is given— the operation of the tenant’s notice shall be suspended during the currency of that claim; and so long as it is so suspended no further notice shall be given, and no application shall be made, under this Chapter with a view to resisting or giving effect to the tenant’s claim.
a notice has been given under section 13 with respect to any premises containing the tenant’s flat, and
the relevant claim under Chapter I is still current,
If, at any time when the tenant’s notice continues in force, a notice is given under section 13 with respect to any premises containing the tenant’s flat, then, as from the date which is the relevant date for the purposes of Chapter I in relation to that notice under section 13, the operation of the tenant’s notice shall be suspended during the currency of the relevant claim under Chapter I; and so long as it is so suspended no further notice shall be given, and no application shall be made or proceeded with, under this Chapter with a view to resisting or giving effect to the tenant’s claim.
Where the operation of the tenant’s notice is suspended by virtue of subsection (1) or (2), the landlord shall give the tenant a notice informing him of its suspension— and any such notice shall in addition inform the tenant of the date on which the notice under section 13 was given and of the name and address of the nominee purchaser for the time being appointed for the purposes of section 15 in relation to the relevant claim under Chapter I.
(if it is suspended by virtue of subsection (1)) not later than the date specified in the tenant’s notice in pursuance of section 42(3)(f); or
(if it is suspended by virtue of subsection (2)) as soon as possible after the date referred to in that subsection;
Where— then, as from the date when that claim ceases to be current (“the termination date”), this Chapter shall apply as if there were substituted for the date specified in the tenant’s notice in pursuance of section 42(3)(f) such date as results in the period of time intervening between the termination date and that date being equal to the period of time intervening between the relevant date and the date originally so specified.
the operation of the tenant’s notice is suspended by virtue of subsection (1), and
as a result of the relevant claim under Chapter I ceasing to be current, the operation of the tenant’s notice subsequently ceases to be so suspended and the tenant’s notice thereupon continues in force in accordance with section 42(8),
Where— any relevant period shall be deemed to have begun on the date when that claim ceases to be current.
the operation of the tenant’s notice is suspended by virtue of subsection (2), and
its suspension began in circumstances falling within subsection (6), and
as a result of the relevant claim under Chapter I ceasing to be current, the operation of the tenant’s notice subsequently ceases to be so suspended and the tenant’s notice thereupon continues in force in accordance with section 42(8),
The circumstances referred to in subsection (5)(b) are that the suspension of the operation of the tenant’s notice began—
before the date specified in the tenant’s notice in pursuance of section 42(3)(f) and before the landlord had given the tenant a counter-notice under section 45; or
after the landlord had given the tenant a counter-notice under section 45 complying with the requirement set out in subsection (2)(b) or (c) of that section but—
before any application had been made for an order under section 46(1) or 47(1), and
before the period for making any such application had expired; or
after an order had been made under section 46(4) or 47(4) but—
before the landlord had given the tenant a further counter-notice in accordance with the order, and
before the period for giving any such counter-notice had expired.
Where— any relevant period shall be deemed to have begun on the date on which the tenant is given a notice under subsection (8) below or, if earlier, the date on which the tenant gives the landlord a notice informing him of the circumstances by virtue of which the operation of the tenant’s notice has ceased to be suspended.
the operation of the tenant’s notice is suspended by virtue of subsection (2), and
its suspension began otherwise than in circumstances falling within subsection (6), and
as a result of the relevant claim under Chapter I ceasing to be current, the operation of the tenant’s notice subsequently ceases to be so suspended and the tenant’s notice thereupon continues in force in accordance with section 42(8),
Where subsection (4), (5) or (7) applies, the landlord shall, as soon as possible after becoming aware of the circumstances by virtue of which the operation of the tenant’s notice has ceased to be suspended as mentioned in that subsection, give the tenant a notice informing him that, as from the date when the relevant claim under Chapter I ceased to be current, the operation of his notice is no longer suspended.
Subsection (8) shall not, however, require the landlord to give any such notice if he has received a notice from the tenant under subsection (7).
In subsections (5) and (7) “relevant period” means any period which—
is prescribed by or under this Part for the giving of any notice, or the making of any application, in connection with the tenant’s notice; and
was current at the time when the suspension of the operation of the tenant’s notice began.
For the purposes of this section—
“the relevant claim under Chapter I”, in relation to a notice under section 13, means the claim in respect of which that notice is given; and
any such claim is current if—
that notice continues in force in accordance with section 13(11), or
a binding contract entered into in pursuance of that notice remains in force, or
where an order has been made under section 24(4)(a) or (b) or 25(6)(a) or (b) with respect to any such premises as are referred to in subsection (1) or (2) above (as the case may be), any interests which by virtue of the order fall to be vested in the nominee purchaser for the purposes of Chapter I have yet to be so vested.
A notice given by a tenant under section 42 shall be of no effect if on the relevant date—
any person or body of persons who has or have been, or could be, authorised to acquire the whole or part of the tenant’s flat compulsorily for any purpose has or have, with a view to its acquisition for that purpose—
served notice to treat on the landlord or the tenant, or
entered into a contract for the purchase of the interest of either of them in the flat or part of it, and
the notice to treat or contract remains in force.
A notice given by a tenant under section 42 shall cease to have effect if, before a new lease is entered into in pursuance of it, any such person or body of persons as is mentioned in subsection (1) serves or serve notice to treat as mentioned in that subsection.
Where subsection (2) applies in relation to a notice given by a tenant under section 42, then on the occasion of the compulsory acquisition in question the compensation payable in respect of any interest in the tenant’s flat (whether or not the one to which the relevant notice to treat relates) shall be determined on the basis of the value of the interest subject to and with the benefit of the rights and obligations arising from the tenant’s notice and affecting that interest.
Where a qualifying tenant of a flat has under this Chapter a right to acquire a new lease of the flat and gives notice of his claim in accordance with section 42, then except as provided by this Chapter the landlord shall be bound to grant to the tenant, and the tenant shall be bound to accept— a new lease of the flat at a peppercorn rent for a term expiring 90 years after the term date of the existing lease.
in substitution for the existing lease, and
on payment of the premium payable under Schedule 13 in respect of the grant,
In addition to any such premium there shall be payable by the tenant in connection with the grant of any such new lease such amounts to the owners of any intermediate leasehold interests (within the meaning of Schedule 13) as are so payable by virtue of that Schedule.
A tenant shall not be entitled to require the execution of any such new lease otherwise than on tendering to the landlord, in addition to the amount of any such premium and any other amounts payable by virtue of Schedule 13, the amount so far as ascertained— and, if the amount of any such sums is not or may not be fully ascertained, on offering reasonable security for the payment of such amount as may afterwards be found to be payable in respect of them.
of any sums payable by him by way of rent or recoverable from him as rent in respect of the flat up to the date of tender;
of any sums for which at that date the tenant is liable under section 60 in respect of costs incurred by any relevant person (within the meaning of that section); and
of any other sums due and payable by him to any such person under or in respect of the existing lease;
To the extent that any amount tendered to the landlord in accordance with subsection (3) is an amount due to a person other than the landlord, that amount shall be payable to that person by the landlord; and that subsection has effect subject to paragraph 7(2) of Schedule 11.
No provision of any lease prohibiting, restricting or otherwise relating to a sub-demise by the tenant under the lease shall have effect with reference to the granting of any lease under this section.
It is hereby declared that nothing in any of the provisions specified in paragraph 1(2) of Schedule 10 (which impose requirements as to consent or consultation or other restrictions in relation to disposals falling within those provisions) applies to the granting of any lease under this section.
For the purposes of subsection (6), paragraph 1(2) of Schedule 10 has effect as if the reference to section 79(2) of the Housing Act 1988 (which is not relevant in the context of subsection (6)) were omitted.
Subject to the provisions of this Chapter (and in particular to the provisions as to rent and duration contained in section 56(1)), the new lease to be granted to a tenant under section 56 shall be a lease on the same terms as those of the existing lease, as they apply on the relevant date, but with such modifications as may be required or appropriate to take account—
of the omission from the new lease of property included in the existing lease but not comprised in the flat;
of alterations made to the property demised since the grant of the existing lease; or
in a case where the existing lease derives (in accordance with section 7(6) as it applies in accordance with section 39(3)) from more than one separate leases, of their combined effect and of the differences (if any) in their terms.
Where during the continuance of the new lease the landlord will be under any obligation for the provision of services, or for repairs, maintenance or insurance—
the new lease may require payments to be made by the tenant (whether as rent or otherwise) in consideration of those matters or in respect of the cost thereof to the landlord; and
(if the terms of the existing lease do not include any provision for the making of any such payments by the tenant or include provision only for the payment of a fixed amount) the terms of the new lease shall make, as from the term date of the existing lease, such provision as may be just—
for the making by the tenant of payments related to the cost from time to time to the landlord, and
for the tenant’s liability to make those payments to be enforceable by re-entry or otherwise (subject to section 85 of the Tribunals, Courts and Enforcement Act 2007) in like manner as if it were a liability for payment of rent.
Subject to subsection (4), provision shall be made by the terms of the new lease or by an agreement collateral thereto for the continuance, with any suitable adaptations, of any agreement collateral to the existing lease.
For the purposes of subsections (1) and (3) there shall be excluded from the new lease any term of the existing lease or of any agreement collateral thereto in so far as that term— and there shall be made in the terms of the new lease or any agreement collateral thereto such modifications as may be required or appropriate to take account of the exclusion of any such term.
provides for or relates to the renewal of the lease,
confers any option to purchase or right of pre-emption in relation to the flat demised by the existing lease, or
provides for the termination of the existing lease before its term date otherwise than in the event of a breach of its terms;
Where the new lease is granted after the term date of the existing lease, then on the grant of the new lease there shall be payable by the tenant to the landlord, as an addition to the rent payable under the existing lease, any amount by which, for the period since the term date or the relevant date (whichever is the later), the sums payable to the landlord in respect of the flat (after making any necessary apportionment) for the matters referred to in subsection (2) fall short in total of the sums that would have been payable for such matters under the new lease if it had been granted on that date; and section 56(3)(a) shall apply accordingly.
Subsections (1) to (5) shall have effect subject to any agreement between the landlord and tenant as to the terms of the new lease or any agreement collateral thereto; and either of them may require that for the purposes of the new lease any term of the existing lease shall be excluded or modified in so far as—
it is necessary to do so in order to remedy a defect in the existing lease; or
it would be unreasonable in the circumstances to include, or include without modification, the term in question in view of changes occurring since the date of commencement of the existing lease which affect the suitability on the relevant date of the provisions of that lease.
The terms of the new lease shall—
make provision in accordance with section 59(3); and
reserve to the person who is for the time being the tenant’s immediate landlord the right to obtain possession of the flat in question in accordance with section 61.
In granting the new lease the landlord shall not be bound to enter into any covenant for title beyond— and in the absence of agreement to the contrary the landlord shall be entitled to be indemnified by the tenant in respect of any costs incurred by him in complying with the covenant implied by virtue of section 2(1)(b) of that Act (covenant for further assurance).
those implied from the grant, and
those implied under Part I of the Law of Property (Miscellaneous Provisions) Act 1994 in a case where a disposition is expressed to be made with limited title guarantee, but not including (in the case of an underlease) the covenant in section 4(1)(b) of that Act (compliance with terms of lease);
Where any person— then (subject to any agreement between him and the landlord and the tenant) he shall be made a party to the new lease or (as the case may be) to an agreement collateral thereto, and shall accordingly join in its execution; but nothing in this section has effect so as to require the new lease or (as the case may be) any such collateral agreement to provide for him to discharge any function at any time after the term date of the existing lease.
is a third party to the existing lease, or
(not being the landlord or tenant) is a party to any agreement collateral thereto,
A person entering into any covenant required of him as landlord (under subsection (8) or otherwise) shall be entitled to limit his personal liability to breaches of that covenant for which he is responsible.
Where— the new lease or an agreement collateral thereto shall make provision for that function to be discharged after that date (whether by the third party or by some other person).
any such person (“the third party”) is in accordance with subsection (9) to discharge any function down to the term date of the existing lease, but
it is necessary or expedient in connection with the proper enjoyment by the tenant of the property demised by the new lease for provision to be made for the continued discharge of that function after that date,
The new lease shall contain a statement that it is a lease granted under section 56; and any such statement shall comply with such requirements as may be prescribed by land registration rules under the Land Registration Act 2002.
Subject to subsection (2), a qualifying tenant shall be entitled to be granted a new lease under section 56 despite the fact that the grant of the existing lease was subsequent to the creation of a mortgage on the landlord’s interest and not authorised as against the persons interested in the mortgage; and a lease granted under that section—
shall be deemed to be authorised as against the persons interested in any mortgage on the landlord’s interest (however created or arising), and
shall be binding on those persons.
A lease granted under section 56 shall not, by virtue of subsection (1) above, be binding on the persons interested in any such mortgage if the existing lease—
is granted after the commencement of this Chapter, and
being granted subsequent to the creation of the mortgage, would not, apart from that subsection, be binding on the persons interested in the mortgage.
Where— the landlord shall, within one month of the execution of the lease, deliver to that person a counterpart of it duly executed by the tenant.
a lease is granted under section 56, and
any person having a mortgage on the landlord’s interest is thereby entitled to possession of the documents of title relating to that interest,
Where the existing lease is, immediately before its surrender on the grant of a lease under section 56, subject to any mortgage, the new lease shall take effect subject to the mortgage in substitution for the existing lease; and the terms of the mortgage, as set out in the instrument creating or evidencing it, shall accordingly apply in relation to the new lease in like manner as they applied in relation to the existing lease.
Where— he shall be similarly entitled to possession of the documents of title relating to the new lease; and the tenant shall deliver the new lease to him within one month of the date on which the lease is received from Her Majesty’s Land Registry following its registration.
a lease granted under section 56 takes effect subject to any such subsisting mortgage on the existing lease, and
at the time of execution of the new lease the person having the mortgage is thereby entitled to possession of the documents of title relating to the existing lease,
Where— the instrument creating or evidencing the mortgage in question shall apply as if the obligation to deliver a counterpart or (as the case may be) deliver the lease were included in the terms of the mortgage as set out in that instrument.
the landlord fails to deliver a counterpart of the new lease in accordance with subsection (3), or
the tenant fails to deliver the new lease in accordance with subsection (5),
A landlord granting a lease under section 56 shall be bound to take such steps as may be necessary to secure that the lease is not liable in accordance with subsection (2) to be defeated by persons interested in a mortgage on his interest; but a landlord is not obliged, in order to grant a lease for the purposes of that section, to acquire a better title than he has or could require to be vested in him.
The right to acquire a new lease under this Chapter may be exercised in relation to a lease of a flat despite the fact that the lease is itself a lease granted under section 56; and the provisions of this Chapter shall, with any necessary modifications, apply for the purposes of or in connection with any claim to exercise that right in relation to a lease so granted as they apply for the purposes of or in connection with any claim to exercise that right in relation to a lease which has not been so granted.
Where a lease has been granted under section 56—
none of the statutory provisions relating to security of tenure for tenants shall apply to the lease;
after the term date of the lease none of the following provisions, namely— shall apply to any sub-lease directly or indirectly derived out of the lease; and
section 1 of the Landlord and Tenant Act 1954 or Schedule 10 to the Local Government and Housing Act 1989 (which make provision for security of tenure on the ending of long residential tenancies), or
Part II of that Act of 1954 (business tenancies),
after that date no person shall be entitled by virtue of any such sub-lease to retain possession under—
Part VII of the Rent Act 1977 (security of tenure for protected tenancies etc.) or any enactment applying or extending that Part of that Act,
the Rent (Agriculture) Act 1976, or
Part I of the Housing Act 1988 (assured tenancies etc.).
Where a lease has been granted under section 56, no long lease created immediately or derivatively by way of sub-demise under the lease shall confer on the sub-tenant, as against the tenant’s landlord, any right under this Chapter to acquire a new lease (and for this purpose “long lease” shall be construed in accordance with section 7).
Any person who— shall inform the other party that the sub-lease is to be derived out of a lease granted under section 56, unless either he knows that the other party is aware of it or he himself is unaware of it.
grants a sub-lease to which subsection (2)(b) and (c) will apply, or
negotiates with a view to the grant of such a sub-lease by him or by a person for whom he is acting as agent,
Where any lease contains a statement to the effect that it is a lease granted under section 56, the statement shall be conclusive for the purposes of subsections (2) to (4) in favour of any person who is not a party to the lease, unless the statement appears from the lease to be untrue.
