Commonhold and Leasehold Reform Act 2002 (c. 15)

(The document as of February, 2008)

-- Back --

Page 11

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13

10 (1) Section 21 (reversioner's counter notice) is amended as follows.

(2) In subsection (1), for "nominee purchaser" substitute "RTE company".

(3) In subsection (2), for "participating tenants were" (in both places) substitute "RTE company was".

(4) In subsection (3), for "nominee purchaser" (in each place) substitute "RTE company".

(5) In subsection (4)--

(a) for "nominee purchaser may be required to acquire on behalf of the participating tenants" substitute "RTE company may be required to acquire", and

(b) for "by the nominee purchaser" substitute "by the RTE company".

(6) In subsection (5)--

(a) for "nominee purchaser" (in both places) substitute "RTE company",

(b) for "his" substitute "its", and

11 (1) Section 22 (proceedings relating to validity of initial notice) is amended as follows.

(2) In subsection (1)--

(a) in paragraph (a), for "nominee purchaser" substitute "RTE company", and

(b) in paragraph (b), for "nominee purchaser, that the participating tenants were" substitute "RTE company, that it was".

(3) In subsections (2), (3) and (6), for "nominee purchaser" substitute "RTE company".

12 In section 23 (claim liable to be defeated where landlord intends to redevelop), for "nominee purchaser" (in each place) substitute "RTE company".

13 (1) Section 24 (applications where terms in dispute or failure to enter contract) is amended as follows.

(2) In subsection (1), for "nominee purchaser" (in both places) substitute "RTE company".

(3) In subsection (2), for "nominee purchaser" substitute "RTE company".

(4) In subsection (3), for "nominee purchaser" (in both places) substitute "RTE company".

(5) In subsection (4)--

(a) for "nominee purchaser" (in both places) substitute "RTE company", and

(b) for "him" (in both places) substitute "it".

(6) In subsections (7) and (8), for "nominee purchaser" substitute "RTE company".

14 (1) Section 25 (application where reversioner fails to give counter-notice or further counter-notice) is amended as follows.

(2) In subsection (1), for--

(a) "nominee purchaser" (in each place), and

(b) "he",

substitute "RTE company".

(3) In subsection (3), for "participating tenants were" substitute "RTE company was".

(4) In subsections (4) and (5), for "nominee purchaser" substitute "RTE company".

(5) In subsection (6)--

(a) for "nominee purchaser" (in both places) substitute "RTE company", and

(b) for "him" (in both places) substitute "it".

15 (1) Section 26 (applications where relevant landlord cannot be found) is amended as follows.

(2) In subsection (1)--

(a) for the words from "not less" to "those premises" substitute "a RTE company which satisfies the requirement in section 13(2)(b) wishes to make a claim to exercise the right to collective enfranchisement",

(b) for "qualifying tenants in question" substitute "RTE company", and

(3) In subsection (2)--

(b) for "qualifying tenants in question" substitute "RTE company".

(4) In subsection (3), for "those tenants" substitute "the RTE company".

(5) In subsection (3A)--

(b) for "qualifying tenants in question" substitute "RTE company".

(6) In subsection (4)--

(a) for "applicants" substitute "RTE company", and

(b) insert at the end (but not as part of paragraph (b)) "and that the RTE company has given notice of the application to each person who is the qualifying tenant of a flat contained in those premises."

(7) In subsection (5)--

(a) for "applicants" (in both places) substitute "RTE company", and

(b) for "their" substitute "its".

(8) In subsection (6), for "applicants" (in each place) substitute "RTE company".

(9) 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".

16 (1) Section 27 (supplementary provisions about vesting orders under section 26(1)) is amended as follows.

(2) In subsection (1)--

(a) for "such person or persons as may be appointed for the purpose by the applicants for the order" substitute "the RTE company",

(b) for "that person or those persons" substitute "the RTE company",

(d) for "their" (in both places) substitute "its".

(3) In subsection (3)--

(a) for "any person or persons" substitute "the RTE company",

(b) for "his or their" substitute "its", and

(4) In subsection (6)--

(a) for "any person or persons" substitute "the RTE company", and

(b) for "applicants for the vesting order under section 26(1), their personal representatives or assigns" substitute "RTE company".

