Announcement of India to Build One Billion Dollar Power Plant on June 18, 1984
Land is commonhold land if—
the freehold estate in the land is registered as a freehold estate in commonhold land,
the land is specified in the articles of association of a commonhold association as the land in relation to which the association is to exercise functions, and
a commonhold community statement makes provision for rights and duties of the commonhold association and unit-holders (whether or not the statement has come into force).
In this Part a reference to a commonhold is a reference to land in relation to which a commonhold association exercises functions.
In this Part—
“commonhold association” has the meaning given by section 34,
a separate set of premises let, or intended for letting, on a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies.
“unit” means—
Sub-paragraph (3) applies where a grant— The grant shall be treated as if it purported to be a grant of the term referred to in sub-paragraph (2)(b) (and sections 17 and 18 of the Commonhold and Leasehold Reform Act 2002 (residential and non-residential leases) shall apply accordingly).
At the end of section 118 of the Housing Act 1985 (the right to buy) there shall be added—
At the end of section 7 of the Trusts of Land and Appointment of Trustees Act 1996 (partition by trustees) there shall be added—
For section 23 of the 1985 Act (information held by superior landlord) substitute—
In section 25(1) of the 1985 Act (offences), for “by section 21, 22 or 23” substitute “ by or by virtue of any of sections 21 to 23A ”.
“prescribed” means prescribed by regulations made by the appropriate national authority.
“administration charge” has the same meaning as in Part 1 of Schedule 11,
Sections 7 and 9 make provision for the vesting in the commonhold association of the fee simple in possession in the common parts of a commonhold.
The Registrar shall register a freehold estate in land as a freehold estate in commonhold land if—
the registered freeholder of the land makes an application under this section, and
no part of the land is already commonhold land.
An application under this section must be accompanied by the documents listed in Schedule 1.
A person is the registered freeholder of land for the purposes of this Part if—
he is registered as the proprietor of a freehold estate in the land with absolute title, or
he has applied, and the Registrar is satisfied that he is entitled, to be registered as mentioned in paragraph (a).
An application under section 2 may not be made in respect of a freehold estate in land without the consent of anyone who—
is the registered proprietor of the freehold estate in the whole or part of the land,
is the registered proprietor of a leasehold estate in the whole or part of the land granted for a term of more than than 21 years,
is the registered proprietor of a charge over the whole or part of the land, or
falls within any other class of person which may be prescribed.
Regulations shall make provision about consent for the purposes of this section; in particular, the regulations may make provision—
prescribing the form of consent;
about the effect and duration of consent (including provision for consent to bind successors);
about withdrawal of consent (including provision preventing withdrawal in specified circumstances);
for consent given for the purpose of one application under section 2 to have effect for the purpose of another application;
for consent to be deemed to have been given in specified circumstances;
enabling a court to dispense with a requirement for consent in specified circumstances.
An order under subsection (2)(f) dispensing with a requirement for consent—
may be absolute or conditional, and
may make such other provision as the court thinks appropriate.
Schedule 2 (which provides that an application under section 2 may not relate wholly or partly to land of certain kinds) shall have effect.
The Registrar shall ensure that in respect of any commonhold land the following are kept in his custody and referred to in the register—
the prescribed details of the commonhold association;
the prescribed details of the registered freeholder of each commonhold unit;
a copy of the commonhold community statement;
a copy of the articles of association of the commonhold association.
The Registrar may arrange for a document or information to be kept in his custody and referred to in the register in respect of commonhold land if the document or information—
is not mentioned in subsection (1), but
is submitted to the Registrar in accordance with a provision made by or by virtue of this Part.
Subsection (1)(b) shall not apply during a transitional period within the meaning of section 8.
This section applies where a freehold estate in land is registered as a freehold estate in commonhold land and—
the application for registration was not made in accordance with section 2,
the certificate under paragraph 7 of Schedule 1 was inaccurate, or
the registration contravened a provision made by or by virtue of this Part.
The register may not be altered by the Registrar under Schedule 4 to the Land Registration Act 2002 (c. 9) (alteration of register).
The court may grant a declaration that the freehold estate should not have been registered as a freehold estate in commonhold land.
A declaration under subsection (3) may be granted only on the application of a person who claims to be adversely affected by the registration.
On granting a declaration under subsection (3) the court may make any order which appears to it to be appropriate.
An order under subsection (5) may, in particular—
provide for the registration to be treated as valid for all purposes;
provide for alteration of the register;
provide for land to cease to be commonhold land;
require a director or other specified officer of a commonhold association to take steps to alter or amend a document;
require a director or other specified officer of a commonhold association to take specified steps;
make an award of compensation (whether or not contingent upon the occurrence or non-occurrence of a specified event) to be paid by one specified person to another;
apply, disapply or modify a provision of Schedule 8 to the Land Registration Act 2002 (c. 9) (indemnity).
This section applies where—
a freehold estate in land is registered as a freehold estate in commonhold land in pursuance of an application under section 2, and
the application is not accompanied by a statement under section 9(1)(b).
On registration—
the applicant shall continue to be registered as the proprietor of the freehold estate in the commonhold land, and
the rights and duties conferred and imposed by the commonhold community statement shall not come into force (subject to section 8(2)(b)).
Where after registration a person other than the applicant becomes entitled to be registered as the proprietor of the freehold estate in one or more, but not all, of the commonhold units—
the commonhold association shall be entitled to be registered as the proprietor of the freehold estate in the common parts,
the Registrar shall register the commonhold association in accordance with paragraph (a) (without an application being made),
the rights and duties conferred and imposed by the commonhold community statement shall come into force, and
any lease of the whole or part of the commonhold land shall be extinguished by virtue of this section.
For the purpose of subsection (3)(d) “lease” means a lease which—
is granted for any term, and
is granted before the commonhold association becomes entitled to be registered as the proprietor of the freehold estate in the common parts.
In this Part “transitional period” means the period between registration of the freehold estate in land as a freehold estate in commonhold land and the event mentioned in section 7(3).
Regulations may provide that during a transitional period a relevant provision—
shall not have effect, or
shall have effect with specified modifications.
In subsection (2) “relevant provision” means a provision made—
by or by virtue of this Part,
by a commonhold community statement, or
by the articles of the commonhold association.
The Registrar shall arrange for the freehold estate in land to cease to be registered as a freehold estate in commonhold land if the registered proprietor makes an application to the Registrar under this subsection during the transitional period.
The provisions about consent made by or under sections 2 and 3 and Schedule 1 shall apply in relation to an application under subsection (4) as they apply in relation to an application under section 2.
A reference in this Part to a commonhold association exercising functions in relation to commonhold land includes a reference to a case where a commonhold association would exercise functions in relation to commonhold land but for the fact that the time in question falls in a transitional period.
This section applies in relation to a freehold estate in commonhold land if—
it is registered as a freehold estate in commonhold land in pursuance of an application under section 2, and
the application is accompanied by a statement by the applicant requesting that this section should apply.
A statement under subsection (1)(b) must include a list of the commonhold units giving in relation to each one the prescribed details of the proposed initial unit-holder or joint unit-holders.
On registration—
the commonhold association shall be entitled to be registered as the proprietor of the freehold estate in the common parts,
a person specified by virtue of subsection (2) as the initial unit-holder of a commonhold unit shall be entitled to be registered as the proprietor of the freehold estate in the unit,
a person specified by virtue of subsection (2) as an initial joint unit-holder of a commonhold unit shall be entitled to be registered as one of the proprietors of the freehold estate in the unit,
the Registrar shall make entries in the register to reflect paragraphs (a) to (c) (without applications being made),
the rights and duties conferred and imposed by the commonhold community statement shall come into force, and
any lease of the whole or part of the commonhold land shall be extinguished by virtue of this section.
For the purpose of subsection (3)(f) “lease” means a lease which—
is granted for any term, and
is granted before the commonhold association becomes entitled to be registered as the proprietor of the freehold estate in the common parts.
This section applies where—
a lease is extinguished by virtue of section 7(3)(d) or 9(3)(f), and
the consent of the holder of that lease was not among the consents required by section 3 in respect of the application under section 2 for the land to become commonhold land.
If the holder of a lease superior to the extinguished lease gave consent under section 3, he shall be liable for loss suffered by the holder of the extinguished lease.
If the holders of a number of leases would be liable under subsection (2), liability shall attach only to the person whose lease was most proximate to the extinguished lease.
If no person is liable under subsection (2), the person who gave consent under section 3 as the holder of the freehold estate out of which the extinguished lease was granted shall be liable for loss suffered by the holder of the extinguished lease.
In this Part “commonhold unit” means a commonhold unit specified in a commonhold community statement in accordance with this section.
A commonhold community statement must—
specify at least two parcels of land as commonhold units, and
define the extent of each commonhold unit.
In defining the extent of a commonhold unit a commonhold community statement—
must refer to a plan which is included in the statement and which complies with prescribed requirements,
may refer to an area subject to the exclusion of specified structures, fittings, apparatus or appurtenances within the area,
may exclude the structures which delineate an area referred to, and
may refer to two or more areas (whether or not contiguous).
A commonhold unit need not contain all or any part of a building.
A person is the unit-holder of a commonhold unit if he is entitled to be registered as the proprietor of the freehold estate in the unit (whether or not he is registered).
Two or more persons are joint unit-holders of a commonhold unit if they are entitled to be registered as proprietors of the freehold estate in the unit (whether or not they are registered).
In the application of the following provisions to a unit with joint unit-holders a reference to a unit-holder is a reference to the joint unit-holders together—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
section 15(1). . . ,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
section 20(1),
section 23(1),
section 35(1)(b), and
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
section 47(2).
In the application of the following provisions to a unit with joint unit-holders a reference to a unit-holder includes a reference to each joint unit-holder and to the joint unit-holders together—
section 1(1)(c),
section 16,
section 14(3),
section 31(1)(b), (3)(b), (5)(j) and (7),
section 15(3),
section 32(4)(a) and (c),
section 35(1)(a), (2) and (3),
section 19(2) and (3),
section 37(2),
section 40(1), and
section 58(3)(a).
section 38(1),
section 38A(1),
section 39(2),
Regulations under this Part which refer to a unit-holder shall make provision for the construction of the reference in the case of joint unit-holders.
Regulations may amend subsection (2) or (3).
Regulations may make provision for the construction in the case of joint unit-holders of a reference to a unit-holder in—
an enactment,
a commonhold community statement,
the articles of association of a commonhold association, or
another document.
A commonhold community statement must make provision regulating the use of commonhold units.
A commonhold community statement must make provision imposing duties in respect of the insurance, repair and maintenance of each commonhold unit.
A duty under subsection (2) may be imposed on the commonhold association or the unit-holder.
A commonhold community statement for a higher-risk commonhold must make provision requiring the commonhold association to comply with its duties under Part 4 of the Building Safety Act 2022, or regulations made under that Part of the Act, in relation to each commonhold unit.
In this Part a reference to the transfer of a commonhold unit is a reference to the transfer of a unit-holder’s freehold estate in a unit to another person—
whether or not for consideration,
whether or not subject to any reservation or other terms, and
whether or not by operation of law.
A commonhold community statement may not prevent or restrict the transfer of a commonhold unit.
On the transfer of a commonhold unit the new unit-holder shall notify the commonhold association of the transfer.
Regulations may—
prescribe the form and manner of notice under subsection (3);
prescribe the time within which notice is to be given;
make provision (including provision requiring the payment of money) about the effect of failure to give notice.
A right or duty conferred or imposed— shall affect a new unit-holder in the same way as it affected the former unit-holder.
by a commonhold community statement, or
in accordance with section 20,
A former unit-holder shall not incur a liability or acquire a right—
under or by virtue of the commonhold community statement, or
by virtue of anything done in accordance with section 20.
Subsection (2)—
shall not be capable of being disapplied or varied by agreement, and
is without prejudice to any liability or right incurred or acquired before a transfer takes effect.
In this section—
“declaration of solvency” means a directors’ statutory declaration made in accordance with section 89 of the Insolvency Act 1986 (c. 45),
Regulations shall make provision about the form and content of the articles. A commonhold association may adopt provisions of the regulations for its articles. The regulations may include provision which is to have effect for a commonhold association whether or not it is adopted under sub-paragraph (2). A provision of the articles shall have no effect to the extent that it is inconsistent with the regulations. Regulations under this paragraph shall have effect in relation to articles— Section 20 of the Companies Act 2006 (default application of model articles) does not apply to a commonhold association.
A person is entitled to be entered in the register of members of a commonhold association if he becomes the unit-holder of a commonhold unit in relation to which the association exercises functions—
on the unit becoming commonhold land by registration with unit-holders under section 9, or
on the transfer of the unit.
A person may not become a member of a commonhold association otherwise than by virtue of a provision of this Schedule.
Paragraph 2 of the Schedule to the 1985 Act (request for summary of insurance cover) is amended as follows. In sub-paragraph (1), for “require the landlord in writing” substitute “ by notice in writing require the landlord ”. In sub-paragraph (2), for “request may be made” substitute “ notice may be served ”. In sub-paragraph (3)— In sub-paragraph (4), for “one month of the request,” substitute “ the period of twenty-one days beginning with the day on which he receives the notice, ”. In sub-paragraph (6), for “request” substitute “ notice ”.
Section 79 of the 1993 Act (rights exercisable in connection with management audit) is amended as follows. In subsection (1), for “subsection (2)” substitute “ subsections (2) and (2A) ”. For subsection (2) substitute— In subsection (3), for “subsection (2)” substitute “ subsections (2) and (2A) ”. For subsections (5) and (6) substitute— In subsection (8)(a), for “being afforded any such facilities as are mentioned in subsection (2)” substitute “ a requirement imposed under subsection (2) or (2A) ”.
For paragraph 3 of that Schedule (request to inspect insurance policy etc. after obtaining summary of insurance cover) substitute—
In section 80(3) of the 1993 Act (matters to be contained in notice of exercise of right management audit), for paragraph (c) substitute—.
Paragraph 4 of that Schedule (insurance effected by superior landlord) is amended as follows. In sub-paragraph (1)— In sub-paragraph (2)—
Section 81 of the 1993 Act (procedure following giving of notice under section 80) is amended as follows. In subsection (1), for paragraphs (a) and (b) substitute—. in the case of every document or description of document specified in the notice. In subsection (5), for “paragraph (a) or (b) of section 79(2)” substitute “ section 79(2) or (2A) ”.
After that paragraph insert—
In section 82 of the 1993 Act (information held by superior landlord), for subsections (1) and (2) substitute—
In paragraph 5 of that Schedule, for the words from “the validity” onwards substitute “ any duty imposed by virtue of any of paragraphs 2 to 4A; but a person is not required to comply with more than a reasonable number of requirements imposed by any one person. ”
In paragraph 6 of that Schedule, for “paragraph 2, 3 or 4” substitute “ any of paragraphs 2 to 4A ”; and for the heading before that paragraph substitute “ Offence of failure to comply ”.
During the period beginning with incorporation of a commonhold association and ending when land specified in its articles becomes commonhold land, the subscribers (or subscriber) to the association's memorandum of association shall be the sole members (or member) of the association.
This paragraph applies where two or more persons become joint unit-holders of a commonhold unit— If the joint unit-holders nominate one of themselves for the purpose of this sub-paragraph, he is entitled to be entered in the register of members of the commonhold association which exercises functions in relation to the unit. A nomination under sub-paragraph (2) must— If no nomination is received by the association before the end of the prescribed period the person whose name appears first in the proprietorship register is on the expiry of that period entitled to be entered in the register of members of the association. On the application of a joint unit-holder the court may order that a joint unit-holder is entitled to be entered in the register of members of a commonhold association in place of a person who is or would be entitled to be registered by virtue of sub-paragraph (4). If joint unit-holders nominate one of themselves for the purpose of this sub-paragraph, the nominated person is entitled to be entered in the register of members of the commonhold association in place of the person entered by virtue of—
A person who is entitled to be entered in the register of members of a commonhold association becomes a member when the company registers him in pursuance of its duty under section 113 of the Companies Act 2006 (duty to maintain register of members).
Section 112(1) of the Companies Act 2006 (initial members of company) applies to a commonhold association subject to the provisions of this Schedule. The following provisions of that Act do not apply to a commonhold association— section 112(2) (new members); section 136 (membership of holding company).
It shall not be possible to create a term of years absolute in a residential commonhold unit unless the term satisfies prescribed conditions.
The conditions may relate to—
length;
the circumstances in which the term is granted;
any other matter.
Subject to subsection (4), an instrument or agreement shall be of no effect to the extent that it purports to create a term of years in contravention of subsection (1).
Where an instrument or agreement purports to create a term of years in contravention of subsection (1) a party to the instrument or agreement may apply to the court for an order—
providing for the instrument or agreement to have effect as if it provided for the creation of a term of years of a specified kind;
providing for the return or payment of money;
making such other provision as the court thinks appropriate.
A commonhold unit is residential if provision made in the commonhold community statement by virtue of section 14(1) requires it to be used only—
for residential purposes, or
for residential and other incidental purposes.
An instrument or agreement which creates a term of years absolute in a commonhold unit which is not residential (within the meaning of section 17) shall have effect subject to any provision of the commonhold community statement.
Regulations may—
impose obligations on a tenant of a commonhold unit;
enable a commonhold community statement to impose obligations on a tenant of a commonhold unit.
Regulations under subsection (1) may, in particular, require a tenant of a commonhold unit to make payments to the commonhold association or a unit-holder in discharge of payments which—
are due in accordance with the commonhold community statement to be made by the unit-holder, or
are due in accordance with the commonhold community statement to be made by another tenant of the unit.
Regulations under subsection (1) may, in particular, provide—
for the amount of payments under subsection (2) to be set against sums owed by the tenant (whether to the person by whom the payments were due to be made or to some other person);
for the amount of payments under subsection (2) to be recovered from the unit-holder or another tenant of the unit.
Regulations may modify a rule of law about leasehold estates (whether deriving from the common law or from an enactment) in its application to a term of years in a commonhold unit.
Regulations under this section—
may make provision generally or in relation to specified circumstances, and
may make different provision for different descriptions of commonhold land or commonhold unit.
A commonhold community statement may not prevent or restrict the creation, grant or transfer by a unit-holder of—
an interest in the whole or part of his unit, or
a charge over his unit.
Subsection (1) is subject to sections 17 to 19 (which impose restrictions about leases).
It shall not be possible to create an interest of a prescribed kind in a commonhold unit unless the commonhold association—
is a party to the creation of the interest, or
consents in writing to the creation of the interest.
A commonhold association may act as described in subsection (3)(a) or (b) only if—
the association passes a resolution to take the action, and
at least 75 per cent. of those who vote on the resolution vote in favour.
An instrument or agreement shall be of no effect to the extent that it purports to create an interest in contravention of subsection (3).
In this section “interest” does not include—
a charge, or
an interest which arises by virtue of a charge.
It shall not be possible to create an interest in part only of a commonhold unit.
But subsection (1) shall not prevent—
the creation of a term of years absolute in part only of a residential commonhold unit where the term satisfies prescribed conditions,
the creation of a term of years absolute in part only of a non-residential commonhold unit, or
the transfer of the freehold estate in part only of a commonhold unit where the commonhold association consents in writing to the transfer.
An instrument or agreement shall be of no effect to the extent that it purports to create an interest in contravention of subsection (1).
Subsection (5) applies where—
land becomes commonhold land or is added to a commonhold unit, and
immediately before that event there is an interest in the land which could not be created after that event by reason of subsection (1).
The interest shall be extinguished by virtue of this subsection to the extent that it could not be created by reason of subsection (1).
Section 17(2) and (4) shall apply (with any necessary modifications) in relation to subsection (2)(a) and (b) above.
Where part only of a unit is held under a lease, regulations may modify the application of a provision which—
is made by or by virtue of this Part, and
applies to a unit-holder or a tenant or both.
Section 20(4) shall apply in relation to subsection (2)(c) above.
Where the freehold interest in part only of a commonhold unit is transferred, the part transferred—
becomes a new commonhold unit by virtue of this subsection, or
in a case where the request for consent under subsection (2)(c) states that this paragraph is to apply, becomes part of a commonhold unit specified in the request.
Regulations may make provision, or may require a commonhold community statement to make provision, about—
registration of units created by virtue of subsection (9);
the adaptation of provision made by or by virtue of this Part or by or by virtue of a commonhold community statement to a case where units are created or modified by virtue of subsection (9).
It shall not be possible to create a charge over part only of an interest in a commonhold unit.
An instrument or agreement shall be of no effect to the extent that it purports to create a charge in contravention of subsection (1).
Subsection (4) applies where—
land becomes commonhold land or is added to a commonhold unit, and
immediately before that event there is a charge over the land which could not be created after that event by reason of subsection (1).
The charge shall be extinguished by virtue of this subsection to the extent that it could not be created by reason of subsection (1).
An amendment of a commonhold community statement which redefines the extent of a commonhold unit may not be made unless the unit-holder consents—
in writing, and
before the amendment is made.
But regulations may enable a court to dispense with the requirement for consent on the application of a commonhold association in prescribed circumstances.
This section applies to an amendment of a commonhold community statement which redefines the extent of a commonhold unit over which there is a registered charge.
The amendment may not be made unless the registered proprietor of the charge consents—
in writing, and
before the amendment is made.
But regulations may enable a court to dispense with the requirement for consent on the application of a commonhold association in prescribed circumstances.
If the amendment removes land from the commonhold unit, the charge shall by virtue of this subsection be extinguished to the extent that it relates to the land which is removed.
If the amendment adds land to the unit, the charge shall by virtue of this subsection be extended so as to relate to the land which is added.
Regulations may make provision—
requiring notice to be given to the Registrar in circumstances to which this section applies;
requiring the Registrar to alter the register to reflect the application of subsection (4) or (5).