Where a lease granted under section 56 takes effect subject to two or more interests to which the existing lease was subject immediately before its surrender, the interests shall have the same priority in relation to one another on the grant of the new lease as they had immediately before the surrender of the existing lease.
Subsection (1) is subject to agreement to the contrary.
Where a person who is entitled on the grant of a lease under section 56 to rights of occupation in relation to the flat comprised in that lease was entitled immediately before the surrender of the existing lease to rights of occupation in relation to the flat comprised in that lease, the rights to which he is entitled on the grant of the new lease shall be treated as a continuation of the rights to which he was entitled immediately before the surrender of the existing lease.
In this section—
Where a notice is given under section 42, then (subject to the provisions of this section) the tenant by whom it is given shall be liable, to the extent that they have been incurred by any relevant person in pursuance of the notice, for the reasonable costs of and incidental to any of the following matters, namely— but this subsection shall not apply to any costs if on a sale made voluntarily a stipulation that they were to be borne by the purchaser would be void.
any investigation reasonably undertaken of the tenant’s right to a new lease;
any valuation of the tenant’s flat obtained for the purpose of fixing the premium or any other amount payable by virtue of Schedule 13 in connection with the grant of a new lease under section 56;
the grant of a new lease under that section;
For the purposes of subsection (1) any costs incurred by a relevant person in respect of professional services rendered by any person shall only be regarded as reasonable if and to the extent that costs in respect of such services might reasonably be expected to have been incurred by him if the circumstances had been such that he was personally liable for all such costs.
Where by virtue of any provision of this Chapter the tenant’s notice ceases to have effect, or is deemed to have been withdrawn, at any time, then (subject to subsection (4)) the tenant’s liability under this section for costs incurred by any person shall be a liability for costs incurred by him down to that time.
A tenant shall not be liable for any costs under this section if the tenant’s notice ceases to have effect by virtue of section 47(1) or 55(2).
A tenant shall not be liable under this section for any costs which a party to any proceedings under this Chapter before the appropriate tribunal incurs in connection with the proceedings.
In this section “relevant person”, in relation to a claim by a tenant under this Chapter, means the landlord for the purposes of this Chapter, any other landlord (as defined by section 40(4)) or any third party to the tenant’s lease.
Where a lease of a flat (“the new lease”) has been granted under section 56 but the court is satisfied, on an application made by the landlord— the court shall by order declare that the landlord is entitled as against the tenant to obtain possession of the flat and the tenant is entitled to be paid compensation by the landlord for the loss of the flat.
that for the purposes of redevelopment the landlord intends— the whole or a substantial part of any premises in which the flat is contained, and
to demolish or reconstruct, or
to carry out substantial works of construction on,
that he could not reasonably do so without obtaining possession of the flat,
An application for an order under this section may be made—
at any time during the period of 12 months ending with the term date of the lease in relation to which the right to acquire a new lease was exercised; and
at any time during the period of five years ending with the term date of the new lease.
Where the new lease is not the first lease to be granted under section 56 in respect of a flat, subsection (2) shall apply as if paragraph (b) included a reference to the term date of any previous lease granted under that section in respect of the flat, but paragraph (a) shall be taken to be referring to the term date of the lease in relation to which the right to acquire a new lease was first exercised.
Where an order is made under this section, the new lease shall determine, and compensation shall become payable, in accordance with Schedule 14 to this Act; and the provisions of that Schedule shall have effect as regards the measure of compensation payable by virtue of any such order and the effects of any such order where there are sub-leases, and as regards other matters relating to orders and applications under this section.
Except in subsection (1)(a) or (b), any reference in this section to the flat held by the tenant under the new lease includes any premises let with the flat under that lease.
In this Chapter—
“third party”, in relation to a lease, means any person who is a party to the lease apart from the tenant under the lease and his immediate landlord.
“the landlord” means the person from whom the relevant interest is being acquired;
as originally submitted, or
six months beginning with the date on which the request is withdrawn or refused, or
twelve months beginning with the date on which the request is granted,
with any relevant modifications proposed or agreed to by the applicant,
Where either of the following provisions (which relate to continuation tenancies) applies to a tenancy, namely—
Subject to subsection (3), references in this Chapter to a flat, in relation to a claim by a tenant under this Chapter, include any garage, outhouse, garden, yard and appurtenances belonging to, or usually enjoyed with, the flat and let to the tenant with the flat on the relevant date (or, in a case where an application is made under section 50(1), on the date of the making of the application).
Subsection (2) does not apply—
to any reference to a flat in section 47 or 55(1); or
to any reference to a flat (not falling within paragraph (a) above) which occurs in the context of a reference to any premises containing the flat.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This section applies where, on or after 15th January 1999—
a tenant of a flat makes a claim to acquire a new lease of the flat, and
the claim is not made at least two years before the term date of the lease in respect of which the claim is made (“the existing lease”).
The tenant shall be liable to pay compensation if the claim is not effective and—
the making of the claim caused a notice served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 to cease to have effect and the date on which the claim ceases to have effect is later than four months before the termination date specified in the notice,
the making of the claim prevented the service of an effective notice under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 (but did not cause a notice served under that provision to cease to have effect) and the date on which the claim ceases to have effect is a date later than six months before the term date of the existing lease, or
the existing lease is continued under paragraph 5(1) of Schedule 12 by virtue of the claim.
Compensation under subsection (2) shall become payable at the end of the appropriate period and be the right of the person who is the tenant’s immediate landlord at that time.
The amount which the tenant is liable to pay under subsection (2) shall be equal to the difference between—
the rent for the appropriate period under the existing lease, and
the rent which might reasonably be expected to be payable for that period were the property to which the existing lease relates let for a term equivalent to that period on the open market by a willing landlord on the following assumptions—
that no premium is payable in connection with the letting,
that the letting confers no security of tenure, and
that, except as otherwise provided by this paragraph, the letting is on the same terms as the existing lease.
For the purposes of subsections (3) and (4), the appropriate period is—
in a case falling within paragraph (a) of subsection (2), the period—
beginning with the termination date specified in the notice mentioned in that paragraph, and
ending with the earliest date of termination which could have been specified in a notice under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 served immediately after the date on which the claim ceases to have effect, or, if the existing lease is terminated before then, with the date on which it is terminated;
in a case falling within paragraph (b) of subsection (2), the period—
beginning with the later of six months from the date on which the claim is made and the term date of the existing lease, and
ending six months after the date on which the claim ceases to have effect, or, if the existing lease is terminated before then, with the date of its termination; and
in a case falling within paragraph (c) of subsection (2), the period for which the existing lease is continued under paragraph 5(1) of Schedule 12.
For the purposes of subsection (2), a claim to a new lease is not effective if it ceases to have effect for any reason other than—
the application of section 47(1) or 55(2), or
the acquisition of the new lease in pursuance of the claim.
For the purposes of this section—
references to a claim to acquire a new lease shall be taken as references to a notice given, or purporting to be given (whether by a qualifying tenant or not), under section 42, and
references to the date on which a claim ceases to have effect shall, in the case of a claim made by a notice which is not a valid notice under section 42, be taken as references to the date on which the notice is set aside by the court or is withdrawn or would, if valid, cease to have effect or be deemed to have been withdrawn, that date being taken, where the notice is set aside, or would, if valid, cease to have effect, in consequence of a court order, to be the date when the order becomes final.
Where a tenant’s liability to pay compensation under section 61A relates to a period during which there has been a change in the interest immediately expectant on the determination of his lease, that section shall have effect with the following modifications.
For subsections (3) and (4) there shall be substituted—
Compensation under subsection (2) shall become payable at the end of the appropriate period and there shall be a separate right to compensation in respect of each of the interests which, during that period, have been immediately expectant on the determination of the existing lease.
Compensation under subsection (2) above shall—
in the case of the interest which is immediately expectant on the determination of the existing lease at the end of the appropriate period, be the right of the person in whom that interest is vested at that time, and
in the case of an interest which ceases during the appropriate period to be immediately expectant on the determination of the existing lease, be the right of the person in whom the interest was vested immediately before it ceased to be so expectant.
The amount which the tenant is liable to pay under subsection (2) above in respect of any interest shall be equal to the difference between—
the rent under the existing lease for the part of the appropriate period during which the interest was immediately expectant on the determination of that lease, and
the rent which might reasonably be expected to be payable for that part of that period were the property to which the existing lease relates let for a term equivalent to that part of that period on the open market by a willing landlord on the following assumptions—
that no premium is payable in connection with the letting,
that the letting confers no security of tenure, and
that, except as otherwise provided by this paragraph, the letting is on the same terms as the existing lease.“
In subsection (5), for “(3) and (4)” there shall be substituted “(3) to (4A)”.
After section 1 of the Leasehold Reform Act 1967 there shall be inserted—
The following section shall be inserted in the Leasehold Reform Act 1967 after the section 1A inserted by section 63 above—
In section 3(1) of that Act (meaning of “long tenancy”)—
after “and includes” there shall be inserted “ both a tenancy taking effect under section 149(6) of the Law of Property Act 1925 (leases terminable after a death or marriage) and ”; and
in the proviso (which prevents certain categories of tenancies terminable after death or marriage being long tenancies), for the words from “if either” onwards there shall be substitutedif—
After section 4 of the Leasehold Reform Act 1967 there shall be inserted—
In section 9 of the Leasehold Reform Act 1967 (purchase price and costs of enfranchisement, etc.), after subsection (1B) there shall be inserted—
Section 9 of that Act, as amended by this section and with the omission of repealed provisions, is set out in Schedule 15 to this Act.
After section 9 of that Act there shall be inserted—
Section 1 of the Leasehold Reform Act 1967 (tenants entitled to enfranchisement or extension) shall be amended as follows.
In subsection (3) (excepted cases) there shall be added at the end— “ or, in the case of any right to which subsection (3A) below applies, at any time when the tenant’s immediate landlord is a charitable housing trust and the house forms part of the housing accommodation provided by the trust in the pursuit of its charitable purposes. ”
After subsection (3) there shall be inserted—
After section 32 of the Leasehold Reform Act 1967 there shall be inserted—
An estate management scheme may make different provision for different parts of the area of the scheme, and shall include provision for terminating or varying all or any of the provisions of the scheme, or excluding part of the area, if a change of circumstances makes it appropriate, or for enabling it to be done by or with the approval of the appropriate tribunal.
Without prejudice to any other provision of this section, an estate management scheme may provide for all or any of the following matters— and the landlord for the time being shall have, for the enforcement of any charge imposed under the scheme, the same powers and remedies under the Law of Property Act 1925 and otherwise as if he were a mortgagee by deed having powers of sale and leasing and of appointing a receiver.
for regulating the redevelopment, use or appearance of property in which tenants have acquired the landlord’s interest as mentioned in subsection (1)(a) or (b);
for empowering the landlord for the time being to carry out works of maintenance, repair, renewal or replacement in relation to any such property or carry out work to remedy a failure in respect of any such property to comply with the scheme, or for making the operation of any provisions of the scheme conditional on his doing so or on the provision or maintenance by him of services, facilities or amenities of any description;
for imposing on persons from time to time occupying or interested in any such property obligations in respect of the carrying out of works of maintenance, repair, renewal or replacement in relation to the property or property used or enjoyed by them in common with others, or in respect of costs incurred by the landlord for the time being on any matter referred to in this paragraph or in paragraph (b) above provided that where obligations are imposed in relation to an occupation contract they are not incompatible with a fundamental provision of the Renting Homes (Wales) Act 2016 (anaw 1);
for the inspection from time to time of any such property on behalf of the landlord for the time being, and for the recovery by him of sums due to him under the scheme in respect of any such property by means of a charge on the property;
Except as provided by the scheme, the operation of an estate management scheme shall not be affected by any disposition or devolution of the landlord’s interest in the property within the area of the scheme or in parts of that property; but the scheme—
shall include provision for identifying the person who is for the purposes of the scheme to be treated as the landlord for the time being; and
shall also include provision for transferring, or allowing the landlord for the time being to transfer, all or any of the powers and rights conferred by the scheme on the landlord for the time being to a local authority or other body, including a body constituted for the purpose.
In this section, the following terms have the same meaning as in the Renting Homes (Wales) Act 2016 (anaw 1)—
“fundamental provision” (see section 18 (see also section 19) of that Act);
“occupation contract” (see section 7 of that Act).
Without prejudice to the generality of paragraph (b) of subsection (4), an estate management scheme may provide for the operation of any provision for transfer included in the scheme in accordance with that paragraph to be dependent—
on a determination of the appropriate tribunal effecting or approving the transfer;
on such other circumstances as the scheme may provide.
An estate management scheme may extend to property in which the landlord’s interest is disposed of otherwise than as mentioned in subsection (1)(a) or (b) (whether residential property or not), so as to make that property, or allow it to be made, subject to any such provision as is or might be made by the scheme for property in which tenants acquire the landlord’s interest as mentioned in either of those provisions.
In this Chapter references to the landlord for the time being shall have effect, in relation to powers and rights transferred to a local authority or other body as contemplated by subsection (4)(b) above, as references to that authority or body.
For the purposes of this Chapter, “appropriate tribunal” means—
in relation to an area or areas in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and
in relation to an area or areas in Wales, a leasehold valuation tribunal.
The appropriate tribunal may, on an application made by a landlord for the approval of a scheme submitted by him to the tribunal, approve the scheme as an estate management scheme for such area falling within section 69(1) as is specified in the scheme; but any such application must (subject to section 72) be made within the period of two years beginning with the coming into force of section 118 of the Housing Act 1996.
The appropriate tribunal shall not approve a scheme as an estate management scheme for any area unless it is satisfied that, in order to maintain adequate standards of appearance and amenity and regulate redevelopment within the area in the event of tenants acquiring the interest of the landlord in any property as mentioned in section 69(1)(a) or (b), it is in the general interest that the landlord should retain such powers of management and have such rights falling within section 69(1)(i) and (ii) as are conferred by the scheme.
In considering whether to approve a scheme as an estate management scheme for any area, the appropriate tribunal shall have regard primarily to— but the tribunal shall also have regard to the past development and present character of the area and to architectural or historical considerations, to neighbouring areas and to the circumstances generally.
the benefit likely to result from the scheme to the area as a whole (including houses or premises likely to be acquired from the landlord as mentioned in section 69(1)(a) or (b)); and
the extent to which it is reasonable to impose, for the benefit of the area, obligations on tenants so acquiring the interest of their landlord;
The appropriate tribunal shall not consider any application for it to approve a scheme unless it is satisfied that the applicant has, by advertisement or otherwise, given adequate notice to persons interested—
informing them of the application for approval of the scheme and the provision intended to be made by the scheme, and
inviting them to make representations to the tribunal about the application within a time which appears to the tribunal to be reasonable.
In subsection (4) “persons interested” includes, in particular, in relation to any application for the approval of a scheme for any area (“the scheme area”) within a conservation area—
each local planning authority within whose area any part of the scheme area falls, and
if the whole of the scheme area is in England, the Historic Buildings and Monuments Commission for England.
Where the application is to be considered in an oral hearing, the tribunal shall afford to any person making representations under subsection (4)(b) about the application an opportunity to appear at the hearing.
In subsection (7) “relevant modifications” means modifications relating to the extent of the area to which the scheme is to apply or to the provisions contained in it.
If, having regard to— the tribunal thinks it proper to do so, the tribunal may declare that no scheme can be approved for the area in question in pursuance of the application.
the matters mentioned in subsection (3), and
the provision which it is practicable to make by a scheme,
The appropriate tribunal shall not dismiss an application for the approval of a scheme unless—
it makes such a declaration as is mentioned in subsection (9); or
in the opinion of the tribunal the applicant is unwilling to agree to a suitable scheme or is not proceeding in the matter with due despatch.
A scheme approved under this section as an estate management scheme for an area shall be a local land charge, notwithstanding section 2(a) or (b) of the Local Land Charges Act 1975 (matters which are not local land charges), and for the purposes of that Act the landlord for that area shall be treated as the originating authority as respects any such charge.
Any person who makes representations under subsection (4)(b) about an application for the approval of a scheme may appeal from a decision of the tribunal in proceedings on the application.
