Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)

(The document as of February, 2008)

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(3) This paragraph does not apply to a flat or other unit to which paragraph 2 or 3 applies.

Flat etc. occupied by resident landlord

6 (1) This paragraph applies where immediately before the appropriate time--

(a) the specified premises are premises with a resident landlord; and

(b) the freeholder is the person by virtue of whose occupation of a flat or other unit contained in those premises they are premises with a resident landlord; and

(2) Where this paragraph applies--

(a) the nominee purchaser shall, if the freeholder by notice requires him to do so, grant to him a lease of the relevant unit in accordance with section 36 and paragraph 7 below; and

(b) any lease of that unit held by the freeholder immediately before the appropriate time shall be deemed to have been surrendered by him on the grant of the lease referred to in paragraph (a).

(3) Sections 5, 7 and 8 shall apply for the purpose of determining whether, for the purposes of sub-paragraph (1)(c) above, the freeholder is a qualifying tenant of a unit other than a flat as they apply for the purpose of determining whether a person is a qualifying tenant of a flat.

Provisions as to terms of lease

7 (1) Any lease granted to the freeholder in pursuance of paragraph 5 or 6, and any agreement collateral to it, shall conform with the provisions of Part IV of this Schedule except to the extent that any departure from those provisions--

(a) is agreed to by the nominee purchaser and the freeholder; or

(b) is directed by a leasehold valuation tribunal on an application made by either of those persons.

(2) A leasehold valuation tribunal shall not direct any such departure from those provisions unless it appears to the tribunal that it is reasonable in the circumstances.

(3) In determining whether any such departure is reasonable in the circumstances, the tribunal shall have particular regard to the interests of any person who will be the tenant of the flat or other unit in question under a lease inferior to the lease to be granted to the freeholder.

(4) Subject to the preceding provisions of this paragraph, any such lease or agreement as is mentioned in sub-paragraph (1) may include such terms as are reasonable in the circumstances.

Part IV Terms of lease granted to freeholder

Duration of lease and rent

8 The lease shall be a lease granted for a term of 999 years at a peppercorn rent.

General rights to be granted

9 The lease shall not exclude or restrict the general words implied under section 62 of the [1925 c. 20.] Law of Property Act 1925, unless the exclusion or restriction is made for the purpose of preserving or recognising an existing right or interest of any person.

Rights of support, passage of water etc.

10 (1) This paragraph applies to rights of any of the following descriptions, namely--

(a) rights of support for a building or part of a building;

(b) rights to the access of light and air to a building or part of a building;

(c) rights to the passage of water or of gas or other piped fuel, or to the drainage or disposal of water, sewage, smoke or fumes, or to the use or maintenance of pipes or other installations for such passage, drainage or disposal; and

(d) rights to the use or maintenance of cables or other installations for the supply of electricity, for the telephone or for the receipt directly or by landline of visual or other wireless transmissions;

and the provisions required to be included in the lease by virtue of sub-paragraph (2) are accordingly provisions relating to any such rights.

(2) The lease shall include provisions having the effect of--

(a) granting with the demised premises (so far as the lessor is capable of granting them)--

(i) all such easements and rights over other property as are necessary to secure as nearly as may be for the benefit of the demised premises the same rights as exist for the benefit of those premises immediately before the appropriate time, and

(ii) such further easements and rights (if any) as are necessary for the reasonable enjoyment of the demised premises; and

(b) making the demised premises subject to the following easements and rights (so far as they are capable of existing in law), namely--

(i) all easements and rights for the benefit of other property to which the demised premises are subject immediately before the appropriate time, and

(ii) such further easements and rights (if any) as are necessary for the reasonable enjoyment of other property, being property in which the lessor acquires an interest at the appropriate time.

Rights of way

11 The lease shall include--

(a) such provisions (if any) as the lessee may require for the purpose of securing to him, and persons deriving title under him, rights of way over other property (so far as the lessor is capable of granting them), being rights of way that are necessary for the reasonable enjoyment of the demised premises; and

(b) such provisions (if any) as the lessor may require for the purpose of making the demised premises subject to rights of way necessary for the reasonable enjoyment of other property, being property in which the lessor acquires an interest at the appropriate time.

