Leasehold Reform, Housing and Urban Development Act 1993

• (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.

SCHEDULE 12

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 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 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 Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the 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 Landlord and Tenant Act 1954 or served under paragraph 4(1) of Schedule 10 to the 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

• (c) by the termination of a superior lease;

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 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).

Restriction on proceedings to enforce right of re-entry or forfeiture

6

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—

• (a) no proceedings to enforce any right of re-entry or forfeiture terminating the lease of the flat shall be brought in any court without the leave of that court, and

• (b) leave shall only be granted if the court is satisfied that the notice was given solely or mainly for the purpose of avoiding the consequences of the breach of the terms of the tenant’s lease in respect of which proceedings are proposed to be brought;

but where leave is granted, the notice shall cease to have effect.

Effect of notice under section 16(2) of Landlord and Tenant Act 1954 on tenant’s notice

7

• (1) A tenant who, in proceedings to enforce a right of re-entry or forfeiture or a right to damages in respect of a failure to comply with any terms of his lease, applies for relief under section 16 of the Landlord and Tenant Act 1954 is not thereby precluded from making a claim to acquire a new lease under this Chapter; but if he gives notice under section 16(2) of that Act (under which the tenant is relieved from any order for recovery of possession or for payment of damages, but the tenancy is cut short), any notice given by him under section 42 with respect to property comprised in his lease shall be of no effect or, if already given, shall cease to have effect.

• (2) Sub-paragraph (1) shall apply in relation to proceedings relating to a superior tenancy with the substitution for the references to section 16 and to section 16(2) of the Landlord and Tenant Act 1954 of references to paragraph 9 and to paragraph 9(2) of Schedule 5 to that Act.

Interpretation

8

• (1) For the purposes of this Part of this Schedule—

• (a) references to a notice under section 42 include, in so far as the context permits, references to a notice purporting to be given under that section (whether by a qualifying tenant or not), and references to the tenant by whom a notice is given shall be construed accordingly;

• (b) references to a claim being effective are references to a new lease being acquired in pursuance of the claim; and

• (c) references to the currency of a claim are—

• (i) where the claim is made by a valid notice under section 42, references to the period during which the notice continues in force in accordance with subsection (8) of that section, or

• (ii) where the claim is made by a notice which is not a valid notice under section 42, references to the period beginning with the giving of the notice and ending with the time when the notice is set aside by the court or is withdrawn or when it would (if valid) cease to have effect or be deemed to have been withdrawn.

• (2) For the purposes of sub-paragraph (1)(c) the date when a notice is set aside, or would (if valid) cease to have effect, in consequence of an order of a court shall be taken to be the date when the order becomes final.

• (3) The references in this Schedule—

• (a) to section 16 of the Landlord and Tenant Act 1954 and subsection (2) of that section, and

• (b) to paragraph 9 of Schedule 5 to that Act and sub-paragraph (2) of that paragraph,

include references to those provisions as they apply in relation to Schedule 10 to the Local Government and Housing Act 1989 (security of tenure on ending of long residential tenancies).

Part II — OTHER PROVISIONS

9

• (1) The tenant’s notice shall not be invalidated by any inaccuracy in any of the particulars required by section 42(3) or by any misdescription of any of the property to which the claim extends.

• (2) Where the tenant’s notice—

• (a) specifies any property which he is not entitled to have demised to him under a new lease granted in pursuance of this Chapter, or

• (b) fails to specify any property which he is entitled to have so demised to him,

the notice may, with the leave of the court and on such terms as the court may think fit, be amended so as to exclude or include the property in question.

SCHEDULE 13

Part I — GENERAL

1

In this Schedule—

• “intermediate leasehold interest” means the interest of any person falling within section 40(4)(c), to the extent that it is an interest in the tenant’s flat subsisting immediately before the grant of the new lease;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II — PREMIUM PAYABLE IN RESPECT OF GRANT OF NEW LEASE

Premium payable by tenant

2

The premium payable by the tenant in respect of the grant of the new lease shall be the aggregate of—

• (a) the diminution in value of the landlord’s interest in the tenant’s flat as determined in accordance with paragraph 3,

• (b) the landlord’s share of the marriage value as determined in accordance with paragraph 4, and

• (c) any amount of compensation payable to the landlord under paragraph 5.

Diminution in value of landlord’s interest

3

• (1) The diminution in value of the landlord’s interest is the difference between—

• (a) the value of the landlord’s interest in the tenant’s flat prior to the grant of the new lease; and

• (b) the value of his interest in the flat once the new lease is granted.

• (2) Subject to the provisions of this paragraph, the value of any such interest of the landlord as is mentioned in sub-paragraph (1)(a) or (b) is the amount which at the relevant date that interest might be expected to realise if sold on the open market by a willing seller (with neither the tenant nor any owner of an intermediate leasehold interest buying or seeking to buy) on the following assumptions—

• (a) on the assumption that the vendor is selling for an estate in fee simple or (as the case may be) such other interest as is held by the landlord, subject to the relevant lease and any intermediate leasehold interests;

• (b) on the assumption that Chapter I and this Chapter confer no right to acquire any interest in any premises containing the tenant’s flat or to acquire any new lease;

• (c) on the assumption that any increase in the value of the flat which is attributable to an improvement carried out at his own expense by the tenant or by any predecessor in title is to be disregarded; and

• (d) on the assumption that (subject to paragraph (b)) the vendor is selling with and subject to the rights and burdens with and subject to which the relevant lease has effect or (as the case may be) is to be granted.

• (3) In sub-paragraph (2) “the relevant lease” means either the tenant’s existing lease or the new lease, depending on whether the valuation is for the purposes of paragraph (a) or paragraph (b) of sub-paragraph (1).

• (4) It is hereby declared that the fact that sub-paragraph (2) requires assumptions to be made as to the matters specified in paragraphs (a) to (d) of that sub-paragraph does not preclude the making of assumptions as to other matters where those assumptions are appropriate for determining the amount which at the relevant date any such interest of the landlord as is mentioned in sub-paragraph (1)(a) or (b) might be expected to realise if sold as mentioned in sub-paragraph (2).

• (5) In determining any such amount there shall be made such deduction (if any) in respect of any defect in title as on a sale of that interest on the open market might be expected to be allowed between a willing seller and a willing buyer.

• (6) The value of any such interest of the landlord as is mentioned in sub-paragraph (1)(a) or (b) shall not be increased by reason of—

• (a) any transaction which—

• (i) is entered into on or after the date of the passing of this Act (otherwise than in pursuance of a contract entered into before that date), and

• (ii) involves the creation or transfer of an interest superior to (whether or not preceding) any interest held by the tenant; or

• (b) any alteration on or after that date of the terms on which any such superior interest is held.