Where such a scheme is registered in the ... local land charges register—
the provisions of the scheme relating to property of any description shall so far as they respectively affect the persons from time to time occupying or interested in that property be enforceable by the landlord for the time being against them, as if each of them had covenanted with the landlord for the time being to be bound by the scheme; and
in relation to any acquisition such as is mentioned in section 69(1)(a) above, section 10 of the Leasehold Reform Act 1967 (rights to be conveyed on enfranchisement) shall have effect subject to the provisions of the scheme, and the price payable under section 9 of that Act shall be adjusted so far as is appropriate (if at all); and
in relation to any acquisition such as is mentioned in section 69(1)(b) above, section 34 of, and Schedule 7 to, this Act shall have effect subject to the provisions of the scheme, and any price payable under Schedule 6 to this Act shall be adjusted so far as is appropriate (if at all).
Section 10 of the Local Land Charges Act 1975 (compensation for non-registration etc.) shall not apply to schemes which, by virtue of subsection (11) above, are local land charges.
In this section and section 73 as they apply in relation to England, “conservation area” and “local planning authority” have the same meaning as in the Planning (Listed Buildings and Conservation Areas) Act 1990; and in connection with the latter expression—
the expression “the planning Acts” in the Town and Country Planning Act 1990 as it applies in relation to England, shall be treated as including this Act; and
paragraphs 4 and 5 of Schedule 4 to the Planning (Listed Buildings and Conservation Areas) Act 1990 (further provisions as to exercise of functions by different authorities) shall apply in relation to functions under or by virtue of this section or section 73 of this Act as they apply in relation to functions under section 69 of that Act.
In this section and section 73 as they apply in relation to Wales— and in that Part as it applies in relation to Wales references to “the planning Acts are to be treated as including this Act.
“conservation area” has the same meaning as in the Historic Environment (Wales) Act 2023;
“local planning authority” is to be interpreted in accordance with Part 1 of the Town and Country Planning Act 1990,
Where, on a joint application made by two or more persons as landlords of neighbouring areas, it appears to the appropriate tribunal— the tribunal may (subject to the provisions of section 70 and subsection (2) below) approve the scheme under that section as an estate management scheme for those areas as a whole.
that a scheme could in accordance with subsections (1) and (2) of section 70 be approved as an estate management scheme for those areas, treated as a unit, if the interests of those persons were held by a single person, and
that the applicants are willing to be bound by the scheme to co-operate in the management of their property in those areas and in the administration of the scheme,
Any such scheme shall be made subject to conditions (enforceable in such manner as may be provided by the scheme) for securing that the landlords and their successors co-operate as mentioned in subsection (1)(b) above.
Where it appears to the appropriate tribunal— an application for the approval of the scheme under section 70 may be made to the tribunal by the representative body alone or by the landlord or landlords alone or by both jointly and, by leave of the tribunal, may be proceeded with by the representative body or by the landlord or landlords despite the fact that the body or landlord or landlords in question did not make the application.
that a scheme could, on the application of any landlord or landlords, be approved under section 70 as an estate management scheme for any area or areas, and
that any body of persons—
is so constituted as to be capable of representing for the purposes of the scheme the persons occupying or interested in property in the area or areas (other than the landlord or landlords or his or their licensees), or such of them as are or may become entitled to acquire their landlord’s interest as mentioned in section 69(1)(a) or (b), and
is otherwise suitable,
Without prejudice to section 69(4)(b), any such scheme may with the consent of the landlord or landlords, or on such terms as to compensation or otherwise as appear to the tribunal to be just—
confer on the representative body any such rights or powers under the scheme as might be conferred on the landlord or landlords for the time being, or
enable the representative body to participate in the administration of the scheme or in the management by the landlord or landlords of his or their property in the area or areas.
Where any such scheme confers any rights or powers on the representative body in accordance with subsection (4) above, section 70(11) and (12)(a) shall have effect with such modifications (if any) as are provided for in the scheme.
An application for the approval of a scheme for an area under section 70 (including an application in accordance with section 71(1) or (3)) may be made after the expiry of the period mentioned in subsection (1) of that section if the Secretary of State has, not more than six months previously, consented to the making of such an application for that area or for an area within which that area falls.
The Secretary of State may give consent under subsection (1) to the making of an application (“the proposed application”) only where he is satisfied—
that either or both of the conditions mentioned in subsection (3) apply; and
that adequate notice has been given to persons interested informing them of the request for consent and the purpose of the request.
The conditions referred to in subsection (2)(a) are—
that the proposed application could not have been made before the expiry of the period mentioned in section 70(1); and
that—
any application for the approval under section 70 of a scheme for the area, or part of the area, to which the proposed application relates would probably have been dismissed under section 70(10)(a) had it been made before the expiry of that period; but
because of a change in any of the circumstances required to be considered under section 70(3) the proposed application would, if made following the giving of consent by the Secretary of State, probably be granted.
A request for consent under subsection (1) must be in writing and must comply with such requirements (if any) as to the form of, or the particulars to be contained in, any such request as the Secretary of State may by regulations prescribe.
The procedure for considering a request for consent under subsection (1) shall be such as may be prescribed by regulations made by the Secretary of State.
Where it appears to the appropriate tribunal after the expiry of the period mentioned in section 70(1) that a scheme could, on the application of any landlord or landlords within that period, have been approved under section 70 as an estate management scheme for any area or areas within a conservation area, an application for the approval of the scheme under that section may, subject to subsections (2) and (3) below, be made to the tribunal by one or more bodies constituting the relevant authority for the purposes of this section.
An application under subsection (1) may only be made if—
no scheme has been approved under section 70 for the whole or any part of the area or areas to which the application relates (“the scheme area”); and
any application which has been made in accordance with section 70(1), 71(1) or 71(3) for the approval of a scheme for the whole or any part of the scheme area has been withdrawn or dismissed; and
no request for consent under section 72(1) which relates to the whole or any part of the scheme area is pending or has been granted within the last six months.
“the landlord”, in relation to such a claim, has the meaning given by section 40(1);
with the date on which the period mentioned in section 70(1) expires, or
if any application has been made as mentioned in subsection (2)(b) above, with the date (or, as the case may be, the latest date) on which any such application is withdrawn or dismissed,
A scheme approved on an application under subsection (1) may confer on the applicant or applicants any such rights or powers under the scheme as might have been conferred on the landlord or landlords for the time being.
For the purposes of this section the relevant authority for the scheme area is—
where that area falls wholly within the area of a local planning authority—
that authority; or
subject to subsection (6), that authority acting jointly with the Historic Buildings and Monuments Commission for England (“the Commission”); or
subject to subsection (6), the Commission; or
in any other case—
all of the local planning authorities within each of whose areas any part of the scheme area falls, acting jointly; or
subject to subsection (6), one or more of those authorities acting jointly with the Commission; or
subject to subsection (6), the Commission.
The Commission may make, or join in the making of, an application under subsection (1) only if—
the whole of the scheme area is in England; and
they have consulted any local planning authority within whose area the whole or any part of the scheme area falls.
Where a scheme is approved on an application under subsection (1) by two or more bodies acting jointly, the scheme shall, if the tribunal considers it appropriate, be made subject to conditions (enforceable in such manner as may be provided by the scheme) for securing that those bodies co-operate in the administration of the scheme.
Where a scheme is approved on an application under subsection (1)—
section 70(11) and (12)(a) shall (subject to subsection (9) below) have effect as if any reference to the landlord, or the landlord for the time being, for the area for which an estate management scheme has been approved were a reference to the applicant or applicants; and
section 70(12)(b) and (c) shall each have effect with the omission of so much of that provision as relates to the adjustment of any such price as is there mentioned.
A scheme so approved shall not be enforceable by a local planning authority in relation to any property falling outside the authority’s area; and in the case of a scheme approved on a joint application made by one or more local planning authorities and the Commission, the scheme may provide for any of its provisions to be enforceable in relation to property falling within the area of a local planning authority either by the authority alone, or by the Commission alone, or by the authority and the Commission acting jointly, as the scheme may provide.
For the purposes of— it shall be assumed that any scheme approved under subsection (1) and relating to the property in question had not been so approved, and accordingly any application for such a scheme to be approved, and the possibility of such an application being made, shall be disregarded.
section 9(1A) of the Leasehold Reform Act 1967 (purchase price on enfranchisement) as it applies in relation to any acquisition such as is mentioned in section 69(1)(a) above, and
paragraph 3 of Schedule 6 to this Act as it applies in relation to any acquisition such as is mentioned in section 69(1)(b) above (including that paragraph as it applies by virtue of paragraph 7 or 11 of that Schedule),
Section 70(14) applies for the purposes of this section.
Subject to subsections (5) and (6), this subsection applies where—
an application (“the scheme application”) is made for the approval of a scheme as an estate management scheme for any area or a request (“the request for consent”) is made for consent under section 72(1) in relation to any area, and
whether before or after the making of the application or request—
the tenant of a house in that area gives notice of his desire to have the freehold under Part I of the Leasehold Reform Act 1967, . . .
a notice is given under section 13 above in respect of any premises in the area and
in the case of an application for the approval of a scheme as an estate management scheme, the scheme would extend to the house or premises if acquired in pursuance of the notice.
Where subsection (1) applies by virtue of paragraph (b)(i) of that subsection, then—
no further steps need be taken towards the execution of a conveyance to give effect to section 10 of the 1967 Act beyond those which appear to the landlord to be reasonable in the circumstances; and
if the notice referred to in subsection (1)(b)(i) (“the tenant’s notice”) was given before the making of the scheme application or the request for consent, that notice may be withdrawn by a further notice given by the tenant to the landlord.
Where subsection (1) applies by virtue of paragraph (b)(ii) of that subsection, then— but no other counter-notice need be given under Chapter I, and (subject to the preceding provisions of this subsection) no further steps need be taken towards the final determination (whether by agreement or otherwise) of the terms of the proposed acquisition by the nominee purchaser beyond those which appear to the reversioner to be reasonable in the circumstances.
if the notice referred to in that provision (“the initial notice”) was given before the making of the scheme application or the request for consent, the notice may be withdrawn by a further notice given by the nominee purchaser to the reversioner;
unless the initial notice is so withdrawn, the reversioner shall, if he has not already given the nominee purchaser a counter-notice under section 21, give him by the date referred to in subsection (1) of that section a counter-notice which complies with one of the requirements set out in subsection (2) of that section (but in relation to which subsection (3) of that section need not be complied with); and
no proceedings shall be brought under Chapter I in pursuance of the initial notice otherwise than under section 22 or 23, and, if the court under either of those sections makes an order requiring the reversioner to give a further counter-notice to the nominee purchaser, the date by which it is to be given shall be such date as falls two months after subsection (1) above ceases to apply;
If the tenant’s notice or the initial notice is withdrawn in accordance with subsection (2) or (3) above, section 9(4) of the 1967 Act or (as the case may be) section 33 above shall not have effect to require the payment of any costs incurred in pursuance of that notice.
Where the scheme application is withdrawn or dismissed, subsection (1) does not apply at any time falling after— as the case may be; and subsection (1) does not apply at any time falling after the date on which a scheme is approved for the area referred to in that subsection, or for any part of it, in pursuance of the scheme application.
the date of the withdrawal of the application, or
the date when the decision of the tribunal dismissing the application becomes final,
Where the request for consent is withdrawn or refused, subsection (1) does not apply at any time falling after the date on which the request is withdrawn or refused, as the case may be; and where the request is granted, subsection (1) does not apply at any time falling more than six months after the date on which it is granted (unless that subsection applies by virtue of an application made in reliance on the consent).
Where, in accordance with subsection (5) or (6), subsection (1) ceases to apply as from a particular date, it shall do so without prejudice to—
the effect of anything done before that date in pursuance of subsection (2) or (3); or
the operation of any provision of this Part, or of regulations made under it, in relation to anything so done.
If, however, no notice of withdrawal has been given in accordance with subsection (3) before the date when subsection (1) so ceases to apply and before that date either— the reversioner shall give a further counter-notice to the nominee purchaser within the period of two months beginning with the date when subsection (1) ceases to apply.
the reversioner has given the nominee purchaser a counter-notice under section 21 complying with the requirement set out in subsection (2)(a) of that section, or
section 23(6) would (but for subsection (3) above) have applied to require the reversioner to give a further counter-notice to the nominee purchaser,
Subsections (3) to (5) of section 21 shall apply to any further counter-notice required to be given by the reversioner under subsection (8) above as if it were a counter-notice under that section complying with the requirement set out in subsection (2)(a) of that section; and sections 24 and 25 shall apply in relation to any such counter-notice as they apply in relation to one required by section 22(3).
In this section— and references to the approval of a scheme for any area include references to the approval of a scheme for two or more areas in accordance with section 71 or 73 above.
Where a scheme under section 19 of the Leasehold Reform Act 1967 (estate management schemes in connection with enfranchisement under that Act) includes, in pursuance of subsection (6) of that section, provision for enabling the termination or variation of the scheme, or the exclusion of part of the area of the scheme, by or with the approval of the High Court, that provision shall have effect—
as if any reference to the High Court were a reference to the appropriate tribunal, and
with such modifications (if any) as are necessary in consequence of paragraph (a).
A scheme under that section may be varied by or with the approval of the appropriate tribunal for the purpose of, or in connection with, extending the scheme to property within the area of the scheme in which the landlord’s interest may be acquired as mentioned in section 69(1)(a) above.
Where any such scheme has been varied in accordance with subsection (2) above, section 19 of that Act shall apply as if the variation had been effected under provisions included in the scheme in pursuance of subsection (6) of that section (and accordingly the scheme may be further varied under provisions so included).
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This Chapter has effect to confer on two or more qualifying tenants of dwellings held on leases from the same landlord the right, exercisable subject to and in accordance with this Chapter, to have an audit carried out on their behalf which relates to the management of the relevant premises and any appurtenant property by or on behalf of the landlord.
That right shall be exercisable— and in this Chapter the dwellings let to those qualifying tenants are referred to as “the constituent dwellings”.
where the relevant premises consist of or include two dwellings let to qualifying tenants of the same landlord, by either or both of those tenants; and
where the relevant premises consist of or include three or more dwellings let to qualifying tenants of the same landlord, by not less than two-thirds of those tenants;
In relation to an audit on behalf of two or more qualifying tenants—
“the relevant premises” means so much of— as constitutes premises in relation to which management functions are discharged in respect of the costs of which common service charge contributions are payable under the leases of those qualifying tenants; and
the building or buildings containing the dwellings let to those tenants, and
any other building or buildings,
“appurtenant property” means so much of any property not contained in the relevant premises as constitutes property in relation to which any such management functions are discharged.
This Chapter also has effect to confer on a single qualifying tenant of a dwelling the right, exercisable subject to and in accordance with this Chapter, to have an audit carried out on his behalf which relates to the management of the relevant premises and any appurtenant property by or on behalf of the landlord.
That right shall be exercisable by a single qualifying tenant of a dwelling where the relevant premises contain no other dwelling let to a qualifying tenant apart from that let to him.
In relation to an audit on behalf of a single qualifying tenant—
“the relevant premises” means so much of— as constitutes premises in relation to which management functions are discharged in respect of the costs of which a service charge is payable under his lease (whether as a common service charge contribution or otherwise); and
the building containing the dwelling let to him, and
any other building or buildings,
“appurtenant property” means so much of any property not contained in the relevant premises as constitutes property in relation to which any such management functions are discharged.
The provisions of sections 78 to 83 shall, with any necessary modifications, have effect in relation to an audit on behalf of a single qualifying tenant as they have effect in relation to an audit on behalf of two or more qualifying tenants.
For the purposes of this section common service charge contributions are payable by two or more persons under their leases if they may be required under the terms of those leases to contribute to the same costs by the payment of service charges.
Subject to the following provisions of this section, a tenant is a qualifying tenant of a dwelling for the purposes of this Chapter if—
he is a tenant of the dwelling under a long lease other than a business lease; and
any service charge is payable under the lease.
For the purposes of subsection (1) a lease is a long lease if—
it is a lease falling within any of paragraphs (a) to (c) of subsection (1) of section 7; or
it is a shared ownership lease (within the meaning of that section), whether granted in pursuance of Part V of the Housing Act 1985 or otherwise and whatever the share of the tenant under it.
No dwelling shall have more than one qualifying tenant at any one time.
Accordingly—
where a dwelling is for the time being let under two or more leases falling within subsection (1), any tenant under any of those leases which is superior to that held by any other such tenant shall not be a qualifying tenant of the dwelling for the purposes of this Chapter; and
where a dwelling is for the time being let to joint tenants under a lease falling within subsection (1), the joint tenants shall (subject to paragraph (a)) be regarded for the purposes of this Chapter as jointly constituting the qualifying tenant of the dwelling.