In this Part “common parts” in relation to a commonhold means every part of the commonhold which is not for the time being a commonhold unit in accordance with the commonhold community statement.
A commonhold community statement may make provision in respect of a specified part of the common parts (a “limited use area”) restricting—
the classes of person who may use it;
the kind of use to which it may be put.
A commonhold community statement—
may make provision which has effect only in relation to a limited use area, and
may make different provision for different limited use areas.
regulating the use of the common parts;
A commonhold community statement must make provision—
requiring the commonhold association to insure the common parts;
A commonhold community statement for a higher-risk commonhold must make provision requiring the commonhold association to comply with its duties under Part 4 of the Building Safety Act 2022, or regulations made under that Part of that Act, in relation to the common parts.
requiring the commonhold association to repair and maintain the common parts.
Nothing in a commonhold community statement shall prevent or restrict—
the transfer by the commonhold association of its freehold estate in any part of the common parts, or
the creation by the commonhold association of an interest in any part of the common parts.
In this section “interest” does not include—
a charge, or
an interest which arises by virtue of a charge.
It shall not be possible to create a charge over common parts.
An instrument or agreement shall be of no effect to the extent that it purports to create a charge over common parts.
Where by virtue of section 7 or 9 a commonhold association is registered as the proprietor of common parts, a charge which relates wholly or partly to the common parts shall be extinguished by virtue of this subsection to the extent that it relates to the common parts.
Where by virtue of section 30 land vests in a commonhold association following an amendment to a commonhold community statement which has the effect of adding land to the common parts, a charge which relates wholly or partly to the land added shall be extinguished by virtue of this subsection to the extent that it relates to that land.
This section is subject to section 29 (which permits certain mortgages).
Section 28 shall not apply in relation to a legal mortgage if the creation of the mortgage is approved by a resolution of the commonhold association.
A resolution for the purposes of subsection (1) must be passed—
before the mortgage is created, and
unanimously.
In this section “legal mortgage” has the meaning given by section 205(1)(xvi) of the Law of Property Act 1925 (c. 20) (interpretation).
This section applies where an amendment of a commonhold community statement—
specifies land which forms part of a commonhold unit, and
provides for that land (the “added land”) to be added to the common parts.
The amendment may not be made unless the registered proprietor of any charge over the added land consents—
in writing, and
before the amendment is made.
But regulations may enable a court to dispense with the requirement for consent on the application of a commonhold association in specified circumstances.
On the filing of the amended statement under section 33—
the commonhold association shall be entitled to be registered as the proprietor of the freehold estate in the added land, and
the Registrar shall register the commonhold association in accordance with paragraph (a) (without an application being made).
A commonhold community statement is a document which makes provision in relation to specified land for—
the rights and duties of the commonhold association, and
the rights and duties of the unit-holders.
A commonhold community statement must be in the prescribed form.
A commonhold community statement may—
impose a duty on the commonhold association;
impose a duty on a unit-holder;
make provision about the taking of decisions in connection with the management of the commonhold or any other matter concerning it.
Subsection (3) is subject to—
any provision made by or by virtue of this Part, and
any provision of the articles of the commonhold association.
In subsection (3)(a) and (b) “duty” includes, in particular, a duty—
to pay money;
to undertake works;
to grant access;
to give notice;
to refrain from entering into transactions of a specified kind in relation to a commonhold unit;
to give information;
to refrain from using the whole or part of a commonhold unit for a specified purpose or for anything other than a specified purpose;
to apply for grants or other funding;
to refrain from undertaking works (including alterations) of a specified kind;
to refrain from causing nuisance or annoyance;
to refrain from specified behaviour;
to indemnify the commonhold association or a unit-holder in respect of costs arising from the breach of a statutory requirement.
Provision in a commonhold community statement imposing a duty to pay money (whether in pursuance of subsection (5)(a) or any other provision made by or by virtue of this Part) may include provision for the payment of interest in the case of late payment.
A duty conferred by a commonhold community statement on a commonhold association or a unit-holder shall not require any other formality.
A commonhold community statement may not provide for the transfer or loss of an interest in land on the occurrence or non-occurrence of a specified event.
Provision made by a commonhold community statement shall be of no effect to the extent that—
it is prohibited by virtue of section 32,
it is inconsistent with any provision made by or by virtue of this Part,
it is inconsistent with anything which is treated as included in the statement by virtue of section 32, or
it is inconsistent with the articles of association of the commonhold association.
Regulations shall make provision about the content of a commonhold community statement.
The regulations may permit, require or prohibit the inclusion in a statement of—
specified provision, or
provision of a specified kind, for a specified purpose or about a specified matter.
The regulations may—
provide for a statement to be treated as including provision prescribed by or determined in accordance with the regulations;
permit a statement to make provision in place of provision which would otherwise be treated as included by virtue of paragraph (a).
The regulations may—
make different provision for different descriptions of commonhold association or unit-holder;
make different provision for different circumstances;
make provision about the extent to which a commonhold community statement may make different provision for different descriptions of unit-holder or common parts.
The matters to which regulations under this section may relate include, but are not limited to—
the matters mentioned in sections 11, 14, 15, 20, 21, 25, 26, 27, 38, 38A, 39 and 58, and
any matter for which regulations under section 37 may make provision.
Regulations under section 32 shall require a commonhold community statement to make provision about how it can be amended.
The regulations shall, in particular, make provision under section 32(3)(a) (whether or not subject to provision under section 32(3)(b)).
An amendment of a commonhold community statement shall have no effect unless and until the amended statement is registered in accordance with this section.
If the commonhold association makes an application under this subsection the Registrar shall arrange for an amended commonhold community statement to be kept in his custody, and referred to in the register, in place of the unamended statement.
An application under subsection (4) must be accompanied by a certificate given by the directors of the commonhold association that the amended commonhold community statement satisfies the requirements of this Part.
Where an amendment of a commonhold community statement redefines the extent of a commonhold unit, an application under subsection (4) must be accompanied by any consent required by section 23(1) or 24(2) (or an order of a court dispensing with consent).
Where an amendment of a commonhold community statement has the effect of changing the extent of the common parts, an application under subsection (4) must be accompanied by any consent required by section 30(2) (or an order of a court dispensing with consent).
Where the Registrar amends the register on an application under subsection (4) he shall make any consequential amendments to the register which he thinks appropriate.
A commonhold association is a private company limited by guarantee—
the articles of which state that an object of the company is to exercise the functions of a commonhold association in relation to specified commonhold land, and
the statement of guarantee of which specifies £1 as the amount of the contribution required from each member in the event of the company being wound up.
Schedule 3 (which makes provision about the constitution of a commonhold association) shall have effect.
The directors of a commonhold association shall exercise their powers so as to permit or facilitate so far as possible—
the exercise by each unit-holder of his rights, and
the enjoyment by each unit-holder of the freehold estate in his unit.
The directors of a commonhold association shall, in particular, use any right, power or procedure conferred or created by virtue of section 37 for the purpose of preventing, remedying or curtailing a failure on the part of a unit-holder to comply with a requirement or duty imposed on him by virtue of the commonhold community statement or a provision of this Part.
But in respect of a particular failure on the part of a unit-holder (the “defaulter”) the directors of a commonhold association—
need not take action if they reasonably think that inaction is in the best interests of establishing or maintaining harmonious relationships between all the unit-holders, and that it will not cause any unit-holder (other than the defaulter) significant loss or significant disadvantage, and
shall have regard to the desirability of using arbitration, mediation or conciliation procedures (including referral under a scheme approved under section 42) instead of legal proceedings wherever possible.
A reference in this section to a unit-holder includes a reference to a tenant of a unit.
This section applies in relation to any provision of this Part (a “voting provision”) which refers to the passing of a resolution by a commonhold association.
A voting provision is satisfied only if every member is given an opportunity to vote in accordance with any relevant provision of the articles of association or the commonhold community statement.
A vote is cast for the purposes of a voting provision whether it is cast in person or in accordance with a provision which—
provides for voting by post, by proxy or in some other manner, and
is contained in the articles of association or the commonhold community statement.
A resolution is passed unanimously if every member who casts a vote votes in favour.
Regulations may make provision (including provision conferring jurisdiction on a court) about the exercise or enforcement of a right or duty imposed or conferred by or by virtue of—
a commonhold community statement;
the articles of a commonhold association;
a provision made by or by virtue of this Part.
The regulations may, in particular, make provision—
requiring compensation to be paid where a right is exercised in specified cases or circumstances;
requiring compensation to be paid where a duty is not complied with;
enabling recovery of costs where work is carried out for the purpose of enforcing a right or duty;
enabling recovery of costs where work is carried out in consequence of the failure to perform a duty;
permitting a unit-holder to enforce a duty imposed on another unit-holder, on a commonhold association or on a tenant;
permitting a commonhold association to enforce a duty imposed on a unit-holder or a tenant;
permitting a tenant to enforce a duty imposed on another tenant, a unit-holder or a commonhold association;
permitting the enforcement of terms or conditions to which a right is subject;
requiring the use of a specified form of arbitration, mediation or conciliation procedure before legal proceedings may be brought.
Provision about compensation made by virtue of this section shall include—
provision (which may include provision conferring jurisdiction on a court) for determining the amount of compensation;
provision for the payment of interest in the case of late payment.
Regulations under this section shall be subject to any provision included in a commonhold community statement in accordance with regulations made by virtue of section 32(5)(b).
A commonhold community statement must make provision—
requiring the directors of the commonhold association to make an annual estimate of the income required to be raised from unit-holders to meet the expenses of the association,
enabling the directors of the commonhold association to make estimates from time to time of income required to be raised from unit-holders in addition to the annual estimate,
specifying the percentage of any estimate made under paragraph (a) or (b) which is to be allocated to each unit,
requiring each unit-holder to make payments in respect of the percentage of any estimate which is allocated to his unit, and
requiring the directors of the commonhold association to serve notices on unit-holders specifying payments required to be made by them and the date on which each payment is due.
For the purpose of subsection (1)(c)—
the percentages allocated by a commonhold community statement to the commonhold units must amount in aggregate to 100;
a commonhold community statement may specify 0 per cent. in relation to a unit.
In subsection (1)(a) “expenses of the association” does not include building safety expenses of the association (within the meaning of section 38A).
Regulations under section 32 may, in particular, require a commonhold community statement to make provision—
requiring the directors of the commonhold association to establish and maintain one or more funds to finance the repair and maintenance of common parts;
requiring the directors of the commonhold association to establish and maintain one or more funds to finance the repair and maintenance of commonhold units.
Where a commonhold community statement provides for the establishment and maintenance of a fund in accordance with subsection (1) it must also make provision—
requiring or enabling the directors of the commonhold association to set a levy from time to time,
specifying the percentage of any levy set under paragraph (a) which is to be allocated to each unit,
requiring each unit-holder to make payments in respect of the percentage of any levy set under paragraph (a) which is allocated to his unit, and
requiring the directors of the commonhold association to serve notices on unit-holders specifying payments required to be made by them and the date on which each payment is due.
For the purpose of subsection (2)(b)—
the percentages allocated by a commonhold community statement to the commonhold units must amount in aggregate to 100;
a commonhold community statement may specify 0 per cent. in relation to a unit.
The assets of a fund established and maintained by virtue of this section shall not be used for the purpose of enforcement of any debt except a judgment debt referable to a reserve fund activity.
For the purpose of subsection (4)—
“reserve fund activity” means an activity which in accordance with the commonhold community statement can or may be financed from a fund established and maintained by virtue of this section,
assets are used for the purpose of enforcement of a debt if, in particular, they are taken in execution or are made the subject of a charging order under section 1 of the Charging Orders Act 1979 (c. 53), and
the reference to a judgment debt includes a reference to any interest payable on a judgment debt.
A commonhold community statement for a higher-risk commonhold must make provision—
requiring the directors of the commonhold association to make an annual estimate of the income required to be raised from unit-holders to meet the building safety expenses of the association,
enabling the directors of the commonhold association to make estimates from time to time of income required to be raised from unit-holders in addition to the annual estimate,
specifying the percentage of any estimate made under paragraph (a) or (b) which is to be allocated to each unit,
requiring each unit-holder to make payments in respect of the percentage of any estimate which is allocated to their unit, and
requiring the directors of the commonhold association to serve notices on unit-holders specifying payments required to be made by them and the date on which each payment is due.
For the purpose of subsection (1)(c)—
the percentages allocated by a commonhold community statement to the commonhold units must amount in aggregate to 100;
a commonhold community statement may specify 0 per cent in relation to a unit.
In this section—
A unit-holder may apply to the court for a declaration that—
the articles of association of the relevant commonhold association do not comply with regulations under paragraph 2(1) of Schedule 3;
the relevant commonhold community statement does not comply with a requirement imposed by or by virtue of this Part.
On granting a declaration under this section the court may make any order which appears to it to be appropriate.
An order under subsection (2) may, in particular—
require a director or other specified officer of a commonhold association to take steps to alter or amend a document;
require a director or other specified officer of a commonhold association to take specified steps;
make an award of compensation (whether or not contingent upon the occurrence or non-occurrence of a specified event) to be paid by the commonhold association to a specified person;
make provision for land to cease to be commonhold land.
An application under subsection (1) must be made—
within the period of three months beginning with the day on which the applicant became a unit-holder,
within three months of the commencement of the alleged failure to comply, or
with the permission of the court.
This section applies to an application under section 2 if the commonhold association for the purposes of the application already exercises functions in relation to commonhold land.
In this section—
the application is referred to as an “application to add land”, and
the land to which the application relates is referred to as the “added land”.
An application to add land may not be made unless it is approved by a resolution of the commonhold association.
A resolution for the purposes of subsection (3) must be passed—
before the application to add land is made, and
unanimously.
Section 2(2) shall not apply to an application to add land; but the application must be accompanied by—
the documents specified in paragraph 6 of Schedule 1,
an application under section 33 for the registration of an amended commonhold community statement which makes provision for the existing commonhold and the added land, and
a certificate given by the directors of the commonhold association that the application to add land satisfies Schedule 2 and subsection (3).
Where sections 7 and 9 have effect following an application to add land—
the references to “the commonhold land” in sections 7(2)(a) and (3)(d) and 9(3)(f) shall be treated as references to the added land, and
the references in sections 7(2)(b) and (3)(c) and 9(3)(e) to the rights and duties conferred and imposed by the commonhold community statement shall be treated as a reference to rights and duties only in so far as they affect the added land.
In the case of an application to add land where the whole of the added land is to form part of the common parts of a commonhold—
section 7 shall not apply,
on registration the commonhold association shall be entitled to be registered (if it is not already) as the proprietor of the freehold estate in the added land,
the Registrar shall make any registration required by paragraph (b) (without an application being made), and
the rights and duties conferred and imposed by the commonhold community statement shall, in so far as they affect the added land, come into force on registration.
Regulations may provide that a commonhold association shall be a member of an approved ombudsman scheme.
An “approved ombudsman scheme” is a scheme which is approved by the Secretary of State and which—
provides for the appointment of one or more persons as ombudsman,
provides for a person to be appointed as ombudsman only if the Secretary of State approves the appointment in advance,
enables a unit-holder to refer to the ombudsman a dispute between the unit-holder and a commonhold association which is a member of the scheme,
enables a commonhold association which is a member of the scheme to refer to the ombudsman a dispute between the association and a unit-holder,
requires the ombudsman to investigate and determine a dispute referred to him,
requires a commonhold association which is a member of the scheme to cooperate with the ombudsman in investigating or determining a dispute, and
requires a commonhold association which is a member of the scheme to comply with any decision of the ombudsman (including any decision requiring the payment of money).
In addition to the matters specified in subsection (2) an approved ombudsman scheme—
may contain other provision, and
shall contain such provision, or provision of such a kind, as may be prescribed.
If a commonhold association fails to comply with regulations under subsection (1) a unit-holder may apply to the High Court for an order requiring the directors of the commonhold association to ensure that the association complies with the regulations.
A reference in this section to a unit-holder includes a reference to a tenant of a unit.
A winding-up resolution in respect of a commonhold association shall be of no effect unless—
the resolution is preceded by a declaration of solvency,
the commonhold association passes a termination-statement resolution before it passes the winding-up resolution, and
each resolution is passed with at least 80 per cent. of the members of the association voting in favour.
In this Part—
“long lease” has the meaning given by sections 76 and 77 of this Act, and
“post-dispute arbitration agreement”, in relation to any matter, means an arbitration agreement made after a dispute about the matter has arisen, and
This section applies where a commonhold association—
has passed a winding-up resolution and a termination-statement resolution with 100 per cent. of the members of the association voting in favour, and
has appointed a liquidator under section 91 of the Insolvency Act 1986 (c. 45).
The liquidator shall make a termination application within the period of six months beginning with the day on which the winding-up resolution is passed.
If the liquidator fails to make a termination application within the period specified in subsection (2) a termination application may be made by—
a unit-holder, or
a person falling within a class prescribed for the purposes of this subsection.
This section applies where a commonhold association—
has passed a winding-up resolution and a termination-statement resolution with at least 80 per cent. of the members of the association voting in favour, and
has appointed a liquidator under section 91 of the Insolvency Act 1986.
The liquidator shall within the prescribed period apply to the court for an order determining—
the terms and conditions on which a termination application may be made, and
the terms of the termination statement to accompany a termination application.
The liquidator shall make a termination application within the period of three months starting with the date on which an order under subsection (2) is made.
If the liquidator fails to make an application under subsection (2) or (3) within the period specified in that subsection an application of the same kind may be made by—
a unit-holder, or
a person falling within a class prescribed for the purposes of this subsection.
A “termination application” is an application to the Registrar that all the land in relation to which a particular commonhold association exercises functions should cease to be commonhold land.
A termination application must be accompanied by a termination statement.
On receipt of a termination application the Registrar shall note it in the register.
A termination statement must specify—
the commonhold association’s proposals for the transfer of the commonhold land following acquisition of the freehold estate in accordance with section 49(3), and
how the assets of the commonhold association will be distributed.
A commonhold community statement may make provision requiring any termination statement to make arrangements— about the rights of unit-holders in the event of all the land to which the statement relates ceasing to be commonhold land.
of a specified kind, or
determined in a specified manner,
A termination statement must comply with a provision made by the commonhold community statement in reliance on subsection (2).
Subsection (3) may be disapplied by an order of the court—
generally,
in respect of specified matters, or
for a specified purpose.
An application for an order under subsection (4) may be made by any member of the commonhold association.
This section applies where a termination application has been made in respect of particular commonhold land.
The liquidator shall notify the Registrar of his appointment.
In the case of a termination application made under section 44 the liquidator shall either—
notify the Registrar that the liquidator is content with the termination statement submitted with the termination application, or
apply to the court under section 112 of the Insolvency Act 1986 (c. 45) to determine the terms of the termination statement.
The liquidator shall send to the Registrar a copy of a determination made by virtue of subsection (3)(b).
Subsection (4) is in addition to any requirement under section 112(3) of the Insolvency Act 1986.
A duty imposed on the liquidator by this section is to be performed as soon as possible.
In this section a reference to the liquidator is a reference—
to the person who is appointed as liquidator under section 91 of the Insolvency Act 1986, or
in the case of a members’ voluntary winding up which becomes a creditors’ voluntary winding up by virtue of sections 95 and 96 of that Act, to the person acting as liquidator in accordance with section 100 of that Act.
This section applies where a termination application is made under section 44 and—
a liquidator notifies the Registrar under section 48(3)(a) that he is content with a termination statement, or
a determination is made under section 112 of the Insolvency Act 1986 (c. 45) by virtue of section 48(3)(b).
This section also applies where a termination application is made under section 45.
The commonhold association shall by virtue of this subsection be entitled to be registered as the proprietor of the freehold estate in each commonhold unit.
The Registrar shall take such action as appears to him to be appropriate for the purpose of giving effect to the termination statement.
Section 51 applies where a petition is presented under section 124 of the Insolvency Act 1986 for the winding up of a commonhold association by the court.
For the purposes of this Part—
an “insolvent commonhold association” is one in relation to which a winding-up petition has been presented under section 124 of the Insolvency Act 1986,
a commonhold association is the “successor commonhold association” to an insolvent commonhold association if the land specified for the purpose of section 34(1)(a) is the same for both associations, and
a “winding-up order” is an order under section 125 of the Insolvency Act 1986 for the winding up of a commonhold association.
At the hearing of the winding-up petition an application may be made to the court for an order under this section (a “succession order”) in relation to the insolvent commonhold association.
An application under subsection (1) may be made only by—
the insolvent commonhold association,
one or more members of the insolvent commonhold association, or
a provisional liquidator for the insolvent commonhold association appointed under section 135 of the Insolvency Act 1986.
An application under subsection (1) must be accompanied by—
prescribed evidence of the formation of a successor commonhold association, and
a certificate given by the directors of the successor commonhold association that its articles of association comply with regulations under paragraph 2(1) of Schedule 3.
The court shall grant an application under subsection (1) unless it thinks that the circumstances of the insolvent commonhold association make a succession order inappropriate.
Where a succession order is made in relation to an insolvent commonhold association this section applies on the making of a winding-up order in respect of the association.
The successor commonhold association shall be entitled to be registered as the proprietor of the freehold estate in the common parts.
The insolvent commonhold association shall for all purposes cease to be treated as the proprietor of the freehold estate in the common parts.
The succession order—
shall make provision as to the treatment of any charge over all or any part of the common parts;
may require the Registrar to take action of a specified kind;
may enable the liquidator to require the Registrar to take action of a specified kind;
may make supplemental or incidental provision.
Where a succession order is made in relation to an insolvent commonhold association this section applies on the making of a winding-up order in respect of the association.
The successor commonhold association shall be treated as the commonhold association for the commonhold in respect of any matter which relates to a time after the making of the winding-up order.