Landlord’s share of marriage value

4

• (1) The marriage value is the amount referred to in sub-paragraph (2), and the landlord’s share of the marriage value is 50 per cent. of that amount.

• (2) Subject to sub-paragraph (2A), the marriage value is the difference between the following amounts, namely—

• (a) the aggregate of—

• (i) the value of the interest of the tenant under his existing lease,

• (ii) the value of the landlord’s interest in the tenant’s flat prior to the grant of the new lease, and

• (iii) the values prior to the grant of that lease of all intermediate leasehold interests (if any); and

• (b) the aggregate of—

• (i) the value of the interest to be held by the tenant under the new lease,

• (ii) the value of the landlord’s interest in the tenant’s flat once the new lease is granted, and

• (iii) the values of all intermediate leasehold interests (if any) once that lease is granted.

• (2A) Where at the relevant date the unexpired term of the tenant’s existing lease exceeds eighty years, the marriage value shall be taken to be nil.

• (3) For the purposes of sub-paragraph (2)—

• (a) the value of the interest of the tenant under his existing lease shall be determined in accordance with paragraph 4A;

• (aa) the value of the interest to be held by the tenant under the new lease shall be determined in accordance with paragraph 4B;

• (b) the value of any such interest of the landlord as is mentioned in paragraph (a) or paragraph (b) of sub-paragraph (2) is the amount determined for the purposes of paragraph 3(1)(a) or paragraph 3(1)(b) (as the case may be); and

• (c) the value of any intermediate leasehold interest shall be determined in accordance with paragraph 8, and shall be so determined as at the relevant date.

Compensation for loss arising out of grant of new lease

5

• (1) Where the landlord will suffer any loss or damage to which this paragraph applies, there shall be payable to him such amount as is reasonable to compensate him for that loss or damage.

• (2) This paragraph applies to—

• (a) any diminution in value of any interest of the landlord in any property other than the tenant’s flat which results from the grant to the tenant of the new lease; and

• (b) any other loss or damage which results therefrom to the extent that it is referable to the landlord’s ownership of any such interest.

• (3) Without prejudice to the generality of paragraph (b) of sub-paragraph (2), the kinds of loss falling within that paragraph include loss of development value in relation to the tenant’s flat to the extent that it is referable as mentioned in that paragraph.

• (4) In sub-paragraph (3) “development value”, in relation to the tenant’s flat, means any increase in the value of the landlord’s interest in the flat which is attributable to the possibility of demolishing, reconstructing, or carrying out substantial works of construction affecting, the flat (whether together with any other premises or otherwise).

Part III — AMOUNTS PAYABLE TO OWNERS OF INTERMEDIATE LEASEHOLD INTERESTS

Amount payable to owner of intermediate interest

6

In connection with the grant of the new lease to the tenant there shall be payable by the tenant to the owner of any intermediate leasehold interest an amount which is the aggregate of—

• (a) the diminution in value of that interest as determined in accordance with paragraph 7; and

• (b) any amount of compensation payable to him under paragraph 9.

Diminution in value of intermediate interest

7

• (1) The diminution in value of any intermediate leasehold interest is the difference between—

• (a) the value of that interest prior to the grant of the new lease; and

• (b) the value of that interest once the new lease is granted.

• (2) Each of those values shall be determined, as at the relevant date, in accordance with paragraph 8.

Value of intermediate interests

8

• (1) Subject to sub-paragraph (2), paragraph 3(2) to (6) shall apply for determining the value of any intermediate leasehold interest for the purposes of any provision of this Schedule with such modifications as are appropriate to relate those provisions of paragraph 3 to a sale of the interest in question subject to the tenant’s lease for the time being and to any leases intermediate between the interest in question and that lease.

• (2) The value of an intermediate leasehold interest which is the interest of the tenant under a minor intermediate lease is to be calculated in accordance with regulations made by the appropriate national authority instead of in accordance with sub-paragraph (1).

• (3) “A minor intermediate lease” means a lease complying with the following requirements, namely—

• (a) it must have an expectation of possession of not more than one month, and

• (b) the profit rent in respect of the lease must be not more than £5 per year.

• (4) “Profit rent” means an amount equal to that of the rent payable under the lease on which the minor intermediate lease is in immediate reversion, less that of the rent payable under the minor intermediate lease.

• (5) Where the minor intermediate lease or that on which it is in immediate reversion comprises property other than the tenant’s flat, then in sub-paragraph (4) the reference to the rent payable under it means so much of that rent as is apportioned to that flat.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) For the purposes of this paragraph the expectation of possession carried by a lease is the expectation which it carries at the relevant date of possession after the tenant’s lease, on the basis that—

• (a) (subject to sub-paragraph (9)) the tenant’s lease terminates at the relevant date if its term date fell before then, or else it terminates on its term date; and

• (b) any other lease terminates on its term date.

• (9) In a case where before the relevant date for the purposes of this Chapter the immediate landlord of the tenant had given notice to quit terminating the tenant’s lease on a date earlier than that date, the date specified in the notice to quit shall be substituted for the date specified in sub-paragraph (8)(a) above.

• (10) In sub-paragraph (2) “appropriate national authority” means—

• (a) in relation to a leasehold interest of land in England, the Secretary of State;

• (b) in relation to a leasehold interest of land in Wales, the Welsh Ministers.

Compensation for loss arising out of grant of new lease

9

Paragraph 5 shall apply in relation to the owner of any intermediate leasehold interest as it applies in relation to the landlord.

Owners of intermediate interests entitled to part of marriage value

10

• (1) This paragraph applies in a case where—

• (a) the premium payable by the tenant in respect of the grant of the new lease includes an amount in respect of the landlord’s share of the marriage value, and

• (b) there are any intermediate leasehold interests.

• (2) The amount payable to the landlord in respect of his share of the marriage value shall be divided between the landlord and the owners of any such intermediate interests in proportion to the amounts by which the values of their respective interests in the flat will be diminished in consequence of the grant of the new lease.

• (3) For the purposes of sub-paragraph (2)—

• (a) the amount by which the value of the landlord’s interest in the flat will be so diminished is the diminution in value of that interest as determined for the purposes of paragraph 2(a); and

• (b) the amount by which the value of any intermediate leasehold interest will be so diminished is the diminution in value of that interest as determined for the purposes of paragraph 6(a).

• (4) Where the owner of any intermediate leasehold interest is entitled in accordance with sub-paragraph (2) to any part of the amount payable to the landlord in respect of the landlord’s share of the marriage value, the amount to which he is so entitled shall be payable to him by the landlord.

SCHEDULE 14

1

• (1) This Schedule has effect where a tenant of a flat is entitled to be paid compensation under section 61, or would be so entitled on the landlord obtaining an order for possession, or where an application for such an order is dismissed or withdrawn.