A person can, however, be (or be among those constituting) the qualifying tenant of each of two or more dwellings at the same time, whether he is tenant of those dwellings under one lease or under two or more separate leases.
Where two or more persons constitute the qualifying tenant of a dwelling in accordance with subsection (4)(b), any one or more of those persons may sign a notice under section 80 on behalf of both or all of them.
The audit referred to in section 76(1) is an audit carried out for the purpose of ascertaining— and in this Chapter any such audit is referred to as a “management audit”.
the extent to which the obligations of the landlord which— are being discharged in an efficient and effective manner; and
are owed to the qualifying tenants of the constituent dwellings, and
involve the discharge of management functions in relation to the relevant premises or any appurtenant property,
the extent to which sums payable by those tenants by way of service charges are being applied in an efficient and effective manner;
In determining whether any such obligations as are mentioned in subsection (1)(a) are being discharged in an efficient and effective manner, regard shall be had to any applicable provisions of any code of practice for the time being approved by the Secretary of State under section 87.
A management audit shall be carried out by a person who— and in this Chapter any such person is referred to as “the auditor”.
is qualified for appointment by virtue of subsection (4); and
is appointed—
in the circumstances mentioned in section 76(2)(a), by either or both of the qualifying tenants of the constituent dwellings, or
in the circumstances mentioned in section 76(2)(b), by not less than two-thirds of the qualifying tenants of the constituent dwellings;
A person is qualified for appointment for the purposes of subsection (3) above if—
he has the necessary qualification (within the meaning of subsection (1) of section 28 of the 1985 Act (meaning of “qualified accountant”)) or is a qualified surveyor;
he is not disqualified from acting (within the meaning of that subsection); and
he is not a tenant of any premises contained in the relevant premises.
For the purposes of subsection (4)(a) above a person is a qualified surveyor if he is a fellow or professional associate of the Royal Institution of Chartered Surveyors or of the Incorporated Society of Valuers and Auctioneers or satisfies such other requirement or requirements as may be prescribed by regulations made by the Secretary of State.
The auditor may appoint such persons to assist him in carrying out the audit as he thinks fit.
Where the qualifying tenants of any dwellings exercise under section 80 their right to have a management audit carried out on their behalf, the rights conferred on the auditor by subsection (2) below shall be exercisable by him in connection with the audit.
The rights conferred on the auditor by this subsection are—
a right to require the landlord—
to supply him with such a summary as is referred to in section 21(1) of the 1985 Act (request for summary of relevant costs) in connection with any service charges payable by the qualifying tenants of the constituent dwellings, and
to afford him reasonable facilities for inspecting, or taking copies of or extracts from, the accounts, receipts and other documents supporting any such summary;
a right to require the landlord or any relevant person to afford him reasonable facilities for inspecting any other documents sight of which is reasonably required by him for the purpose of carrying out the audit; and
a right to require the landlord or any relevant person to afford him reasonable facilities for taking copies of or extracts from any documents falling within paragraph (b).
The rights conferred on the auditor by subsection (2) shall be exercisable by him— and, where a notice is given to any relevant person in accordance with paragraph (b) above, a copy of that notice shall be given to the landlord by the auditor.
in relation to the landlord, by means of a notice under section 80; and
in relation to any relevant person, by means of a notice given to that person at (so far as is reasonably practicable) the same time as a notice under section 80 is given to the landlord;
The auditor shall also be entitled, on giving notice in accordance with section 80, to carry out an inspection of any common parts comprised in the relevant premises or any appurtenant property.
The landlord or (as the case may be) any relevant person shall—
where facilities for the inspection of any documents are required under subsection (2)(a)(ii) or (b), make those facilities available free of charge;
where any documents are required to be supplied under subsection (2)(a)(i) or facilities for the taking of copies or extracts are required under subsection (2)(a)(ii) or (c), be entitled to supply those documents or (as the case may be) make those facilities available on payment of such reasonable charge as he may determine.
The requirement imposed on the landlord by subsection (5)(a) to make any facilities available free of charge shall not be construed as precluding the landlord from treating as part of his costs of management any costs incurred by him in connection with making those facilities so available.
In this Chapter “relevant person” means a person (other than the landlord) who—
is charged with responsibility—
for the discharge of any such obligations as are mentioned in section 78(1)(a), or
for the application of any such service charges as are mentioned in section 78(1)(b); or
has a right to enforce payment of any such service charges.
In this Chapter references to the auditor in the context of— shall be read as including a person appointed by the auditor under section 78(6).
being afforded any such facilities as are mentioned in subsection (2), or
the carrying out of any inspection under subsection (4),
The right of any qualifying tenants to have a management audit carried out on their behalf shall be exercisable by the giving of a notice under this section.
A notice given under this section—
must be given to the landlord by the auditor, and
must be signed by each of the tenants on whose behalf it is given.
Any such notice must—
state the full name of each of those tenants and the address of the dwelling of which he is a qualifying tenant;
state the name and address of the auditor;
specify any documents or description of documents—
which the landlord is required to supply to the auditor under section 79(2)(a)(i), or
in respect of which he is required to afford the auditor facilities for inspection or for taking copies or extracts under any other provision of section 79(2); and
if the auditor proposes to carry out an inspection under section 79(4), state the date on which he proposes to carry out the inspection.
The date specified under subsection (3)(d) must be a date falling not less than one month nor more than two months after the date of the giving of the notice.
A notice is duly given under this section to the landlord of any qualifying tenants if it is given to a person who receives on behalf of the landlord the rent payable by any such tenants; and a person to whom such a notice is so given shall forward it as soon as may be to the landlord.
Where the landlord is given a notice under section 80, then within the period of one month beginning with the date of the giving of the notice, he shall—
supply the auditor with any document specified under subsection (3)(c)(i) of that section, and afford him, in respect of any document falling within section 79(2)(a)(ii), any facilities specified in relation to it under subsection (3)(c)(ii) of section 80;
in the case of every other document or description of documents specified in the notice under subsection (3)(c)(ii) of that section, either—
afford the auditor facilities for inspection or (as the case may be) taking copies or extracts in respect of that document or those documents, or
give the auditor a notice stating that he objects to doing so for such reasons as are specified in the notice; and
if a date is specified in the notice under subsection (3)(d) of that section, either approve the date or propose another date for the carrying out of an inspection under section 79(4).
Any date proposed by the landlord under subsection (1)(c) must be a date falling not later than the end of the period of two months beginning with the date of the giving of the notice under section 80.
Where a relevant person is given a notice under section 79 requiring him to afford the auditor facilities for inspection or taking copies or extracts in respect of any documents or description of documents specified in the notice, then within the period of one month beginning with the date of the giving of the notice, he shall, in the case of every such document or description of documents, either—
afford the auditor the facilities required by him; or
give the auditor a notice stating that he objects to doing so for such reasons as are specified in the notice.
If by the end of the period of two months beginning with— the landlord or (as the case may be) a relevant person has failed to comply with any requirement of the notice, the court may, on the application of the auditor, make an order requiring the landlord or (as the case may be) the relevant person to comply with that requirement within such period as is specified in the order.
the date of the giving of the notice under section 80, or
the date of the giving of such a notice under section 79 as is mentioned in subsection (3) above,
The court shall not make an order under subsection (4) in respect of any document or documents unless it is satisfied that the document or documents falls or fall within paragraph (a) or (b) of section 79(2).
If by the end of the period of two months specified in subsection (2) no inspection under section 79(4) has been carried out by the auditor, the court may, on the application of the auditor, make an order providing for such an inspection to be carried out on such date as is specified in the order.
Any application for an order under subsection (4) or (6) must be made before the end of the period of four months beginning with—
in the case of an application made in connection with a notice given under section 80, the date of the giving of that notice; or
in the case of an application made in connection with such a notice under section 79 as is mentioned in subsection (3) above, the date of the giving of that notice.
Where the landlord is required by a notice under section 80 to supply any summary falling within section 79(2)(a), and any information necessary for complying with the notice so far as relating to any such summary is in the possession of a superior landlord—
the landlord shall make a written request for the relevant information to the person who is his landlord (and so on, if that person is himself not the superior landlord);
the superior landlord shall comply with that request within the period of one month beginning with the date of the making of the request; and
the landlord who received the notice shall then comply with it so far as relating to any such summary within the time allowed by section 81(1) or such further time, if any, as is reasonable.
Where— the landlord shall on receiving the notice inform the auditor as soon as may be of that fact and of the name and address of the superior landlord, and the auditor may then give the superior landlord a notice requiring him to afford the facilities in question in respect of the document.
the landlord is required by a notice under section 80 to afford the auditor facilities for inspection or taking copies or extracts in respect of any documents or description of documents specified in the notice, and
any of the documents in question is in the custody or under the control of a superior landlord,
Subsections (3) to (5) and (7) of section 81 shall, with any necessary modifications, have effect in relation to a notice given to a superior landlord under subsection (2) above as they have effect in relation to any such notice given to a relevant person as is mentioned in subsection (3) of that section.
Where— that person shall be responsible for discharging those obligations to that extent, as if he had been given the notice under that section.
a notice has been given to a landlord under section 80, and
at a time when any obligations arising out of the notice remain to be discharged by him—
he disposes of the whole or part of his interest as landlord of the qualifying tenants of the constituent dwellings, and
the person acquiring any such interest of the landlord is in a position to discharge any of those obligations to any extent,
If the landlord is, despite any such disposal, still in a position to discharge those obligations to the extent referred to in subsection (1), he shall remain responsible for so discharging them; but otherwise the person referred to in that subsection shall be responsible for so discharging them to the exclusion of the landlord.
Where a person is so responsible for discharging any such obligations (whether with the landlord or otherwise)—
references to the landlord in section 81 shall be read as including, or as, references to that person to such extent as is appropriate to reflect his responsibility for discharging those obligations; but
in connection with the discharge of any such obligations by that person, that section shall apply as if any reference to the date of the giving of the notice under section 80 were a reference to the date of the disposal referred to in subsection (1).
Where— he shall nevertheless remain responsible for discharging those obligations to that extent; and section 81 shall accordingly continue to apply to him as if he were still a relevant person.
a notice has been given to a relevant person under section 79, and
at a time when any obligations arising out of the notice remain to be discharged by him, he ceases to be a relevant person, but
he is, despite ceasing to be a relevant person, still in a position to discharge those obligations to any extent,
Where— then during the period of twelve months beginning with the date of that notice, no subsequent such notice may be given to the landlord or (as the case may be) that person on behalf of any persons who, in relation to the earlier notice, were qualifying tenants of the constituent dwellings.
a notice has been given to a landlord under section 80, or
a notice has been given to a relevant person under section 79,
In this Chapter—
“secure tenancy” has the meaning given by section 79 of the Housing Act 1985;
Part III of the Landlord and Tenant Act 1987 (compulsory acquisition by tenants of their landlord’s interest) shall be amended as follows.
In section 25 (compulsory acquisition of landlord’s interest by qualifying tenants)—
for subsection (2)(c) there shall be substituted—; and
subsection (3) shall be omitted.
In section 27(4) (meaning of requisite majority in relation to qualifying tenants), for “more than 50 per cent.” there shall be substituted “ not less than two-thirds ”.
In section 29(2) (conditions for making acquisition orders), the words from “and (c)” onwards shall be omitted.
In section 35(4) of the Landlord and Tenant Act 1987 (variation of lease on grounds that it fails to make satisfactory provision with respect to the computation of a service charge), in paragraph (c), for “exceed” there shall be substituted “ either exceed or be less than ”.
The Secretary of State may, if he considers it appropriate to do so, by order—
approve any code of practice—
which appears to him to be designed to promote desirable practices in relation to any matter or matters directly or indirectly concerned with the management of residential property by relevant persons; and
which has been submitted to him for his approval;
approve any modifications of any such code which have been so submitted; or
withdraw his approval for any such code or modifications.
The Secretary of State shall not approve any such code or any modifications of any such code unless he is satisfied that arrangements have been made for the text of the code or the modifications to be published in such manner as he considers appropriate for bringing the provisions of the code or the modifications to the notice of those likely to be affected by them (which, in the case of modifications of a code, may include publication of a text of the code incorporating the modifications).
The power of the Secretary of State under this section to approve a code of practice which has been submitted to him for his approval includes power to approve a part of any such code; and references in this section to a code of practice may accordingly be read as including a reference to a part of a code of practice.
At any one time there may be two or more codes of practice for the time being approved under this section.
A code of practice approved under this section may make different provision with respect to different cases or descriptions of cases, including different provision for different areas.
Without prejudice to the generality of subsections (1) and (5)—
a code of practice approved under this section may, in relation to any such matter as is referred to in subsection (1), make provision in respect of relevant persons who are under an obligation to discharge any function in connection with that matter as well as in respect of relevant persons who are not under such an obligation; and
any such code may make provision with respect to—
the resolution of disputes with respect to residential property between relevant persons and the tenants of such property;
competitive tendering for works in connection with such property; and
the administration of trusts in respect of amounts paid by tenants by way of service charges.
A failure on the part of any person to comply with any provision of a code of practice for the time being approved under this section shall not of itself render him liable to any proceedings; but in any proceedings before a court or tribunal—
any code of practice approved under this section shall be admissible in evidence; and
any provision of any such code which appears to the court or tribunal to be relevant to any question arising in the proceedings shall be taken into account in determining that question.
For the purposes of this section—
“relevant person” means any landlord of residential property or any person who discharges management functions in respect of such property, and for this purpose “management functions” includes functions with respect to the provision of services or the repair, maintenance , improvement or insurance of such property;
“residential property” means any building or part of a building which consists of one or more dwellings let on leases, but references to residential property include—
any garage, outhouse, garden, yard and appurtenances belonging to or usually enjoyed with such dwellings,
any common parts of any such building or part, and
any common facilities which are not within any such building or part; and
“service charge” means an amount payable by a tenant of a dwelling as part of or in addition to the rent—
which is payable, directly or indirectly, for services, repairs, maintenance , improvements or insurance or any relevant person’s costs of management, and
the whole or part of which varies or may vary according to the costs or estimated costs incurred or to be incurred by any relevant person in connection with the matters mentioned in sub-paragraph (i).
This section applies in relation to dwellings let on licences to occupy as it applies in relation to dwellings let on leases, and references in this section to landlords and tenants of residential property accordingly include references to licensors and licensees of such property.
This section applies where any tenant under a lease from the Crown is proceeding with a view to acquiring the freehold or an extended lease of a house and premises in circumstances in which, but for the existence of any Crown interest in the land subject to the lease, he would be entitled to acquire the freehold or such an extended lease under Part I of the Leasehold Reform Act 1967.
Where— the appropriate tribunal shall have jurisdiction to determine that question.
this section applies in accordance with subsection (1), and
any question arises in connection with the acquisition of the freehold or an extended lease of the house and premises which is such that, if the tenant were proceeding as mentioned in that subsection in pursuance of a claim made under Part I of that Act, the appropriate tribunal ... would have jurisdiction to determine it in proceedings under that Part, and
it is agreed between— that that question should be determined by such a tribunal,
the appropriate authority and the tenant, and
all other persons (if any) whose interests would fall to be represented in proceedings brought under that Part for the determination of that question by such a tribunal,
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For the purposes of this section “lease from the Crown” means a lease of land in which there is, or has during the subsistence of the lease been, a Crown interest superior to the lease; and “Crown interest” and “the appropriate authority” in relation to a Crown interest mean respectively—
an interest comprised in the Crown Estate, and the Crown Estate Commissioners;
an interest belonging to Her Majesty in right of the Duchy of Lancaster, and the Chancellor of the Duchy;
an interest belonging to the Duchy of Cornwall, and such person as the Duke of Cornwall or the possessor for the time being of the Duchy appoints;
any other interest belonging to a government department or held on behalf of Her Majesty for the purposes of a government department, and the Minister in charge of that department.
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For the purposes of subsection (2), “appropriate tribunal” means—
in relation to a house and premises in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and
in relation to a house and premises in Wales, a leasehold valuation tribunal.
Any agreement relating to a lease of any property which comprises or includes a dwelling (whether contained in the instrument creating the lease or not and whether made before the creation of the lease or not) shall be void in so far as it would otherwise have the effect of prohibiting or imposing any restriction on—
the occupation of the dwelling, or of any part of the dwelling, by persons with mental disorders (within the meaning of the Mental Health Act 1983), or
the provision of accommodation within the dwelling for such persons.