On the making of the winding-up order the court may make an order requiring the liquidator to make available to the successor commonhold association specified—
records;
copies of records;
information.
An order under subsection (3) may include terms as to—
timing;
payment.
This section applies where the court—
makes a winding-up order in respect of a commonhold association, and
has not made a succession order in respect of the commonhold association.
The liquidator of a commonhold association shall as soon as possible notify the Registrar of—
the fact that this section applies,
any directions given under section 168 of the Insolvency Act 1986 (c. 45) (liquidator: supplementary powers),
any notice given to the court and the registrar of companies in accordance with section 172(8) of that Act (liquidator vacating office after final meeting),
any notice given to the Secretary of State under section 174(3) of that Act (completion of winding-up),
any application made to the registrar of companies under section 202(2) of that Act (insufficient assets: early dissolution),
any notice given to the registrar of companies under section 205(1)(b) of that Act (completion of winding-up), and
any other matter which in the liquidator’s opinion is relevant to the Registrar.
Notification under subsection (2)(b) to (f) must be accompanied by a copy of the directions, notice or application concerned.
The Registrar shall—
make such arrangements as appear to him to be appropriate for ensuring that the freehold estate in land in respect of which a commonhold association exercises functions ceases to be registered as a freehold estate in commonhold land as soon as is reasonably practicable after he receives notification under subsection (2)(c) to (f), and
take such action as appears to him to be appropriate for the purpose of giving effect to a determination made by the liquidator in the exercise of his functions.
This section applies where the court makes an order by virtue of section 6(6)(c) or 40(3)(d) for all the land in relation to which a commonhold association exercises functions to cease to be commonhold land.
The court shall have the powers which it would have if it were making a winding-up order in respect of the commonhold association.
A person appointed as liquidator by virtue of subsection (2) shall have the powers and duties of a liquidator following the making of a winding-up order by the court in respect of a commonhold association.
But the order of the court by virtue of section 6(6)(c) or 40(3)(d) may—
require the liquidator to exercise his functions in a particular way;
impose additional rights or duties on the liquidator;
modify or remove a right or duty of the liquidator.
Section 39(4) shall cease to have effect in relation to a commonhold association (in respect of debts and liabilities accruing at any time) if—
the court makes a winding-up order in respect of the association,
the association passes a voluntary winding-up resolution, or
the court makes an order by virtue of section 6(6)(c) or 40(3)(d) for all the land in relation to which the association exercises functions to cease to be commonhold land.
A commonhold may include two or more parcels of land, whether or not contiguous.
But section 1(1) of this Act is not satisfied in relation to land specified in the articles of association of a commonhold association unless a single commonhold community statement makes provision for all the land.
Regulations may make provision about an application under section 2 made jointly by two or more persons, each of whom is the registered freeholder of part of the land to which the application relates.
The regulations may, in particular—
modify the application of a provision made by or by virtue of this Part;
disapply the application of a provision made by or by virtue of this Part;
impose additional requirements.
In this Part—
“arbitration agreement” and “arbitral tribunal” have the same meaning as in Part 1 of the Arbitration Act 1996 (c. 23) and “post-dispute arbitration agreement”, in relation to any breach (or alleged breach), means an arbitration agreement made after the breach has occurred (or is alleged to have occurred),
“unit-holder” has the meaning given by sections 12 and 13.
This Schedule sets out the matters which are development business for the purposes of section 58.
The Housing Act 1985 (c. 68) has effect subject to the following amendments.
Section 29 of that Act (conditions for making orders for compulsory acquisition by tenants of landlord’s interest) is amended as follows. In subsection (2), in paragraph (a), omit “repair, maintenance, insurance or”. After that subsection insert—
In paragraph 4(2) of Schedule 4 to the Housing Act 1996 (c. 52) (right of surveyor appointed by tenants’ association to inspect premises: meaning of management functions), after “maintenance” insert “ , improvement ”.
After that section insert—
In sections 26(1) and 27 of the 1985 Act (exceptions from sections 18 to 25), for “and requests for information about costs)” substitute “ , statements of account and inspection etc. of documents) ”.
In this Part of this Schedule “administration 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— But an amount payable by the tenant of a dwelling the rent of which is registered under Part 4 of the Rent Act 1977 (c. 42) is not an administration charge, unless the amount registered is entered as a variable amount in pursuance of section 71(4) of that Act. In this Part of this Schedule “variable administration charge” means an administration charge payable by a tenant which is neither— An order amending sub-paragraph (1) may be made by the appropriate national authority.
An application may be made to the appropriate tribunal for a determination whether an administration charge is payable and, if it is, as to— Sub-paragraph (1) applies whether or not any payment has been made. The jurisdiction conferred on the appropriate tribunal in respect of any matter by virtue of sub-paragraph (1) is in addition to any jurisdiction of a court in respect of the matter. No application under sub-paragraph (1) may be made in respect of a matter which— But the tenant is not to be taken to have agreed or admitted any matter by reason only of having made any payment. An agreement by the tenant of a dwelling (other than a post-dispute arbitration agreement) is void in so far as it purports to provide for a determination— of any question which may be the subject matter of an application under sub-paragraph (1).
Section 450A (right to a loan in respect of service charges for repairs in certain cases after exercise of right to buy) is amended as follows. In subsection (2), after “repairs” insert “ or improvements ”. In subsection (5)(a), after “repairs” insert “ or improvements ”.
In section 450B(1)(b) (power to make loan in respect of service charges for repairs in other cases), after “repairs” insert “ or improvements ”.
“service charge” has the meaning given by section 18(1) of the Landlord and Tenant Act 1985 (c. 70).
In section 459 (index of defined expressions for Part 14 of the Act), in the entry relating to “service charge”, for “section 621A” substitute “ section 458 ”.
In section 621A (meaning of service charge for purposes of the Act), insert at the end—
A commonhold community statement may confer rights on the developer which are designed—
to permit him to undertake development business, or
to facilitate his undertaking of development business.
Provision made by a commonhold community statement in reliance on subsection (2) may include provision—
requiring the commonhold association or a unit-holder to co-operate with the developer for a specified purpose connected with development business;
making the exercise of a right conferred by virtue of subsection (2) subject to terms and conditions specified in or to be determined in accordance with the commonhold community statement;
making provision about the effect of breach of a requirement by virtue of paragraph (a) or a term or condition imposed by virtue of paragraph (b);
disapplying section 41(2) and (3).
Subsection (2) is subject—
to regulations under section 32, and
in the case of development business of the kind referred to in paragraph 7 of Schedule 4, to the articles of association of the commonhold association.
Regulations may make provision regulating or restricting the exercise of rights conferred by virtue of subsection (2).
Where a right is conferred on a developer by virtue of subsection (2), if he sends to the Registrar a notice surrendering the right—
the Registrar shall arrange for the notice to be kept in his custody and referred to in the register,
the right shall cease to be exercisable from the time when the notice is registered under paragraph (a), and
the Registrar shall inform the commonhold association as soon as is reasonably practicable.
If during a transitional period the developer transfers to another person the freehold estate in the whole of the commonhold, the successor in title shall be treated as the developer in relation to any matter arising after the transfer.
If during a transitional period the developer transfers to another person the freehold estate in part of the commonhold, the successor in title shall be treated as the developer for the purpose of any matter which—
arises after the transfer, and
affects the estate transferred.
If after a transitional period or in a case where there is no transitional period— the successor in title shall be treated as the developer for the purpose of any matter which arises after the transfer and affects the estate transferred.
the developer transfers to another person the freehold estate in the whole or part of the commonhold (other than by the transfer of the freehold estate in a single commonhold unit), and
the transfer is expressed to be inclusive of development rights,
Other than during a transitional period, a person shall not be treated as the developer in relation to commonhold land for any purpose unless he—
is, or has been at a particular time, the registered proprietor of the freehold estate in more than one of the commonhold units, and
is the registered proprietor of the freehold estate in at least one of the commonhold units.
Where a freehold estate in commonhold land is transferred to a compulsory purchaser the land shall cease to be commonhold land.
But subsection (1) does not apply to a transfer if the Registrar is satisfied that the compulsory purchaser has indicated a desire for the land transferred to continue to be commonhold land.
The requirement of consent under section 21(2)(c) shall not apply to transfer to a compulsory purchaser.
Regulations may make provision about the transfer of a freehold estate in commonhold land to a compulsory purchaser.
The regulations may, in particular—
make provision about the effect of subsections (1) and (2) (including provision about that part of the commonhold which is not transferred);
require the service of notice;
confer power on a court;
make provision about compensation;
make provision enabling a commonhold association to require a compulsory purchaser to acquire the freehold estate in the whole, or a particular part, of the commonhold;
provide for an enactment relating to compulsory purchase not to apply or to apply with modifications.
Provision made by virtue of subsection (5)(a) in respect of land which is not transferred may include provision—
for some or all of the land to cease to be commonhold land;
for a provision of this Part to apply with specified modifications.
In this section “compulsory purchaser” means—
a person acquiring land in respect of which he is authorised to exercise a power of compulsory purchase by virtue of an enactment, and
a person acquiring land which he is obliged to acquire by virtue of a prescribed enactment or in prescribed circumstances.
In the following provisions of this Part a reference to a tenant includes a reference to a person who has home rights (within the meaning of section 30(2) of the Family Law Act 1996 (c. 27) (rights in respect of matrimonial or civil partnership home)) in respect of a commonhold unit—
section 19,
section 35, and
section 37.
The Secretary of State may give financial assistance to a person in relation to the provision by that person of information, training or general advice about, or a dispute resolution service in connection with—
any aspect of the law of commonhold land, so far as relating to residential matters , or
any other matter relating to commonhold land and residential matters.
Financial assistance under this section may be given in such form and on such terms as the Secretary of State thinks appropriate.
The terms may, in particular, require repayment in specified circumstances.
This Part binds the Crown.
In this Part “prescribed” means prescribed by regulations.
Regulations under this Part shall be made by the Secretary of State.
Regulations under this Part—
shall be made by statutory instrument,
may include incidental, supplemental, consequential and transitional provision,
may make provision generally or only in relation to specified cases,
may make different provision for different purposes, and
shall be subject to annulment in pursuance of a resolution of either House of Parliament.
The Secretary of State may make rules about—
the procedure to be followed on or in respect of commonhold registration documents, and
the registration of freehold estates in commonhold land.
Rules under this section—
shall be made by statutory instrument in the same manner as land registration rules within the meaning of the Land Registration Act 2002 (c. 9),
may make provision for any matter for which provision is or may be made by land registration rules, and
may provide for land registration rules to have effect in relation to anything done by virtue of or for the purposes of this Part as they have effect in relation to anything done by virtue of or for the purposes of that Act.
Rules under this section may, in particular, make provision—
about the form and content of a commonhold registration document;
enabling the Registrar to cancel an application by virtue of this Part in specified circumstances;
enabling the Registrar, in particular, to cancel an application by virtue of this Part if he thinks that plans submitted with it (whether as part of a commonhold community statement or otherwise) are insufficiently clear or accurate;
about the order in which commonhold registration documents and general registration documents are to be dealt with by the Registrar;
for registration to take effect (whether or not retrospectively) as from a date or time determined in accordance with the rules.
The rules may also make provision about satisfaction of a requirement for an application by virtue of this Part to be accompanied by a document; in particular the rules may—
permit or require a copy of a document to be submitted in place of or in addition to the original;
require a copy to be certified in a specified manner;
permit or require the submission of a document in electronic form.
A commonhold registration document must be accompanied by such fee (if any) as is specified for that purpose by order under section 102 of the Land Registration Act 2002 (c. 9)(fee orders).
In this section—
“general registration document” means a document sent to the Registrar under a provision of the Land Registration Act 2002.
Section 2
This Schedule lists the documents which are required by section 2 to accompany an application for the registration of a freehold estate as a freehold estate in commonhold land.
Where consent is required under or by virtue of section 3— In the case of a conditional order under section 3(2)(f), the order must be accompanied by evidence that the condition has been complied with.
Regulations may provide—
that the name by which a commonhold association is registered under the Companies Act 2006 must satisfy specified requirements;
that the name by which a company other than a commonhold association is registered may not include a specified word or expression.
In section 24(2) of the 1987 Act (grounds for appointment of manager), before paragraph (ac) insert—.
Procedure regulations may include provision—
about the form of applications to leasehold valuation tribunals,
about the particulars that must be contained in such applications,
requiring the service of notices of such applications, and
for securing consistency where numerous applications are or may be brought in respect of the same or substantially the same matters.
Procedure regulations may include provision for the holding of a pre-trial review (on the application of a party to proceedings or on the motion of a leasehold valuation tribunal). Procedure regulations may provide for the exercise of the functions of a leasehold valuation tribunal in relation to, or at, a pre-trial review by a single member of the panel provided for in Schedule 10 to the Rent Act 1977 (c. 42) who is qualified to exercise them. A member is qualified to exercise the functions specified in sub-paragraph (2) if he was appointed to that panel by the Lord Chancellor.
Procedure regulations may include provision for the determination of applications or transferred proceedings without an oral hearing. Procedure regulations may provide for the determinations without an oral hearing by a single member of the panel provided for in Schedule 10 to the Rent Act 1977.
Procedure regulations may provide for decisions of leasehold valuation tribunals to be enforceable, with the permission of the county court, in the same way as orders of the county court.
Section 4
“long lease” has the meaning given by sections 76 and 77 of this Act, and
An application may not be made under section 2 wholly or partly in relation to land if—
it is agricultural land within the meaning of the Agriculture Act 1947 (c. 48),
it is comprised in a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5), or
it is comprised in a farm business tenancy for the purposes of the Agricultural Tenancies Act 1995 (c. 8).
In this Schedule “articles” means the articles of association of a commonhold association.
“memorandum” means the memorandum of association of a commonhold association, and
“articles” means the articles of association of a commonhold association.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 12A of the Land Compensation Act 1973 (tenants participating in collective enfranchisement or entitled to individual lease extension) is amended as follows. In subsection (2)(b)— In subsection (4), for “nominee purchaser” substitute “ RTE company ”. In subsection (9), for paragraph (b) substitute—
A demand for the payment of an administration charge must be accompanied by a summary of the rights and obligations of tenants of dwellings in relation to administration charges. The appropriate national authority may make regulations prescribing requirements as to the form and content of such summaries of rights and obligations. A tenant may withhold payment of an administration charge which has been demanded from him if sub-paragraph (1) is not complied with in relation to the demand. Where a tenant withholds an administration charge under this paragraph, any provisions of the lease relating to non-payment or late payment of administration charges do not have effect in relation to the period for which he so withholds it.
Section 34
Section 58
“building safety expenses of the association” means the expenses incurred by the commonhold association or special measures manager for the higher-risk building in connection with taking measures that the association or manager is required or permitted to take under Part 4 of the Building Safety Act 2022, or regulations made under that Part of that Act;
The completion or execution of works on—
a commonhold,
land which is or may be added to a commonhold, or
land which has been removed from a commonhold.
Section 68
Section 72
Section 102
The obligations imposed on a landlord by virtue of section 91 (landlord’s obligation: fitness for human habitation), section 92 (landlord’s obligation to keep dwelling in repair) and section 93 (obligations under sections 91 and 92: supplementary) of the Renting Homes Wales Act 2016 (anaw 1) (referred to in this paragraph as “the 2016 Act”) are, so far as relating to any occupation contract of any flat or other unit contained in the premises, instead obligations of the RTM company. The RTM company owes to any person who is in occupation of a flat or other unit contained in the premises otherwise than under an occupation contract the same obligations as would be imposed on it by virtue of sections 91, 92 and 93 of the 2016 Act if that person were a contract-holder under an occupation contract of the flat or other unit. But sub-paragraphs (1) and (2) do not apply to an obligation to the extent that it relates to a matter concerning only the flat or other unit concerned. The obligations imposed on the RTM company by virtue of sub-paragraph (1) in relation to any occupation contract are owed to the landlord (as well as to the contract-holder). Where appropriate, sections 95 to 97 of the 2016 Act have effect with such modifications as are necessary in consequence of sub-paragraphs (1) to (3). The references in section 98 of the 2016 Act to the landlord include the RTM company; and a person who is in occupation of a flat or other unit contained in the premises otherwise than under an occupation contract has, in relation to the flat or other unit, the same obligation as that imposed on a contract-holder by virtue of that section. In this paragraph, the following terms have the same meaning as in section 7 of the 2016 Act—
Section 124
Section 150
Section 157
Section 158
No administration charge is payable for, in connection with or in respect of, the payment of a relevant rent. A “relevant rent” is a rent (or any part of a rent) which, by virtue of the Leasehold Reform (Ground Rent) Act 2022, is permitted only to be a peppercorn rent. “Peppercorn rent” has the same meaning as in that Act (see section 4(3) of that Act).
A tenant of a dwelling in England may apply to the relevant court or tribunal for an order reducing or extinguishing the tenant's liability to pay a particular administration charge in respect of litigation costs. The relevant court or tribunal may make whatever order on the application it considers to be just and equitable. In this paragraph— Proceedings to which costs relate “The relevant court or tribunal” Court proceedings The court before which the proceedings are taking place or, if the application is made after the proceedings are concluded, the county court First-tier Tribunal proceedings The First-tier Tribunal Upper Tribunal proceedings The Upper Tribunal Arbitration proceedings The arbitral tribunal or, if the application is made after the proceedings are concluded, the county court.
The 1987 Act has effect subject to the following amendments.
Section 24 (appointment of manager by leasehold valuation tribunal) is amended as follows. In subsection (2), after paragraph (ab) insert—. After subsection (2A) insert—
In section 46 (interpretation of provisions concerning information to be furnished to tenants), insert at the end—
Section 47 (landlord’s name and address to be contained in demands for rent etc.) is amended as follows. In subsection (2), after “service charge” insert “ or an administration charge ”. In subsection (3), after “service charges” insert “ or (as the case may be) administration charges ”.
Section 48 (notification by landlord of address for service of notices) is amended as follows. In subsection (2), for “or service charge” substitute “ , service charge or administration charge ”. In subsection (3)—
Section 174
Section 176
Section 180 Short title and chapter Extent of repeal Leasehold Reform Act 1967 (c. 88) In section 1— in subsection (1), the words “, occupying the house as his residence,” and the words “, and occupying it as his residence,”, subsection (2), and in subsection (3)(a), the words “and occupied by”. In section 1AA— in subsection (1)(b), the words “falls within subsection (2) below and”, and subsections (2) and (4). In section 2— in subsection (3), the words “and occupied by” and the words from “and are occupied” to the end, and in subsection (4), the words “or a subletting”. In section 3(3), the words “, except section 1AA,”. In section 6— in subsection (2), the words “in respect of his occupation of the house”, subsection (3), and in subsection (5), the words “or statutory owners, as the case may be,” the words “or them” and the words “or (3)”. In section 7— in subsection (1), the words “while occupying it as his residence”, the words “, and occupying the house as his residence,” and paragraph (b) and the word “and” before it, in subsection (4), the words “while so occupying the house” and the words “occupying in right of the tenancy”, and subsection (6). In section 9— in subsection (1), the words “who reside in the house”, in subsection (1A)(a), the words “and, where the tenancy has been extended under this Part of this Act, that the tenancy will terminate on the original term date”, and subsection (1C)(a). In section 16— subsection (1)(a), in subsection (2), the words “or occupied”, the words “(a) or” and the words “the freehold or”, in subsection (3), the words “the freehold or” and the proviso, and in subsection (4), the words “the freehold or”. Section 21(1A) and (3) to (4A). In section 37— in subsection (4), the words “, except section 1AA,”, and in subsection (5), the words from the beginning to “but”. In Schedule 3, in paragraph 6, sub-paragraph (1)(d) and, in sub-paragraph (2), the words “and (d)”. In Schedule 4A, in paragraph 3(2)(d), the word “assign,”. Land Compensation Act 1973 (c. 26) In section 12A(9), the word “and” at the end of paragraph (a). Housing Act 1980 (c. 51) In section 142— subsection (2), and in subsection (3), the words from the beginning to “and”. In Schedule 21, paragraph 1. In Schedule 22— Part 1, and in Part 2, paragraph 8(4) to (6). Landlord and Tenant Act 1985 (c. 70) Section 19(2A) to (3). Sections 31A to 31C. In section 39, the entry relating to the expression “flat”. In the Schedule— in the heading before paragraph 2, the words “Request for”, in the heading before paragraph 4, the words “Request relating to”, in the heading before paragraph 5, the words “on request”, and paragraph 8(5). Housing and Planning Act 1986 (c. 63) In Schedule 5, paragraph 9(2). Landlord and Tenant Act 1987 (c. 31) Section 23(2). Sections 24A and 24B. In section 29(2)(a), the words “repair, maintenance, insurance or”. In section 38, in the sidenote, the words “by the court”. In section 42— in subsection (2), the words “, and any investments representing those sums,”, subsection (5), and in subsection (8), the words “(whether the lease was granted before or after the commencement of this section)”. Section 52A. In section 53(2), the words “, 42(5)” and the words “under section 52A(3) or”. Section 56(2). In Schedule 2, paragraphs 3, 5, 6 and 7. Local Government and Housing Act 1989 (c. 42) In Schedule 11, paragraphs 10 and 91. Tribunals and Inquiries Act 1992 (c. 53) In Schedule 3, paragraph 13. Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) In section 2(3), the words “, on behalf of the tenants by whom the right to collective enfranchisement is exercised”. In section 5— in subsection (1), the words “which is at a low rent or for a particularly long term”, and in subsection (2)(c), the words “at a low rent or for a particularly long term”. Section 6. In section 7(3), the words “at a low rent”. Section 8. Section 8A . In section 10— subsection (2), subsection (3), subsection (4A), and in subsection (6), the definition of “qualifying flat”. In section 11(6), the words “by the qualifying tenan t”. In section 12— subsection (1)(a), subsection (2), subsection (4), and subsection (6). In section 13— in subsection (2), sub-paragraph (i) of paragraph (b) and the words following that paragraph, and in subsection (3)(e), the words “the following particulars”, the word “namely” and sub-paragraphs (ii) and (iii). Section 14. Section 15. Section 16. In section 18— in subsection (1), paragraph (b) and the word “or” before it, the words “or shareholding” (in both places) and the words “or established”, and in subsection (2), the words “or shareholding” and the words “or (b)”. In section 28— subsection (3), and in subsection (4), the words “or (3)”. In section 29— subsection (5)(a) and (b), and subsection (7). In section 33— in subsection (1), the words “, 29(7)”, and subsections (6) and (7). In section 37A— subsection (7), and in subsection (8)(a), the words “(whether by persons who are qualifying tenants or not)”. In section 38(1), the definitions of “the nominee purchaser” and “the participating tenants”. In section 39— in subsection (2), paragraph (b) and the word “and” before it, subsections (2A) and (2B), subsection (3)(c) and (d), and subsections (4A) and (5). Section 42(3)(b)(iii) and (iv) and (4). In section 45(5), the words “and (b)”. Section 62(4). Section 75(4) and (5). In section 88— in subsection (2)(b), the words “constituted for the purposes of that Part of that Act”, and subsections (3) to (5) and (7). In section 91— in subsection (1), the words from the beginning to “this section; and”, subsections (3) to (8), subsection (10), and in subsection (11), the words from “and the reference” to the end. In section 93(2)(b)— the words “become a participating tenant for the purposes of Chapter 1 or has”, the words “section 13 or (as the case may be)”, the words “entitlement or”, and the words “(i) or”. In section 94— in subsections (3) and (4), the words “which is at a low rent or for a particularly long term”, in subsection (10), the words from “and references in this subsection” to the end, and in subsection (12), the words “which is at a low rent or for a particularly long term” and the words “, 8 and 8A”. In section 99(5)(a)— the words “13 or”, and the words “by each of the tenants, or (as the case may be)”. In section 101(1), the definition of “rent assessment committee”. In Schedule 3— in the heading before paragraph 7, the words “against participating tenant”, paragraphs 8 and 9, and in paragraph 10(1), in paragraph (a), the words from “and references” to the end and, in paragraph (b), the words “(whether by persons who are qualifying tenants or not)”. In Schedule 5, paragraph 5(2)(a), (b) and (c). In Schedule 6, in paragraph 1(1), the definition of “the valuation date”. In Schedule 13, in paragraph 1, the definition of “the valuation date”. Housing Act 1996 (c. 52) Section 82. Section 83(1) and (3). Section 86(4) and (5). Section 105(3). Sections 111 and 112. Section 119. In Schedule 6, in Part 4, paragraphs 7 and 8. In Schedule 9, paragraphs 2(3) and (7), 3, 4 and 5(2) and (3). In Schedule 10— paragraph 4, and in paragraph 18(2), paragraph (b) and the word “and” before it. Housing Grants, Construction and Regeneration Act 1996 (c. 53) In Schedule 1, paragraph 12. Commonhold and Leasehold Reform Act 2002 (c. 15) Section 104.