• (2) In this Schedule—

• “application for possession” means a landlord’s application under section 61;

• “the new lease” has the same meaning as in that section; and

• “order for possession” means an order made under that section;

and (except in the case of the reference in paragraph 5(1)(b) to the flat as a dwelling) references to the flat held by the tenant under the new lease shall be construed in accordance with subsection (5) of that section.

2

• (1) Where an order for possession is made—

• (a) the new lease shall determine, and

• (b) the compensation payable to the tenant by virtue of the order shall become payable,

on such date as may, when the amount of compensation has been determined either by agreement between the landlord and the tenant or by the appropriate tribunal, be fixed by order of the court made on the application of either the landlord or the tenant.

• (2) Where the application for possession was made by virtue of section 61(2)(a), then—

• (a) (unless paragraph (b) below applies) an order of the court under this paragraph shall not fix a date earlier than the term date of the lease in relation to which the right to acquire a new lease was exercised;

• (b) in a case where section 61(2)(a) applies in accordance with section 61(3), an order of the court under this paragraph shall not fix a date earlier than the term date of the lease in relation to which that right was first exercised.

• (3) In fixing the date referred to in sub-paragraph (1) the court shall have regard to the conduct of the parties and to the extent to which the landlord has made reasonable preparations for proceeding with the redevelopment (including the obtaining of, or preparations relating to the obtaining of, any requisite permission or consent, whether from any authority whose permission or consent is required under any enactment or from the owner of an interest in any property).

• (4) The court may by order direct that the whole or part of the compensation payable to the tenant shall be paid into court, if the court thinks it expedient to do so for the purpose of ensuring that the sum paid is available for meeting any mortgage on the tenant’s interest in the flat in question, or for the purpose of division, or for any other purpose.

3

• (1) On the termination of a lease under an order for possession there shall terminate also any immediate or derivative sub-lease, and the tenant shall be bound to give up possession of the flat in question to the landlord except in so far as he is precluded from doing so by the rights of other persons to retain possession under or by virtue of any enactment.

• (2) Where a sub-lease of property comprised in the lease has been created after the date of the application for possession, no person shall in respect of that sub-lease be entitled under any of the following provisions (which relate to retaining possession on the termination of a superior tenancy), namely—

• (a) subsection (2) of section 137 of the Rent Act 1977, or any enactment (including subsection (5) of that section) applying or extending it,

• (b) subsection (2) of section 9 of the Rent (Agriculture) Act 1976 as extended by subsection (5) of that section, or

• (c) section 18(1) of the Housing Act 1988,

to retain possession of that property after the termination of the lease under the order for possession.

• (3) In exercising its jurisdiction under section 61 or this Schedule the court shall assume that the landlord, having obtained an order for possession, will not be precluded from obtaining possession by the right of any person to retain possession by virtue of—

• (a) Part VII of the Rent Act 1977 or any enactment applying or extending that Part of that Act,

• (b) the Rent (Agriculture) Act 1976, or

• (c) Part I of the Housing Act 1988,

or otherwise.

• (4) A person in occupation of any property under a sub-lease liable to terminate under sub-paragraph (1) may, with the leave of the court, appear and be heard on any application for possession or any application under paragraph 2.

4

Where an order has been made by the county court under paragraph 2, that court ... shall have jurisdiction to hear and determine any proceedings brought by virtue of the order to recover possession of the property or to recover the compensation.

5

• (1) The amount payable to a tenant, by virtue of an order for possession, by way of compensation for loss of his flat shall be the amount which at the valuation date the new lease, if sold on the open market by a willing seller, might be expected to realise on the following assumptions—

• (a) on the assumption that Chapter I and this Chapter confer no right to acquire any interest in any premises containing the tenant’s flat or to acquire any new lease;

• (b) on the assumption that the vendor is selling—

• (i) subject to the rights of any person who will on the termination of the lease be entitled to retain possession as against the landlord, but otherwise with vacant possession, and

• (ii) subject to any restriction that would be required (in addition to any imposed by the terms of the lease) to limit the uses of the flat to those to which it has been put since the commencement of the lease and to preclude the erection of any new dwelling or any other building not ancillary to the flat as a dwelling; and

• (c) on the assumption that (subject to paragraphs (a) and (b)) the vendor is selling with and subject to the rights and burdens with and subject to which the flat will be held by the landlord on the termination of the lease.

• (2) It is hereby declared that the fact that sub-paragraph (1) requires assumptions to be made as to the matters specified in paragraphs (a) to (c) of that sub-paragraph does not preclude the making of assumptions as to other matters where those assumptions are appropriate for determining the amount which at the valuation date the new lease might be expected to realise if sold as mentioned in that sub-paragraph.

• (3) In determining any such amount there shall be made such deduction (if any) in respect of any defect in title as on a sale of that interest on the open market might be expected to be allowed between a willing seller and a willing buyer.

• (4) In this paragraph “the valuation date” means the date when the amount of the compensation payable to the tenant is determined as mentioned in paragraph 2(1).

6

• (1) PartI of the Landlord and Tenant Act 1927 (compensation for improvements on termination of business tenancies) shall not apply on the termination of the new lease or any sub-lease in accordance with this Schedule; and a request for a new tenancy under section26 of the Landlord and Tenant Act 1954 in respect of the new lease or any sub-lease shall be of no effect if made after the application for possession, or, if already made, shall cease to have effect on the making of that application.

• (2) Where a sub-lease terminating with the new lease in accordance with paragraph 3 is one to which Part II of the Landlord and Tenant Act 1954 applies, the compensation payable to the tenant shall be divided between him and the sub-tenant in such proportions as may be just, regard being had to their respective interests in the flat in question and to any loss arising from the termination of those interests and not incurred by imprudence.

• (3) Where the amount of the compensation payable to the tenant is agreed between him and the landlord without the consent of a sub-tenant entitled under sub-paragraph (2) to a share in the compensation, and is shown by the sub-tenant to be less than might reasonably have been obtained by the tenant, the sub-tenant shall be entitled under sub-paragraph (2) to recover from the tenant such increased share as may be just.

7

• (1) The landlord shall not be concerned with the application of the amount payable to the tenant by way of compensation under an order for possession, but (subject to any statutory requirements as to payment of capital money arising under a settlement or a trust of land and to any order under paragraph 2(4) for payment into court) the written receipt of the tenant shall be a complete discharge for the amount payable.

• (2) The landlord shall be entitled to deduct from the amount so payable to the tenant—

• (a) the amount of any sum recoverable as rent in respect of the flat up to the termination of the new lease; and

• (b) the amount of any other sums due and payable by the tenant to the landlord under or in respect of the lease or any agreement collateral thereto.