Common use of premises and facilities

12 The lease shall include, so far as the lessor is capable of granting them, the like rights to use in common with others any premises, facilities or services as are enjoyed immediately before the appropriate time by any tenant of the demised premises.

Covenants affecting demised premises

13 The lease shall include such provisions (if any) as the lessor may require to secure that the lessee is bound by, or to indemnify the lessor against breaches of, restrictive covenants (that is to say, covenants or agreements restrictive of the use of any land or premises) affecting the demised premises immediately before the appropriate time and enforceable for the benefit of other property.

Covenants by lessor

14 (1) The lease shall include covenants by the lessor--

(a) to keep in repair the structure and exterior of the demised premises and of the specified premises (including drains, gutters and external pipes) and to make good any defect affecting that structure;

(b) to keep in repair any other property over or in respect of which the lessee has rights by virtue of this Schedule;

(c) to ensure, so far as practicable, that the services which are to be provided by the lessor and to which the lessee is entitled (whether alone or in common with others) are maintained at a reasonable level, and to keep in repair any installation connected with the provision of any of those services.

(2) The lease shall include a covenant requiring the lessor--

(a) to insure the specified premises for their full reinstatement value against destruction or damage by fire, tempest, flood or any other cause against the risk of which it is the normal practice to insure;

(b) to rebuild or reinstate the demised premises or the specified premises in the case of any such destruction or damage.

Covenants by lessee

15 The lease shall include a covenant by the lessee to ensure that the interior of the demised premises is kept in good repair (including decorative repair).

Contributions by lessee

16 (1) The lease may require the lessee to bear a reasonable part of the costs incurred by the lessor in discharging or insuring against the obligations imposed by the covenants required by paragraph 14(1) or in discharging the obligation imposed by the covenant required by paragraph 14(2)(a).

(2) Where a covenant required by paragraph 14(1) or (2)(a) has been modified to any extent in accordance with paragraph 4 or 7, the reference in sub-paragraph (1) above to the obligations or (as the case may be) the obligation imposed by that covenant shall be read as a reference to the obligations or obligation imposed by that covenant as so modified.

Assignment and sub-letting of premises

17 (1) Except where the demised premises consist of or include any unit let or intended for letting on a business lease, the lease shall not include any provision prohibiting or restricting the assignment of the lease or the sub-letting of the whole or part of the demised premises.

(2) Where the demised premises consist of or include any such unit as is mentioned in sub-paragraph (1), the lease shall contain a prohibition against--

(a) assigning or sub-letting the whole or part of any such unit, or

(b) altering the user of any such unit,

without the prior written consent of the lessor (such consent not to be unreasonably withheld).

Restriction on terminating lease

18 The lease shall not include any provision for the lease to be terminated otherwise than by forfeiture on breach of any term of the lease by the lessee.

Section 37.

SCHEDULE 10 Acquisition of interests from local authorities etc.

Disapplication of provisions relating to disposals by local authorities etc.

1 (1) It is hereby declared that nothing in any of the provisions specified in sub-paragraph (2) (which impose requirements as to consent or consultation or other restrictions in relation to disposals falling within those provisions) applies to any disposal of a freehold or leasehold interest in any premises which is made in pursuance of this Chapter.

(2) The provisions referred to in sub-paragraph (1) are--

(a) sections 32 and 43 of the [1985 c. 68.] Housing Act 1985 (disposals of land by local authorities) and section 133 of the [1988 c. 50.] Housing Act 1988 (certain subsequent disposals);

(b) section 9(1) and (1A) of the [1985 c. 69.] Housing Associations Act 1985 (disposals by registered and unregistered housing associations);

(c) section 79(1) and (2) of the Housing Act 1988 (disposals by housing action trusts) and section 81 of that Act (certain subsequent disposals); and

(d) section 105(1) of that Act (disposals subsequent to change of landlord of secure tenants).