Subsection (1) applies to any agreement made after the coming into force of this section.
Any jurisdiction expressed to be conferred on the court by this Part shall be exercised by the county court.
There shall also be brought in the county court any proceedings for determining any question arising under or by virtue of any provision of Chapter I or II or this Chapter which is not a question falling within its jurisdiction by virtue of subsection (1) or one falling within the jurisdiction of the appropriate tribunal (within the meaning of section 91) by virtue of that section.
Where, however, there are brought in the High Court any proceedings which, apart from this subsection, are proceedings within the jurisdiction of the High Court, the High Court shall have jurisdiction to hear and determine any proceedings joined with those proceedings which are proceedings within the jurisdiction of the county court by virtue of subsection (1) or (2).
Where any proceedings are brought in the county court by virtue of subsection (1) or (2), the court shall have jurisdiction to hear and determine any other proceedings joined with those proceedings, despite the fact that, apart from this subsection, those other proceedings would be outside the court’s jurisdiction.
... any question arising in relation to any of the matters specified in subsection (2) shall, in default of agreement, be determined by the appropriate tribunal.
Those matters are—
the terms of acquisition relating to— including in particular any matter which needs to be determined for the purposes of any provision of Schedule 6 or 13;
any interest which is to be acquired by a nominee purchaser in pursuance of Chapter I, or
any new lease which is to be granted to a tenant in pursuance of Chapter II,
the terms of any lease which is to be granted in accordance with section 36 and Schedule 9;
the amount of any payment falling to be made by virtue of section 18(2);
the amount of any costs payable by any person or persons by virtue of any provision of Chapter I or II and, in the case of costs to which section 33(1) or 60(1) applies, the liability of any person or persons by virtue of any such provision to pay any such costs; and
the amount of any compensation payable under section 37A;
the apportionment between two or more persons of any amount (whether of costs or otherwise) payable by virtue of any such provision.
the amount of any compensation payable under section 61A;
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shall by order transfer to such a tribunal so much of the proceedings as relate to the determination of that question; and
may then dispose of all or any remaining proceedings, or adjourn the disposal of all or any such proceedings pending the determination of that question by the tribunal, as it thinks fit;
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the power to make regulations under section 74(1)(b) of the Rent Act 1977 (procedure of rent assessment committees) shall extend to prescribing the procedure to be followed consequent on a transfer under subsection (4) above; and
rules of court may prescribe the procedure to be followed in connection with such a transfer.
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The appropriate tribunal may, when determining the property in which any interest is to be acquired in pursuance of a notice under section 13 or 42, specify in its determination property which is less extensive than that specified in that notice.
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in relation to any proceedings which relate to a claim made under Chapter I of this Part of this Act, paragraph 7 of that Schedule shall apply as if the nominee purchaser were included among the persons on whom a notice is authorised to be served under that paragraph; and
in relation to any proceedings on an application for a scheme to be approved by a tribunal under section 70, paragraph 2(a) of that Schedule shall apply as if any person appearing before the tribunal in accordance with subsection (6) of that section were a party to the proceedings.
In this section— ...
For the purposes of this section, “appropriate tribunal” means—
in relation to property in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and
in relation to property in Wales, a leasehold valuation tribunal.
The court may, on the application of any person interested, make an order requiring any person who has failed to comply with any requirement imposed on him under or by virtue of any provision of Chapter I or II to make good the default within such time as is specified in the order.
An application shall not be made under subsection (1) unless—
a notice has been previously given to the person in question requiring him to make good the default, and
more than 14 days have elapsed since the date of the giving of that notice without his having done so.
Except as provided by this section, any agreement relating to a lease (whether contained in the instrument creating the lease or not and whether made before the creation of the lease or not) shall be void in so far as it—
purports to exclude or modify—
any entitlement to participate in the making of a claim to exercise the right to collective enfranchisement under Chapter I,
any right to acquire a new lease under Chapter II, or
any right to compensation under section 61; or
provides for the termination or surrender of the lease in the event of the tenant becoming a participating tenant for the purposes of Chapter I or giving a notice under section 42; or
provides for the imposition of any penalty or disability on the tenant in that event.
Subsection (1) shall not be taken to preclude a tenant from surrendering his lease, and shall not—
invalidate any agreement for the acquisition on behalf of a tenant of an interest superior to his lease, or for the acquisition by a tenant of a new lease, on terms different from those provided by Chapters I and II; or
where a tenant has become a participating tenant for the purposes of Chapter I or has given a notice under section 42, invalidate—
any agreement that the notice given under section 13 or (as the case may be) section 42 shall cease to have effect, or
any provision of such an agreement excluding or restricting for a period not exceeding three years any such entitlement or right as is mentioned in subsection (1)(a)(i) or (ii); or
where a tenant’s right to compensation under section 61 has accrued, invalidate any agreement as to the amount of the compensation.
Where— then on the application of the tenant the county court, or any court in which proceedings are brought on the agreement, may, if in its opinion the tenant is not adequately recompensed under the agreement for his rights under Chapter II, set aside or vary the agreement and give such other relief as appears to it to be just having regard to the situation and conduct of the parties.
a tenant having the right to acquire a new lease under Chapter II—
has entered into an agreement for the surrender of his lease without the prior approval of the court, or
has entered into an agreement for the grant of a new lease without any of the terms of acquisition (within the meaning of that Chapter) having been determined by the appropriate tribunal (within the meaning of that Chapter) under that Chapter, or
a tenant has been granted a new lease under Chapter II or by virtue of subsection (4) below and, on his landlord claiming possession for the purposes of redevelopment, enters into an agreement without the prior approval of the court for the surrender of the lease,
Where a tenant has the right to acquire a new lease under Chapter II, there may with the approval of the court be granted to him in satisfaction of that right a new lease on such terms as may be approved by the court, which may include terms excluding or modifying—
any entitlement to participate in the making of a claim to exercise the right to collective enfranchisement under Chapter I, or
any right to acquire a further lease under Chapter II.
Subject to the provisions specified in subsection (6) and to subsection (7), a lease may be granted by virtue of subsection (4), and shall if so granted be binding on persons entitled to any interest in or charge on the landlord’s estate—
despite the fact that, apart from this subsection, it would not be authorised against any such persons, and
despite any statutory or other restrictions on the landlord’s powers of leasing.
The provisions referred to in subsection (5) are—
sections 117 to 121 of the Charities Act 2011 (restrictions on disposition of charity land); and
paragraph 8(2)(c) of Schedule 2 to this Act.
Where the existing lease of the tenant is granted after the commencement of Chapter II and, the grant being subsequent to the creation of a charge on the landlord’s estate, the existing lease is not binding on the persons interested in the charge, a lease granted by virtue of subsection (4) shall not be binding on those persons.
Where a lease is granted by virtue of subsection (4), then except in so far as provision is made to the contrary by the terms of the lease, the following provisions shall apply in relation to the lease as they apply in relation to a lease granted under section 56, namely— and subsections (5) to (7) of section 56 shall apply in relation to the lease as they apply in relation to a lease granted under that section.
section 58(3), (5) and (6);
section 59(2) to (5); and
section 61 and Schedule 14;
Subject to subsection (2), Chapters I and II shall apply to a lease from the Crown if (and only if) there has ceased to be a Crown interest in the land subject to it.
Chapter 2 applies as against a landlord under a lease from the Crown if—
a sub-tenant is seeking a new lease under that Chapter and the landlord, or a superior landlord under a lease from the Crown, is entitled to grant such a new lease without the concurrence of the appropriate authority, or
the appropriate authority notifies the landlord that, as regards any Crown interest affected, it will grant or concur in granting such a new lease.
that landlord is entitled to grant such a new lease without the concurrence of the appropriate authority, or
the appropriate authority notifies that landlord that, as regards any Crown interest affected, the authority will concur in granting such a new lease,
The restriction imposed by section 3(2) of the Crown Estate Act 1961 (general provisions as to management) on the term for which a lease may be granted by the Crown Estate Commissioners shall not apply where—
the lease is granted by way of renewal of a long lease . . . , and
it appears to the Crown Estate Commissioners that, but for the existence of any Crown interest, there would be a right to acquire a new lease under Chapter II of this Part of this Act.
Where, in the case of land belonging— it appears to the appropriate authority that a tenant under a long lease . . . would, but for the existence of any Crown interest, be entitled to acquire a new lease under Chapter II, then a lease corresponding to that to which the tenant would be so entitled may be granted to take effect wholly or partly out of the Crown interest by the same person and with the same formalities as in the case of any other lease of such land.
to Her Majesty in right of the Duchy of Lancaster, or
to the Duchy of Cornwall,
In the case of land belonging to the Duchy of Cornwall, the purposes authorised by section 8 of the Duchy of Cornwall Management Act 1863 for the advancement of parts of such gross sums as are there mentioned shall include the payment to tenants under leases from the Crown of sums corresponding to those which, but for the existence of any Crown interest, would be payable by way of compensation under section 61 above.
The appropriate authority in relation to any area occupied under leases from the Crown may make an application for the approval under section 70 of a scheme for that area which is designed to secure that, in the event of tenants under those leases acquiring freehold interests in such circumstances as are mentioned in subsection (7) below, the authority will—
retain powers of management in respect of the premises in which any such freehold interests are acquired, and
have rights against any such premises in respect of the benefits arising from the exercise elsewhere of the authority’s powers of management.
The circumstances mentioned in subsection (6) are circumstances in which, but for the existence of any Crown interest, the tenants acquiring any such freehold interests would be entitled to acquire them as mentioned in section 69(1)(a) or (b).
Subject to any necessary modifications—
subsections (2) to (7) of section 69 shall apply in relation to any such scheme as is mentioned in subsection (6) above as they apply in relation to an estate management scheme; and
section 70 shall apply in relation to the approval of such a scheme as it applies in relation to the approval of a scheme as an estate management scheme.
Subsection (10) applies where—
any tenants under leases from the Crown are proceeding with a view to acquiring the freehold of any premises in circumstances in which, but for the existence of any Crown interest, they would be entitled to acquire the freehold under Chapter I, or
any tenant under a lease from the Crown is proceeding with a view to acquiring a new lease of his flat in circumstances in which, but for the existence of any Crown interest, he would be entitled to acquire such a lease under Chapter II.
Where— a leasehold valuation tribunal shall have jurisdiction to determine that question ...
this subsection applies in accordance with subsection (9), and
any question arises in connection with the acquisition of the freehold of those premises or any such new lease which is such that, if the tenants or tenant were proceeding as mentioned in that subsection in pursuance of a claim made under Chapter I or (as the case may be) Chapter II, the appropriate tribunal (within the meaning of the relevant Chapter) would have jurisdiction to determine it in proceedings under that Chapter, and
it is agreed between— that that question should be determined by such a tribunal,
the appropriate authority and the tenants or tenant, and
all other persons (if any) whose interests would fall to be represented in proceedings brought under that Chapter for the determination of that question by the appropriate tribunal (within the meaning of the relevant Chapter),
For the purposes of this section “lease from the Crown” means a lease of land in which there is, or has during the subsistence of the lease been, a Crown interest superior to the lease; and “Crown interest” and “the appropriate authority” in relation to a Crown interest mean respectively—
an interest comprised in the Crown Estate, and the Crown Estate Commissioners;
an interest belonging to Her Majesty in right of the Duchy of Lancaster, and the Chancellor of the Duchy;
an interest belonging to the Duchy of Cornwall, and such person as the Duke of Cornwall or the possessor for the time being of the Duchy appoints;
any other interest belonging to a government department or held on behalf of Her Majesty for the purposes of a government department, and the Minister in charge of that department.
For the purposes of this section “long lease . . . ” shall be construed in accordance with sections 7 . . . .
Where trustees are a qualifying tenant of a flat for the purposes of Chapter I or II, their powers under the instrument regulating the trusts shall include power to participate in the exercise of the right to collective enfranchisement under Chapter I or, as the case may be, to exercise the right to a new lease under Chapter II.
Subsection (1) shall not apply where the instrument regulating the trusts—
is made on or after the day on which section 113 of the Housing Act 1996 comes into force, and
contains an explicit direction to the contrary.
The powers conferred by subsection (1) shall be exercisable with the like consent or on the like direction (if any) as may be required for the exercise of the trustees’ powers (or ordinary powers) of investment.
The following purposes, namely— shall include the payment of any expenses incurred by a tenant for life or statutory owners . . ., as the case may be, in or in connection with participation in the exercise of the right to collective enfranchisement under Chapter I or in or in connection with the exercise of the right to a new lease under Chapter II.
those authorised for the application of capital money by section 73 of the Settled Land Act 1925 . . ., and
those authorised by section 71 of the Settled Land Act 1925 . . . as purposes for which moneys may be raised by mortgage,
Chapters I and II shall not prejudice the operation of section 21 of the National Trust Act 1907, and accordingly there shall be no right under Chapter I or II to acquire any interest in or new lease of any property if an interest in the property is under that section vested inalienably in the National Trust for Places of Historic Interest or Natural Beauty.
There shall be no right under Chapter I or II to acquire any interest in or lease of any property which for the purposes of the Care of Cathedrals Measure 1990 is within the precinct of a cathedral church.
No lease shall be registrable under the Land Charges Act 1972 or be taken to be an estate contract within the meaning of that Act by reason of any rights or obligations of the tenant or landlord which may arise under Chapter I or II, and any right of a tenant arising from a notice given under section 13 or 42 shall not be capable of falling within paragraph 2 of Schedule 1 or 3 to the Land Registration Act 2002; but a notice given under section 13 or 42 shall be registrable under the Land Charges Act 1972, or may be the subject of a notice under the Land Registration Act 2002, as if it were an estate contract.
The Land Charges Act 1972 and the Land Registration Act 2002 —
shall apply in relation to an order made under section 26(1) or 50(1) as they apply in relation to an order affecting land which is made by the court for the purpose of enforcing a judgment or recognisance; and
shall apply in relation to an application for such an order as they apply in relation to other pending land actions.
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Where a claim to exercise the right to collective enfranchisement under Chapter I is made by the giving of a notice under section 13, or a claim to exercise the right to acquire a new lease under Chapter II is made by the giving of a notice under section 42, then except as otherwise provided by Chapter I or (as the case may be) Chapter II— shall be such as may be prescribed by regulations made by the Secretary of State and, subject to or in the absence of provision made by any such regulations, shall be as nearly as may be the same as in the case of a contract of sale or leasing freely negotiated between the parties.
the procedure for giving effect to the notice, and
the rights and obligations of all parties in relation to the investigation of title and other matters arising in giving effect to the notice,
Regulations under this section may, in particular, make provision—
for a person to be discharged from performing any obligations arising out of a notice under section 13 or 42 by reason of the default or delay of some other person;
for the payment of a deposit—
by a nominee purchaser (within the meaning of Chapter I) on exchange of contracts, or
by a tenant who has given a notice under section 42; and
with respect to the following matters, namely—
the person with whom any such deposit is to be lodged and the capacity in which any such person is to hold it, and
the circumstances in which the whole or part of any such deposit is to be returned or forfeited.
Any notice required or authorised to be given under this Part—
shall be in writing; and
may be sent by post.
Where in accordance with Chapter I or II an address in England and Wales is specified as an address at which notices may be given to any person or persons under that Chapter—
any notice required or authorised to be given to that person or those persons under that Chapter may (without prejudice to the operation of subsection (3)) be given to him or them at the address so specified; but
if a new address in England and Wales is so specified in substitution for that address by the giving of a notice to that effect, any notice so required or authorised to be given may be given to him or them at that new address instead.
Subsections (2) and (3) apply to notices in proceedings under Chapter I or II as they apply to notices required or authorised to be given under that Chapter.
Any notice which is given under Chapter I or II by any tenants or tenant must be signed by or on behalf of each of the tenants, or (as the case may be) by or on behalf of the tenant, by whom it is given.
if it is a notice given under section 13 or 42, be signed by each of the tenants, or (as the case may be) by the tenant, by whom it is given; and
in any other case, be signed by or on behalf of each of the tenants, or (as the case may be) by or on behalf of the tenant, by whom it is given.
The Secretary of State may by regulations prescribe—
the form of any notice required or authorised to be given under this Part; and
the particulars which any such notice must contain (whether in addition to, or in substitution for, any particulars required by virtue of any provision of this Part).