8

• (1) Where a landlord makes an application for possession, and it is made to appear to the court that in relation to matters arising out of that application (including the giving up of possession of the flat or the payment of compensation) the landlord or the tenant has been guilty of any unreasonable delay or default, the court may—

• (a) by order revoke or vary, and direct repayment of sums paid under, any provision made by a previous order as to payment of the costs of proceedings taken in the court on or with reference to the application; or

• (b) where costs have not been awarded, award costs.

• (2) Where an application for possession is dismissed or withdrawn, and it is made to appear to the court—

• (a) that the application was not made in good faith, or

• (b) that the landlord had attempted in any material respect to support by misrepresentation or the concealment of material facts a request to the tenant to deliver up possession without an application for possession,

the court may order that no further application for possession of the flat made by the landlord shall be entertained if it is made within the period of five years beginning with the date of the order.

9

Where—

• (a) the new lease is subject to a trust of land, and

• (b) compensation is paid by the landlord on the termination of the new lease (whether the payment is made in pursuance of an order for possession or in pursuance of an agreement made in conformity with paragraph 5 above without an application having been made under section 61),

the sum received shall be dealt with as if it were proceeds of sale arising under the trust.

10

Where—

• (a) the tenant under the new lease is a university or college to which the Universities and College Estates Act 1925 applies, and

• (b) compensation is paid as mentioned in paragraph 9(b) above,

the sum received shall be dealt with as if it were an amount payable by way of consideration on a sale effected under that Act.

11

Where—

• (a) the tenant under the new lease is the Chapter of a cathedral and the lease comprises property which forms part of the endowment of a cathedral church, and

• (b) compensation is paid as mentioned in paragraph 9(b) above,

the sum received shall be treated as part of that endowment.

12

• (1) Where—

• (a) the tenant under the new lease is a diocesan board of finance and the lease comprises diocesan glebe land, and

• (b) compensation is paid as mentioned in paragraph 9(b) above,

the sum received shall be paid to the Church Commissioners to be applied for purposes for which the proceeds of any disposition of property by agreement would be applicable under any enactment or Measure authorising such a disposition or disposing of the proceeds of such a disposition.

• (2) In this paragraph—

• “diocesan board of finance” has the same meaning as “DBF” in the Church Property Measure 2018;

• “diocesan glebe land” has the same meaning as in that Measure.

SCHEDULE 15

Purchase price and costs of enfranchisement, and tenant’s right to withdraw.

9

• (1) Subject to subsection (2) below, the price payable for a house and premises on a conveyance under section 8 above shall be the amount which at the relevant time the house and premises, if sold in the open market by a willing seller (with the tenant and members of his family who reside in the house not buying or seeking to buy), might be expected to realise on the following assumptions:—

• (a) on the assumption that the vendor was selling for an estate in fee simple, subject to the tenancy but on the assumption that this Part of this Act conferred no right to acquire the freehold, and if the tenancy has not been extended under this Part of this Act, on the assumption that (subject to the landlord’s rights under section 17 below) it was to be so extended;

• (b) on the assumption that (subject to paragraph (a) above) the vendor was selling subject, in respect of rentcharges to which section 11(2) below applies, to the same annual charge as the conveyance to the tenant is to be subject to, but the purchaser would otherwise be effectively exonerated until the termination of the tenancy from any liability or charge in respect of tenant’s incumbrances; and

• (c) on the assumption that (subject to paragraphs (a) and (b) above) the vendor was selling with and subject to the rights and burdens with and subject to which the conveyance to the tenant is to be made, and in particular with and subject to such permanent or extended rights and burdens as are to be created in order to give effect to section 10 below.

The reference in this subsection to members of the tenant’s family shall be construed in accordance with section 7(7) of this Act.

• (1A) Notwithstanding the foregoing subsection, the price payable for a house and premises,—

• (i) the rateable value of which was above £1,000 in Greater London and £500 elsewhere on 31st March 1990, or,

• (ii) which had no rateable value on that date and R exceeded £16,333 under the formula in section 1(1)(a) above (and section 1(7) above shall apply to that amount as it applies to the amount referred to in subsection (1)(a)(ii) of that section)

shall be the amount which at the relevant time the house and premises, if sold in the open market by a willing seller, might be expected to realise on the following assumptions:—

• (a) on the assumption that the vendor was selling for an estate in fee simple, subject to the tenancy, but on the assumption that this Part of this Act conferred no right to acquire the freehold or an extended lease and, where the tenancy has been extended under this Part of this Act, that the tenancy will terminate on the original term date;

• (b) on the assumption that at the end of the tenancy the tenant has the right to remain in possession of the house and premises—

• (i) if the tenancy is such a tenancy as is mentioned in subsection (2) or subsection (3) of section 186 of the Local Government and Housing Act 1989, or is a tenancy which is a long tenancy at a low rent for the purposes of Part I of the Landlord and Tenant Act 1954 in respect of which the landlord is not able to serve a notice under section 4 of that Act specifying a date of termination earlier than 15th January 1999, under the provisions of Schedule 10 to the Local Government and Housing Act 1989; and

• (ii) in any other case under the provisions of Part I of the Landlord and Tenant Act 1954;

• (c) on the assumption that the tenant has no liability to carry out any repairs, maintenance or redecorations under the terms of the tenancy or Part I of the Landlord and Tenant Act 1954;

• (d) on the assumption that the price be diminished by the extent to which the value of the house and premises has been increased by any improvement carried out by the tenant or his predecessors in title at their own expense;

• (e) on the assumption that (subject to paragraph (a) above) the vendor was selling subject, in respect of rentcharges to which section 11(2) below applies, to the same annual charge as the conveyance to the tenant is to be subject to, but the purchaser would otherwise be effectively exonerated until the termination of the tenancy from any liability or charge in respect of tenant’s incumbrances; and

• (f) on the assumption that (subject to paragraphs (a) and (b) above) the vendor was selling with and subject to the rights and burdens with and subject to which the conveyance to the tenant is to be made, and in particular with and subject to such permanent or extended rights and burdens as are to be created in order to give effect to section 10 below.

• (1B) For the purpose of determining whether the rateable value of the house and premises is above £1000 in Greater London, or £500 elsewhere, the rateable value shall be adjusted to take into account any tenant’s improvements in accordance with Schedule 8 to the Housing Act 1974.

• (1C) Notwithstanding subsection (1) above, the price payable for a house and premises where the right to acquire the freehold arises by virtue of any one or more of the provisions of sections 1A and 1B above shall be determined in accordance with subsection (1A) above; but in any such case—

• (a) if in determining the price so payable there falls to be taken into account any marriage value arising by virtue of the coalescence of the freehold and leasehold interests, the share of the marriage value to which the tenant is to be regarded as being entitled shall not exceed one-half of it; and

• (b) section 9A below has effect for determining whether any additional amount is payable by way of compensation under that section;

and in a case where the provision (or one of the provisions) by virtue of which the right to acquire the freehold arises is section 1A(1) above, subsection (1A) above shall apply with the omission of the assumption set out in paragraph (b) of that subsection.