Provisions relating to secure tenants following leaseback

2 (1) This paragraph applies where a lease is granted to a public sector landlord in pursuance of paragraph 2 of Schedule 9.

(2) Where--

(a) immediately before the appropriate time the public sector landlord was the immediate landlord under a secure tenancy of a flat contained in the demised premises, and

(b) that tenancy continues in force after the grant of the lease referred to in sub-paragraph (1),

the tenant shall be deemed to have continued without interruption as tenant of the landlord under the secure tenancy, despite the disposal of the landlord's interest which immediately preceded the grant of the lease referred to in that sub-paragraph.

(3) Where--

(a) immediately before the appropriate time a person was a successor in relation to a secure tenancy of a flat contained in the demised premises, and

(b) that person is, in connection with the grant of the lease referred to in sub-paragraph (1), granted a new secure tenancy of that flat which is a tenancy for a term certain,

then for the purposes of sections 87 to 90 of the [1985 c. 68.] Housing Act 1985 (succession on death of tenant) that person shall also be a successor in relation to the new tenancy.

(4) Where--

(a) immediately before the appropriate time a person was the tenant under a secure tenancy of a flat contained in the demised premises, and

(b) that person is, in connection with the grant of the lease referred to in sub-paragraph (1), granted a new secure tenancy of that flat,

then, for the purpose of determining whether either of the conditions referred to in sub-paragraph (5) is satisfied, the new tenancy shall not be regarded as a new letting of the flat but shall instead be regarded as a continuation of the secure tenancy referred to in paragraph (a) above.

(5) Those conditions are--

(a) the condition specified in sub-paragraph (1)(b) of paragraph 5 of Schedule 5 to the Housing Act 1985 (exception to the right to buy in case of letting in connection with employment); and

(b) the condition specified in sub-paragraph (1)(b) of paragraph 11 of that Schedule (exception to the right to buy in case of letting for occupation by person of pensionable age etc.).

(6) In this paragraph--

(a) any reference to a secure tenancy of a flat is a reference to a secure tenancy of a flat whether with or without any yard, garden, garage, outhouses or appurtenances belonging to or usually enjoyed with it; and

(b) any reference to a flat includes a reference to a unit (other than a flat) which is used as a dwelling.

(7) In this paragraph--

(a) "the appropriate time" and "the demised premises" have the same meaning as in Schedule 9; and

(b) "successor" has the same meaning as in section 88 of the [1985 c. 68.] Housing Act 1985.

Section 40.

SCHEDULE 11 Procedure where competent landlord is not tenant's immediate landlord

Part I Procedure in relation to tenant's notice

Tenant's notice may be given to any of the other landlords

1 The tenant's notice under section 42 shall be regarded as given to the competent landlord for the purposes of subsection (2)(a) of that section if it is given to any of the other landlords instead; and references in this Chapter to the relevant date shall be construed accordingly.

Tenant to give copies of notice

2 (1) Where the tenant's notice is given to the competent landlord, the tenant shall give a copy of the notice to every person known or believed by him to be one of the other landlords.

(2) Where the tenant's notice is, in accordance with paragraph 1, given to one of the other landlords, the tenant shall give a copy of the notice to every person (apart from the recipient of the notice) known or believed by the tenant to be either the competent landlord or one of the other landlords.

(3) The tenant's notice shall state whether copies are being given in accordance with this paragraph to anyone other than the recipient and, if so, to whom.

Recipient of notice or copy to give further copies

3 (1) Subject to sub-paragraph (2), a recipient of the tenant's notice or of a copy of it (including a person receiving a copy under this sub-paragraph)--

(a) shall forthwith give a copy to any person who--

(i) is known or believed by him to be the competent landlord or one of the other landlords, and

(ii) is not stated in the recipient's copy of the notice, or known by him, to have received a copy; and

(b) if he knows who is, or he believes himself to be, the competent landlord, shall--

(i) give a notice to the tenant stating who is the person thought by him to be the competent landlord, and

(ii) give a copy of it to that person (if not himself) and to every person known or believed by him to be one of the other landlords.