In this Part “the court” means the High Court or the county court .
Provision made by or under this Part conferring jurisdiction on a court shall be subject to provision made under section 1 of the Courts and Legal Services Act 1990 (c. 41) (allocation of business between High Court and county courts).
A power under this Part to confer jurisdiction on a court includes power to confer jurisdiction on a tribunal established under an enactment.
Rules of court or rules of procedure for a tribunal may make provision about proceedings brought—
under or by virtue of any provision of this Part, or
in relation to commonhold land.
In this Part—
“commonhold community statement” has the meaning given by section 31,
“document” means anything in which information is recorded,
Regulations under any provision of this Part may confer functions on the Registrar (including discretionary functions).
The Registrar shall comply with any direction or requirement given to him or imposed on him under or by virtue of this Part.
Where the Registrar thinks it appropriate in consequence of or for the purpose of anything done or proposed to be done in connection with this Part, he may—
make or cancel an entry on the register;
take any other action.
Subsection (4) is subject to section 6(2).
Schedule 5 (consequential amendments) shall have effect.
In this Part—
“instrument” includes any document, and
In this Part—
a reference to a duty to insure includes a reference to a duty to use the proceeds of insurance for the purpose of rebuilding or reinstating, and
a reference to maintaining property includes a reference to decorating it and to putting it into sound condition.
A provision of the Law of Property Act 1925 (c. 20), the Companies Act 2006 or the Land Registration Act 2002 (c.9) defining an expression shall apply to the use of the expression in this Part unless the contrary intention appears.
In this Part the expressions listed below are defined by the provisions specified. Expression Interpretation provision Common parts Section 25 A commonhold Section 1 Commonhold association Section 34 Commonhold community statement Section 31 Commonhold land Section 1 Commonhold unit Section 11 Court Section 66 Declaration of solvency Section 43 Developer Section 58 Development business Section 58 Exercising functions Section 8 Insolvent commonhold association Section 50 Instrument Section 69 Insure Section 69 Joint unit-holder Section 13 Liquidator (sections 44 to 49) Section 44 Maintenance Section 69 Object Section 69 Prescribed Section 64 The register Section 67 Registered Section 67 Registered freeholder Section 2 The Registrar Section 67 Regulations Section 64 Residential commonhold unit Section 17 Succession order Section 51 Successor commonhold association Section 50 Termination application Section 46 Termination-statement resolution Section 43 Transfer (of unit) Section 15 Transitional period Section 8 Unit-holder Section 12 Winding-up resolution Section 43
This Chapter makes provision for the acquisition and exercise of rights in relation to the management of premises to which this Chapter applies by a company which, in accordance with this Chapter, may acquire and exercise those rights (referred to in this Chapter as a RTM company).
The rights are to be acquired and exercised subject to and in accordance with this Chapter and are referred to in this Chapter as the right to manage.
This Chapter applies to premises if—
they consist of a self-contained building or part of a building, with or without appurtenant property,
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.
A building is a self-contained building if it is structurally detached.
A part of a building is a self-contained part of the building if—
it constitutes a vertical division of the building,
the structure of the building is such that it could be redeveloped independently of the rest of the building, and
subsection (4) applies in relation to it.
This subsection applies in relation to a part of a building if the relevant services provided for occupiers of it—
are provided independently of the relevant services provided for occupiers of the rest of the building, or
could be so provided without involving the carrying out of works likely to result in a significant interruption in the provision of any relevant services for occupiers of the rest of the building.
Relevant services are services provided by means of pipes, cables or other fixed installations.
Schedule 6 (premises excepted from this Chapter) has effect.
This section specifies what is a RTM company.
A company is a RTM 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 acquisition and exercise of the right to manage the premises.
But a company is not a RTM company if it is a commonhold association (within the meaning of Part 1).
And a company is not a RTM company in relation to premises if another company is already a RTM company in relation to the premises or to any premises containing or contained in the premises.
If the freehold of any premises is conveyed or transferred to a company which is a RTM company in relation to the premises, or any premises containing or contained in the premises, it ceases to be a RTM company when the conveyance or transfer is executed.
The persons who are entitled to be members of a company which is a RTM company in relation to premises are—
qualifying tenants of flats contained in the premises, and
from the date on which it acquires the right to manage (referred to in this Chapter as the “acquisition date”), landlords under leases of the whole or any part of the premises.
The appropriate national authority shall make regulations about the content and form of the articles of association of RTM companies.
A RTM company may adopt provisions of the regulations for its articles.
The regulations may include provision which is to have effect for a RTM company whether or not it is adopted by the company.
A provision of the articles of a RTM 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 RTM company.
sections 2(7) and 3 (memorandum), and
section 8 (articles).
This section specifies whether there is a qualifying tenant of a flat for the purposes of this Chapter and, if so, who it is.
Subject as follows, a person is the qualifying tenant of a flat if he is tenant of the flat under a long lease.
Subsection (2) does not apply where the lease is a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies.
Subsection (2) does not apply where—
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 has more than one qualifying tenant at any one time; and subsections (6) and (7) apply accordingly.
Where a flat is being let under two or more long leases, a tenant under any of those leases which is superior to that held by another is not the qualifying tenant of the flat.
Where a flat is being let to joint tenants under a long lease, the joint tenants shall (subject to subsection (6)) be regarded as jointly being the qualifying tenant of the flat.
This section and section 77 specify what is a long lease for the purposes of this Chapter.
Subject to section 77, a lease is a long lease if—
it is 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, by re-entry or forfeiture or otherwise,
it is for a term fixed by law under a grant with a covenant or obligation for perpetual renewal (but is not a lease by sub-demise from one which is not a long lease),
it takes effect under section 149(6) of the Law of Property Act 1925 (c. 20) (leases terminable after a death or marriage or the formation of a civil partnership),
it was granted in pursuance of the right to buy conferred by Part 5 of the Housing Act 1985 (c. 68) or in pursuance of the right to acquire on rent to mortgage terms conferred by that Part of that Act,
it is 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
it was granted in pursuance of that Part of that Act as it has effect by virtue of section 17 of the Housing Act 1996 (c. 52) (the right to acquire).
“Shared ownership lease” means a lease—
granted on payment of a premium calculated by reference to a percentage of the value of the demised premises or the cost of providing them, or
under which the tenant (or his personal representatives) will or may be entitled to a sum calculated by reference, directly or indirectly, to the value of those premises.
“Total share”, in relation to the interest of a tenant under a shared ownership lease, means his initial share plus any additional share or shares in the demised premises which he has acquired.
A lease terminable by notice after a death, a marriage or the formation of a civil partnership is not a long lease 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 demised premises.
Where the tenant of any property under a long lease, on the coming to an end of the 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), that tenancy is a long lease irrespective of its terms.
A lease— is to be treated as if the term originally granted had been one exceeding 21 years.
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
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),
Where a long lease— it remains a long lease during that period.
is or was continued for any period under Part 1 of the Landlord and Tenant Act 1954 (c. 56) or under Schedule 10 to the Local Government and Housing Act 1989 (c. 42), or
was continued for any period under the Leasehold Property (Temporary Provisions) Act 1951 (c. 38),
Where in the case of a flat there are at any time two or more separate leases, with the same landlord and the same tenant, and— there shall be taken to be a single long lease of the property comprised in such of those leases as are long leases.
the property comprised in one of those leases consists of either the flat or a part of it (in either case with or without appurtenant property), and
the property comprised in every other lease consists of either a part of the flat (with or without appurtenant property) or appurtenant property only,
Before making a claim to acquire the right to manage any premises, a RTM company must give notice to each person who at the time when the notice is given—
is the qualifying tenant of a flat contained in the premises, but
neither is nor has agreed to become a member of the RTM company.
A notice given under this section (referred to in this Chapter as a “notice of invitation to participate”) must—
state that the RTM company intends to acquire the right to manage the premises,
state the names of the members of the RTM company,
invite the recipients of the notice to become members of the company, and
contain such other particulars (if any) as may be required to be contained in notices of invitation to participate by regulations made by the appropriate national authority.
A notice of invitation to participate must also comply with such requirements (if any) about the form of notices of invitation to participate as may be prescribed by regulations so made.
A notice of invitation to participate must either—
be accompanied by a copy of the articles of association of the RTM company, or
include a statement about inspection and copying of the articles of association of the RTM company.
A statement under subsection (4)(b) must—
specify a place (in England or Wales) at which the articles of association may be inspected,
specify as the times at which they may be inspected periods of at least two hours on each of at least three days (including a Saturday or Sunday or both) within the seven days beginning with the day following that on which the notice is given,
specify a place (in England or Wales) at which, at any time within those seven days, a copy of the articles of association may be ordered, and
specify a fee for the provision of an ordered copy, not exceeding the reasonable cost of providing it.
Where a notice given to a person includes a statement under subsection (4)(b), the notice is to be treated as not having been given to him if he is not allowed to undertake an inspection, or is not provided with a copy, in accordance with the statement.
A notice of invitation to participate is not invalidated by any inaccuracy in any of the particulars required by or by virtue of this section.
A claim to acquire the right to manage any premises is made by giving notice of the claim (referred to in this Chapter as a “claim notice”); and in this Chapter the “relevant date”, in relation to any claim to acquire the right to manage, means the date on which notice of the claim is given.
The claim notice may not be given unless each person required to be given a notice of invitation to participate has been given such a notice at least 14 days before.
The claim notice must be given by a RTM company which complies with subsection (4) or (5).
If on the relevant date there are only two qualifying tenants of flats contained in the premises, both must be members of the RTM company.
In any other case, the membership of the RTM company must on the relevant date include a number of qualifying tenants of flats contained in the premises which is not less than one-half of the total number of flats so contained.
The claim notice must be given to each person who on the relevant date is—
landlord under a lease of the whole or any part of the premises,
party to such a lease otherwise than as landlord or tenant, or
a manager appointed under Part 2 of the Landlord and Tenant Act 1987 (c. 31) (referred to in this Part as “the 1987 Act”) to act in relation to the premises, or any premises containing or contained in the premises.
Subsection (6) does not require the claim notice to be given to a person who cannot be found or whose identity cannot be ascertained; but if this subsection means that the claim notice is not required to be given to anyone at all, section 85 applies.
A copy of the claim notice must be given to each person who on the relevant date is the qualifying tenant of a flat contained in the premises.
Where a manager has been appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises, a copy of the claim notice must also be given to the ... tribunal or court by which he was appointed.
The claim notice must comply with the following requirements.
It must specify the premises and contain a statement of the grounds on which it is claimed that they are premises to which this Chapter applies.
It must state the full name of each person who is both— and the address of his flat.
the qualifying tenant of a flat contained in the premises, and
a member of the RTM company,
And it must contain, in relation to each such person, such particulars of his lease as are sufficient to identify it, including—
the date on which it was entered into,
the term for which it was granted, and
the date of the commencement of the term.
It must state the name and registered office of the RTM company.
It must specify a date, not earlier than one month after the relevant date, by which each person who was given the notice under section 79(6) may respond to it by giving a counter-notice under section 84.
It must specify a date, at least three months after that specified under subsection (6), on which the RTM company intends to acquire the right to manage the premises.
It must also contain such other particulars (if any) as may be required to be contained in claim notices by regulations made by the appropriate national authority.
And it must comply with such requirements (if any) about the form of claim notices as may be prescribed by regulations so made.
A claim notice is not invalidated by any inaccuracy in any of the particulars required by or by virtue of section 80.
Where any of the members of the RTM company whose names are stated in the claim notice was not the qualifying tenant of a flat contained in the premises on the relevant date, the claim notice is not invalidated on that account, so long as a sufficient number of qualifying tenants of flats contained in the premises were members of the company on that date; and for this purpose a “sufficient number” is a number (greater than one) which is not less than one-half of the total number of flats contained in the premises on that date.
Where any premises have been specified in a claim notice, no subsequent claim notice which specifies— may be given so long as the earlier claim notice continues in force.
the premises, or
any premises containing or contained in the premises,
Where a claim notice is given by a RTM company it continues in force from the relevant date until the right to manage is acquired by the company unless it has previously—
been withdrawn or deemed to be withdrawn by virtue of any provision of this Chapter, or
ceased to have effect by reason of any other provision of this Chapter.
A company which is a RTM company in relation to any premises may give to any person a notice requiring him to provide the company with any information—
which is in his possession or control, and
which the company reasonably requires for ascertaining the particulars required by or by virtue of section 80 to be included in a claim notice for claiming to acquire the right to manage the premises.
Where the information is recorded in a document in the person’s possession or control, the RTM company may give him a notice requiring him—
to permit any person authorised to act on behalf of the company at any reasonable time to inspect the document (or, if the information is recorded in the document in a form in which it is not readily intelligible, to give any such person access to it in a readily intelligible form), and
to supply the company with a copy of the document containing the information in a readily intelligible form ....
A person to whom a notice is given must comply with it within the period of 28 days beginning with the day on which it is given.
The RTM company is liable for the reasonable costs incurred by a person in complying (in accordance with this section) with a notice under this section.
Any question arising in relation to the amount of the costs payable by the RTM company is, in default of agreement, to be determined by the appropriate tribunal.
Where a RTM company has given a claim notice in relation to any premises, each of the persons specified in subsection (2) has a right of access to any part of the premises if that is reasonable in connection with any matter arising out of the claim to acquire the right to manage.
The persons referred to in subsection (1) are—
any person authorised to act on behalf of the RTM company,
any person who is landlord under a lease of the whole or any part of the premises and any person authorised to act on behalf of any such person,
any person who is party to such a lease otherwise than as landlord or tenant and any person authorised to act on behalf of any such person, and
any manager appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises, and any person authorised to act on behalf of any such manager.
The right conferred by this section is exercisable, at any reasonable time, on giving not less than ten 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.
A person who is given a claim notice by a RTM company under section 79(6) may give a notice (referred to in this Chapter as a “counter-notice”) to the company no later than the date specified in the claim notice under section 80(6).
A counter-notice is a notice containing a statement either— and containing such other particulars (if any) as may be required to be contained in counter-notices, and complying with such requirements (if any) about the form of counter-notices, as may be prescribed by regulations made by the appropriate national authority.
admitting that the RTM company was on the relevant date entitled to acquire the right to manage the premises specified in the claim notice, or
alleging that, by reason of a specified provision of this Chapter, the RTM company was on that date not so entitled,
Where the RTM company has been given one or more counter-notices containing a statement such as is mentioned in subsection (2)(b), the company may apply to the appropriate tribunal for a determination that it was on the relevant date entitled to acquire the right to manage the premises.
An application under subsection (3) must be made not later than the end of the period of two months beginning with the day on which the counter-notice (or, where more than one, the last of the counter-notices) was given.
Where the RTM company has been given one or more counter-notices containing a statement such as is mentioned in subsection (2)(b), the RTM company does not acquire the right to manage the premises unless—
on an application under subsection (3) it is finally determined that the company was on the relevant date entitled to acquire the right to manage the premises, or
the person by whom the counter-notice was given agrees, or the persons by whom the counter-notices were given agree, in writing that the company was so entitled.
If on an application under subsection (3) it is finally determined that the company was not on the relevant date entitled to acquire the right to manage the premises, the claim notice ceases to have effect.
A determination on an application under subsection (3) becomes final—
if not appealed against, at the end of the period for bringing an appeal, or
if appealed against, at the time when the appeal (or any further appeal) is disposed of.
An appeal is disposed of—
if it is determined and the period for bringing any further appeal has ended, or
if it is abandoned or otherwise ceases to have effect.
This section applies where a RTM company wishing to acquire the right to manage premises— but cannot find, or ascertain the identity of, any of the persons to whom the claim notice would be required to be given by subsection (6) of that section.
complies with subsection (4) or (5) of section 79, and
would not have been precluded from giving a valid notice under that section with respect to the premises,
The RTM company may apply to the appropriate tribunal for an order that the company is to acquire the right to manage the premises.
Such an order may be made only if the company has given notice of the application to each person who is the qualifying tenant of a flat contained in the premises.
Before an order is made the company may be required to take such further steps by way of advertisement or otherwise as is determined proper for the purpose of tracing the persons who are—
landlords under leases of the whole or any part of the premises, or
parties to such leases otherwise than as landlord or tenant.
If any of those persons is traced— no further proceedings shall be taken with a view to the making of an order.
after an application for an order is made, but
before the making of an order,
Where that happens—
the rights and obligations of all persons concerned shall be determined as if the company had, at the date of the application, duly given notice under section 79 of its claim to acquire the right to manage the premises, and
the ... tribunal may give such directions as it thinks fit as to the steps to be taken for giving effect to their rights and obligations, including directions modifying or dispensing with any of the requirements imposed by or by virtue of this Chapter.
An application for an order may be withdrawn at any time before an order is made and, after it is withdrawn, subsection (6)(a) does not apply.
But where any step is taken for the purpose of giving effect to subsection (6)(a) in the case of any application, the application shall not afterwards be withdrawn except—
with the consent of the person or persons traced, or
by permission of the ... tribunal.
And permission shall be given only where it appears just that it should be given by reason of matters coming to the knowledge of the RTM company in consequence of the tracing of the person or persons traced.
A RTM company which has given a claim notice in relation to any premises may, at any time before it acquires the right to manage the premises, withdraw the claim notice by giving a notice to that effect (referred to in this Chapter as a “notice of withdrawal”).
A notice of withdrawal must be given to each person who is—
landlord under a lease of the whole or any part of the premises,
party to such a lease otherwise than as landlord or tenant,
a manager appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises, or
the qualifying tenant of a flat contained in the premises.
If a RTM company has been given one or more counter-notices containing a statement such as is mentioned in subsection (2)(b) of section 84 but either— the claim notice is deemed to be withdrawn.
no application for a determination under subsection (3) of that section is made within the period specified in subsection (4) of that section, or
such an application is so made but is subsequently withdrawn,
The withdrawal shall be taken to occur—
if paragraph (a) of subsection (1) applies, at the end of the period specified in that paragraph, and
if paragraph (b) of that subsection applies, on the date of the withdrawal of the application.
Subsection (1) does not apply if the person by whom the counter-notice was given has, or the persons by whom the counter-notices were given have, (before the time when the withdrawal would be taken to occur) agreed in writing that the RTM company was on the relevant date entitled to acquire the right to manage the premises.