• (2) The price payable for the house and premises shall be subject to such deduction (if any) in respect of any defect in the title to be conveyed to the tenant as on a sale in the open market might be expected to be allowed between a willing seller and a willing buyer.

• (3) On ascertaining the amount payable, or likely to be payable, as the price for a house and premises in accordance with this section (but not more than one month after the amount payable has been determined by agreement or otherwise), the tenant may give written notice to the landlord that he is unable or unwilling to acquire the house and premises at the price he must pay; and thereupon—

• (a) the notice under section 8 above of his desire to have the freehold shall cease to have effect, and he shall be liable to make such compensation as may be just to the landlord in respect of the interference (if any) by the notice with the exercise by the landlord of his power to dispose of or deal with the house and premises or any neighbouring property; and

• (b) any further notice given under that section with respect to the house or any part of it (with or without other property) shall be void if given within the following three years.

• (4) Where a person gives notice of his desire to have the freehold of a house and premises under this Part of this Act, then unless the notice lapses under any provision of this Act excluding his liability, there shall be borne by him (so far as they are incurred in pursuance of the notice) the reasonable costs of or incidental to any of the following matters:—

• (a) any investigation by the landlord of that person’s right to acquire the freehold;

• (b) any conveyance or assurance of the house and premises or any part thereof or of any outstanding estate or interest therein;

• (c) deducing, evidencing and verifying the title to the house and premises or any estate or interest therein;

• (d) making out and furnishing such abstracts and copies as the person giving the notice may require;

• (e) any valuation of the house and premises;

but so that this subsection shall not apply to any costs if on a sale made voluntarily a stipulation that they were to be borne by the purchaser would be void.

• (5) The landlord’s lien (as vendor) on the house and premises for the price payable shall extend—

• (a) to any sums payable by way of rent or recoverable as rent in respect of the house and premises up to the date of the conveyance; and

• (b) to any sums for which the tenant is liable under subsection (4) above; and

• (c) to any other sums due and payable by him to the landlord under or in respect of the tenancy or any agreement collateral thereto.

SCHEDULE 16

SCHEDULE 17

...

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remuneration, pensions etc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Staff

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Delegation of powers

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Proceedings

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Members’ interests

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application of seal and proof of instruments

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

House of Commons disqualification

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 18

...

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial duties

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Government grants

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Borrowing

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Guarantees

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Surplus funds

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial limits

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Grants and loans: accounts

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounts

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Audit

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transmission to Secretary of State

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reports

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 19

Land Compensation Act 1961 (c. 33)

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Compulsory Purchase (Vesting Declarations) Act 1981 (c. 66)

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 20

Part I — MODIFICATIONS OF ACQUISITION OF LAND ACT 1981

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II — LAND: SUPPLEMENTARY

Extinguishment of rights over land

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to override easements

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consecrated land and burial grounds

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Open spaces

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Displacement of persons

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extinguishment of public rights of way

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Telegraphic lines

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statutory undertakers

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

19

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III — ACQUISITION OF RIGHTS

20

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 21

Land Registration Act 1925 (c. 21)

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Leasehold Reform Act 1967 (c. 88)

4

In subsection (1A) of section 21 of the Leasehold Reform Act 1967 (jurisdiction of leasehold valuation tribunals), for the words from “be” onwards there shall be substituted the words “ comply with any requirements imposed by regulations under subsection (4A)(a) or (b) below ”.

Land Compensation Act 1973 (c. 26)

5

After section 12 of the Land Compensation Act 1973 (tenants entitled to enfranchisement or extension under Leasehold Reform Act 1967) there shall be inserted the following section—

(12A) (1) A tenancy to which subsection (2) or (3) below applies (“a qualifying tenancy”) shall be treated as an owner’s interest as defined in section 2(4) above whether or not the unexpired term on the date of service of the notice of claim is of the length there specified. (2) This subsection applies to a tenancy if the tenant, on the relevant date— (a) is in respect of the tenancy a qualifying tenant for the purposes of Chapter I of Part I of the 1993 Act (collective enfranchisement); and (b) by virtue of the tenancy, either— (i) is a participating tenant in relation to a claim to exercise the right to collective enfranchisement under that Chapter; or (ii) is one of the participating tenants on whose behalf the acquisition by the nominee purchaser has been made in pursuance of such a claim. (3) This subsection applies to a tenancy if the tenant, on the relevant date and in respect of the tenancy, is a qualifying tenant for the purposes of Chapter II of Part I of the 1993 Act (individual right to acquire new lease) who— (a) has on or before that date given notice under section 42 of that Act (notice by qualifying tenant of claim to exercise right); and (b) has not acquired a new lease before that date. (4) If no claim is made in respect of a qualifying tenancy before the claimant has ceased to be entitled to it in consequence of a lease being granted to him by the nominee purchaser or, as the case may be, under Chapter II of Part I of the 1993 Act, the claimant may make a claim in respect of the qualifying tenancy as if he were still entitled to it. (5) No claim shall be made by virtue of subsection (4) above after the claimant has ceased to be entitled to the lease referred to in that subsection, but such a claim may be made before the first claim day if it is made before the claimant has disposed of that lease and after he has made a contract for disposing of it. (6) Compensation shall not be payable before the first claim day on any claim made by virtue of subsection (5) above. (7) Any notice of a claim made by virtue of this section shall contain, in addition to the matters mentioned in section 3 above, a statement that it is made in respect of a qualifying tenancy as defined in this section and, if made by virtue of subsection (4) or (5) above, sufficient particulars to show that it falls within that subsection. (8) In relation to a claim made by virtue of subsection (4) above, section 4(4)(a) above shall have effect as if the reference to the date of service of notice of the claim were a reference to the relevant date. (9) In this section— (a) “the 1993 Act” means the Leasehold Reform, Housing and Urban Development Act 1993; and (b) “participating tenant”, “nominee purchaser” and “the acquisition by the nominee purchaser” shall be construed in accordance with sections 14, 15 and 38(2) of that Act respectively.

Local Government Act 1974 (c. 7)

6

• (1) In subsection (1) of section 25 of the Local Government Act 1974 (authorities subject to investigation), after paragraph (be) there shall be inserted the following paragraph—

(bf) the Urban Regeneration Agency;

.

• (2) In subsection (7) of section 26 of that Act (matters subject to investigation) after paragraph (b) there shall be inserted the following paragraph—

(ba) where the complaint relates to the Urban Regeneration Agency, any designated area within the meaning of Part III of the Leasehold Reform, Housing and Urban Development Act 1993;

.