Any power of the Secretary of State or the Welsh Ministers to make orders or regulations under this Part—
may be so exercised as to make different provision for different cases or descriptions of cases, including different provision for different areas; and
includes power to make such procedural, incidental, supplementary and transitional provision as may appear to the Secretary of State necessary or expedient.
Any power of the Secretary of State to make orders or regulations under this Part shall be exercisable by statutory instrument which (except in the case of regulations making only such provision as is mentioned in section 99(6)) shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Any power of the Welsh Ministers to make regulations under this Part shall be exercisable by statutory instrument which (except in the case of regulations making only such provision as is mentioned in section 99(6)) shall be subject to annulment in pursuance of a resolution of the National Assembly for Wales.
In this Part—
In this Part “lease” and “tenancy” have the same meaning, and both expressions include (where the context so permits)— but do not include a tenancy at will or at sufferance; and the expressions “landlord” and “tenant”, and references to letting, to the grant of a lease or to covenants or the terms of a lease, shall be construed accordingly.
a sub-lease or sub-tenancy, and
an agreement for a lease or tenancy (or for a sub-lease or sub-tenancy),
In this Part any reference (however expressed) to the lease held by a qualifying tenant of a flat is a reference to a lease held by him under which the demised premises consist of or include the flat (whether with or without one or more other flats).
Where two or more persons jointly constitute either the landlord or the tenant or qualifying tenant in relation to a lease of a flat, any reference in this Part to the landlord or to the tenant or qualifying tenant is (unless the context otherwise requires) a reference to both or all of the persons who jointly constitute the landlord or the tenant or qualifying tenant, as the case may require.
Any reference in this Part to the date of the commencement of a lease is a reference to the date of the commencement of the term of the lease.
In the case of a lease which derives (in accordance with section 7(6)) from more than one separate leases, references in this Part to the date of the commencement of the lease or to the term date shall, if the terms of the separate leases commenced at different dates or those leases have different term dates, have effect as references to the date of the commencement, or (as the case may be) to the term date, of the lease comprising the flat in question (or the earliest date of commencement or earliest term date of the leases comprising it).
For the purposes of this Part property is let with other property if the properties are let either under the same lease or under leases which, in accordance with section 7(6), are treated as a single lease.
For the purposes of this Part any lease which is reversionary on another lease shall be treated as if it were a concurrent lease intermediate between that other lease and any interest superior to that other lease.
For the purposes of this Part an order of a court or a decision of a leasehold valuation tribunal the First-tier Tribunal or Upper Tribunal is to be treated as becoming final—
if not appealed against, on the expiry of the time for bringing an appeal; or
if appealed against and not set aside in consequence of the appeal, at the time when the appeal and any further appeal is disposed of—
by the determination of it and the expiry of the time for bringing a further appeal (if any), or
by its being abandoned or otherwise ceasing to have effect.
Subject to subsection (1), where under section 7(3) a tenancy created or arising as a tenancy from year to year or other periodical tenancy is to be treated as a long lease, then for the relevant purposes of this Part, the term date of that tenancy shall be taken to be the date (if any) on which the tenancy is to terminate by virtue of a notice to quit given by the landlord under the tenancy before the relevant date for those purposes, or else the earliest date on which it could as at that date (in accordance with its terms and apart from any enactment) be brought to an end by such a notice to quit.
Subject to subsection (1), in the case of a tenancy granted to continue as a periodical tenancy after the expiry of a term of years certain, or to continue as a periodical tenancy if not terminated at the expiry of such a term, any question whether the tenancy is at any time to be treated for the relevant purposes of this Part as a long lease, and (if so) with what term date, shall be determined as it would be if there had been two tenancies, as follows—
one granted to expire at the earliest time (at or after the expiry of that term of years certain) at which the tenancy could (in accordance with its terms and apart from any enactment) be brought to an end by a notice to quit given by the landlord under the tenancy; and
the other granted to commence at the expiry of the first (and not being one to which subsection (1) applies).
In this section “the relevant purposes of this Part” means the purposes of Chapter I or, to the extent that section 7 has effect for the purposes of Chapter II in accordance with section 39(3), the purposes of that Chapter.
This Part applies to the Isles of Scilly subject to such exceptions, adaptations and modifications as the Secretary of State may by order direct.
For subsection (5) of section 125 (landlord’s notice of purchase price and other matters) of the Housing Act 1985 (in this Chapter referred to as “the 1985 Act”) there shall be substituted the following subsection—
After section 125C of the 1985 Act there shall be inserted the following sections—
For subsections (2) to (5) of section 136 of the 1985 Act (change of tenant after notice claiming to exercise the right to buy) there shall be substituted the following subsection—
In paragraph 10(1) (groups of dwelling-houses for persons of pensionable age) of Schedule 5 to the 1985 Act (exceptions to the right to buy)—
for the words “persons of pensionable age”, in the first place where they occur, there shall be substituted the words “ elderly persons ”; and
for those words, in the second place where they occur, there shall be substituted the words “ persons aged 60 or more ”.
For paragraph 11 (individual dwelling-houses for persons of pensionable age) of that Schedule there shall be substituted the following paragraph—
Subsections (1) and (2) do not apply in any case where the tenant’s notice claiming to exercise the right to buy was served before the day on which this section comes into force.
For the purposes of subsection (3), no account shall be taken of any steps taken under section 177 of the 1985 Act (amendment or withdrawal and re-service of notice to correct mistakes).
The following rights ancillary to the right to buy are hereby abolished, namely—
the right to a mortgage conferred by sections 132 to 135 of the 1985 Act;
the right to defer completion conferred by section 142 of that Act; and
the right to be granted a shared ownership lease conferred by sections 143 to 151 of that Act.
For section 143 of the 1985 Act there shall be substituted the following sections—
For sections 144 and 145 of the 1985 Act there shall be substituted the following section—
For section 146 of the 1985 Act there shall be substituted the following section—
After section 146 of the 1985 Act there shall be inserted the following sections—
For section 147 of the 1985 Act there shall be substituted the following section—
For section 148 of the 1985 Act there shall be substituted the following section—
For section 149 of the 1985 Act there shall be substituted the following section—
For section 150 of the 1985 Act there shall be substituted the following section—
For section 151 of the 1985 Act there shall be substituted the following section—
In Part III of Schedule 6 to the 1985 Act (terms of lease granted in pursuance of right to buy or right to acquire on rent to mortgage terms), after paragraph 16D there shall be inserted the following paragraph—
After section 151 of the 1985 Act there shall be inserted the following section—
After Schedule 6 to the 1985 Act there shall be inserted as Schedule 6A the Schedule set out in Schedule 16 to this Act.
After section 151A of the 1985 Act there shall be inserted the following section—
For subsection (3) of section 152 of the 1985 Act (landlord’s first notice to complete) there shall be substituted the following section—
In subsection (5) of that section, for the words “the amount to be left outstanding or advanced on the security of the dwelling-house” there shall be substituted the words “ securing the redemption of the landlord’s share ”.
In subsection (4) of section 153 of the 1985 Act (landlord’s second notice to complete), for the words “the right to be granted a shared ownership lease” there shall be substituted the words “ the right to acquire on rent to mortgage terms ”.
For subsection (3) of section 155 of the 1985 Act (repayment of discount on early disposal) there shall be substituted the following subsection—
In subsection (3A) of that section, for paragraph (b) there shall be substituted the following paragraph—
For subsection (2) of section 156 of the 1985 Act (liability to repay discount is a charge on the premises) there shall be substituted the following subsections—
After subsection (4) of that section there shall be inserted the following subsections—
For section 96 of the 1985 Act there shall be substituted the following section—
After section 99 of the 1985 Act there shall be inserted the following sections—
After subsection (2) of section 104 of the 1985 Act (provision of information about tenancies) there shall be inserted the following subsection—
In subsection (2)(b) of section 79 of the Housing Act 1988 (disposals by housing action trusts), the words “in accordance with section 84 below” shall be omitted.
For subsection (1) of section 84 of that Act (provisions applicable to disposals of dwelling-houses let on secure tenancies) there shall be substituted the following subsection—
In subsection (7) of that section—
after the words “a disposal to which this section applies,” there shall be inserted the words “ or a disposal which would be such a disposal if subsection (1)(b) above were omitted, ”; and
after the words “such further consultation” there shall be inserted the words “ or, as the case may be, such consultation ”.
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a house held by a housing action trust is specified in a notice served by the trust under section 84(2) of the Housing Act 1988, and
the building containing the house is specified in an application subsequently made to the trust under section 96 of that Act (application to exercise right conferred by Part IV),
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a building containing a house held by a housing action trust is specified in an application made to the trust under section 96 of the Housing Act 1988, and
the house is specified in a notice subsequently served by the trust under subsection (2) of section 84 of that Act,
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For subsections (2) and (3) of section 84 of the Housing Act 1988 (disposal by housing action trusts of dwelling-houses let on secure tenancies) there shall be substituted the following subsections—
In subsection (4) of that section, for paragraphs (d) and (e) there shall be substituted the following paragraphs—.
For subsection (5) of that section there shall be substituted the following subsections—
In subsection (6) of that section, after the words “subsection (5)” there shall be inserted the words “ or subsection (5A) ”.
After that section there shall be inserted the following section—
Part II of the 1985 Act (provision of housing accommodation) shall have effect, and be deemed at all times on and after 1st April 1990 to have had effect, as if after section 11 there were inserted the following section—
Schedule 4 to the Local Government and Housing Act 1989 (the keeping of the Housing Revenue Account) shall have effect, and be deemed always to have had effect, as if—
at the end of paragraph (b) of item 2 of Part I (credits to the account) there were inserted the words “ or income in respect of services provided under section 11A of that Act (power to provide welfare services) ”; and
after paragraph 3 of Part III (special cases) there were inserted the following paragraph—
The Secretary of State may at any time by order made by statutory instrument provide that, on such day or in relation to such periods as may be appointed by the order, the provisions made by sections 126 and 127—
shall cease to have effect; or
shall cease to apply for such purposes as may be specified in the order.
An order under this section—
may appoint different days or periods for different provisions or purposes or for different authorities or descriptions of authority, and
may contain such incidental, supplementary or transitional provisions as appear to the Secretary of State to be necessary or expedient.
At the end of subsection (3) of section 27 of the 1985 Act (management agreements), there shall be inserted the words “ and shall contain such provisions as may be prescribed by regulations made by the Secretary of State ”.
For subsection (5) of that section there shall be substituted the following subsection—
For subsection (6) of that section there shall be substituted the following subsections—
After section 27AA of the 1985 Act there shall be inserted the following section—
Section 27C of the 1985 Act (which is superseded by this section) shall cease to have effect.
For subsection (2) of section 36 of the 1985 Act (liability to repay discount is a charge on the premises) there shall be substituted the following subsections—
After subsection (4) of that section there shall be inserted the following subsections—
Subject to sub-paragraphs (2A) and (2B), the charge has priority immediately after any legal charge securing an amount— The following, namely— shall rank in priority to that charge if, and only if, the housing association by written notice served on the institution concerned gives its consent; and the housing association shall so give its consent if the purpose of the advance or further advance is an approved purpose. The housing association may at any time by written notice served on an approved lending institution postpone the charge taking effect by virtue of this paragraph to any advance or further advance which— and the housing association shall serve such a notice if the purpose of the advance or further advance is an approved purpose.
The approved purposes for the purposes of this paragraph are— and in this sub-paragraph “service charge” has the meaning given by section 621A of the Housing Act 1985. Where different parts of an advance or further advance are made for different purposes, each of those parts shall be regarded as a separate advance or further advance for the purposes of this paragraph.
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For the purposes of this section a disposal of one or more dwelling-houses by a local authority to any person (in this section referred to as a “disposal”) is a qualifying disposal if—
it requires the consent of the Secretary of State under section 32 of the 1985 Act (power to dispose of land held for the purposes of Part II), or section 43 of that Act (consent required for certain disposals not within section 32); and
the aggregate of the following, namely— exceeds 499 or, if the Secretary of State by order so provides, such other number as may be specified in the order.
the number of dwelling-houses included in the disposal; and
the number of dwelling-houses which, within the relevant period, have been previously disposed of by the authority to that person, or that person and any associates of his taken together,
In subsection (1) “the relevant period” means—
the period of five years ending with the date of the disposal or, if that period begins before the commencement of this section, so much of it as falls after that commencement; or
if the Secretary of State by order so provides, such other period ending with that date and beginning after that commencement as may be specified in the order.
A local authority shall not make a qualifying disposal in any financial year unless the Secretary of State has included the disposal in a disposals programme prepared by him for that year.
A disposal may be included in a disposals programme for a financial year either—
by specifically including the disposal in the programme; or
by including in the programme a description of disposal which includes the disposal.
An application by a local authority for the inclusion of a disposal in a disposals programme for a financial year— as the Secretary of State may from time to time direct.
shall be made in such manner and contain such information; and
shall be made before such date,
In preparing a disposals programme for any financial year, the Secretary of State shall secure that the aggregate amount of his estimate of the exchequer costs of each of the disposals included in the programme does not exceed such amount as he may, with the approval of the Treasury, determine.
In deciding whether to include a disposal in a disposals programme for a financial year or, having regard to subsection (6), which disposals to include in such a programme, the Secretary of State may, in relation to the disposal or (as the case may be) each disposal, have regard in particular to— and in this subsection “secure tenant” has the same meaning as in Part IV of that Act.
his estimate of the exchequer costs of the disposal;
whether or not a majority of the secure tenants who would be affected by the disposal are (in his opinion) likely to oppose it; and
the matters mentioned in section 34(4A) or 43(4A) (as the case may be) of the 1985 Act;
In subsections (6) and (7) “the exchequer costs”, in relation to a disposal, means any increase which is or may be attributable to the disposal in the aggregate of any subsidies payable under— and the Secretary of State’s estimate of any such increase shall be based on such assumptions (including assumptions as to the period during which such subsidies may be payable) as he may, with the approval of the Treasury, from time to time determine, regardless of whether those assumptions are or are likely to be borne out by events.
section 135(1) of the Social Security Administration Act 1992 (housing benefit finance); or
section 79 of the 1989 Act (Housing Revenue Account subsidy);
The inclusion of a disposal in a disposals programme for a financial year shall not prejudice the operation of section 32 or 43 of the 1985 Act in relation to the disposal.
The Secretary of State may prepare different disposals programmes under this section for different descriptions of authority; and any disposals programme may be varied or revoked by a subsequent programme.
An order under this section—
shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament;
may make different provision for different cases or descriptions of case, or for different authorities or descriptions of authority; and
may contain such transitional and supplementary provisions as the Secretary of State considers necessary or expedient.
Any direction or determination under this section—
may make different provision for different cases or descriptions of case, or for different authorities or descriptions of authority; and
may be varied or revoked by a subsequent direction or determination.
In this section—
For the purposes of this section—
a disposal of any dwelling-house shall be disregarded if at the time of the disposal the local authority’s interest in the dwelling-house is or was subject to a long lease;
two persons are associates of each other if—
one of them is a subsidiary of the other;
they are both subsidiaries of some other person; or
there exists between them such relationship or other connection as may be specified in a determination made by the Secretary of State; and
a description of authority may be framed by reference to any circumstances whatever.
For the purposes of this section a disposal of one or more dwelling-houses by a local authority to any person is a qualifying disposal if—
it requires the consent of the Secretary of State under section 32 of the 1985 Act (power to dispose of land held for the purposes of Part II), or section 43 of that Act (consent required for certain disposals not within section 32); and
the aggregate of the following, namely— exceeds 499 or, if the Secretary of State by order so provides, such other number as may be specified in the order.
the number of dwelling-houses included in the disposal; and
the number of dwelling-houses which, within any relevant period, have been previously or are subsequently disposed of by the authority to that person, or that person and any associates of his taken together,
In subsection (1) “relevant period” means—
any period of five years beginning after the commencement of this section and including the date of the disposal; or
if the Secretary of State by order so provides, any such other period beginning after that commencement and including that date as may be specified in the order.
A local authority which after the commencement of this section makes a disposal which is or includes, or which subsequently becomes or includes, a qualifying disposal shall be liable to pay to the Secretary of State a levy of an amount calculated in accordance with the formula— where— L = the amount of the levy; CR = the aggregate of— (i) any sums received by the authority in respect of the disposal which are capital receipts for the purposes of Chapter 1 of Part 1 of the Local Government Act 2003 (capital finance etc) and do not fall within a description determined by the Secretary of State; and (ii) any capital receipts which the authority is treated as having by virtue of the application, in relation to the disposal, of regulations under section 10 of the Local Government Act 2003 (power to make provision about disposal consideration not received by the person making the disposal or not received in the form of money) D = such amount as may be calculated in accordance with such formula as the Secretary of State may determine; P = 20 per cent. or, if the Secretary of State by order so provides, such other percentage as may be specified in the order.