(2) Sub-paragraph (1) does not apply where the recipient is neither the competent landlord nor one of the other landlords.

(3) Where a person gives any copies of the tenant's notice in accordance with sub-paragraph (1)(a), he shall--

(a) supplement the statement under paragraph 2(3) by adding any further persons to whom he is giving copies or who are known by him to have received one; and

(b) notify the tenant of the persons added by him to that statement.

Consequences of failure to comply with paragraph 2 or 3

4 (1) Where--

(a) the competent landlord or any of the other landlords does not receive a copy of the tenant's notice before the end of the period specified in it in pursuance of section 42(3)(f), but

(b) he was given a notice under section 41 by the tenant and, in response to the notice under that section, notified the tenant of his interest in the tenant's flat,

the tenant's notice shall cease to have effect at the end of that period.

(2) Where--

(a) sub-paragraph (1) does not apply, but

(b) any person fails without reasonable cause to comply with paragraph 2 or 3 above, or is guilty of any unreasonable delay in complying with either of those paragraphs,

he shall be liable for any loss thereby occasioned to the tenant or to the competent landlord or any of the other landlords.

Part II Conduct of proceedings by competent landlord on behalf of other landlords

Counter-notice to specify other landlords

5 Any counter-notice given to the tenant by the competent landlord must specify the other landlords on whose behalf he is acting.

Acts of competent landlord binding on other landlords

6 (1) Without prejudice to the generality of section 40(2)--

(a) any notice given under this Chapter by the competent landlord to the tenant,

(b) any agreement for the purposes of this Chapter between that landlord and the tenant, and

(c) any determination of the court or a leasehold valuation tribunal under this Chapter in proceedings between that landlord and the tenant,

shall be binding on the other landlords and on their interests in the property demised by the tenant's lease or any other property; but in the event of dispute the competent landlord or any of the other landlords may apply to the court for directions as to the manner in which the competent landlord should act in the dispute.

(2) Subject to paragraph 7(2), the authority given to the competent landlord by section 40(2) shall extend to receiving on behalf of any other landlord any amount payable to that person by virtue of Schedule 13.

(3) If any of the other landlords cannot be found, or his identity cannot be ascertained, the competent landlord shall apply to the court for directions and the court may make such order as it thinks proper with a view to giving effect to the rights of the tenant and protecting the interests of other persons; but, subject to any such directions, the competent landlord shall proceed as in other cases.

(4) The competent landlord, if he acts in good faith and with reasonable care and diligence, shall not be liable to any of the other landlords for any loss or damage caused by any act or omission in the exercise or intended exercise of the authority given to him by section 40(2).

Other landlords acting independently

7 (1) Notwithstanding anything in section 40(2), any of the other landlords shall, at any time after the giving by the competent landlord of a counter-notice under section 45 and on giving notice to both the competent landlord and the tenant of his intention to be so represented, be entitled to be separately represented--

(a) in any legal proceedings in which his title to any property comes in question, or

(b) in any legal proceedings relating to the determination of any amount payable to him by virtue of Schedule 13.

(2) Any of the other landlords may also, on giving notice to the competent landlord and the tenant, require that any amount payable to him by virtue of Schedule 13 shall be paid by the tenant to him, or to a person authorised by him to receive it, instead of to the competent landlord; but if, after being given proper notice of the time and method of completion with the tenant, either--

(a) he fails to notify the competent landlord of the arrangements made with the tenant to receive payment, or

(b) having notified the competent landlord of those arrangements, the arrangements are not duly implemented,

the competent landlord shall be authorised to receive the payment for him, and the competent landlord's written receipt for the amount payable shall be a complete discharge to the tenant.

Obligations of other landlords to competent landlord

8 (1) It shall be the duty of each of the other landlords (subject to paragraph 7) to give the competent landlord all such information and assistance as he may reasonably require; and, if any of the other landlords fails to comply with this sub-paragraph, that landlord shall indemnify the competent landlord against any liability incurred by him in consequence of the failure.