(5) In subsection (7)--

(a) for "any person or persons" substitute "the RTE company", and

(b) for the words from "his or their" to the end substitute "its acquisition of that interest."

17 (1) Section 28 (withdrawal from acquisition) is amended as follows.

(2) In subsection (1), for "participating tenants" substitute "RTE company".

(3) For subsection (2) substitute--

" (2) A notice of withdrawal must be given to--

(a) each person who is the qualifying tenant of a flat contained in the specified premises;

(b) the reversioner in respect of the specified premises; and

(4) In subsection (4), for the words from "participating tenants" to the end of paragraph (b) substitute " RTE company under subsection (1)--

(a) the company, and

(b) (subject to subsection (5)) every person who is, or has at any time been, a participating member of the company, " .

(5) In subsection (5)--

(a) in paragraph (a), for "participating" substitute "qualifying",

(b) in paragraph (b), for "tenant in accordance with section 14(4)" substitute "member of the RTE company", and

(c) for "shall be construed in accordance with section 14(10)" substitute "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)".

(6) In subsections (6) and (7), for "nominee purchaser" substitute "RTE company".

(7) In the sidenote, for "participating tenants" substitute "RTE company".

18 (1) Section 29 (deemed withdrawal of initial notice) is amended as follows.

(2) After subsection (4) insert--

" (4A) The initial notice shall be deemed to have been withdrawn if--

(a) a winding-up order or an administration order is made, or a resolution for voluntary winding up is passed, with respect to the RTE company,

(b) a receiver or a manager of the RTE 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 RTE company comprised in or subject to the charge,

(c) a voluntary arrangement proposed in the case of the RTE company for the purposes of Part 1 of the Insolvency Act 1986 (c. 45) is approved under that Part of that Act, or

(d) the RTE company's name is struck off the register under section 652 or 652A of the Companies Act 1985 (c. 6). "

(3) In subsection (8), for "nominee purchaser is, or would (apart from subsection (7)) be," substitute "RTE company is".

19 In section 30(5) (service of notice to treat before completion of acquisition), for "nominee purchaser" substitute "RTE company".

20 (1) Section 31 (effect on initial notice of designation or application for designation for inheritance tax purposes) is amended as follows.

(2) In subsection (5)--

(a) in paragraph (a), for "nominee purchaser" substitute "RTE company", and

(b) in paragraph (b), for the words from "liable" to the end substitute "liable to the RTE company for all reasonable costs incurred in the preparation or giving of the notice or in pursuance of it."

(3) In subsection (6), for "nominee purchaser" (in both places) substitute "RTE company".

21 (1) Section 32 (determination of price) is amended as follows.

(2) In subsection (1)--

(a) for "nominee purchaser" substitute "RTE company", and

(b) for "him" substitute "it".

(3) In subsection (5)--

(a) for "nominee purchaser" substitute "RTE company",

(b) for "him" substitute "it", and

22 (1) Section 33 (costs of enfranchisement) is amended as follows.

(2) In subsection (1), for "nominee purchaser" (in both places) substitute "RTE company".

(3) In subsection (3)--

(a) for "nominee purchaser's" substitute "RTE company's", and

(b) for "him" substitute "it".

(4) In subsections (4) and (5), for "nominee purchaser" substitute "RTE company".

23 In section 34 (conveyance), for "nominee purchaser" (in each place, including the sidenote) substitute "RTE company".

24 In section 35 (discharge of existing mortgages on transfer), for "nominee purchaser" (in each place, including the sidenote) substitute "RTE company".

25 (1) Section 36 (requirement to grant leases back to former freeholder) is amended as follows.

(2) In subsection (1)--

(a) for "him" substitute "it", and

(b) for "nominee purchaser" substitute "RTE company".

(3) In subsection (2), for "nominee purchaser" substitute "RTE company".

(4) In the sidenote, for "Nominee purchaser" substitute "RTE company".

26 (1) Section 37A (compensation for postponement of termination in connection with ineffective claims) is amended as follows.

(2) In subsection (1), for "tenants of flats contained in the premises" substitute "a RTE company".

(3) In subsection (2), for "person who is a participating tenant" substitute "qualifying tenant who is a participating member of the RTE company".

27 (1) Section 38 (interpretation) is amended as follows.

(2) In subsection (1), after the definition of "introductory tenancy" insert--

" "participating member" has the meaning given by section 4B;

"the notice of invitation to participate" means the notice given under section 12A; " .