A formula determined for the purposes of item D in subsection (3) may include any variable which is included in a determination made for the purposes of section 80 of the 1989 Act (calculation of Housing Revenue Account subsidy).
The administrative arrangements for the payment of any levy under this section shall be such as may be specified in a determination made by the Secretary of State, and such a determination may in particular make provision as to— and any such administrative arrangements shall be binding on local authorities.
the information to be supplied by authorities;
the form and manner in which, and the time within which, the information is to be supplied;
the payment of the levy in stages in such circumstances as may be provided in the determination;
the date on which payment of the levy (or any stage payment of the levy) is to be made;
the adjustment of any levy which has been paid in such circumstances as may be provided in the determination;
the payment of interest in such circumstances as may be provided in the determination; and
the rate or rates (whether fixed or variable, and whether or not calculated by reference to some other rate) at which such interest is to be payable;
The power of the Secretary of State to determine a formula for the purposes of item D in subsection (3) shall include power to determine that, in such cases as he may determine, item D is to be taken to be equal to item CR.
Any amounts by way of levy or interest which are not paid to the Secretary of State as required by the arrangements mentioned in subsection (5) shall be recoverable in a court of competent jurisdiction.
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Any sums received by the Secretary of State under this section shall be paid into the Consolidated Fund; and any sums paid by the Secretary of State by way of adjustment of levies paid under this section shall be paid out of money provided by Parliament.
Before making an order or determination under this section, the Secretary of State shall consult such representatives of local government as appear to him to be appropriate.
An order ... under this section—
shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament;
may make different provision for different cases or descriptions of case, or for different authorities or descriptions of authority; and
may contain such transitional and supplementary provisions as the Secretary of State considers necessary or expedient.
Any determination under this section—
may make different provision for different cases or descriptions of case, or for different authorities or descriptions of authority; and
may be varied or revoked by a subsequent determination.
In this section—
For the purposes of this section—
a disposal of any dwelling-house is to be disregarded if at the time of the disposal the local authority's interest in the dwelling-house is or was subject to a long lease;
two persons are associates of each other if—
one of them is a subsidiary of the other;
they are both subsidiaries of some other person; or
there exists between them such relationship or other connection as may be specified in a determination made by the Secretary of State; and
a description of authority may be framed by reference to any circumstances whatever.
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that, if that section were then in force, he would prepare under that section such disposals programmes for the first financial year as are set out in the statement, and
that, when that section comes into force, he is to be regarded as having prepared under that section the programmes so set out,
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before the commencement of section 135,
before the making of such a statement as is mentioned in subsection (2), and
in connection with the disposals programmes proposed to be set out in the statement,
If before the commencement of section 136 any statement was made by or on behalf of the Secretary of State— those determinations shall have effect as if they had been validly made under that section at the time of the statement.
that, if that section were then in force, he would make under that section such determinations as are set out in the statement, and
that, when that section comes into force, he is to be regarded as having made under that section the determinations set out in the statement,
Any consultation undertaken— shall be as effective, in relation to those determinations, as if that section had been in force at the time the consultation was undertaken.
before the commencement of section 136,
before the making of such a statement as is mentioned in subsection (4), and
in connection with determinations proposed to be set out in the statement,
In section 157 of the Local Government and Housing Act 1989 (commutation of and interest on periodic payments of grants etc.), in subsection (8) (which changes certain contributions under section 569 of the 1985 Act from annual payments to lump sums), for paragraph (b) there shall be substituted the following paragraph—.
This section shall be deemed to have come into force on 1st January 1993.
Where— any contributions in respect of that expense which are made under section 569 on or after 1st January 1993 shall be annual payments calculated and payable in accordance with the following provisions of this section.
before 1st April 1989 a local housing authority incurred any such expense as is referred to in subsection (1) of section 569 of the 1985 Act (assistance by way of reinstatement grant, repurchase or payments for owners of defective housing); and
before 1st January 1993, the Secretary of State has not made in respect of that expense any contribution of such a description as is referred to in subsection (2) of that section, as amended by section 157(8) of the Local Government and Housing Act 1989 (single commuted contributions),
The amount of the annual payment in respect of any relevant financial year shall be a sum equal to the relevant percentage of the annual loan charges referable to the amount of the expense incurred.
Notwithstanding that annual loan charges are calculated by reference to a 20 year period, annual payments made by virtue of this section shall be made only in respect of relevant financial years ending at or before the end of the period of 20 years beginning with the financial year in which, as the case may be—
the work in respect of which the reinstatement grant was payable was completed;
the acquisition of the interest concerned was completed; or
the payment referred to in subsection (1)(c) of section 569 was made.
Subsections (3) and (4) of section 569 (which determine the relevant percentage and the amount of the expense incurred) apply for the purposes of the preceding provisions of this section as they apply for the purposes of that section.
Nothing in this section affects the operation of subsection (6) of section 569 (terms etc. for payment of contributions).
In this section—
then in relation to the property comprised in such of those leases as are long leases, this Chapter shall apply as it would if at that time— but this subsection has effect subject to the operation of subsections (3) to (5) in relation to any of the separate leases.
This section shall be deemed to have come into force on 1st January 1993.
In subsection (1) of section 80 of the Local Government and Housing Act 1989 (determination of formulae for calculating Housing Revenue Account subsidy), the words “and for any year the first such determination shall be made before the 25th December immediately preceding that year” shall cease to have effect.
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The 1987 Act shall have effect subject to the following amendments (being amendments related to the rent to loan scheme).
In section 63—
in subsection (1), after paragraph (c) there shall be inserted the following ; and;
in subsection (2), after paragraph (c), there shall be inserted the following paragraph—
at the end there shall be inserted the following subsection—
In section 67, there shall be inserted at the end the following subsection—
In section 71—
in subsection (1)—
in paragraph (a), after “offer”, in both places where it occurs, there shall be inserted “or amended offer”;
in paragraph (d), after “offer” there shall be inserted “or amended offer” and there shall be added at the end “and, in the case of an amended offer, they do not conform with the requirements of section 63(3)”; and
in subsection (2)—
in paragraph (b), after “offer” there shall be inserted “or amended offer”; and
after “63(2)”there shall be inserted “and, in the case of an amended offer, under section 63(3)”.
In section 82—
after “20” there shall be inserted “214”; and
the “rent to loan purchaser” of a house is the person who exercised his right to purchase it under section 61 by way of the rent to loan scheme or, where section 73D(1) applies, the person whose selling or otherwise disposing of the house or whose death is, by virtue of subsection (2) of that section, the occasion for payment of the deferred financial commitment, that person; “rent to loan scheme” means the provisions of sections 62A and 73A to 73D.
In section 214, there shall be inserted at the end the following subsection—
In section 216, there shall be inserted at the end the following subsection—
After section 66 of the 1987 Act there shall be inserted the following sections—
In section 72 of the 1987 Act (recovery of discount on early resale), after subsection (1) there shall be inserted the following subsection—
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Part I of the 1987 Act shall have effect, and be deemed always to have had effect, as if after section 5 there were inserted the following section—
Schedule 15 to the 1987 Act (the housing revenue account) shall have effect, and be deemed always to have had effect, as if after paragraph 4 there were inserted the following paragraph—
After section 5A of the 1987 Act there shall be inserted the following section—
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After section 17 of the 1987 Act there shall be inserted the following sections—
In section 20 of the 1987 Act (persons to have priority on housing list and allocation of housing) at the end there shall be added the following subsection—
For subsection (1) of section 21 of the 1987 Act (publication of rules relating to the housing list) there shall be substituted the following subsection—
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After subsection (3) of section 299 of the 1987 Act (jurisdiction of sheriff) there shall be added the following subsections—
In section 17 of the 1987 Act (management of local authority houses), in subsection (1), the words “and exercised by” shall cease to have effect.
In section 61 of that Act (secure tenant’s right to purchase), in subsection (10), subparagraphs (i) and (ii) of paragraph (b) shall cease to have effect.
In section 62 of that Act (price)—
in subsection (3)(b), the words “continuous” and “immediately” shall cease to have effect;
after subsection (3) there shall be inserted—;
in subsection (4)—
has the longer or longest such occupation;
at the end there shall be inserted— “ and, for the purposes of subsection (3A), the “appropriate person” is any of the persons mentioned in sub-paragraphs (i) to (iv) of paragraph (a). ”
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after the words “shall not apply” there shall be inserted “(a)”; and
at the end there shall be added—
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There shall be a body corporate to be known as the Urban Regeneration Agency (“the Agency”) for the purpose of exercising the functions conferred on it by the following provisions of this Part.
Schedule 17 to this Act shall have effect with respect to the constitution of the Agency and Schedule 18 to this Act shall have effect with respect to the finances of the Agency.
It is hereby declared that, except as provided by section 175, the Agency is not to be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown and that its property is not to be regarded as the property of, or property held on behalf of, the Crown.
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The main object of the Agency shall be to secure the regeneration of land in England—
which is land of one or more of the descriptions mentioned in subsection (2); and
which the Agency (having regard to guidance, and acting in accordance with directions, given by the Secretary of State under section 167) determines to be suitable for regeneration under this Part.
The descriptions of land referred to in subsection (1)(a) are— and in this subsection “relevant operations” has the same meaning as in section 1 of the Derelict Land Act 1982.
land which is vacant or unused;
land which is situated in an urban area and which is under-used or ineffectively used;
land which is contaminated, derelict, neglected or unsightly; and
land which is likely to become derelict, neglected or unsightly by reason of actual or apprehended collapse of the surface as the result of the carrying out of relevant operations which have ceased to be carried out;
The Agency shall also have the object of securing the development of land in England which the Agency— determines to be suitable for development under this Part.
having regard to guidance given by the Secretary of State under section 167;
acting in accordance with directions given by the Secretary of State under that section; and
with the consent of the Secretary of State,
The objects of the Agency are to be achieved in particular by the following means (or by such of them as seem to the Agency to be appropriate in any particular case), namely—
by securing that land and buildings are brought into effective use;
by developing, or encouraging the development of, existing and new industry and commerce;
by creating an attractive and safe environment;
by facilitating the provision of housing and providing, or facilitating the provision of, social and recreational facilities.
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Subject to the following provisions of this Part, for the purpose of achieving its objects the Agency may—
acquire, hold, manage, reclaim, improve and dispose of land, plant, machinery, equipment and other property;
carry out the development or redevelopment of land, including the conversion or demolition of existing buildings;
carry out building and other operations;
provide means of access, services or other facilities for land;
seek to ensure the provision of water, electricity, gas, sewerage and other services;
carry on any business or undertaking for the purposes of its objects;
with the consent of the Secretary of State, form, or acquire interests in, bodies corporate;
act with other persons, whether in partnership or otherwise;
give financial assistance to other persons;
act as agent for other persons;
provide advisory or other services and facilities; and
generally do anything necessary or expedient for the purposes of its objects or for purposes incidental to those purposes.
Nothing in section 159 or this section shall empower the Agency—
to provide housing otherwise than by acquiring existing housing accommodation and making it available on a temporary basis for purposes incidental to the purposes of its objects;
to acquire an interest in a body corporate which at the time of the acquisition is carrying on a trade or business, if the effect of the acquisition would be to make the body corporate a subsidiary of the Agency; or
except with the consent of the Secretary of State, to dispose of any land otherwise than for the best consideration which can reasonably be obtained.
For the avoidance of doubt it is hereby declared that subsection (1) relates only to the capacity of the Agency as a statutory corporation and nothing in section 159 or this section authorises it to disregard any enactment or rule of law.
In this section— and in this section and the following provisions of this Part references to land include land not falling within subsection (1) or (3) of section 159.
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Subject to subsections (2) and (3), the Secretary of State may by order provide that land specified in the order which is vested in a local authority, statutory undertakers or other public body, or in a wholly-owned subsidiary of a public body, shall vest in the Agency.
An order under subsection (1) may not specify land vested in statutory undertakers which is used for the purpose of carrying on their statutory undertakings or which is held for that purpose.
In the case of land vested in statutory undertakers, the power to make an order under subsection (1) shall be exercisable by the Secretary of State and the appropriate Minister.
An order under subsection (1) shall have the same effect as a declaration under the Compulsory Purchase (Vesting Declarations) Act 1981 except that, in relation to such an order, the enactments mentioned in Schedule 19 to this Act shall have effect with the modifications specified in that Schedule.
Compensation under the Land Compensation Act 1961, as applied by subsection (4) and Schedule 19 to this Act, shall be assessed by reference to values current on the date the order under subsection (1) comes into force.
No compensation is payable, by virtue of an order under subsection (1), under Part IV of the Land Compensation Act 1961.
In this section—
“mortgage” includes a charge or lien;
If any question arises as to which Minister is the appropriate Minister in relation to any statutory undertakers, that question shall be determined by the Treasury.
An order under subsection (1) shall be made by statutory instrument but no such order shall be made unless a draft of the order has been laid before and approved by resolution of each House of Parliament.
An order under subsection (7) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
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The Agency may, for the purpose of achieving its objects or for purposes incidental to that purpose, acquire land by agreement or, on being authorised to do so by the Secretary of State, compulsorily.
The Agency may, for those purposes, be authorised by the Secretary of State, by means of a compulsory purchase order, to acquire compulsorily such new rights over land as are specified in the order.
Where the land referred to in subsection (1) or (2) forms part of a common, open space or fuel or field garden allotment, the Agency may acquire (by agreement or, on being authorised to do so by the Secretary of State, compulsorily) land for giving in exchange for the land or, as the case may be, rights acquired.
Subject to section 169, the Acquisition of Land Act 1981 shall apply to the compulsory acquisition of land by virtue of subsection (1) or (3).
Schedule 3 to that Act shall apply to the compulsory acquisition of a right by virtue of subsection (2) but with the modification that the reference in paragraph 4(3) to statutory undertakers includes a reference to the Agency.
The provisions of Part I of the Compulsory Purchase Act 1965 (so far as applicable), other than section 31, shall apply to the acquisition by the Agency of land by agreement; and in that Part as so applied “land” has the meaning given by the Interpretation Act 1978.
In subsection (2)—
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Any person who is duly authorised in writing by the Agency may at any reasonable time enter any land for the purpose of surveying it, or estimating its value, in connection with—
any proposal to acquire that land or any other land; or
any claim for compensation in respect of any such acquisition.
The power to survey land shall be construed as including power to search and bore for the purpose of ascertaining the nature of the subsoil or the presence of minerals in it.
A person authorised under this section to enter any land—
shall, if so required, produce evidence of his authority before entry, and
shall not demand admission as of right to any land which is occupied unless 28 days' notice of the intended entry has been given to the occupier by the Agency.
Any person who wilfully obstructs a person acting in exercise of his powers under this section shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 2 on the standard scale.
If any person who, in compliance with the provisions of this section, is admitted into a factory, workshop or workplace discloses to any person any information obtained by him in it as to any manufacturing process or trade secret, he shall be guilty of an offence.
Subsection (5) does not apply if the disclosure is made by a person in the course of performing his duty in connection with the purpose for which he was authorised to enter the premises.
A person who is guilty of an offence under subsection (5) shall be liable on summary conviction to a fine not exceeding the statutory maximum or on conviction on indictment to imprisonment for a term not exceeding two years or a fine or both.
Where any land is damaged— compensation in respect of that damage may be recovered by any person interested in the land from the Agency.
in the exercise of a right of entry under this section, or
in the making of any survey under this section,
The provisions of section 118 of the Town and Country Planning Act 1990 (determination of claims for compensation) shall apply in relation to compensation under subsection (8) as they apply in relation to compensation under Part IV of that Act.
No person shall carry out under this section any works authorised by virtue of subsection (2) unless notice of his intention to do so was included in the notice required by subsection (3).
The authority of the appropriate Minister shall be required for the carrying out of any such works if— and expressions used in this subsection have the same meanings as they have in section 325(9) of the Town and Country Planning Act 1990 (supplementary provisions as to rights of entry).
the land in question is held by statutory undertakers; and
they object to the proposed works on the ground that the execution of the works would be seriously detrimental to the carrying on of their undertaking;
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The consent of the Secretary of State is required for the exercise of the Agency’s power to give financial assistance; and such assistance—
may be given by the Agency only in respect of qualifying expenditure; and
may be so given on such terms and conditions as the Agency, with the consent of the Secretary of State, considers appropriate.