(2) Each of the other landlords shall make such contribution as shall be just to costs and expenses which are properly incurred by the competent landlord in pursuance of section 40(2) but are not recoverable or not recovered from the tenant.

Applications made by other landlords under section 47(1)

9 (1) The authority given to the competent landlord by section 40(2) shall not extend to the bringing of proceedings under section 47(1) on behalf of any of the other landlords, or preclude any of those landlords from bringing proceedings under that provision on his own behalf as if he were the competent landlord.

(2) In section 45(2)(c) any reference to the competent landlord shall include a reference--

(a) to any of the other landlords, or

(b) to any two or more of the following, namely the competent landlord and the other landlords, acting together;

and in section 47(1) and (2) references to the landlord shall be construed accordingly; but if any of the other landlords intends to make such an application as is mentioned in section 45(2)(c), whether alone or together with any other person or persons, his name shall be stated in the counter-notice.

Deemed surrender and re-grant of leases of other landlords

10 (1) Where a lease is executed under section 56 or 93(4) or in pursuance of any order made under this Chapter, then (subject to sub-paragraph (3)) that instrument shall have effect for the creation of the tenant's new lease of his flat, and for the operation of the rights and obligations conferred and imposed by it, as if there had been a surrender and re-grant of any subsisting lease intermediate between the interest of the competent landlord and the existing lease; and the covenants and other provisions of that instrument shall be framed and take effect accordingly.

(2) Section 57(2) shall apply to the new lease on the basis that account is to be taken of obligations imposed on any of the other landlords by virtue of that or any superior lease; and section 59(3) shall apply on the basis that the reference there to the tenant's landlord includes the immediate landlord from whom the new lease will be held and all superior landlords, including any superior to the competent landlord.

(3) Where a lease of the tenant's flat superior to the existing lease is vested in the tenant or a trustee for him, the new lease shall include an actual surrender of that superior lease without a re-grant, and it shall accordingly be disregarded for the purposes of the preceding provisions of this paragraph.

Discharge of existing mortgages

11 Where by reason of section 58(2) it is necessary to make any payment to discharge the tenant's flat from a mortgage affecting the interest of any landlord, then if the competent landlord is not the landlord liable or primarily liable in respect of the mortgage, he shall not be required to make that payment otherwise than out of money made available for the purpose by the landlord so liable, and it shall be the duty of that landlord to provide for the mortgage being discharged.

Section 42.

SCHEDULE 12 The tenant's notice: supplementary provisions

Part I Effect of tenant's notice on other notices, forfeitures etc.

Prior notice by tenant terminating lease

1 A notice given by a qualifying tenant of a flat under section 42 shall be of no effect if it is given--

(a) after the tenant has given notice terminating the lease of the flat (other than a notice that has been superseded by the grant, express or implied, of a new tenancy); or

(b) during the subsistence of an agreement for the grant to the tenant of a future tenancy of the flat, where the agreement is one to which paragraph 17 of Schedule 10 to the [1989 c. 42.] Local Government and Housing Act 1989 applies.

Prior notice by landlord terminating lease

2 (1) Subject to sub-paragraph (2), a notice given by a qualifying tenant of a flat under section 42 shall be of no effect if it is given more than two months after a landlord's notice terminating the tenant's lease of the flat has been given under section 4 of the [1954 c. 56.] Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 (whether or not the notice has effect to terminate the lease).

(2) Sub-paragraph (1) does not apply where the landlord gives his written consent to a notice being given under section 42 after the end of those two months.

(3) Where in the case of a qualifying tenant of a flat who gives a notice under section 42--

(a) any such landlord's notice is given or served as mentioned in sub-paragraph (1), but

(b) that notice was not given or served more than two months before the date on which the notice under section 42 is given to the landlord,

the landlord's notice shall cease to have effect on that date.