(3) In that subsection, after the definition of "the right to collective enfranchisement" insert--

" "RTE company" shall be construed in accordance with sections 1(1) and 4A; " .

(4) In subsection (2), for--

(a) "the nominee purchaser", in the first place, substitute "a RTE company", and

(b) for "nominee purchaser, on behalf of the participating tenants," substitute "RTE company".

28 (1) Section 41 (right of qualifying tenant to obtain information in connection with right to acquire new lease) is amended as follows.

(2) In subsection (4), for the words from "address" to the end substitute "registered office of the RTE company by which it was given."

(3) In subsection (5), for "nominee purchaser" substitute "RTE company".

29 (1) Section 54 (suspension of tenant's notice during currency of claim under Chapter 1) is amended as follows.

(2) In subsection (3), for the words from "address" to the end substitute "registered office of the RTE company by which it was given."

(3) In subsection (11), for "nominee purchaser" substitute "RTE company".

30 (1) Section 74 (effect of scheme application on claim to acquire freehold) is amended as follows.

(2) For "nominee purchaser" (in each place) substitute "RTE company".

(3) In subsection (3), for "him" substitute "it".

31 (1) Section 91 (jurisdiction of leasehold valuation tribunals) is amended as follows.

(2) In subsection (2), for "nominee purchaser" substitute "RTE company".

(3) In subsection (11), for ""the nominee purchaser" and "the participating tenants" have" substitute ""RTE company" has".

32 (1) In section 93 (agreements excluding or modifying rights of tenant) is amended as follows.

(2) In subsection (1)--

(a) in paragraph (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",

(b) in paragraph (b), for "a participating tenant for the purposes of Chapter 1 or" substitute ", or doing any thing as, a member of a RTE company (within the meaning of Chapter 1) or of such a RTE company doing any thing or in the event of a tenant", and

(c) in paragraph (c), for "on the tenant in that event" substitute "in the event of a tenant becoming, or doing any thing as, a member of such a RTE company or of such a RTE company doing any thing".

(3) 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".

33 (1) Section 93A (powers of trustees in relation to rights) is amended as follows.

(2) In subsection (1), for "participate in" substitute "become a member (and participating member) of a RTE company for the purpose of".

(3) In subsection (4), for "participation in" substitute "becoming a member (or participating member) of a RTE company for the purpose of".

34 In section 97(1) (registration)--

(a) for "the tenant" substitute "a RTE company, tenant", and

(b) for "a tenant" substitute "a RTE company or tenant".

35 In section 98(2) (power to prescribe procedure), for "nominee purchaser" substitute "RTE company".

36 (1) Schedule 1 (conduct of proceedings by reversioner on behalf of other landlords) is amended as follows.

(2) For "nominee purchaser" (in each place) substitute "RTE company".

(3) In paragraph 6(3), for "participating tenants" substitute "RTE company".

37 (1) Schedule 3 (restrictions on participation, effect of claim on other notices, forfeitures etc.) is amended as follows.

(2) 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".

(3) 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".

(4) In paragraph 4(2)--

(a) in paragraph (b), for "participating" substitute "qualifying", and

(b) for the words from "entitled" to the end substitute "a member of the RTE company."

(5) In paragraphs 5 and 6(1), for "participating tenant" substitute "participating member of the RTE company".

(6) In paragraph 7--

(a) in sub-paragraph (1), for "participating tenant" substitute "participating member of the RTE company",

(b) in that sub-paragraph, for "tenant is participating in the making of the claim" substitute "member is a participating member", and

(7) In sub-paragraph (1) of paragraph 12--

(a) for "qualifying tenants" substitute "RTE company", and

(b) for "them" substitute "it",

and in the heading before that paragraph, for "Qualifying tenants" substitute "RTE company".

(8) In paragraph 12A(1)--

(a) for "qualifying tenants" substitute "RTE company", and

(b) for "them" substitute "it".

(9) In paragraph 13(3), for "qualifying tenants by whom" substitute "RTE company by which".

(10) In paragraph 14--

(a) in sub-paragraph (1), for "any of the qualifying tenants by whom" substitute "a qualifying tenant who was a member of the RTE company by which", and

(b) in sub-paragraph (2), for "qualifying tenants by whom" substitute "RTE company by which".