The claim notice is deemed to be withdrawn if—
a winding-up order . . . is made, or a resolution for voluntary winding-up is passed, with respect to the RTM company, or the RTM company enters administration,
a receiver or a manager of the RTM company’s undertaking is duly appointed, or possession is taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the RTM company comprised in or subject to the charge,
a voluntary arrangement proposed in the case of the RTM company for the purposes of Part 1 of the Insolvency Act 1986 (c. 45) is approved under that Part of that Act, or
the RTM company’s name is struck off the register under section 1000, 1001 or 1003 of the Companies Act 2006.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A RTM company is liable for reasonable costs incurred by a person who is— in consequence of a claim notice given by the company in relation to the premises.
landlord under a lease of the whole or any part of any premises,
party to such a lease otherwise than as landlord or tenant, or
a manager appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises,
Any costs incurred by such a person in respect of professional services rendered to him by another are to be regarded as reasonable only 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.
A RTM company is liable for any costs which such a person incurs as party to any proceedings under this Chapter before a leasehold valuation tribunal only if the tribunal dismisses an application by the company for a determination that it is entitled to acquire the right to manage the premises.
Any question arising in relation to the amount of any costs payable by a RTM company shall, in default of agreement, be determined by a leasehold valuation tribunal.
An RTM company and a member of an RTM company are not liable for any costs incurred by any other person in consequence of a claim notice given by the company in relation to any premises, except as set out in this section.
A lease, transfer, contract or other arrangement is accordingly of no effect to the extent it would provide to the contrary.
An RTM company is liable to a member of the company in respect of costs incurred by the member to the extent agreed between the company and the member.
A member of an RTM company—
is liable to the company in respect of costs incurred by the company to the extent agreed between the member and the company;
is liable to another member of the company in respect of costs incurred by that other member to the extent agreed between the two members.
An RTM company or a member of an RTM company are liable for costs incurred by another person in connection with proceedings before a court or tribunal if—
the court or tribunal has power under another enactment to order that they pay those costs, and
the court or tribunal makes such an order.
An RTM company and a member of an RTM company are liable for costs incurred by another person in the circumstances referred to in section 87B.
For the purposes of this section, “member”, in relation to an RTM company, means each person who is or has been a member of the RTM company.
See also sections 20CA and 20J of the Landlord and Tenant Act 1985, which prevent costs in connection with a claim under this Chapter being recovered by way of a variable service charge (within the meaning of section 18 of that Act).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This section applies where a claim notice given by a RTM company—
is at any time withdrawn or deemed to be withdrawn by virtue of any provision of this Chapter, or
at any time ceases to have effect by reason of any other provision of this Chapter.
The liability of the RTM company under section 88 for costs incurred by any person is a liability for costs incurred by him down to that time.
Each person who is or has been a member of the RTM company is also liable for those costs (jointly and severally with the RTM company and each other person who is so liable).
But subsection (3) does not make a person liable if—
the lease by virtue of which he was a qualifying tenant has been assigned to another person, and
that other person has become a member of the RTM company.
The reference in subsection (4) to an assignment includes—
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).
The appropriate tribunal may, on the application of a person (“the applicant”) that incurs costs in consequence of a claim notice given by an RTM company, order that the RTM company is liable to the applicant for the costs if all of the conditions in subsection (2) are met.
The conditions are—
the claim notice—
is at any time withdrawn or deemed to be withdrawn by virtue of any provision of this Chapter, or
at any time ceases to have effect by reason of any other provision of this Chapter;
the RTM company acts unreasonably in—
giving the claim notice, or
not withdrawing it, causing it to be deemed withdrawn, or causing it to cease to have effect sooner;
the applicant is—
a landlord under a lease of the whole or any part of the premises,
party to such a lease otherwise than as landlord or tenant, or
a manager appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises;
the costs are incurred before the claim notice is withdrawn, is deemed withdrawn, or ceases to have effect;
the costs are incurred other than in connection with proceedings before a court or tribunal;
the costs are reasonably incurred.
Where the appropriate tribunal orders that an RTM company is liable under subsection (1), each person who is or has been a member of the RTM company is also liable (jointly and severally with the RTM company and each other such person).
But a person is not liable if—
the lease by virtue of which they were a qualifying tenant has been assigned to another person, and
that other person has become a member of the RTM company.
The reference in subsection (4) to an assignment includes—
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 (foreclosure of leasehold mortgage).
This section makes provision about the date which is the acquisition date where a RTM company acquires the right to manage any premises.
Where there is no dispute about entitlement, the acquisition date is the date specified in the claim notice under section 80(7).
For the purposes of this Chapter there is no dispute about entitlement if—
no counter-notice is given under section 84, or
the counter-notice given under that section, or (where more than one is so given) each of them, contains a statement such as is mentioned in subsection (2)(a) of that section.
Where the right to manage the premises is acquired by the company by virtue of a determination under section 84(5)(a), the acquisition date is the date three months after the determination becomes final.
Where the right to manage the premises is acquired by the company by virtue of subsection (5)(b) of section 84, the acquisition date is the date three months after the day on which the person (or the last person) by whom a counter-notice containing a statement such as is mentioned in subsection (2)(b) of that section was given agrees in writing that the company was on the relevant date entitled to acquire the right to manage the premises.
Where an order is made under section 85, the acquisition date is (subject to any appeal) the date specified in the order.
Section 92 applies where—
the right to manage premises is to be acquired by a RTM company (otherwise than by virtue of an order under section 85), and
there are one or more existing management contracts relating to the premises.
A management contract is a contract between— under which the contractor party agrees to provide services, or do any other thing, in connection with any matter relating to a function which will be a function of the RTM company once it acquires the right to manage.
an existing manager of the premises (referred to in this Chapter as the “manager party”), and
another person (so referred to as the “contractor party”),
And in this Chapter “existing management contract” means a management contract which—
is subsisting immediately before the determination date, or
is entered into during the period beginning with the determination date and ending with the acquisition date.
An existing manager of the premises is any person who is—
landlord under a lease relating to the whole or any part of the premises,
party to such a lease otherwise than as landlord or tenant, or
a manager appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises.
In this Chapter “determination date” means—
where there is no dispute about entitlement, the date specified in the claim notice under section 80(6),
where the right to manage the premises is acquired by the company by virtue of a determination under section 84(5)(a), the date when the determination becomes final, and
where the right to manage the premises is acquired by the company by virtue of subsection (5)(b) of section 84, the day on which the person (or the last person) by whom a counter-notice containing a statement such as is mentioned in subsection (2)(b) of that section was given agrees in writing that the company was on the relevant date entitled to acquire the right to manage the premises.
The person who is the manager party in relation to an existing management contract must give a notice in relation to the contract—
to the person who is the contractor party in relation to the contract (a “contractor notice”), and
to the RTM company (a “contract notice”).
A contractor notice and a contract notice must be given—
in the case of a contract subsisting immediately before the determination date, on that date or as soon after that date as is reasonably practicable, and
in the case of a contract entered into during the period beginning with the determination date and ending with the acquisition date, on the date on which it is entered into or as soon after that date as is reasonably practicable.
A contractor notice must— and must also comply with such requirements (if any) about the form of contractor notices as may be prescribed by regulations so made.
give details sufficient to identify the contract in relation to which it is given,
state that the right to manage the premises is to be acquired by a RTM company,
state the name and registered office of the RTM company,
specify the acquisition date, and
contain such other particulars (if any) as may be required to be contained in contractor notices by regulations made by the appropriate national authority,
Where a person who receives a contractor notice (including one who receives a copy by virtue of this subsection) is party to an existing management sub-contract with another person (the “sub-contractor party”), the person who received the notice must—
send a copy of the contractor notice to the sub-contractor party, and
give to the RTM company a contract notice in relation to the existing management sub-contract.
An existing management sub-contract is a contract under which the sub-contractor party agrees to provide services, or do any other thing, in connection with any matter relating to a function which will be a function of the RTM company once it acquires the right to manage and which—
is subsisting immediately before the determination date, or
is entered into during the period beginning with the determination date and ending with the acquisition date.
Subsection (4) must be complied with—
in the case of a contract entered into before the contractor notice is received, on the date on which it is received or as soon after that date as is reasonably practicable, and
in the case of a contract entered into after the contractor notice is received, on the date on which it is entered into or as soon after that date as is reasonably practicable.
A contract notice must— and must also comply with such requirements (if any) about the form of contract notices as may be prescribed by such regulations so made.
give particulars of the contract in relation to which it is given and of the person who is the contractor party, or sub-contractor party, in relation to that contract, and
contain such other particulars (if any) as may be required to be contained in contract notices by regulations made by the appropriate national authority,
Where the right to manage premises is to be acquired by a RTM company, the company may give notice to a person who is— requiring him to provide the company with any information which is in his possession or control and which the company reasonably requires in connection with the exercise of the right to manage.
landlord under a lease of the whole or any part of the premises,
party to such a lease otherwise than as landlord or tenant, or
a manager appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises,
Where the information is recorded in a document in his possession or control the notice may require him—
to permit any person authorised to act on behalf of the company at any reasonable time to inspect the document (or, if the information is recorded in the document in a form in which it is not readily intelligible, to give any such person access to it in a readily intelligible form), and
to supply the company with a copy of the document containing the information in a readily intelligible form.
A notice may not require a person to do anything under this section before the acquisition date.
But, subject to that, a person who is required by a notice to do anything under this section must do it within the period of 28 days beginning with the day on which the notice is given.
Where the right to manage premises is to be acquired by a RTM company, a person who is— must make to the company a payment equal to the amount of any accrued uncommitted service charges held by him on the acquisition date.
landlord under a lease of the whole or any part of the premises,
party to such a lease otherwise than as landlord or tenant, or
a manager appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises,
The amount of any accrued uncommitted service charges is the aggregate of— less so much (if any) of that amount as is required to meet the costs incurred before the acquisition date in connection with the matters for which the service charges were payable.
any sums which have been paid to the person by way of service charges in respect of the premises, and
any investments which represent such sums (and any income which has accrued on them),
He or the RTM company may make an application to the appropriate tribunal to determine the amount of any payment which falls to be made under this section.
The duty imposed by this section must be complied with on the acquisition date or as soon after that date as is reasonably practicable.
Sections 96 to 103 apply where the right to manage premises has been acquired by a RTM company (and has not ceased to be exercisable by it).
This section and section 97 apply in relation to management functions relating to the whole or any part of the premises.
Management functions which a person who is landlord under a lease of the whole or any part of the premises has under the lease are instead functions of the RTM company.
And where a person is party to a lease of the whole or any part of the premises otherwise than as landlord or tenant, management functions of his under the lease are also instead functions of the RTM company.
Accordingly, any provisions of the lease making provision about the relationship of— in relation to such functions do not have effect.
a person who is landlord under the lease, and
a person who is party to the lease otherwise than as landlord or tenant,
“Management functions” are functions with respect to services, repairs, maintenance, improvements, insurance and management.
But this section does not apply in relation to—
functions with respect to a matter concerning only a part of the premises consisting of a flat or other unit not held under a lease by a qualifying tenant, or
functions relating to re-entry or forfeiture.
An order amending subsection (5) or (6) may be made by the appropriate national authority.
Any obligation owed by the RTM company by virtue of section 96 to a tenant under a lease of the whole or any part of the premises is also owed to each person who is landlord under the lease.
A person who is— is not entitled to do anything which the RTM company is required or empowered to do under the lease by virtue of section 96, except in accordance with an agreement made by him and the RTM company.
landlord under a lease of the whole or any part of the premises,
party to such a lease otherwise than as landlord or tenant, or
a manager appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises,
But subsection (2) does not prevent any person from insuring the whole or any part of the premises at his own expense.
So far as any function of a tenant under a lease of the whole or any part of the premises— it is instead exercisable in relation to the RTM company.
relates to the exercise of any function under the lease which is a function of the RTM company by virtue of section 96, and
is exercisable in relation to a person who is landlord under the lease or party to the lease otherwise than as landlord or tenant,
But subsection (4) does not require or permit the payment to the RTM company of so much of any service charges payable by a tenant under a lease of the whole or any part of the premises as is required to meet costs incurred before the right to manage was acquired by the RTM company in connection with matters for which the service charges are payable.
This section and section 99 apply in relation to the grant of approvals under long leases of the whole or any part of the premises; but nothing in this section or section 99 applies in relation to an approval concerning only a part of the premises consisting of a flat or other unit not held under a lease by a qualifying tenant.
Where a person who is— has functions in relation to the grant of approvals to a tenant under the lease, the functions are instead functions of the RTM company.
landlord under a long lease of the whole or any part of the premises, or
party to such a lease otherwise than as landlord or tenant,
Accordingly, any provisions of the lease making provision about the relationship of— in relation to such functions do not have effect.
a person who is landlord under the lease, and
a person who is party to the lease otherwise than as landlord or tenant,
The RTM company must not grant an approval by virtue of subsection (2) without having given— to the person who is, or each of the persons who are, landlord under the lease.
in the case of an approval relating to assignment, underletting, charging, parting with possession, the making of structural alterations or improvements or alterations of use, 30 days’ notice, or
in any other case, 14 days’ notice,
Regulations increasing the period of notice to be given under subsection (4)(b) in the case of any description of approval may be made by the appropriate national authority.
So far as any function of a tenant under a long lease of the whole or any part of the premises— it is instead exercisable in relation to the RTM company.
relates to the exercise of any function which is a function of the RTM company by virtue of this section, and
is exercisable in relation to a person who is landlord under the lease or party to the lease otherwise than as landlord or tenant,
In this Chapter “approval” includes consent or licence and “approving” is to be construed accordingly; and an approval required to be obtained by virtue of a restriction entered on the register of title kept by the Chief Land Registrar is, so far as relating to a long lease of the whole or any part of any premises, to be treated for the purposes of this Chapter as an approval under the lease.
If a person to whom notice is given under section 98(4) objects to the grant of the approval before the time when the RTM company would first be entitled to grant it, the RTM company may grant it only—
in accordance with the written agreement of the person who objected, or
in accordance with a determination of (or on an appeal from) the appropriate tribunal .
An objection to the grant of the approval may not be made by a person unless he could withhold the approval if the function of granting it were exercisable by him (and not by the RTM company).
And a person may not make an objection operating only if a condition or requirement is not satisfied unless he could grant the approval subject to the condition or requirement being satisfied if the function of granting it were so exercisable.
An objection to the grant of the approval is made by giving notice of the objection (and of any condition or requirement which must be satisfied if it is not to operate) to— and, if the approval is to a tenant approving an act of a sub-tenant, to the sub-tenant.
the RTM company, and
the tenant,
An application to the appropriate tribunal for a determination under subsection (1)(b) may be made by—
the RTM company,
the tenant,
if the approval is to a tenant approving an act of a sub-tenant, the sub-tenant, or
any person who is landlord under the lease.
This section applies in relation to the enforcement of untransferred tenant covenants of a lease of the whole or any part of the premises.
Untransferred tenant covenants are enforceable by the RTM company, as well as by any other person by whom they are enforceable apart from this section, in the same manner as they are enforceable by any other such person.
But the RTM company may not exercise any function of re-entry or forfeiture.
In this Chapter “tenant covenant”, in relation to a lease, means a covenant falling to be complied with by a tenant under the lease; and a tenant covenant is untransferred if, apart from this section, it would not be enforceable by the RTM company.
Any power under a lease of a person who is— to enter any part of the premises to determine whether a tenant is complying with any untransferred tenant covenant is exercisable by the RTM company (as well as by the landlord or party).
landlord under the lease, or
party to the lease otherwise than as landlord or tenant,
This section applies in relation to failures to comply with tenant covenants of leases of the whole or any part of the premises.
The RTM company must—
keep under review whether tenant covenants of leases of the whole or any part of the premises are being complied with, and
report to any person who is landlord under such a lease any failure to comply with any tenant covenant of the lease.
The report must be made before the end of the period of three months beginning with the day on which the failure to comply comes to the attention of the RTM company.
But the RTM company need not report to a landlord a failure to comply with a tenant covenant if—
the failure has been remedied,
reasonable compensation has been paid in respect of the failure, or
the landlord has notified the RTM company that it need not report to him failures of the description of the failure concerned.
Schedule 7 (provision for the operation of certain enactments with modifications) has effect.
Other enactments relating to leases (including enactments contained in this Act or any Act passed after this Act) have effect with any such modifications as are prescribed by regulations made by the appropriate national authority.
This section applies where—
the premises contain at least one flat or other unit not subject to a lease held by a qualifying tenant (an “excluded unit”),
the service charges payable under leases of flats contained in the premises which are so subject fall to be calculated as a proportion of the relevant costs, and
the proportions of the relevant costs so payable, when aggregated, amount to less than the whole of the relevant costs.
Where the premises contain only one excluded unit, the person who is the appropriate person in relation to the excluded unit must pay to the RTM company the difference between—
the relevant costs, and
the aggregate amount payable in respect of the relevant costs under leases of flats contained in the premises which are held by qualifying tenants.
Where the premises contain more than one excluded unit, each person who is the appropriate person in relation to an excluded unit must pay to the RTM company the appropriate proportion of that difference.
And the appropriate proportion in the case of each such person is the proportion of the internal floor area of all of the excluded units which is internal floor area of the excluded unit in relation to which he is the appropriate person.
The appropriate person in relation to an excluded unit—
if it is subject to a lease, is the landlord under the lease,
if it is subject to more than one lease, is the immediate landlord under whichever of the leases is inferior to all the others, and
if it is not subject to any lease, is the freeholder.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 49(1) of the Land Registration Act 1925 (c. 21) (rules to provide for rights, interests and claims to be protected by notice), insert at the end—
In section 64 of that Act (production of certificates for noting on certain dealings etc.), insert at the end—
After section 111 of that Act insert—
This section makes provision about the circumstances in which, after a RTM company has acquired the right to manage any premises, that right ceases to be exercisable by it.
Provision may be made by an agreement made between— for the right to manage the premises to cease to be exercisable by the RTM company.
the RTM company, and
each person who is landlord under a lease of the whole or any part of the premises,
The right to manage the premises ceases to be exercisable by the RTM company if—
a winding-up order . . . is made, or a resolution for voluntary winding-up is passed, with respect to the RTM company, or the RTM company enters administration,
a receiver or a manager of the RTM company’s undertaking is duly appointed, or possession is taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the RTM company comprised in or subject to the charge,
a voluntary arrangement proposed in the case of the RTM company for the purposes of Part 1 of the Insolvency Act 1986 (c. 45) is approved under that Part of that Act, or
the RTM company’s name is struck off the register under section 1000, 1001 or 1003 of the Companies Act 2006.
The right to manage the premises ceases to be exercisable by the RTM company if a manager appointed under Part 2 of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises, begins so to act or an order under that Part of that Act that the right to manage the premises is to cease to be exercisable by the RTM company takes effect.
The right to manage the premises ceases to be exercisable by the RTM company if it ceases to be a RTM company in relation to the premises.
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) is void in so far as it—
purports to exclude or modify the right of any person to be, or do any thing as, a member of a RTM company,
provides for the termination or surrender of the lease if the tenant becomes, or does any thing as, a member of a RTM company or if a RTM company does any thing, or
provides for the imposition of any penalty or disability if the tenant becomes, or does any thing as, a member of a RTM company or if a RTM company does any thing.
The appropriate tribunal may, on the application of any person interested, make an order requiring a person who has failed to comply with a requirement imposed on him by, under or by virtue of any provision of this Chapter 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.
Where an order other than an order to pay a sum of money has been made under subsection (1) by the appropriate tribunal— and the order is to be enforceable by the court in the same way as an order of the court.
a person may apply to the county court for enforcement of the order;
the appropriate tribunal may by order transfer proceedings to the county court for enforcement of the order;
See section 176C for general provision about the enforcement of tribunal decisions and section 27 of the Tribunals, Courts and Enforcement Act 2007 for provision about the enforcement of an order to pay a sum of money.
This Chapter applies in relation to premises in which there is a Crown interest.
There is a Crown interest in premises if there is in the premises an interest or estate—
which is comprised in the Crown Estate,
which belongs to Her Majesty in right of the Duchy of Lancaster,
which belongs to the Duchy of Cornwall, or
which belongs to a government department or is held on behalf of Her Majesty for the purposes of a government department.
Any sum payable under this Chapter to a RTM company by the Chancellor of the Duchy of Lancaster may be raised and paid under section 25 of the Duchy of Lancaster Act 1817 (c. 97) as an expense incurred in improvement of land belonging to Her Majesty in right of the Duchy.
Any sum payable under this Chapter to a RTM company by the Duke of Cornwall (or any other possessor for the time being of the Duchy of Cornwall) may be raised and paid under section 8 of the Duchy of Cornwall Management Act 1863 (c. 49) as an expense incurred in permanently improving the possessions of the Duchy.
Where trustees are the qualifying tenant of a flat contained in any premises, their powers under the instrument regulating the trusts include power to be a member of a RTM company for the purpose of the acquisition and exercise of the right to manage the premises.
But subsection (1) does not apply where the instrument regulating the trusts contains an explicit direction to the contrary.
The power conferred by subsection (1) is exercisable with the same consent or on the same direction (if any) as may be required for the exercise of the trustees’ powers (or ordinary powers) of investment.
The purposes— include the payment of any expenses incurred by a tenant for life or statutory owner as a member of a RTM company.
authorised for the application of capital money by section 73 of the Settled Land Act 1925 (c. 18), and
authorised by section 71 of that Act as purposes for which moneys may be raised by mortgage,
Where a claim to acquire the right to manage any premises is made by the giving of a claim notice, except as otherwise provided by this Chapter— shall be such as may be prescribed by regulations made by the appropriate national authority.
the procedure for giving effect to the claim notice, and
the rights and obligations of all parties in any matter arising in giving effect to the claim notice,
Regulations under this section may, in particular, make provision for a person to be discharged from performing any obligations arising out of a claim notice by reason of the default or delay of some other person.
Any notice under this Chapter—
must be in writing, and
may be sent by post.