(4) If--

(a) any such landlord's notice ceases to have effect by virtue of sub-paragraph (3), but

(b) the claim made by the tenant by the giving of his notice under section 42 is not effective,

then sub-paragraph (5) shall apply to any landlord's notice terminating the tenant's lease of the flat which--

(i) is given under section 4 of the [1954 c. 56.] Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the [1989 c. 42.] Local Government and Housing Act 1989, and

(ii) is so given or served within one month after the expiry of the period of currency of that claim.

(5) Where this sub-paragraph applies to a landlord's notice, the earliest date which may be specified in the notice as the date of termination shall be--

(a) in the case of a notice given under section 4 of that Act of 1954--

(i) the date of termination specified in the previous notice, or

(ii) the date of expiry of the period of three months beginning with the date of the giving of the new notice,

whichever is the later; or

(b) in the case of a notice served under paragraph 4(1) of Schedule 10 to that Act of 1989--

(i) the date of termination specified in the previous notice, or

(ii) the date of expiry of the period of four months beginning with the date of service of the new notice,

whichever is the later.

(6) Where--

(a) by virtue of sub-paragraph (5) a landlord's notice specifies as the date of termination of a lease a date earlier than six months after the date of the giving of the notice, and

(b) the notice proposes a statutory tenancy,

section 7(2) of the Landlord and Tenant Act 1954 shall apply in relation to the notice with the substitution, for references to the period of two months ending with the date of termination specified in the notice and the beginning of that period, of references to the period of three months beginning with the date of the giving of the notice and the end of that period.

Orders for possession and pending proceedings for forfeiture etc.

3 (1) A notice given by a qualifying tenant of a flat under section 42 shall be of no effect if at the time when it is given he is obliged to give up possession of his flat in pursuance of an order of a court or will be so obliged at a date specified in such an order.

(2) Except with the leave of the court, a qualifying tenant of a flat shall not give a notice under section 42 at a time when any proceedings are pending to enforce a right of re-entry or forfeiture terminating his lease of the flat.

(3) Leave shall only be granted under sub-paragraph (2) if the court is satisfied that the tenant does not wish to give such a notice solely or mainly for the purpose of avoiding the consequences of the breach of the terms of his lease in respect of which proceedings are pending.

(4) If--

(a) leave is so granted, and

(b) the tenant by such a notice makes a claim to acquire a new lease of his flat,

the tenant's lease shall be deemed for the purposes of the claim to be a subsisting lease despite the existence of those proceedings and any order made afterwards in those proceedings; and, if the claim is effective, the court in which those proceedings were brought may set aside or vary any such order to such extent and on such terms as appear to that court to be appropriate.

Notice terminating lease given by tenant or landlord during currency of claim

4 Where by a notice given under section 42 a tenant makes a claim to acquire a new lease of a flat, any notice terminating the tenant's lease of the flat, whether it is--

(a) a notice given by the tenant, or

(b) a landlord's notice given under section 4 of the [1954 c. 56.] Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the [1989 c. 42.] Local Government and Housing Act 1989,

shall be of no effect if it is given or served during the currency of the claim.

Tenant's notice operates to prevent termination of lease

5 (1) Where by a notice under section 42 a tenant makes a claim to acquire a new lease of a flat, then during the currency of the claim and for three months thereafter the lease of the flat shall not terminate--

(a) by effluxion of time, or

(b) in pursuance of a notice to quit given by the immediate landlord of the tenant, or

but if the claim is not effective, and but for this sub-paragraph the lease would have so terminated before the end of those three months, the lease shall so terminate at the end of those three months.

(2) Sub-paragraph (1) shall not be taken to prevent an earlier termination of the lease in any manner not mentioned in that sub-paragraph, and shall not affect--

(a) the power under section 146(4) of the [1925 c. 20.] Law of Property Act 1925 (relief against forfeiture of leases) to grant a tenant relief against the termination of a superior lease, or

(b) any right of the tenant to relief under section 16(2) of the Landlord and Tenant Act 1954 (relief where landlord proceeding to enforce covenants) or under paragraph 9 of Schedule 5 to that Act (relief in proceedings brought by superior landlord).

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