• (3) In Schedule 5 to that Act (matters not subject to investigation) after paragraph 7 there shall be inserted the following paragraph—

(8) Action taken by the Urban Regeneration Agency which is not action in connection with functions in relation to town and country planning.

Rent Act 1977 (c. 42)

7

In subsection (1)(b) of section 74 of the Rent Act 1977 (regulations), for the words from “by rent officers” onwards there shall be substituted the words—

(i) by rent officers under this Act; and (ii) by rent assessment committees whether under this Act or otherwise; and

.

Derelict Land Act 1982 (c. 42)

8

In subsection (5) of section 1 of the Derelict Land Act 1982 (powers of Secretary of State), in the definition of “ the prescribed percentage ”, for paragraphs (b) and (c) there shall be substituted the following paragraph—

(b) in any other case, 80 per cent. or such other percentage as may be prescribed by order made by the Secretary of State with the consent of the Treasury.

National Heritage Act 1983 (c. 47)

9

After subsection (2A) of section 33 of the National Heritage Act 1983 (general functions of the Historic Buildings and Monuments Commission for England) there shall be inserted the following subsection—

(2B) In relation to England, the Commission may make, or join in the making of, applications under section 73(1) of the Leasehold Reform, Housing and Urban Development Act 1993, and may exercise, or participate in the exercise of, any rights or powers conferred by a scheme approved under section 70 of that Act.

Housing Act 1985 (c. 68)

10

In subsection (3) of section 101 of the Housing Act 1985 (rent not to be increased on account of tenant’s improvements), for paragraph (a) there shall be substituted the following paragraph—

(a) a person in whom the tenancy was vested, or to whom the tenancy was disposed of, under section 89 (succession to periodic tenancy) or section 90 (devolution of term certain) on the death of the tenant or in the course of the administration of his estate;

.

11

In subsection (2) of section 130 of that Act (reduction of discount where previous discount given), after paragraph (aa) there shall be inserted the following paragraph—

(ab) in pursuance of the provision required by paragraphs 3 to 5 or paragraph 7 of Schedule 6A (redemption of landlord’s share), or

.

12

For subsection (3) of section 140 of that Act (landlord’s first notice to complete) there shall be substituted the following subsection—

(3) A notice under this section shall not be served earlier than twelve months after— (a) the service of the landlord’s notice under section 125 (notice of purchase price and other matters), or (b) where a notice has been served under section 146 (landlord’s notice admitting or denying right to acquire on rent to mortgage terms), the service of that notice.

13

• (1) Immediately before section 153A of that Act (tenant’s notices of delay) there shall be inserted the following italic cross heading—

.

• (2) In subsection (1) of that section—

• (a) in paragraph (e), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”; and

• (b) for the words “any of the cases in paragraphs (a) to (d)” there shall be substituted the words “ either of the cases in paragraphs (a) and (b) ”.

• (3) In subsection (3) of that section—

• (a) for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”;

• (b) for the words “any of the cases in paragraphs (a) to (d)” there shall be substituted the words “ either of the cases in paragraphs (a) and (b) ”; and

• (c) for the words “section 125, section 146 or section 147” there shall be substituted the words “ or section 125 ”.

14

• (1) In subsection (1) of section 153B of that Act (payments of rent attributable to purchase price etc.), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.

• (2) In subsection (2) of that section, for the words “any of paragraphs (c) to (e)” there shall be substituted the words “ paragraph (d) or (e) ”.

• (3) In subsection (3) of that section, for the words “the tenant’s initial contribution for the grant of a shared ownership lease” there shall be substituted the words “ the tenant’s initial payment ”.

15

In subsection (2) of section 158 of that Act (consideration for reconveyance or surrender under section 157), after paragraph (a) there shall be inserted the following paragraph—

(aa) any covenant required by paragraph 1 of Schedule 6A (obligation to redeem landlord’s share where conveyance or grant executed in pursuance of right to acquire on rent to mortgage terms), and

.

16

• (1) In subsection (1) of section 164 of that Act (Secretary of State’s general power to intervene), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.

• (2) In subsection (4) of that section, for the words “the right to a mortgage or the right to be granted a shared ownership lease” there shall be substituted the words “ or the right to acquire on rent to mortgage terms ”.

• (3) In subsection (5) of that section, for the words “the right to a mortgage and the right to be granted a shared ownership lease” there shall be substituted the words “ and the right to acquire on rent to mortgage terms ”.

17

In subsection (1) of section 167 of that Act (power to give directions as to covenants and conditions), after paragraph (b) there shall be inserted the words

or (c) in the case of conveyances or grants executed in pursuance of the right to acquire on rent to mortgage terms, the conveyances or grants would not conform with Schedule 6A,

.

18

In subsection (2) of section 170 of that Act (power to give assistance in connection with legal proceedings), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.

19

In subsection (2) of section 171C of that Act (modifications of Part V in relation to preserved right), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.

20

• (1) In subsection (2) of section 177 of that Act (errors and omissions in notices), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.

• (2) In subsection (3) of that section, for the entries relating to section 147 and paragraph 1(3) of Schedule 8 there shall be substituted the following entry—

21

For section 178 of that Act there shall be substituted the following section—

(178) An agreement between the landlord and a tenant claiming to exercise— (a) the right to buy, (b) the right to acquire on rent to mortgage terms, or (c) any such right as is mentioned in paragraph 2(1) or 6(1) of Schedule 6A (redemption of landlord’s share: right to make final or interim payment), is void in so far as it purports to oblige the tenant to bear any part of the costs incurred by the landlord in connection with the tenant’s exercise of that right.

22

In subsection (1) of section 179 of that Act (provisions restricting right to buy etc. of no effect), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.

23

In subsection (1) of section 181 of that Act (jurisdiction of county court), for the words “a shared ownership lease granted in pursuance of this Part” there shall be substituted the words “ a conveyance or grant executed in pursuance of the right to acquire on rent to mortgage terms ”.

24

• (1) In subsection (2) of section 184 of that Act (land let with or used for purposes of dwelling-house), for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.

• (2) In subsection (3) of that section, for the words “right to be granted a shared ownership lease” there shall be substituted the words “ right to acquire on rent to mortgage terms ”.

25

In section 188 of that Act (index of defined expressions: Part V), at the appropriate places in alphabetical order there shall be inserted the following entries—

district valuer	section 622
final payment	paragraph 1 of Schedule 6A
---	---
initial payment and interim payment	section 143B and paragraph 6 of Schedule 6A
---	---
landlord’s share	section 148 and paragraph 7 of Schedule 6A
---	---
minimum initial payment and maximum initial payment	section 143B
---	---
prescribed	section 614
---	---
right to acquire on rent to mortgage terms	section 143
---	---

.