A company which is a RTM company in relation to premises may give a notice under this Chapter to a person who is landlord under a lease of the whole or any part of the premises at the address specified in subsection (3) (but subject to subsection (4)).
That address is—
the address last furnished to a member of the RTM company as the landlord’s address for service in accordance with section 48 of the 1987 Act (notification of address for service of notices on landlord), or
if no such address has been so furnished, the address last furnished to such a member as the landlord’s address in accordance with section 47 of the 1987 Act (landlord’s name and address to be contained in demands for rent).
But the RTM company may not give a notice under this Chapter to a person at the address specified in subsection (3) if it has been notified by him of a different address in England and Wales at which he wishes to be given any such notice.
A company which is a RTM company in relation to premises may give a notice under this Chapter to a person who is the qualifying tenant of a flat contained in the premises at the flat unless it has been notified by the qualifying tenant of a different address in England and Wales at which he wishes to be given any such notice.
In this Chapter—
“the 1993 Act” means the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28).
The commonhold association’s certificate of incorporation under section 15 of the Companies Act 2006.
A certificate given by the directors of the commonhold association that—
the articles of association submitted with the application comply with regulations under paragraph 2(1) of Schedule 3,
the commonhold community statement submitted with the application satisfies the requirements of this Part,
the application satisfies Schedule 2,
the commonhold association has not traded, and
the commonhold association has not incurred any liability which has not been discharged.
The addition of land to a commonhold.
Any altered certificate of incorporation issued under section 80 of that Act (change of name).
The removal of land from a commonhold.
The articles of association of the commonhold association.
Amendment of a commonhold community statement (including amendment to redefine the extent of a commonhold unit).
“flat” means a separate set of premises (whether or not on the same floor)—
“service charge” has the meaning given by section 18(1) of the 1985 Act.
Appointment and removal of directors of a commonhold association.
This Chapter does not apply to premises falling within section 72(1) if the internal floor area— exceeds 50% of the internal floor area of the premises (taken as a whole). A part of premises is a non-residential part if it is neither— 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 72(1) if a local housing authority is the immediate landlord of any of the qualifying tenants of flats contained in the premises. “Local housing authority” has the meaning given by section 1 of the Housing Act 1985 (c. 68).
Section 4 of the Defective Premises Act 1972 (c. 35) (landlord’s duty of care by virtue of obligation or right to repair demised premises) has effect with the modifications provided by this paragraph. References to the landlord (apart from the first reference in subsections (1) and (4)) are to the RTM company. The reference to the material time is to the acquisition date.
Section 30A of, and the Schedule to, the 1985 Act (rights of tenants with respect to insurance) have effect with the modifications provided by this paragraph. References to the landlord are to the RTM company. References to a tenant include a person who is landlord under a lease of the whole or any part of the premises and has to make payments under section 103 of this Act. Paragraphs 2(3) and 3(3) of the Schedule apply as if paragraph (a) were omitted and the person referred to in paragraph (b) were a person who receives service charges on behalf of the RTM company.
Part 2 of the 1987 Act (appointment of manager by ... tribunal) has effect with the modifications provided by this paragraph. References to the landlord are to the RTM company. References to a tenant of a flat contained in the premises include a person who is landlord under a lease of the whole or any part of the premises. Section 21(3) (exception for premises where landlord is exempt or resident or where premises are functional land of a charity) does not apply. The references in paragraph (a)(i) of subsection (2) of section 24 to any obligation owed by the RTM company to the tenant under his tenancy include any obligations of the RTM company under this Act. And the circumstances in which the appropriate tribunal may make an order under paragraph (b) of that subsection include any in which the RTM company no longer wishes the right to manage the premises to be exercisable by it. The power in section 24 to make an order appointing a manager to carry out functions includes a power (in the circumstances specified in subsection (2) of that section) to make an order that the right to manage the premises is to cease to be exercisable by the RTM company. And such an order may include provision with respect to incidental and ancillary matters (including, in particular, provision about contracts to which the RTM company is a party and the prosecution of claims in respect of causes of action, whether tortious or contractual, accruing before or after the right to manage ceases to be exercisable).
Sections 42 to 42B of the 1987 Act (service charge contributions to be held in trust and in designated account) have effect with the modifications provided by this paragraph. References to the payee are to the RTM company. The definition of “tenant” in section 42(1) does not apply. References to a tenant of a dwelling include a person who is landlord under a lease of the whole or any part of the premises. The reference in section 42(2) to sums paid to the payee by the contributing tenants by way of relevant service charges includes payments made to the RTM company under section 94 or 103 of this Act. Section 42A(5) applies as if paragraph (a) were omitted and the person referred to in paragraph (b) were a person who receives service charges on behalf of the RTM company.
Chapter 5 of Part 1 (tenants’ right to management audit by landlord) of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (referred to in this Part as “the 1993 Act”) has effect with the modifications provided by this paragraph. References to the landlord (other than the references in section 76(1) and (2) to “the same landlord”) are to the RTM company. References to a tenant include a person who is landlord under a lease of the whole or any part of the premises and has to make payments under section 103 of this Act. Section 80(5) applies as if the reference to a person who receives rent were to a person who receives service charges.
A variable administration charge is payable only to the extent that the amount of the charge is reasonable.
This paragraph applies for the purposes of this Part of this Schedule. “Tenant” includes a statutory tenant. “Dwelling” and “statutory tenant” (and “landlord” in relation to a statutory tenant) have the same meanings as in the 1985 Act. “Post-dispute arbitration agreement”, in relation to any matter, means an arbitration agreement made after a dispute about the matter has arisen. “Arbitration agreement” and “arbitral tribunal” have the same meanings as in Part 1 of the Arbitration Act 1996 (c. 23). “Appropriate tribunal” means—
The 1967 Act has effect subject to the following amendments.
Any party to a lease of a dwelling may apply to the appropriate tribunal for an order varying the lease in such manner as is specified in the application on the grounds that— If the grounds on which the application was made are established to the satisfaction of the tribunal, it may make an order varying the lease in such manner as is specified in the order. The variation specified in the order may be— The tribunal may, instead of making an order varying the lease in such manner as is specified in the order, make an order directing the parties to the lease to vary it in such manner as is so specified. The tribunal may by order direct that a memorandum of any variation of a lease effected by virtue of this paragraph be endorsed on such documents as are specified in the order. Any such variation of a lease shall be binding not only on the parties to the lease for the time being but also on other persons (including any predecessors in title), whether or not they were parties to the proceedings in which the order was made.
In section 9 (costs of enfranchisement), after subsection (4) insert—
In section 14 (costs of lease extension), after subsection (2) insert—
In section 20 (county court), after subsection (4) insert—
In section 21 (leasehold valuation tribunals), after subsection (2) insert—
Where the court certifies particulars of delay or default to the Lands Tribunal under sub-paragraph (1)(b) above, the Lands Tribunal may make any order as to costs of proceedings before the Lands Tribunal which the court may make in relation to proceedings in the court.
either the whole or a material part of which lies above or below some other part of the building,
Section 142 of the Housing Act 1980 (role of leasehold valuation tribunals under 1967 Act) is amended as follows. In subsection (1), for “rent assessment committee constituted under Schedule 10 to the 1977 Act” substitute “ leasehold valuation tribunal ”. In subsection (3), for “Part 2 of that Schedule” substitute “ Schedule 22 to this Act ”.
In this Chapter “lease” and “tenancy” have the same meaning and both expressions include (where the context permits)— but do not include a tenancy at will or at sufferance.
a sub-lease or sub-tenancy, and
an agreement for a lease or tenancy (or for a sub-lease or sub-tenancy),
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.
In this Chapter any reference (however expressed) to the lease held by the 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 Chapter 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.
In the case of a lease which derives (in accordance with section 77(5)) from two or more separate leases, any reference in this Chapter to the date of the commencement of the term for which the lease was granted shall, if the terms of the separate leases commenced at different dates, have effect as references to the date of the commencement of the term of the lease with the earliest date of commencement.
In this Chapter the expressions listed below are defined by the provisions specified. Expression Interpretation provision Approval (and approving) Section 98(7) Appurtenant property Section 112(1) Acquisition date Sections 74(1)(b) and 90 Claim notice Section 79(1) Contractor party Section 91(2)(b) Copy Section 112(1) Counter-notice Section 84(1) Date of the commencement of the term of a lease Section 112(6) Determination date Section 91(5) Document Section 112(1) Dwelling Section 112(1) Existing management contract Section 91(3) Flat Section 112(1) Landlord Section 112(3) and (5) Lease Section 112(2) to (4) Letting Section 112(3) Long lease Sections 76 and 77 Manager party Section 91(2)(a) No dispute about entitlement Section 90(3) Notice of invitation to participate Section 78 Notice of withdrawal Section 86(1) Premises to which this Chapter applies Section 72 (and Schedule 6) Qualifying tenant Sections 75 and 112(4) and (5) Relevant costs Section 112(1) Relevant date Section 79(1) Right to manage Section 71(2) RTM company Sections 71(1) and 73 Service charge Section 112(1) Tenancy Section 112(2) Tenant Section 112(3) and (5) Tenant covenant Section 100(4) Unit Section 112(1)
This Chapter amends the right to collective enfranchisement which is conferred by Chapter 1 of Part 1 of the 1993 Act.
In section 4(1) of the 1993 Act (right not to apply in case of premises having non-residential parts with floor area exceeding 10 per cent. of total), for “10 per cent.” substitute “ 25 per cent. ”.
In section 4 of the 1993 Act (premises in the case of which right does not apply), insert at the end—
In section 5(1) of the 1993 Act (which provides that a qualifying tenant is a tenant under a long lease which is at a low rent or for a particularly long term), omit “which is at a low rent or for a particularly long term”.
In section 69(1)(b) of the 1993 Act (estate management schemes), for “by virtue of the amendments of that Chapter made by paragraph 3 of Schedule 9 to the Housing Act 1996 (c. 52)” substitute “ 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 ”.
Section 10 of the 1993 Act (premises with a resident landlord) is amended as follows.
For subsection (1) (requirements that premises not be or form part of purpose-built block of flats and that they have been occupied for at least twelve months as only or principal home of owner of freehold or a family member) substitute—
For subsection (4) (premises held on trust) substitute—
In section 13(2)(b) of the 1993 Act (persons by whom initial notice must be given), omit sub-paragraph (i) (initial notice to be given by at least two-thirds of qualifying tenants of flats contained in premises).
In section 13(2) of the 1993 Act, omit the words following paragraph (b) (which require at least one-half of the qualifying tenants by whom the initial notice is given to satisfy the residence condition).
Section 13 of the 1993 Act is amended as follows.
In paragraph (b) of subsection (2), after “given by” insert “ a RTE company which has among its participating members ”.
After that subsection insert—
After section 4 of the 1993 Act insert—
After section 12 of the 1993 Act insert—
In section 13 of the 1993 Act, after subsection (2ZA) (inserted by section 121(3)) insert—
Schedule 8 (amendments consequential on sections 121 to 123) has effect.
In subsection (1) of section 17 of the 1993 Act (access by reversioner or other relevant landlord for purposes of valuation), insert at the end “ or if it is reasonable in connection with any other matter arising out of the claim to exercise the right to collective enfranchisement ”.
For the sidenote of that section substitute “Rights of access.”
In Schedule 6 to the 1993 Act (purchase price payable), for “the valuation date” (in each place) substitute “ the relevant date ”.
In section 18(1) of the 1993 Act (duty to disclose existence of agreements affecting premises etc.), for “valuation date for the purposes of Schedule 6” substitute “ time when a binding contract is entered into in pursuance of the initial notice ”.
In paragraph 4(1) of Schedule 6 to the 1993 Act (freeholder’s share of marriage value), for the words after “freeholder’s share of the marriage value is” substitute “ 50 per cent. of that amount ”.
Paragraph 4 of Schedule 6 to the 1993 Act is amended as follows.
In sub-paragraph (2) (meaning of marriage value), insert at the beginning “ Subject to sub-paragraph (2A), ”.
After that sub-paragraph insert—
This Chapter amends the right of tenants of flats to acquire new leases which is conferred by Chapter 2 of Part 1 of the 1993 Act.
Section 39 of the 1993 Act (the right) is amended as follows.
In subsection (2)(a) (requirement that tenant is qualifying tenant of flat on the relevant date), for “is” substitute “ has for the last two years been ”.
Omit subsections (2)(b), (2A) and (2B) (requirement that tenant has occupied flat as only or principal home for three years).
In section 39(3) of the 1993 Act (which applies for the purposes of Chapter 2 of Part 1 of the 1993 Act the definition of qualifying tenant in Chapter 1 of that Part), omit paragraphs (c) and (d) (leases at a low rent and leases for a particularly long term).
In section 39 of the 1993 Act, after subsection (3) insert—
In section 42 of the 1993 Act (notice by qualifying tenant of claim to exercise right), before subsection (5) insert—
In section 94 of the 1993 Act (Crown land), for subsection (2) substitute—
In Schedule 13 to the 1993 Act (premium and other amounts payable by tenant on grant of new lease), for “the valuation date” (in each place) substitute “ the relevant date ”.
In paragraph 4(1) of Schedule 13 to the 1993 Act (landlord’s share of marriage value), for the words after “landlord’s share of the marriage value is” substitute “ 50 per cent. of that amount ”.
Paragraph 4 of Schedule 13 to the 1993 Act (meaning of marriage value) is amended as follows.
In sub-paragraph (2), insert at the beginning “ Subject to sub-paragraph (2A), ”.
After that sub-paragraph insert—
This Chapter amends the Leasehold Reform Act 1967 (c. 88) (referred to in this Part as “the 1967 Act”).
In subsection (1) of section 1 of the 1967 Act (tenants of houses entitled to enfranchisement or extension), omit—
“, occupying the house as his residence,” and
“, and occupying it as his residence,”.
After that subsection insert—
In subsection (3) of that section (exception where house is let to and occupied by tenant with other land or premises to which it is ancillary), for “occupation of it as his residence (but shall apply as if he were not so occupying it)” substitute “ being a tenant of it ”.
In section 2(4) of the 1967 Act (premises previously let with house), for “occupied and used as mentioned in subsection (3) above” substitute “ subject to a tenancy vested in him ”.
In section 6(1) of the 1967 Act (rights in case of trusts), for the words from the beginning to “right of the tenancy” substitute “ A tenant of a house shall for purposes of this Part of this Act be treated as having been a tenant of it at any earlier time ”.
In section 7(3) and (4) of the 1967 Act (rights of members of family succeeding to tenancy on death), for “with him” substitute “ in the house ”.
In subsection (1)(b) of section 1 of the 1967 Act (requirement that person claiming entitlement to enfranchisement or extension has been tenant of house for last three years or for periods amounting to three years in last ten), for “three years or for periods amounting to three years in the last ten years” substitute “ two years ”.
After subsection (1A) of that section insert—
In— for “three years” substitute “ twelve months ”.
section 9(3)(b) of the 1967 Act (no new notice for three years after withdrawal), and
section 23(2)(b) of the 1967 Act (agreements excluding or restricting for period not exceeding three years right to give further notice),
After subsection (1ZB) of section 1 of the 1967 Act (inserted by section 138(2)) insert—
Section 1AA of the 1967 Act (additional right to enfranchisement where tenancy of house not at low rent) is amended as follows.
Omit—
in subsection (1)(b), “falls within subsection (2) below and”, and
subsection (2) (tenancies for more than 35 years etc.).
In subsection (3) (exceptions)—
in paragraph (b), for “the coming into force of section 106 of the Housing Act 1996 (c. 52)” substitute “ 1st April 1997 (the date on which section 106 of the Housing Act 1996 came into force) ”, and
for paragraph (c) substitute—
After section 6 of the 1967 Act insert—
In paragraph 6(2) of Schedule 3 (particulars to be contained in notice), after “6” (in both places) insert “ , 6A ”.
In section 16 of the 1967 Act (limits on rights after extension of lease), omit—
subsection (1)(a) (no right for tenant under extended tenancy to acquire freehold after end of original lease), and
in subsection (4) (no right to freehold or extended lease in case of tenancy created by sub-demise under extended tenancy), the words “the freehold or”.
For subsection (1B) of that section (extended tenancy not an assured tenancy or assured agricultural occupancy or a tenancy to which Schedule 10 to the Local Government and Housing Act 1989 (c. 42) applies) substitute—
Paragraph (a) of subsection (1) and subsection (2) apply whether the tenancy in question is extended before or after the coming into force of that paragraph or subsection; and paragraph (b) of subsection (1) applies whether the lease by sub-demise in question is created before or after the coming into force of that paragraph.
In section 9 of the 1967 Act (purchase price), after subsection (1A) insert—
Schedule 4A to the 1967 Act (exclusion of certain shared ownership leases) is amended as follows.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
in sub-paragraph (1), after “such a body” insert “, to a registered social landlord”,
in sub-paragraph (3)(b), at the end insert “or to a registered social landlord”, and
In this paragraph “registered social landlord” has the same meaning as in Part 1 of the Housing Act 1996 (c. 52).
In paragraph 3(2)(d) (conditions to be satisfied for exclusion of lease granted by a housing association), omit “assign,”.
Section 9 of the 1967 Act (purchase price etc.) is amended as follows.
In subsection (1C) (purchase price payable where the right to acquire freehold arises by virtue of section 1A, 1AA or 1B), omit paragraph (a) (tenant’s share of marriage value not to exceed one-half).
After that subsection insert—
In section 9 of the 1967 Act (purchase price etc.), after subsection (1D) (inserted by section 145) insert—
In section 9 of the 1967 Act (purchase price on enfranchisement), in subsection (1C) (cases where price is to be determined in accordance with subsection (1A)), after “1B above” insert “ , or where the tenancy of the house and premises has been extended under section 14 below and the notice under section 8(1) above was given (whether by the tenant or a sub-tenant) after the original term date of the tenancy, ”.
In section 9A(1) of the 1967 Act (compensation payable in certain cases), after “1B above” insert “ or where the tenancy of the house and premises has been extended under section 14 below and the notice under section 8(1) above was given (whether by the tenant or a sub-tenant) after the original term date of the tenancy ”.
Section 27 of the 1967 Act (enfranchisement where landlord cannot be found) is amended as follows.
In subsection (1)— substitute “ the court ”.
for “the High Court” (in both places), and
for “the Court”,
In subsection (2)— substitute “ the court ”.
for “the High Court” (in each place), and
for “the Court” (in both places),
In subsection (3)— substitute “ court ”.
for “the Supreme Court”, and
for “High Court” (in both places),
In subsection (4), for “High Court” substitute “ court ”.
In subsection (6), for “the Supreme Court” substitute “ court ”.
In subsection (7)— substitute “ the court ”.
for “the High Court” (in both places), and
for “the Court”,
In section 27 of the 1967 Act (enfranchisement where landlord cannot be found), for subsection (5) substitute—
In section 21(1) of the 1967 Act (jurisdiction of leasehold valuation tribunals), after paragraph (c) insert—.
Schedule 9 (which amends certain provisions about management of, and service charges in respect of, leasehold properties and confers power further to amend certain of those provisions) has effect.
For section 20 of the 1985 Act (limitation of service charges: estimates and consultation) substitute—
For section 21 of the 1985 Act (request for summary of relevant costs) substitute—
After section 21A of the 1985 Act (inserted by section 152) insert—
For section 22 of the 1985 Act (request to inspect documents supporting summary of relevant costs) substitute—
After section 27 of the 1985 Act insert—
In section 38 of the 1985 Act (definitions), at the end of the definitions of “arbitration agreement”, “arbitration agreement” and “arbitral tribunal”, insert “ and post-dispute arbitration agreement”, in relation to any matter, means an arbitration agreement made after a dispute about the matter has arisen; ”.
In section 39 of the 1985 Act (index of defined expressions), in the first column, in the entry “arbitration agreement, arbitration agreement and arbitral tribunal”, for “and arbitral tribunal” substitute “ , arbitral tribunal and post-dispute arbitration agreement ”.
After section 42 of the 1987 Act insert—
In section 53(2)(b) of the 1987 Act (regulations subject to negative procedure), insert at the end “or 42A”.
Schedule 10 (minor and consequential amendments about service charges) has effect.
Schedule 11 (which makes provision about administration charges payable by tenants of dwellings) has effect.
This section applies where a scheme under— includes provision imposing on persons occupying or interested in property an obligation to make payments (“estate charges”).
section 19 of the 1967 Act (estate management schemes in connection with enfranchisement under that Act),
Chapter 4 of Part 1 of the 1993 Act (estate management schemes in connection with enfranchisement under the 1967 Act or Chapter 1 of Part 1 of the 1993 Act), or
section 94(6) of the 1993 Act (corresponding schemes in relation to areas occupied under leases from Crown),
A variable estate charge is payable only to the extent that the amount of the charge is reasonable; and “variable estate charge” means an estate charge which is neither—
specified in the scheme, nor
calculated in accordance with a formula specified in the scheme.
Any person on whom an obligation to pay an estate charge is imposed by the scheme may apply to the appropriate tribunal for an order varying the scheme in such manner as is specified in the application on the grounds that—
any estate charge specified in the scheme is unreasonable, or
any formula specified in the scheme in accordance with which any estate charge is calculated is unreasonable.
If the grounds on which the application was made are established to the satisfaction of the tribunal, it may make an order varying the scheme in such manner as is specified in the order.
The variation specified in the order may be—
the variation specified in the application, or
such other variation as the tribunal thinks fit.
An application may be made to the appropriate tribunal for a determination whether an estate charge is payable by a person and, if it is, as to—
the person by whom it is payable,
the person to whom it is payable,
the amount which is payable,
the date at or by which it is payable, and
the manner in which it is payable.
Subsection (6) applies whether or not any payment has been made.
The jurisdiction conferred on the appropriate tribunal in respect of any matter by virtue of subsection (6) is in addition to any jurisdiction of a court in respect of the matter.