(11) In paragraph 15(1), after "required by" insert "or by virtue of".

(12) For paragraph 16 (and the heading before it) substitute--

" Effect on initial notice of member's lack of qualification

16 Where any of the members of the RTE company by which an initial notice is given was not the qualifying tenant of a flat contained in the premises at the relevant date even though his name was stated in the notice, the 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 at 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 at that date. "

38 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".

39 (1) Schedule 5 (vesting orders under sections 24 and 25) is amended as follows.

(2) For "nominee purchaser" (in each place) substitute "RTE company".

(3) In paragraph 4, for "the participating tenants" substitute "its members".

40 (1) Schedule 6 (purchase price) is amended as follows.

(2) For "nominee purchaser" (in each place, including the heading) substitute "RTE company".

(3) For "participating tenant" (in each place) substitute "participating member of the RTE company".

(4) In paragraph 3(1)(c), for "the tenant" substitute "the member".

(5) In paragraph 4(2)--

(a) for "participating tenants, as" substitute "persons who are participating members of the RTE company immediately before a binding contract is entered into in pursuance of the initial notice, as", and

(b) for "participating tenants, once" substitute "those participating members, once".

(6) In paragraph 10(2), for "he" substitute "it".

41 (1) Schedule 7 (conveyance to nominee purchaser on enfranchisement) is amended as follows.

(2) For "nominee purchaser" (in each place, including the heading) substitute "RTE company".

(3) In paragraph 4, for "him" (in both places) substitute "it".

42 (1) Schedule 8 (discharge of mortgages etc: supplementary provisions) is amended as follows.

(2) For "nominee purchaser" (in each place) substitute "RTE company".

(3) In paragraph 3(1)--

(a) for "any participating tenant" substitute "any member of the RTE company", and

(b) for "a participating tenant" substitute "any of its members".

(4) In paragraph 4(3), for "him" (in both places) substitute "it".

43 In Schedule 9 (grants of lease back to former purchaser), for "nominee purchaser" (in each place) substitute "RTE company".

Section 150

SCHEDULE 9 Meaning of service charge and management

Loans in respect of service charges

1 The Housing Act 1985 (c. 68) has effect subject to the following amendments.

2 (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.

(2) In subsection (2), after "repairs" insert "or improvements".

(3) In subsection (5)(a), after "repairs" insert "or improvements".

3 In section 450B(1)(b) (power to make loan in respect of service charges for repairs in other cases), after "repairs" insert "or improvements".

4 In section 458(1) (minor definitions for purposes of Part 14 of the Act), insert at the end--

" "service charge" has the meaning given by section 18(1) of the Landlord and Tenant Act 1985 (c. 70). "

5 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".

6 In section 621A (meaning of service charge for purposes of the Act), insert at the end--

" (5) But this section does not apply in relation to Part 14. "

Service charges

7 In section 18(1)(a) of the 1985 Act (meaning of service charge), after "maintenance" insert ", improvements".

Appointment of manager

8 In section 24(11) of the 1987 Act (appointment of manager by leasehold valuation tribunal: meaning of management), after "maintenance" insert ", improvement".

Right to acquire landlord's interest

9 (1) Section 29 of that Act (conditions for making orders for compulsory acquisition by tenants of landlord's interest) is amended as follows.

(2) In subsection (2), in paragraph (a), omit "repair, maintenance, insurance or".

(3) After that subsection insert--

" (2A) The reference in subsection (2) to the management of any premises includes a reference to the repair, maintenance, improvement or insurance of those premises. "

Tenants' right to management audit

10 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".

Codes of management practice

11 In section 87(8) of that Act (approval by Secretary of State of codes of management practice: meaning of management functions and service charge)--

(a) in paragraph (a), after "maintenance" insert ", improvement", and

(b) in paragraph (c)(i), after "maintenance" insert ", improvements".

Right to appoint surveyor

12 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".

Power to amend certain provisions

13 An order amending--

(a) any of the provisions amended by paragraphs 7 to 12, or

(b) section 27A(3) of the 1985 Act (as inserted by section 155),

may be made by the appropriate national authority for or in connection with altering the meaning of "service charge", "management" or "management functions".

Section 157

SCHEDULE 10 Service charges: minor and consequential amendments

Information held by superior landlord

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13

-- Back --

Stat