Expenditure incurred in connection with any of the following matters is qualifying expenditure—
the acquisition of land;
the reclamation, improvement or refurbishment of land;
the development or redevelopment of land, including the conversion or demolition of existing buildings;
the equipment or fitting out of land;
the provision of means of access, services or other facilities for land;
environmental improvements.
Financial assistance may be given in any form and may, in particular, be given by way of— but the Agency shall not in giving financial assistance purchase loan or share capital in a company.
grants;
loans;
guarantees; or
incurring expenditure for the benefit of the person assisted;
A consent under subsection (1) may be given only with the approval of the Treasury.
The terms and conditions on which financial assistance is given may, in particular, include provision as to—
the circumstances in which the assistance must be repaid, or otherwise made good, to the Agency, and the manner in which that is to be done;
the circumstances in which the Agency is entitled to recover the proceeds or part of the proceeds of any disposal of land in respect of which the assistance was provided.
Any person receiving financial assistance shall comply with the terms and conditions on which it is given and compliance may be enforced by the Agency.
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For the purpose of achieving its objects or for purposes incidental to that purpose, the Agency may serve a notice (a “connection notice”) on the local highway authority requiring the authority to connect a private street to an existing highway (whether or not it is a highway which for the purposes of the Highways Act 1980 is a highway maintainable at the public expense).
A connection notice must specify—
the private street and the existing highway;
the works which appear to the Agency to be necessary to make the connection; and
the period within which those works should be carried out.
Before serving a connection notice the Agency shall consult the local highway authority about the proposed contents of the notice.
Within the period of two months beginning with the date on which the connection notice was served, the local highway authority may appeal against the notice to the Secretary of State.
After considering any representations made to him by the Agency and the local highway authority, the Secretary of State shall determine an appeal under subsection (4) by setting aside or confirming the connection notice (with or without modifications).
A connection notice becomes effective—
where no appeal is made within the period of two months referred to in subsection (4), upon the expiry of that period;
where an appeal is made within that period but is withdrawn before it has been determined by the Secretary of State, on the date following the expiry of the period of 21 days beginning with the date on which the Secretary of State is notified of the withdrawal;
where an appeal is made and the connection notice is confirmed by a determination under subsection (5), on such date as the Secretary of State may specify in the determination.
Where a connection notice becomes effective, the local highway authority shall carry out the works specified in the notice within such period as may be so specified and may recover from the Agency the expenses reasonably incurred by them in doing so.
If the local highway authority do not carry out the works specified in the notice within such period as may be so specified, the Agency may itself carry out or complete those works or arrange for another person to do so.
In this section “local highway authority” has the same meaning as in the Highways Act 1980.
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may be given unconditionally or subject to conditions;
may be given in relation to a particular case or in relation to such descriptions of case as may be specified in the consent; and
except in relation to anything already done or agreed to be done on the authority of the consent, may be varied or revoked by a notice given by the Secretary of State to the Agency.
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The Agency shall have regard to guidance from time to time given by the Secretary of State in deciding—
which land is suitable for regeneration or development under this Part; and
which of its functions under this Part it is to exercise for securing the regeneration or development of any particular land and how it is to exercise those functions.
Without prejudice to any of the foregoing provisions of this Part requiring the consent of the Secretary of State to be obtained for anything to be done by the Agency, he may give directions to the Agency—
for restricting the exercise by it of any of its functions under this Part; or
for requiring it to exercise those functions in any manner specified in the directions.
Directions under subsection (2) may be of a general or particular nature and may be varied or revoked by subsequent directions.
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A transaction between a person and the Agency shall not be invalidated by reason only of any failure by the Agency to observe its objects or the requirement in subsection (1) of section 160 that the Agency shall exercise the powers conferred by that subsection for the purpose of achieving its objects, and such a person shall not be concerned to see or enquire whether there has been any such failure.
A transaction between a person and the Agency acting in purported exercise of its functions under this Part shall not be invalidated by reason only that it was carried out in contravention of any direction given under subsection (2) of section 167, and such a person shall not be concerned to see or enquire whether any directions under that subsection have been given or complied with.
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Schedule 20 to this Act shall have effect.
Part I of that Schedule modifies the Acquisition of Land Act 1981 as applied by section 162.
Part II of that Schedule contains supplementary provisions about land vested in or acquired by the Agency under this Part.
Part III of that Schedule contains supplementary provisions about the acquisition by the Agency of rights over land by virtue of section 162(2).
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Where, as respects any area in England which is an urban area or which, in the opinion of the Secretary of State, is suitable for urban development, it appears to the Secretary of State— the Secretary of State may by order designate that area and either so make the provision or provisions, or direct that the section or sections shall so apply, or (as the case may require) do both of those things.
that all or any of the provisions authorised by section 171 should be made in relation to the whole or any part of it; or
that either or both of sections 172 and 173 should apply in relation to it,
In this Part “designation order” means an order under this section and “designated area” means, subject to subsection (5), an area designated by a designation order.
Before making a designation order the Secretary of State shall consult every local authority any part of whose area is intended to be included in the proposed designated area.
A designation order—
shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament; and
may contain such savings and transitional and supplementary provisions as may be specified in the order.
The power to amend a designation order conferred by section 14 of the Interpretation Act 1978 includes power to amend the boundaries of the designated area; and where any such amendment is made, any reference in this Part to a designated area is a reference to the designated area as so amended.
In this section “local authority” means a county council, a district council, a London borough council or the Common Council of the City of London.
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If a designation order so provides, the Agency shall be the local planning authority for the whole or any part of the designated area—
for such purposes of Part III of the Town and Country Planning Act 1990 and sections 67 and 73 of the Planning (Listed Buildings and Conservation Areas) Act 1990 as may be specified in the order; and
in relation to such kinds of development as may be so specified.
A designation order making such provision as is mentioned in subsection (1) may also provide—
that any enactment relating to local planning authorities shall not apply to the Agency; and
that any such enactment which applies to the Agency shall apply to it subject to such modifications as may be specified in the order.
If a designation order so provides—
subject to any modifications specified in the order, the Agency shall have, in the whole or any part of the designated area, such of the functions conferred by the provisions mentioned in subsection (4) as may be so specified; and
such of the provisions of Part VI and sections 249 to 251 and 258 of the Town and Country Planning Act 1990 and sections 32 to 37 of the Planning (Listed Buildings and Conservation Areas) Act 1990 as are mentioned in the order shall have effect, in relation to the Agency and to land in the designated area, subject to the modifications there specified.
The provisions referred to in subsection (3)(a) are—
sections 171C, 171D, 172 to 185, 187 to 202, 206 to 222, 224, 225, 231 and 320 to 336 of, and paragraph 11 of Schedule 9 to, the Town and Country Planning Act 1990;
Chapters I, II and IV of Part I and sections 54 to 56, 59 to 61, 66, 68 to 72, 74 to 76 and 88 of the Planning (Listed Buildings and Conservation Areas) Act 1990; and
sections 4 to 15, 17 to 21, 23 to 26AA, 36 and 36A of the Planning (Hazardous Substances) Act 1990.
A designation order making such provision as is mentioned in subsection (3) may also provide that, for the purposes of any of the provisions specified in the order, any enactment relating to local planning authorities shall apply to the Agency subject to such modifications as may be so specified.
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Where— the Agency may serve a notice (an “adoption notice”) on the street works authority requiring the authority to declare the street (or part) to be a highway which for the purposes of the Highways Act 1980 is a highway maintainable at the public expense.
this section applies in relation to a designated area; and
any street works have been executed on any land in the designated area which was then or has since become a private street (or part of a private street),
Within the period of two months beginning with the date on which the adoption notice was served, the street works authority may appeal against the notice to the Secretary of State.
After considering any representations made to him by the Agency and the street works authority, the Secretary of State shall determine an appeal under subsection (2) by setting aside or confirming the adoption notice (with or without modifications).
Where, under subsection (3), the Secretary of State confirms the adoption notice—
he may at the same time impose conditions (including financial conditions) upon the Agency with which it must comply in order for the notice to take effect; and
with effect from such date as the Secretary of State may specify, the street (or part) shall become a highway which for the purposes of the Highways Act 1980 is a highway maintainable at the public expense.
Where a street works authority neither complies with the adoption notice, nor appeals under subsection (2), the street (or part) shall become, upon the expiry of the period of two months referred to in subsection (2), a highway which for the purposes of the Highways Act 1980 is a highway maintainable at the public expense.
In this section “street works” and “street works authority” have the same meanings as in Part XI of the Highways Act 1980.
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Where— the Secretary of State may by order under this section make in relation to the road any such provision as he might have made by order under that section if he had been the traffic authority.
this section applies in relation to a designated area;
the Agency submits to the Secretary of State that an order under this section should be made in relation to any road in the designated area which is a private street; and
it appears to the Secretary of State that the traffic authority do not intend to make an order under section 1 or, as the case may be, section 6 of the Road Traffic Regulation Act 1984 (orders concerning traffic regulation) in relation to the road,
The Road Traffic Regulation Act 1984 applies to an order under this section as it applies to an order made by the Secretary of State under section 1 or, as the case may be, section 6 of that Act in relation to a road for which he is the traffic authority.
In this section “road” and “traffic authority” have the same meanings as in the Road Traffic Regulation Act 1984.
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The Secretary of State may, on such terms as he may with the approval of the Treasury specify, appoint the Agency to act as his agent in connection with such of the functions mentioned in subsection (2) as he may specify; and where such an appointment is made, the Agency shall act as such an agent in accordance with the terms of its appointment.
The functions referred to in subsection (1) are—
functions under section 1 of the Derelict Land Act 1982 or any enactment superseded by that section (grants for reclaiming or improving land or bringing land into use), other than the powers to make orders under subsections (5) and (7) of that section; and
so far as exercisable in relation to England, functions under sections 27 to 29 of the Housing and Planning Act 1986 (financial assistance for urban regeneration).
In so far as an appointment under subsection (1) relates to functions mentioned in subsection (2)(b), the terms of the appointment shall preclude the Agency from giving financial assistance in respect of expenditure which is not qualifying expenditure within the meaning of section 164.
In subsection (1) of section 98 (disposal of land by public bodies at direction of Secretary of State) of the Local Government, Planning and Land Act 1980 (“the 1980 Act”)—
in paragraph (a), for the words “is for the time being entered on a register maintained by him under section 95 above” there shall be substituted the words “ for the time being satisfies the conditions specified in section 95(2) above ”; and
in paragraph (b), for the words “is for the time being entered on such a register” there shall be substituted the words “ for the time being satisfies those conditions ”.
In section 99A of that Act (powers of entry), subsection (2) (which precludes entry on land which is not for the time being entered on a register maintained under section 95) shall cease to have effect.
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The Agency may, with the consent of the Secretary of State, appoint an urban development corporation, on such terms as may be agreed, to act as its agent in connection with such of its functions (other than its power to give financial assistance) as may be specified in the appointment; and where such an appointment is made, the urban development corporation shall act as such an agent in accordance with the terms of its appointment.
For the purpose of assisting the Agency to carry out any of its functions, an urban development corporation, on being so requested by the Agency, may arrange for any of its property or staff to be made available to the Agency for such period and on such other terms as it thinks fit.
In this section “urban development corporation” means a corporation established by an order under section 135 of the 1980 Act.
For section 157 of the 1980 Act (highways) there shall be substituted the following sections—
After subsection (3) of section 134 (urban development areas) of the 1980 Act there shall be inserted the following subsections—
In subsection (4) of that section, for the words “this section” there shall be substituted the words “ subsection (1) above ”.
After that subsection there shall be inserted the following subsection—
In section 135(2) of that Act (establishment of urban development corporations), for the words “section 134” there shall be substituted the words “ section 134(1) ”.
“urban development area” means so much of an area designated by an order under subsection (1) of section 134 above as is not excluded from it by an order under subsection (3A) of that section;
In subsection (1) of section 165 of the 1980 Act (power to transfer undertaking of urban development corporation), after the words “local authority”, in both places where they occur, there shall be inserted the words “ or other body ”.
Subsection (3) of that section (transfer of liabilities by order) shall cease to have effect; and after that section there shall be inserted the following section—
In subsection (9) of that section—
after the words “this section” there shall be inserted the words “ and sections 165A and 166 below ”;
for the words “the section”, in both places where they occur, there shall be substituted the words “ the sections ”.
For subsection (1) of section 166 of that Act (dissolution of urban development corporations) there shall be substituted the following subsection—
For subsection (5) of that section there shall be substituted the following subsection—
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In subsection (1) of section 69 of the Housing Act 1988 (powers of housing action trusts with respect to private streets), for the words “in a private street (or part of a private street) in a designated area” there shall be substituted the words “ on any land in a designated area which was then or has since become a private street (or part of a private street) ”.
In subsection (2) of that section, the words from “on grounds” onwards shall be omitted.
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This section has effect in relation to any notice required or authorised by this Part to be given to or served on any person.
Any such notice may be given to or served on the person in question either by delivering it to him, or by leaving it at his proper address, or by sending it by post to him at that address.
Any such notice may—
in the case of a body corporate, be given to or served on the secretary or clerk of that body; and
in the case of a partnership, be given to or served on a partner or a person having the control or management of the partnership business.
For the purposes of this section and of section 7 of the Interpretation Act 1978 (service of documents by post) in its application to this section, the proper address of any person to or on whom a notice is to be given or served shall be his last known address, except that— and for the purposes of this subsection the principal office of a company registered outside the United Kingdom or of a partnership carrying on business outside the United Kingdom shall be its principal office within the United Kingdom.
in the case of a body corporate or its secretary or clerk, it shall be the address of the registered or principal office of that body; and
in the case of a partnership, a partner or a person having the control or management of the partnership business, it shall be that of the principal office of the partnership;
If the person to be given or served with any notice mentioned in subsection (1) has specified an address within the United Kingdom other than his proper address within the meaning of subsection (4) as the one at which he or someone on his behalf will accept documents of the same description as that notice, that address shall also be treated for the purposes of this section and section 7 of the Interpretation Act 1978 as his proper address.
If the name or address of any owner, lessee or occupier of land to or on whom any notice mentioned in subsection (1) is to be served cannot after reasonable inquiry be ascertained, the document may be served either by leaving it in the hands of a person who is or appears to be resident or employed on the land or by leaving it conspicuously affixed to some building or object on the land.
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The English Industrial Estates Corporation shall cease to exist on the commencement of this section.
All the property, rights and liabilities to which that Corporation was entitled or subject immediately before that commencement shall become by virtue of this section property, rights and liabilities of the Agency.
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There shall be paid out of money provided by Parliament—
any expenses of the Secretary of State incurred in consequence of this Act; and
any increase attributable to this Act in the sums payable out of money so provided under any other enactment.
There shall be paid into the Consolidated Fund any increase attributable to this Act in the sums payable into that Fund under any other enactment.
The enactments mentioned in Schedule 21 to this Act shall have effect subject to the amendments there specified (being minor amendments and amendments consequential on the provisions of this Act).
The enactments mentioned in Schedule 22 to this Act (which include some that are spent or no longer of practical utility) are hereby repealed to the extent specified in the third column of that Schedule.
This Act may be cited as the Leasehold Reform, Housing and Urban Development Act 1993.
This Act, except— shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint; and different days may be so appointed for different provisions or for different purposes.
this section;
sections 126 and 127, 135 to 140, 149 to 151, 181(1), (2) and (4) and 186; and
the repeal in section 80(1) of the Local Government and Housing Act 1989,
An order under subsection (2) may contain such transitional provisions and savings (whether or not involving the modification of any statutory provision) as appear to the Secretary of State necessary or expedient in connection with the provisions thereby brought into force by the order.
The following, namely— extend to England and Wales only.
Part I of this Act;
Chapter I of Part II of this Act; and
subject to subsection (6), Part III of this Act,
Chapter II of Part II of this Act extends to Scotland only.
In Part III of this Act—
sections [174], 179 and 180 also extend to Scotland; ...
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This Part, except this section, paragraph 3 of Schedule 21 and the repeals in the House of Commons Disqualification Act 1975 and the Northern Ireland Assembly Disqualification Act 1975, does not extend to Northern Ireland.