No application under subsection (6) may be made in respect of a matter which—
has been agreed or admitted by the person concerned,
has been, or is to be, referred to arbitration pursuant to a post-dispute arbitration agreement to which that person is a party,
has been the subject of determination by a court, or
has been the subject of determination by an arbitral tribunal pursuant to a post-dispute arbitration agreement.
But the person is not to be taken to have agreed or admitted any matter by reason only of having made any payment.
An agreement (other than a post-dispute arbitration agreement) is void in so far as it purports to provide for a determination— of any question which may be the subject matter of an application under subsection (6).
in a particular manner, or
on particular evidence,
In this section—
“long lease” has the meaning given by sections 76 and 77 of this Act, except that a shared ownership lease is a long lease whatever the tenant’s total share.
Where a commonhold association alters its articles at a time when the land specified in its articles is commonhold land, the alteration shall have no effect until the altered version is registered in accordance with this paragraph. If the commonhold association makes an application under this sub-paragraph the Registrar shall arrange for altered articles to be kept in his custody, and referred to in the register, in place of the unaltered version. An application under sub-paragraph (2) must be accompanied by a certificate given by the directors of the commonhold association that the altered articles comply with regulations under paragraph 2(1). Where the Registrar amends the register on an application under sub-paragraph (2) he shall make any consequential amendments to the register which he thinks appropriate.
This paragraph applies to a commonhold association during a transitional period. The subscribers (or subscriber) to the association's memorandum of association shall continue to be members (or the member) of the association. A person who for the time being is the developer in respect of all or part of the commonhold is entitled to be entered in the register of members of the association.
A commonhold association may not be a member of itself.
Where a member of a commonhold association ceases to be a unit-holder or joint unit-holder of a commonhold unit in relation to which the association exercises functions—
he shall cease to be a member of the commonhold association, but
paragraph (a) does not affect any right or liability already acquired or incurred in respect of a matter relating to a time when he was a unit-holder or joint unit-holder.
The 1993 Act has effect subject to the following amendments.
A member of a commonhold association may resign by notice in writing to the association if (and only if) he is a member by virtue of paragraph 5 or 6 of this Schedule (and not also by virtue of any other paragraph).
Section 70 (approval by leasehold valuation tribunal of estate management scheme) is amended as follows. For subsection (6) substitute— After subsection (10) insert—
In section 88(2) (jurisdiction of leasehold valuation tribunals in cases of Crown enfranchisement), for “rent assessment committee constituted for the purposes of this section” substitute “ leasehold valuation tribunal ”.
In section 91(1) (jurisdiction of leasehold valuation tribunals), for “such a rent assessment committee” substitute “ a leasehold valuation tribunal ”.
For the purposes of this section, “appropriate tribunal” means—
in relation to premises in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and
in relation to premises in Wales, a leasehold valuation tribunal.
The 1987 Act has effect subject to the following amendments.
In section 22 (notice by tenant before application for appointment of manager is made)—
in subsection (1), for “on the landlord by the tenant” substituteby the tenant on— ,
in subsection (2)(a), for “the landlord” substitute “ any person on whom the notice is served ”,
in subsection (2)(b), for “landlord complies with the requirement specified in pursuance of that paragraph” substitute “ requirement specified in pursuance of that paragraph is complied with ”,
in subsection (2)(d), for “the landlord, require the landlord” substitute “ any person on whom the notice is served, require him ”, and
in subsection (3)—
after “this section” insert “ on a person ”, and
for “landlord” substitute “ person ”.
In section 23(1) (application to tribunal for appointment of manager), for “landlord having taken the steps that he was required to take in pursuance of that provision” substitute “ person required to take steps in pursuance of that paragraph having taken them ”.
In section 24 (appointment of manager by tribunal)—
in subsection (2), for “the landlord” (in both places) substitute “ any relevant person ”,
after that subsection insert—,
in subsection (5), for “the landlord” substitute “ any relevant person ”,
in subsection (9A), for “a landlord’s application” substitute “ the application of any relevant person ”, and
in subsection (11), for “section” substitute “ Part ”.
In section 29(3), insert at the end“which was made by reason of an act or omission on the part of the landlord.”
In section 21 of the 1987 Act (tenant’s right to apply to tribunal for appointment of manager), after subsection (3) insert—
Section 35 of the 1987 Act (application by party to lease for variation of lease) is amended as follows.
In subsection (2) (grounds for application), for paragraph (b) substitute—.
After paragraph (f) of that subsection insert—
After subsection (3) insert—
In section 53(2)(b) of the 1987 Act (regulations subject to negative Parliamentary procedure), after “section 20(4)” insert “ or 35(2)(g) ”.
Part 4 of the 1987 Act (variation of leases) is amended as follows.
In section 35 (application by party to lease for variation of lease)—
in subsection (1), for “the court” substitute “ a leasehold valuation tribunal ”, and
in subsection (5), for “Rules of court” substitute “ Procedure regulations under Schedule 12 to the Commonhold and Leasehold Reform Act 2002 ”.
In section 36(1) (application by respondent for variation of other leases), for “court” substitute “ tribunal ”.
In section 37(1) (application by majority of parties for variation of leases), for “the court” substitute “ a leasehold valuation tribunal ”.
In section 38 (orders varying leases)—
in subsections (1) to (5), for “court” (in each place) substitute “ tribunal ”,
in subsection (6)—
for “The court” substitute “ A tribunal ”, and
for “the court” substitute “ the tribunal ”,
in subsections (7) to (9), for “The court” substitute “ A tribunal ”, and
in subsection (10)—
for “the court”, in the first place, substitute “ a tribunal ”, and
for “the court”, in the other two places, substitute “ the tribunal ”.
In section 39 (applications by third parties for orders varying leases)—
in subsection (3)(b), for “the court” substitute “ a leasehold valuation tribunal ”,
in subsection (4), for “The court” substitute “ A tribunal ”, and
in subsection (5)(b), for “court” substitute “ tribunal ”.
In section 40(1) (variation of insurance provisions of dwelling other than flat), for “the court” substitute “ a leasehold valuation tribunal ”.
In consequence of the preceding provisions, in section 52(2)(a) of the 1987 Act (jurisdiction of county courts), for “, 3 and 4” substitute “ and 3 ”.
This section applies where a long lease of a house requires the tenant to insure the house with an insurer nominated or approved by the landlord (“the landlord’s insurer”).
The tenant is not required to effect the insurance with the landlord’s insurer if—
the house is insured under a policy of insurance issued by an authorised insurer,
the policy covers the interests of both the landlord and the tenant,
the policy covers all the risks which the lease requires be covered by insurance provided by the landlord’s insurer,
the amount of the cover is not less than that which the lease requires to be provided by such insurance, and
the tenant satisfies subsection (3).
To satisfy this subsection the tenant—
must have given a notice of cover to the landlord before the end of the period of fourteen days beginning with the relevant date, and
if (after that date) he has been requested to do so by a new landlord, must have given a notice of cover to him within the period of fourteen days beginning with the day on which the request was given.
For the purposes of subsection (3)—
if the policy has not been renewed the relevant date is the day on which it took effect and if it has been renewed it is the day from which it was last renewed, and
a person is a new landlord on any day if he acquired the interest of the previous landlord under the lease on a disposal made by him during the period of one month ending with that day.
A notice of cover is a notice specifying—
the name of the insurer,
the risks covered by the policy,
the amount and period of the cover, and
such further information as may be prescribed.
A notice of cover—
must be in the prescribed form, and
may be sent by post.
If a notice of cover is sent by post, it may be addressed to the landlord at the address specified in subsection (8).
That address is—
the address last furnished to the tenant as the landlord’s address for service in accordance with section 48 of the 1987 Act (notification of address for service of notices on landlord), or
if no such address has been so furnished, the address last furnished to the tenant as the landlord’s address in accordance with section 47 of the 1987 Act (landlord’s name and address to be contained in demands for rent).
But the tenant may not give a notice of cover to the landlord at the address specified in subsection (8) if he has been notified by the landlord of a different address in England and Wales at which he wishes to be given any such notice.
In this section—
“flat” means a separate set of premises (whether or not on the same floor)—
In section 24(11) of the 1987 Act (appointment of manager by leasehold valuation tribunal: meaning of management), after “maintenance” insert “ , improvement ”.
In section 87(8) of that Act (approval by Secretary of State of codes of management practice: meaning of management functions and service charge)—
in paragraph (a), after “maintenance” insert “ , improvement ”, and
in paragraph (c)(i), after “maintenance” insert “ , improvements ”.
For section 24 of the 1985 Act substitute—
Section 28 of the 1985 Act (meaning of “qualified accountant”) is amended as follows. In subsection (1), for “21(6) (certification of summary of information about relevant costs)” substitute “ 21(3)(a) (certification of statements of account) ”. In subsection (4)(d), for “any of the costs covered by the summary in question relate” substitute “ the statement of account in question relates ”. In subsection (5A)— In subsection (6), after “landlord is” insert “ an emanation of the Crown, ”.
Section 42 of the 1987 Act (service charge contributions of tenants to be held in trust) is amended as follows. In subsection (1)— In subsection (2), after “tenants” insert “ , or the sole contributing tenant, ”. In subsection (3), insert at the end “ , or the person who is the sole contributing tenant for the time being. ” In subsection (4), insert at the end “ or the sole contributing tenant shall be treated as so entitled to the residue of any such fund. ” In subsection (6), for “a contributing tenant” substitute “ any of the contributing tenants ”. In subsection (7), for “If after the termination of any such lease there are no longer any contributing tenants,” substitute “ On the termination of the lease of the last of the contributing tenants, or of the lease of the sole contributing tenant, ”. In subsection (8)— In subsection (9)—
In section 39 of the 1985 Act (defined expressions), in the entry relating to “qualified accountant”, for “21(6)” substitute “ 21(3)(a) ”.
“landlord” and “tenant” have the same meanings as in Chapter 1 of this Part,
In section 18(1)(a) of the 1985 Act (meaning of service charge), after “maintenance” insert “ , improvements ”.
In section 84 of the 1993 Act (interpretation of provisions concerning tenants’ right to management audit), in the definition of “management functions”, after “maintenance” insert “ , improvement ”.
An order amending— may be made by the appropriate national authority for or in connection with altering the meaning of “service charge”, “management” or “management functions”.
any of the provisions amended by paragraphs 7 to 12, or
section 27A(3) of the 1985 Act (as inserted by section 155),
“dwelling” has the same meaning as in the 1985 Act,
Regulations may make provision about the performance by a commonhold association of its duty under section 113 of the Companies Act 2006 (duty to maintain register of members) where a person— The regulations may in particular require entries in the register to be made within a specified period. A period specified under sub-paragraph (2) may be expressed to begin from— A requirement by virtue of this paragraph shall be treated as a requirement of section 113 for the purposes of section 113(7) and (8) (offences).
For the purposes of section 13 of the Companies Act 2006 (registration: statement of compliance) as it applies to a commonhold association, a reference to the requirements of that Act shall be treated as including a reference to a provision of or made under this Schedule.
Transactions in commonhold units. Advertising and other activities designed to promote transactions in commonhold units.
After section 19 of the Limitation Act 1980 (actions for rent) there shall be inserted—
Section 5 of the Law of Property (Miscellaneous Provisions) Act 1994 (discharge of obligations) shall be amended as follows. In subsection (1) for the words “or of leasehold land” substitute “ of leasehold land or of a commonhold unit ”. After subsection (3) insert— For subsection (4) substitute—
Where different persons own the freehold of different parts of premises falling within section 72(1), this Chapter does not apply to the premises if any of those parts is a self-contained part of a building.
This Chapter does not apply to premises falling within section 72(1) at any time if— Sub-paragraph (1)(b) does not apply where the right to manage the premises ceased to be exercisable by virtue of section 73(5). The appropriate tribunal may, on an application made by a RTM company, determine that sub-paragraph (1)(b) is not to apply in any case if it considers that it would be unreasonable for it to apply in the circumstances of the case.
Paragraph 8 of the Schedule to the 1985 Act (right to challenge landlord’s nomination of insurer) is amended as follows.
In sub-paragraphs (1) and (2), after “nominated” insert “ or approved ”.
In sub-paragraph (4), after “nominate” (in both places) insert “ or approve ”.
A tenant under a long lease of a dwelling is not liable to make a payment of rent under the lease unless the landlord has given him a notice relating to the payment; and the date on which he is liable to make the payment is that specified in the notice.
The notice must specify— and shall contain any such further information as may be prescribed.
the amount of the payment,
the date on which the tenant is liable to make it, and
if different from that date, the date on which he would have been liable to make it in accordance with the lease,
The date on which the tenant is liable to make the payment must not be—
either less than 30 days or more than 60 days after the day on which the notice is given, or
before that on which he would have been liable to make it in accordance with the lease.
If the date on which the tenant is liable to make the payment is after that on which he would have been liable to make it in accordance with the lease, any provisions of the lease relating to non-payment or late payment of rent have effect accordingly.
The notice—
must be in the prescribed form, and
may be sent by post.
If the notice is sent by post, it must be addressed to a tenant at the dwelling unless he has notified the landlord in writing of a different address in England and Wales at which he wishes to be given notices under this section (in which case it must be addressed to him there).
In this section “rent” does not include—
a service charge (within the meaning of section 18(1) of the 1985 Act), or
an administration charge (within the meaning of Part 1 of Schedule 11 to this Act).
In this section “long lease of a dwelling” does not include—
a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies,
a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or
a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8).
In this section—
“former unit-holder” means a person from whom a commonhold unit has been transferred (whether or not he has ceased to be the registered proprietor), and
The commonhold community statement.
An application may not be made under section 2 if an estate in the whole or part of the land to which the application relates is a contingent estate. An estate is contingent for the purposes of this paragraph if (and only if)— The enactments are— Regulations may amend sub-paragraph (3) so as to—
After section 101(1) of the Law of Property Act 1925 (mortgagee’s powers) there shall be added—.
At the end of section 84 of the Insolvency Act 1986 (voluntary winding-up) there shall be added—
This Chapter does not apply to premises falling within section 72(1) if the premises— Premises have a resident landlord if— A person is a relevant freeholder, in relation to any premises, if he owns the freehold of the whole or any part of the premises. This sub-paragraph is satisfied if— has throughout the last twelve months occupied the flat as his only or principal home. This sub-paragraph is satisfied if— “Qualifying flat”, in relation to any premises and a relevant freeholder or an adult member of his family, means a flat or other unit used as a dwelling— Where the interest of a relevant freeholder in any premises is held on trust, the references in sub-paragraphs (2), (4) and (5)(b) to a relevant freeholder are to a person having an interest under the trust (whether or not also a trustee). A person is an adult member of another’s family if he is— and “son” and “daughter” include stepson and stepdaughter (“son-in-law” and “daughter-in-law” being construed accordingly).
The obligations imposed on a lessor by virtue of section 11 (repairing obligations in short leases) of the Landlord and Tenant Act 1985 (c. 70) (referred to in this Part as “the 1985 Act”) are, so far as relating to any lease of any flat or other unit contained in the premises, instead obligations of the RTM company. The RTM company owes to any person who is in occupation of a flat or other unit contained in the premises otherwise than under a lease the same obligations as would be imposed on it by virtue of section 11 if that person were a lessee under a lease of the flat or other unit. But sub-paragraphs (1) and (2) do not apply to an obligation to the extent that it relates to a matter concerning only the flat or other unit concerned. The obligations imposed on the RTM company by virtue of sub-paragraph (1) in relation to any lease are owed to the lessor (as well as to the lessee). Subsections (3A) to (5) of section 11 have effect with the modifications that are appropriate in consequence of sub-paragraphs (1) to (3). The references in subsection (6) of section 11 to the lessor include the RTM company; and a person who is in occupation of a flat or other unit contained in the premises otherwise than under a lease has, in relation to the flat or other unit, the same obligation as that imposed on a lessee by virtue of that subsection. The reference to the lessor in section 12(1)(a) of the 1985 Act (restriction on contracting out of section 11) includes the RTM company.
Section 30B of the 1985 Act (recognised tenants’ associations to be consulted about landlord’s managing agents) has effect as if references to the landlord were to the RTM company (and as if subsection (6) were omitted).
Part 3 of the 1987 Act (compulsory acquisition by tenants of landlord’s interest) does not apply.
Sections 46 to 48 of the 1987 Act (information to be furnished to tenants) have effect with the modifications provided by this paragraph. References to the landlord include the RTM company. References to a tenant include a person who is landlord under a lease of the whole or any part of the premises; and in relation to such a person the reference in section 47(4) to sums payable to the landlord under the terms of the tenancy are to sums paid by him under section 103 of this Act.
Section 84 of the Housing Act 1996 (c. 52) and Schedule 4 to that Act (apart from paragraph 7) (right of recognised tenants’ association to appoint surveyor to advise on matters relating to service charges) have effect as if references to the landlord were to the RTM company. Section 84(5) and paragraph 4(5) of Schedule 4 apply as if the reference to a person who receives rent were to a person who receives service charges.
The 1993 Act has effect subject to the following amendments.
The Welsh Ministers may make regulations about the procedure of leasehold valuation tribunals (“procedure regulations”).
A leasehold valuation tribunal may serve a notice requiring any party to proceedings before it to give to the leasehold valuation tribunal any information which the leasehold valuation tribunal may reasonably require. The information shall be given to the leasehold valuation tribunal within such period (not being less than 14 days) from the service of the notice as is specified in the notice. A person commits an offence if he fails, without reasonable excuse, to comply with a notice served on him under sub-paragraph (1). A person guilty of an offence under sub-paragraph (3) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.
Procedure regulations may include provision empowering leasehold valuation tribunals to dismiss applications or transferred proceedings, in whole or in part, on the ground that they are—
frivolous or vexatious, or
otherwise an abuse of process.
A leasehold valuation tribunal may determine that a party to proceedings shall pay the costs incurred by another party in connection with the proceedings in any circumstances falling within sub-paragraph (2). The circumstances are where— The amount which a party to proceedings may be ordered to pay in the proceedings by a determination under this paragraph shall not exceed— A person shall not be required to pay costs incurred by another person in connection with proceedings before a leasehold valuation tribunal except by a determination under this paragraph or in accordance with provision made by any enactment other than this paragraph.
In section 81 of the Housing Act 1996 (restriction on termination of tenancy for failure to pay service charge), after subsection (5) insert—
At the end of section 149 of that Act (90-year term in place of certain determinable terms) there shall be added—
Section 1 (right to collective enfranchisement) is amended as follows. In subsection (1), for the words from “on qualifying tenants” to the end of paragraph (b) substitute “ the right to acquire the freehold of premises to which this Chapter applies on the relevant date, at a price determined in accordance with this Chapter, exercisable subject to and in accordance with this Chapter by a company (referred to in this Chapter as a RTE company) of which qualifying tenants of flats contained in the premises are members; ”. In subsection (2)(a), for the words from “the qualifying tenants” to “have acquired,” substitute “ the RTE company by which the right to collective enfranchisement is exercised is entitled, subject to and in accordance with this Chapter, to acquire, ”. In subsection (5)—
For section 2(1) (acquisition of leasehold interests) substitute—
In section 11(4) (right of qualifying tenant to obtain information about superior interests), for “by the tenant in connection with the making” substitute “ in connection with the making by a RTE company ”.
Section 13 (initial notice) is amended as follows. In subsection (3)— After subsection (5) insert— In subsection (11), for “nominee purchaser” substitute “ RTE company ”. In subsection (13), for “contains restrictions on participating in the exercise of the right to collective enfranchisement” substitute “ specifies circumstances in which the fact that a qualifying tenant is a member of a RTE company is to be disregarded when considering whether the requirement in subsection (2)(b) is satisfied ”.
Section 17 (access for valuation purposes) is amended as follows. In subsection (1), for “nominee purchaser” substitute “ RTE company ”. In subsection (2)—
Section 18 (duty to disclose existence of agreements affecting premises etc.) is amended as follows. In subsection (1)— In subsection (2)—
Section 20 (right of reversioner to require evidence of tenant’s right to participate) is amended as follows. In subsection (1), for “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” substitute “ RTE company a notice requiring it, in the case of any qualifying tenant of a flat contained in the specified premises who was a participating member of the company at the relevant time, to deduce the title of that qualifying tenant ”. In subsection (2), for “nominee purchaser” substitute “ RTE company ”. In subsection (3)—
Section 21 (reversioner’s counter notice) is amended as follows. In subsection (1), for “nominee purchaser” substitute “ RTE company ”. In subsection (2), for “participating tenants were” (in both places) substitute “ RTE company was ”. In subsection (3), for “nominee purchaser” (in each place) substitute “ RTE company ”. In subsection (4)— In subsection (5)—
Section 22 (proceedings relating to validity of initial notice) is amended as follows. In subsection (1)— In subsections (2), (3) and (6), for “nominee purchaser” substitute “ RTE company ”.
In section 23 (claim liable to be defeated where landlord intends to redevelop), for “nominee purchaser” (in each place) substitute “ RTE company ”.
Section 24 (applications where terms in dispute or failure to enter contract) is amended as follows. In subsection (1), for “nominee purchaser” (in both places) substitute “ RTE company ”. In subsection (2), for “nominee purchaser” substitute “ RTE company ”. In subsection (3), for “nominee purchaser” (in both places) substitute “ RTE company ”. In subsection (4)— In subsections (7) and (8), for “nominee purchaser” substitute “ RTE company ”.