Landlord and Tenant Act 1987 (c. 31)

26

In subsection (2) of section 4 of the Landlord and Tenant Act 1987 (relevant disposals), after paragraph (d) there shall be inserted the following paragraph—

(da) a disposal of any freehold or leasehold interest in pursuance of Chapter I of Part I of the Leasehold Reform, Housing and Urban Development Act 1993;

.

27

In subsection (2) of section 13 of that Act (determination by rent assessment committees of questions relating to purchase notices), for the words from “be” to “particulars,” there shall be substituted the words “ comply with such requirements (if any) as to the form of, or the particulars to be contained in, any such application ”.

Town and Country Planning Act 1990 (c. 8)

28

In subsection (5)(a) of section 1 of the Town and Country Planning Act 1990 (subsections (1) to (4) of that section have effect subject to sections 5 to 8), for “8” there shall be substituted “ 8A ”.

29

After section 8 of that Act (local planning authority in housing action area) there shall be inserted the following section—

(8A) (1) Where a designation order under section 170 of the Leasehold Reform, Housing and Urban Development Act 1993 (power to make designation orders) makes such provision as is mentioned in subsection (1) of section 171 of that Act (Agency as local planning authority), the Urban Regeneration Agency shall be the local planning authority for such area as may be specified in the order in place of any authority who would otherwise be the local planning authority for that area for such purposes and in relation to such kinds of development as may be so specified. (2) Where such an order makes such provision as is mentioned in subsection (3)(a) of section 171 of that Act, the Urban Regeneration Agency shall have the functions specified in the order for such area as may be so specified in place of any authority (except the Secretary of State) who would otherwise have them in that area.

Planning (Listed Buildings and Conservation Areas) Act 1990 (c. 9)

30

• (1) In subsection (1) of section 72 of the Planning (Listed Buildings and Conservation Areas) Act 1990 (general duty as respects conservation areas in exercise of planning functions), for the words “powers under” there shall be substituted the words “ functions under or by virtue of ”.

• (2) In subsection (2) of that section there shall be added at the end “ and sections 70 and 73 of the Leasehold Reform, Housing and Urban Development Act 1993 ”.

31

In paragraphs 2 and 4 of Schedule 4 to that Act (further provisions as to exercise of functions by different authorities), for the words “and 8” there shall be substituted the words “ 8 and 8A ”.

...

32

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 22

Acquisition of leasehold interests.

4A

• (1) A company is a RTE company in relation to premises if—

• (a) it is a private company limited by guarantee, and

• (b) its articles of association state that its object, or one of its objects, is the exercise of the right to collective enfranchisement with respect to the premises.

• (2) But a company is not a RTE company if it is a commonhold association (within the meaning of Part 1 of the Commonhold and Leasehold Reform Act 2002).

• (3) And a company is not a RTE company in relation to premises if another company which is a RTE company in relation to—

• (a) the premises, or

• (b) any premises containing or contained in the premises,

has given a notice under section 13 with respect to the premises, or any premises containing or contained in the premises, and the notice continues in force in accordance with subsection (11) of that section.

4B

• (1) Before the execution of a relevant conveyance to a company which is a RTE company in relation to any premises the following persons are entitled to be members of the company—

• (a) qualifying tenants of flats contained in the premises, and

• (b) if the company is also a RTM company which has acquired the right to manage the premises, landlords under leases of the whole or any part of the premises.

• (2) In this section—

• “relevant conveyance” means a conveyance of the freehold of the premises or of any premises containing or contained in the premises; and

• “RTM company” has the same meaning as in Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002.

• (3) On the execution of a relevant conveyance to the RTE company, any member of the company who is not a participating member ceases to be a member.

• (4) In this Chapter “participating member”, in relation to a RTE company, means a person who is a member by virtue of subsection (1)(a) of this section and who—

• (a) has given a participation notice to the company before the date when the company gives a notice under section 13 or during the participation period, or

• (b) is a participating member by virtue of either of the following two subsections.

• (5) A member who is the assignee of a lease by virtue of which a participating member was a qualifying tenant of his flat is a participating member if he has given a participation notice to the company within the period beginning with the date of the assignment and ending 28 days later (or, if earlier, on the execution of a relevant conveyance to the company).

• (6) And if the personal representatives of a participating member are a member, they are a participating member if they have given a participation notice to the company at any time (before the execution of a relevant conveyance to the company).

• (7) In this section “participation notice”, in relation to a member of the company, means a notice stating that he wishes to be a participating member.

• (8) For the purposes of this section a participation notice given to the company during the period—

• (a) beginning with the date when the company gives a notice under section 13, and

• (b) ending immediately before a binding contract is entered into in pursuance of the notice under section 13,

is of no effect unless a copy of the participation notice has been given during that period to the person who (in accordance with section 9) is the reversioner in respect of the premises.

• (9) For the purposes of this section “the participation period” is the period beginning with the date when the company gives a notice under section 13 and ending—

• (a) six months, or such other time as the Secretary of State may by order specify, after that date, or

• (b) immediately before a binding contract is entered into in pursuance of the notice under section 13,

whichever is the earlier.

• (10) In this section references to assignment include an assent by personal representatives, and assignment by operation of law where the assignment is to a trustee in bankruptcy or to a mortgagee under section 89(2) of the Law of Property Act 1925 (c. 20)(foreclosure of leasehold mortgage); and references to an assignee shall be construed accordingly.

4C

• (1) The Secretary of State shall by regulations make provision about the content and form of the articles of association of RTE companies.

• (2) A RTE company may adopt provisions of the regulations for its articles.

• (3) The regulations may include provision which is to have effect for a RTE company whether or not it is adopted by the company.

• (4) A provision of the articles of a RTE company has no effect to the extent that it is inconsistent with the regulations.

• (5) The regulations have effect in relation to articles—

• (a) irrespective of the date of the articles, but

• (b) subject to any transitional provisions of the regulations.

• (6) Section 20 of the Companies Act 2006 (default application of model articles) does not apply to a RTE company.

8A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Premises with a resident landlord.

Landlord’s right to compensation in relation to ineffective claims

37A

• (1) This section applies where a claim to exercise the right to collective enfranchisement in respect of any premises is made on or after 15th January 1999 by tenants of flats contained in the premises and the claim is not effective.

• (2) A person who is a participating tenant immediately before the claim ceases to have effect shall be liable to pay compensation if—

• (a) the claim was not made at least two years before the term date of the lease by virtue of which he is a qualifying tenant (“the existing lease”), and

• (b) any of the conditions mentioned in subsection (3) is met.

• (3) The conditions referred to above are—

• (a) that the making of the claim caused a notice served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 in respect of the existing lease to cease to have effect and the date on which the claim ceases to have effect is later than four months before the termination date specified in the notice,

• (b) that the making of the claim prevented the service of an effective notice under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 in respect of the existing lease (but did not cause a notice served under that provision in respect of that lease to cease to have effect) and the date on which the claim ceases to have effect is a date later than six months before the term date of the existing lease, and

• (c) that the existing lease has been continued under paragraph 6(1) of Schedule 3 by virtue of the claim.