Section 25 (application where reversioner fails to give counter-notice or further counter-notice) is amended as follows. In subsection (1), for— substitute “ RTE company ”. In subsection (3), for “participating tenants were” substitute “ RTE company was ”. In subsections (4) and (5), for “nominee purchaser” substitute “ RTE company ”. In subsection (6)—
Section 26 (applications where relevant landlord cannot be found) is amended as follows. In subsection (1)— In subsection (2)— In subsection (3), for “those tenants” substitute “ the RTE company ”. In subsection (3A)— In subsection (4)— In subsection (5)— In subsection (6), for “applicants” (in each place) substitute “ RTE company ”. In subsection (9), for “persons making the application on any person who the applicants know or have” substitute “ RTE company on any person who it knows or has ”.
Section 27 (supplementary provisions about vesting orders under section 26(1)) is amended as follows. In subsection (1)— In subsection (3)— In subsection (6)— In subsection (7)—
Section 28 (withdrawal from acquisition) is amended as follows. In subsection (1), for “participating tenants” substitute “ RTE company ”. For subsection (2) substitute— In subsection (4), for the words from “participating tenants” to the end of paragraph (b) substituteRTE company under subsection (1)— . In subsection (5)— In subsections (6) and (7), for “nominee purchaser” substitute “ RTE company ”. In the sidenote, for “participating tenants” substitute “ RTE company ”.
Section 29 (deemed withdrawal of initial notice) is amended as follows. After subsection (4) insert— In subsection (8), for “nominee purchaser is, or would (apart from subsection (7)) be,” substitute “ RTE company is ”.
In section 30(5) (service of notice to treat before completion of acquisition), for “nominee purchaser” substitute “ RTE company ”.
Section 31 (effect on initial notice of designation or application for designation for inheritance tax purposes) is amended as follows. In subsection (5)— In subsection (6), for “nominee purchaser” (in both places) substitute “ RTE company ”.
Section 32 (determination of price) is amended as follows. In subsection (1)— In subsection (5)—
Section 33 (costs of enfranchisement) is amended as follows. In subsection (1), for “nominee purchaser” (in both places) substitute “ RTE company ”. In subsection (3)— In subsections (4) and (5), for “nominee purchaser” substitute “ RTE company ”.
In section 34 (conveyance), for “nominee purchaser” (in each place, including the sidenote) substitute “ RTE company ”.
In section 35 (discharge of existing mortgages on transfer), for “nominee purchaser” (in each place, including the sidenote) substitute “ RTE company ”.
Section 36 (requirement to grant leases back to former freeholder) is amended as follows. In subsection (1)— In subsection (2), for “nominee purchaser” substitute “ RTE company ”. In the sidenote, for “Nominee purchaser” substitute “ RTE company ”.
Section 37A (compensation for postponement of termination in connection with ineffective claims) is amended as follows. In subsection (1), for “tenants of flats contained in the premises” substitute “ a RTE company ”. In subsection (2), for “person who is a participating tenant” substitute “ qualifying tenant who is a participating member of the RTE company ”.
Section 38 (interpretation) is amended as follows. “participating member” has the meaning given by section 4B; “the notice of invitation to participate” means the notice given under section 12A; “RTE company” shall be construed in accordance with sections 1(1) and 4A; In subsection (2), for—
Section 41 (right of qualifying tenant to obtain information in connection with right to acquire new lease) is amended as follows. In subsection (4), for the words from “address” to the end substitute “ registered office of the RTE company by which it was given. ” In subsection (5), for “nominee purchaser” substitute “ RTE company ”.
Section 54 (suspension of tenant’s notice during currency of claim under Chapter 1) is amended as follows. In subsection (3), for the words from “address” to the end substitute “ registered office of the RTE company by which it was given. ” In subsection (11), for “nominee purchaser” substitute “ RTE company ”.
Section 74 (effect of scheme application on claim to acquire freehold) is amended as follows. For “nominee purchaser” (in each place) substitute “ RTE company ”. In subsection (3), for “him” substitute “ it ”.
Section 91 (jurisdiction of leasehold valuation tribunals) is amended as follows. In subsection (2), for “nominee purchaser” substitute “ RTE company ”. In subsection (11), for “ “the nominee purchaser” and “the participating tenants” have” substitute “ “RTE company” has ”.
In section 93 (agreements excluding or modifying rights of tenant) is amended as follows. In subsection (1)— In subsection (4)(a), for “participate in the making of a claim to exercise” substitute “ be, or do any thing as, a member of a RTE company for the purpose of the exercise of ”.
Section 93A (powers of trustees in relation to rights) is amended as follows. In subsection (1), for “participate in” substitute “ become a member (and participating member) of a RTE company for the purpose of ”. In subsection (4), for “participation in” substitute “ becoming a member (or participating member) of a RTE company for the purpose of ”.
In section 97(1) (registration)—
for “the tenant” substitute “ a RTE company, tenant ”, and
for “a tenant” substitute “ a RTE company or tenant ”.
In section 98(2) (power to prescribe procedure), for “nominee purchaser” substitute “ RTE company ”.
Schedule 1 (conduct of proceedings by reversioner on behalf of other landlords) is amended as follows. For “nominee purchaser” (in each place) substitute “ RTE company ”. In paragraph 6(3), for “participating tenants” substitute “ RTE company ”.
Schedule 3 (restrictions on participation, effect of claim on other notices, forfeitures etc.) is amended as follows. In paragraphs 1, 2(1), 3(1) and (2) and 4(1), for “not participate in the giving of” substitute “ be disregarded when considering whether the requirement in section 13(2)(b) is satisfied in relation to ”. In paragraph 3(3), for “to participate in the giving of such a notice of claim” substitute “ such a notice of claim to be given ”. In paragraph 4(2)— In paragraphs 5 and 6(1), for “participating tenant” substitute “ participating member of the RTE company ”. In paragraph 7— In sub-paragraph (1) of paragraph 12— and in the heading before that paragraph, for “Qualifying tenants” substitute “ RTE company ”. In paragraph 12A(1)— In paragraph 13(3), for “qualifying tenants by whom” substitute “ RTE company by which ”. In paragraph 14— In paragraph 15(1), after “required by” insert “ or by virtue of ”. For paragraph 16 (and the heading before it) substitute—
In Schedule 4 (information to be furnished by reversioner about exercise of rights under Chapter 2), for “nominee purchaser” (in each place) substitute “ RTE company ”.
Schedule 5 (vesting orders under sections 24 and 25) is amended as follows. For “nominee purchaser” (in each place) substitute “ RTE company ”. In paragraph 4, for “the participating tenants” substitute “ its members ”.
Schedule 6 (purchase price) is amended as follows. For “nominee purchaser” (in each place, including the heading) substitute “ RTE company ”. For “participating tenant” (in each place) substitute “ participating member of the RTE company ”. In paragraph 3(1)(c), for “the tenant” substitute “ the member ”. In paragraph 4(2)— In paragraph 10(2), for “he” substitute “ it ”.
Schedule 7 (conveyance to nominee purchaser on enfranchisement) is amended as follows. For “nominee purchaser” (in each place, including the heading) substitute “ RTE company ”. In paragraph 4, for “him” (in both places) substitute “ it ”.
Schedule 8 (discharge of mortgages etc: supplementary provisions) is amended as follows. For “nominee purchaser” (in each place) substitute “ RTE company ”. In paragraph 3(1)— In paragraph 4(3), for “him” (in both places) substitute “ it ”.
In Schedule 9 (grants of lease back to former purchaser), for “nominee purchaser” (in each place) substitute “ RTE company ”.
A landlord under a long lease of a dwelling may not exercise a right of re-entry or forfeiture for failure by a tenant to pay an amount consisting of rent, service charges or administration charges (or a combination of them) (“the unpaid amount”) unless the unpaid amount—
exceeds the prescribed sum, or
consists of or includes an amount which has been payable for more than a prescribed period.
The sum prescribed under subsection (1)(a) must not exceed £500.
If the unpaid amount includes a default charge, it is to be treated for the purposes of subsection (1)(a) as reduced by the amount of the charge; and for this purpose “default charge” means an administration charge payable in respect of the tenant’s failure to pay any part of the unpaid amount.
In this section “long lease of a dwelling” does not include—
a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies,
a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or
a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8).
In this section—
A landlord under a long lease of a dwelling may not serve a notice under section 146(1) of the Law of Property Act 1925 (c. 20) (restriction on forfeiture) in respect of a breach by a tenant of a covenant or condition in the lease unless subsection (2) is satisfied.
This subsection is satisfied if—
it has been finally determined on an application under subsection (4) that the breach has occurred,
the tenant has admitted the breach, or
a court in any proceedings, or an arbitral tribunal in proceedings pursuant to a post-dispute arbitration agreement, has finally determined that the breach has occurred.
But a notice may not be served by virtue of subsection (2)(a) or (c) until after the end of the period of 14 days beginning with the day after that on which the final determination is made.
A landlord under a long lease of a dwelling may make an application to the appropriate tribunal for a determination that a breach of a covenant or condition in the lease has occurred.
But a landlord may not make an application under subsection (4) in respect of a matter which—
has been, or is to be, referred to arbitration pursuant to a post-dispute arbitration agreement to which the tenant is a party,
has been the subject of determination by a court, or
has been the subject of determination by an arbitral tribunal pursuant to a post-dispute arbitration agreement.
For the purposes of subsection (4), “appropriate tribunal” means—
in relation to a dwelling in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and
in relation to a dwelling in Wales, a leasehold valuation tribunal.
An agreement by a tenant under a long lease of a dwelling (other than a post-dispute arbitration agreement) is void in so far as it purports to provide for a determination— of any question which may be the subject of an application under section 168(4).
in a particular manner, or
on particular evidence,
For the purposes of section 168 it is finally determined that a breach of a covenant or condition in a lease has occurred—
if a decision that it has occurred is not appealed against or otherwise challenged, at the end of the period for bringing an appeal or other challenge, or
if such a decision is appealed against or otherwise challenged and not set aside in consequence of the appeal or other challenge, at the time specified in subsection (3).
The time referred to in subsection (2)(b) is the time when the appeal or other challenge is disposed of—
by the determination of the appeal or other challenge and the expiry of the time for bringing a subsequent appeal (if any), or
by its being abandoned or otherwise ceasing to have effect.
In section 168 and this section “long lease of a dwelling” does not include—
a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies,
a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or
a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8).
In section 168 and this section—
Section 146(7) of the Law of Property Act 1925 (c. 20) applies for the purposes of section 168 and this section.
Nothing in section 168 affects the service of a notice under section 146(1) of the Law of Property Act 1925 in respect of a failure to pay—
a service charge (within the meaning of section 18(1) of the 1985 Act), or
an administration charge (within the meaning of Part 1 of Schedule 11 to this Act).
Section 81 of the Housing Act 1996 (c. 52) (restriction on forfeiture for failure to pay service charge) is amended as follows.
In subsection (1), for the words from “to pay” to the end substituteby a tenant to pay a service charge or administration charge unless—
For subsection (2) substitute—
For subsection (3) substitute—
After subsection (4) insert—
In subsection (5), after “this section” insert—.
The appropriate national authority may by regulations prescribe requirements which must be met before a right of re-entry or forfeiture may be exercised in relation to a breach of a covenant or condition in a long lease of an unmortgaged dwelling.
The regulations may specify that the requirements are to be in addition to, or instead of, requirements imposed otherwise than by the regulations.
In this section “long lease of a dwelling” does not include—
a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies,
a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or
a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8).
For the purposes of this section a dwelling is unmortgaged if it is not subject to a mortgage, charge or lien.
In this section—
any other separate set of premises which is constructed or adapted for use for the purposes of a dwelling, or
Subject to sub-paragraph (2), an application may not be made under section 2 wholly or partly in relation to land above ground level (“raised land”) unless all the land between the ground and the raised land is the subject of the same application. An application for the addition of land to a commonhold in accordance with section 41 may be made wholly or partly in relation to raised land if all the land between the ground and the raised land forms part of the commonhold to which the raised land is to be added.
Section 19 of the Landlord and Tenant Act 1927 (c. 36) (covenants not to assign without approval etc.) has effect with the modifications provided by this paragraph. Subsection (1) applies as if— were to the RTM company. Subsection (2) applies as if the reference to the payment of a reasonable sum in respect of any damage to or diminution in the value of the premises or neighbouring premises belonging to the landlord were omitted. Subsection (3) applies as if—
Sections 18 to 30 of the 1985 Act (service charges) have effect with the modifications provided by this paragraph. References to the landlord are to the RTM company. References to a tenant of a dwelling include a person who is landlord under a lease of the whole or any part of the premises (so that sums paid by him in pursuance of section 103 of this Act are service charges). Section 22(5) applies as if paragraph (a) were omitted and the person referred to in paragraph (b) were a person who receives service charges on behalf of the RTM company. Section 26 does not apply.
Where section 5 of the 1987 Act (right of first refusal: requirement that landlord serve offer notice on tenant) requires the landlord to serve an offer notice on the qualifying tenants of the flats contained in the premises, he must serve a copy of the offer notice on the RTM company.
Sections 35, 36, 38 and 39 of the 1987 Act (variation of long leases relating to flats) have effect as if references to a party to a long lease (apart from those in section 38(8)) included the RTM company.
The Landlord and Tenant Act 1988 (c. 26) (statutory duties in connection with covenants against assigning etc.) has effect with the modifications provided by this paragraph. The reference in section 1(2)(b) to the covenant is to the covenant as it has effect subject to section 98 of this Act. References in section 3(2), (4) and (5) to the landlord are to the RTM company.
Schedule 11 to this Act has effect as if references to the landlord (or a party to a lease) included the RTM company.
Where in any proceedings before a court there falls for determination a question falling within the jurisdiction of a leasehold valuation tribunal, the court— When the leasehold valuation tribunal has determined the question, the court may give effect to the determination in an order of the court. Rules of court may prescribe the procedure to be followed in a court in connection with or in consequence of a transfer under this paragraph. Procedure regulations may prescribe the procedure to be followed in a leasehold valuation tribunal consequent on a transfer under this paragraph.
Procedure regulations may include provision enabling persons to be joined as parties to proceedings.
Procedure regulations may include provision requiring the payment of fees in respect of an application or transfer of proceedings to, or oral hearing by, a leasehold valuation tribunal in a case under— Procedure regulations may empower a leasehold valuation tribunal to require a party to proceedings to reimburse any other party to the proceedings the whole or part of any fees paid by him. The fees payable shall be such as are specified in or determined in accordance with procedure regulations; but the fee (or, where fees are payable in respect of both an application or transfer and an oral hearing, the aggregate of the fees) payable by a person in respect of any proceedings shall not exceed— Procedure regulations may provide for the reduction or waiver of fees by reference to the financial resources of the party by whom they are to be paid or met. If they do so they may apply, subject to such modifications as may be specified in the regulations, any other statutory means-testing regime as it has effect from time to time.
The 1987 Act has effect subject to the following amendments.
In section 24(9A) (appointment of manager), for “court” substitute “ tribunal ”.
In section 47(3) (landlord’s name and address to be contained in demands for rent etc.), after “court” insert “ or tribunal ”.
In section 48(3) (notification by landlord of address for service of notices), after “court” insert “ or tribunal ”.
The following provisions apply in relation to Crown land (as in relation to other land)—
sections 18 to 30B 30I of (and the Schedule to) the 1985 Act (service charges, insurance and managing agents and building safety),
Part 2 of the 1987 Act (appointment of manager by the appropriate tribunal ),
Part 4 of the 1987 Act (variation of leases),
sections 46 to 49 49A of the 1987 Act (information to be furnished to tenants),
Chapter 5 of Part 1 of the 1993 Act (management audit),
section 81 of the Housing Act 1996 (c. 52) (restriction on termination of tenancy for failure to pay service charge etc.),
section 84 of (and Schedule 4 to) that Act (right to appoint surveyor), and
in this Chapter, the provisions relating to any of the provisions within paragraphs (a) to (g), Part 1 of Schedule 11 and sections 164 to 171.
Land is Crown land if there is or has at any time been an interest or estate in the land—
comprised in the Crown Estate,
belonging to Her Majesty in right of the Duchy of Lancaster,
belonging to the Duchy of Cornwall, or
belonging to a government department or held on behalf of Her Majesty for the purposes of a government department.
No failure by the Crown to perform a duty imposed by or by virtue of any of sections 21 to 23A of, or any of paragraphs 2 to 4A of the Schedule to, the 1985 Act makes the Crown criminally liable; but the High Court may declare any such failure without reasonable excuse to be unlawful.
Any sum payable under any of the provisions mentioned in subsection (1) by the Chancellor of the Duchy of Lancaster may be raised and paid under section 25 of the Duchy of Lancaster Act 1817 (c. 97) as an expense incurred in improvement of land belonging to Her Majesty in right of the Duchy.
Any sum payable under any such provision by the Duke of Cornwall (or any other possessor for the time being of the Duchy of Cornwall) may be raised and paid under section 8 of the Duchy of Cornwall Management Act 1863 (c. 49) as an expense incurred in permanently improving the possessions of the Duchy.
In section 56 of the 1987 Act (Crown land)—
in subsection (1), for “This Act” substitute “ Parts 1 and 3 and sections 42 to 42B (and so much of this Part as relates to those provisions) ”, and
in subsection (3), for “this Act” substitute “ the provisions mentioned in subsection (1) ”.
Any jurisdiction conferred on a leasehold valuation tribunal by or under any enactment is exercisable by a rent assessment committee constituted in accordance with Schedule 10 to the Rent Act 1977 (c. 42).
When so constituted for exercising any such jurisdiction a rent assessment committee is known as a leasehold valuation tribunal.
Schedule 12 (leasehold valuation tribunals: procedure) has effect.
A party to proceedings before a leasehold valuation tribunal may appeal to the Upper Tribunal from a decision of the leasehold valuation tribunal.
But the appeal may be made only with the permission of—
the leasehold valuation tribunal, or
the Upper Tribunal.
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On the appeal the Upper Tribunal may exercise any power which was available to the leasehold valuation tribunal.
And a decision of the Upper Tribunal on the appeal may be enforced in the same way as a decision of the leasehold valuation tribunal.
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Schedule 13 (minor and consequential amendments about leasehold valuation tribunals) has effect.
The references to the 1985 Act, the 1987 Act and the 1993 Act in Schedule 1 to the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I.1999/672) are to be treated as referring to those Acts as amended by this Part.
An order or regulations under any provision of this Part—
may include incidental, supplementary, consequential and transitional provision,
may make provision generally or only in relation to specified cases, and
may make different provision for different purposes.
Regulations under Schedule 12 may make different provision for different areas.
Any power to make an order or regulations under this Part is exercisable by statutory instrument.
Regulations shall not be made by the Secretary of State under section 167 or 171 or paragraph 9(3)(b) or 10(3)(b) of Schedule 12 unless a draft of the instrument containing them has been laid before and approved by a resolution of each House of Parliament.
A statutory instrument containing an order or regulations made by the Secretary of State under this Part shall, if not so approved, be subject to annulment in pursuance of a resolution of either House of Parliament.
In this Part “the appropriate national authority” means—
the Secretary of State (as respects England), and
the National Assembly for Wales (as respects Wales).
In this Part—
Where, in any proceedings before a court, there falls for determination a question which the First-tier Tribunal or the Upper Tribunal would have jurisdiction to determine under an enactment specified in subsection (2) on an appeal or application to the tribunal, the court—
may by order transfer to the First-tier Tribunal so much of the proceedings as relate to the determination of that question;
may then dispose of all or any remaining proceedings pending the determination of that question by the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal, as it thinks fit.
The enactments specified for the purposes of subsection (1) are—
this Act,
the Leasehold Reform Act 1967,
the Landlord and Tenant Act 1985,
the Landlord and Tenant Act 1987,
the Leasehold Reform, Housing and Urban Development Act 1993, and
the Housing Act 1996.
Where the First-tier Tribunal or the Upper Tribunal has determined the question, the court may give effect to the determination in an order of the court.
Rules of court may prescribe the procedure to be followed in a court in connection with or in consequence of a transfer under this section.
A person aggrieved by a decision of the First-tier Tribunal under or in connection with an enactment specified in section 176A(2) may appeal to the Upper Tribunal.
An appeal may not be brought under subsection (1) in relation to a decision on a point of law (as to which see instead section 11 of the Tribunals, Courts and Enforcement Act 2007 (right of appeal to Upper Tribunal)).
An appeal may not be brought under subsection (1) if the decision is set aside under section 9 of the Tribunals, Courts and Enforcement Act 2007 (review of decision of First-tier Tribunal).
An appeal may be brought under subsection (1) only if, on an application made by the person concerned, the First-tier Tribunal or Upper Tribunal has given its permission for the appeal to be brought.
In any case where the Upper Tribunal is determining an appeal under subsection (1), section 12(2) to (4) of the Tribunals, Courts and Enforcement Act 2007 (proceedings on appeal to the Upper Tribunal) apply.
Any decision of the First-tier Tribunal or Upper Tribunal under or in connection with an enactment specified in section 176A(2), other than a decision ordering the payment of a sum (as to which see section 27 (enforcement) of the Tribunals, Courts and Enforcement Act 2007), is to be enforceable with the permission of a county court in the same way as orders of such a court.
Schedule 14 (repeals) has effect.
Apart from section 104 and sections 177 to 179, the preceding provisions (and the Schedules) come into force in accordance with provision made by order made by the appropriate authority.
The appropriate authority may by order make any transitional provisions or savings in connection with the coming into force of any provision in accordance with an order under subsection (1).
The power to make orders under subsections (1) and (2) is exercisable by statutory instrument.
In this section “the appropriate authority” means—
in relation to any provision of Part 1 or section 180 and Schedule 14 so far as relating to section 104, the Lord Chancellor, and
in relation to any provision of Part 2 or section 180 and Schedule 14 so far as otherwise relating, the Secretary of State (as respects England) and the National Assembly for Wales (as respects Wales).
This Act extends to England and Wales only.
This Act may be cited as the Commonhold and Leasehold Reform Act 2002.