• (4) Compensation under subsection (2) shall become payable at the end of the appropriate period and be the right of the person who is the tenant’s immediate landlord at that time.

• (5) The amount which a tenant is liable to pay under subsection (2) shall be equal to the difference between—

• (a) the rent for the appropriate period under the existing lease, and

• (b) the rent which might reasonably be expected to be payable for that period were the property to which the existing lease relates let for a term equivalent to that period on the open market by a willing landlord on the following assumptions—

• (i) that no premium is payable in connection with the letting,

• (ii) that the letting confers no security of tenure, and

• (iii) that, except as otherwise provided by this paragraph, the letting is on the same terms as the existing lease.

• (6) For the purposes of subsections (4) and (5), the appropriate period is—

• (a) in a case falling within paragraph (a) of subsection (3), the period—

• (i) beginning with the termination date specified in the notice mentioned in that paragraph, and

• (ii) ending with the earliest date of termination which could have been specified in a notice under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 in respect of the existing lease served immediately after the date on which the claim ceases to have effect, or, if the existing lease is terminated before then, with the date of its termination;

• (b) in a case falling within paragraph (b) of subsection (3), the period—

• (i) beginning with the later of six months from the date on which the claim is made and the term date of the existing lease, and

• (ii) ending six months after the date on which the claim ceases to have effect, or, if the existing lease is terminated before then, with the date of its termination; and

• (c) in a case falling within paragraph (c) of subsection (3), the period for which the existing lease is continued under paragraph 6(1) of Schedule 3.

• (7) In the case of a person who becomes a participating tenant by virtue of an election under section 14(3), the references in subsections (3)(a) and (b) and (6)(b)(i) to the making of the claim shall be construed as references to the making of the election.

• (8) For the purposes of this section—

• (a) references to a claim to exercise the right to collective enfranchisement shall be taken as references to a notice given, or purporting to be given (whether by persons who are qualifying tenants or not), under section 13,

• (b) references to the date on which a claim ceases to have effect shall, in the case of a claim made by a notice which is not a valid notice under section 13, be taken as references to the date on which the notice is set aside by the court or is withdrawn or would, if valid, cease to have effect or be deemed to have been withdrawn, that date being taken, where the notice is set aside, or would, if valid, cease to have effect, in consequence of a court order, to be the date when the order becomes final, and

• (c) a claim to exercise the right to collective enfranchisement is not effective if it ceases to have effect for any reason other than—

• (i) the application of section 23(4), 30(4) or 31(4),

• (ii) the entry into a binding contract for the acquisition of the freehold and other interests falling to be acquired in pursuance of the claim, or

• (iii) the making of an order under section 24(4)(a) or (b) or 25(6)(a) or (b) which provides for the vesting of those interests.

Modification of section 37A where change in immediate reversion.

37B

• (1) Where a tenant’s liability to pay compensation under section 37A relates to a period during which there has been a change in the interest immediately expectant on the determination of his lease, that section shall have effect with the following modifications.

• (2) For subsections (4) and (5) there shall be substituted—

• (“) Compensation under subsection (2) shall become payable at the end of the appropriate period and there shall be a separate right to compensation in respect of each of the interests which, during that period, have been immediately expectant on the determination of the existing lease.

• (5) Compensation under subsection (2) above shall—

• (a) in the case of the interest which is immediately expectant on the determination of the existing lease at the end of the appropriate period, be the right of the person in whom that interest is vested at that time, and

• (b) in the case of an interest which ceases during the appropriate period to be immediately expectant on the determination of the existing lease, be the right of the person in whom the interest was vested immediately before it ceased to be so expectant.

• (5A) The amount which the tenant is liable to pay under subsection (2) above in respect of any interest shall be equal to the difference between—

• (a) the rent under the existing lease for the part of the appropriate period during which the interest was immediately expectant on the determination of that lease, and

• (b) the rent which might reasonably be expected to be payable for that part of that period were the property to which the existing lease relates let for a term equivalent to that part of that period on the open market by a willing landlord on the following assumptions—

• (i) that no premium is payable in connection with the letting,

• (ii) that the letting confers no security of tenure, and

• (iii) that, except as otherwise provided by this paragraph, the letting is on the same terms as the existing lease.”

• (3) In subsection (6), for “(4) and (5)” there shall be substituted “(4) to (5A)”.

Right of qualifying tenant of flat to acquire new lease.

Application to defeat tenant’s claim where landlord intends to redevelop.

58A

• (1) Where a lease granted under section 56 takes effect subject to two or more interests to which the existing lease was subject immediately before its surrender, the interests shall have the same priority in relation to one another on the grant of the new lease as they had immediately before the surrender of the existing lease.

• (2) Subsection (1) is subject to agreement to the contrary.

• (3) Where a person who is entitled on the grant of a lease under section 56 to rights of occupation in relation to the flat comprised in that lease was entitled immediately before the surrender of the existing lease to rights of occupation in relation to the flat comprised in that lease, the rights to which he is entitled on the grant of the new lease shall be treated as a continuation of the rights to which he was entitled immediately before the surrender of the existing lease.

• (4) In this section—

• “the existing lease”, in relation to a lease granted under section 56, means the lease surrendered on the grant of the new lease, and

• “rights of occupation” has the same meaning as in the Matrimonial Homes Act 1983.

Landlord’s right to compensation in relation to ineffective claims

61A

• (1) This section applies where, on or after 15th January 1999—

• (a) a tenant of a flat makes a claim to acquire a new lease of the flat, and

• (b) the claim is not made at least two years before the term date of the lease in respect of which the claim is made (“the existing lease”).

• (2) The tenant shall be liable to pay compensation if the claim is not effective and—

• (a) the making of the claim caused a notice served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 to cease to have effect and the date on which the claim ceases to have effect is later than four months before the termination date specified in the notice,

• (b) the making of the claim prevented the service of an effective notice under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 (but did not cause a notice served under that provision to cease to have effect) and the date on which the claim ceases to have effect is a date later than six months before the term date of the existing lease, or

• (c) the existing lease is continued under paragraph 5(1) of Schedule 12 by virtue of the claim.

• (3) Compensation under subsection (2) shall become payable at the end of the appropriate period and be the right of the person who is the tenant’s immediate landlord at that time.

• (4) The amount which the tenant is liable to pay under subsection (2) shall be equal to the difference between—

• (a) the rent for the appropriate period under the existing lease, and

• (b) the rent which might reasonably be expected to be payable for that period were the property to which the existing lease relates let for a term equivalent to that period on the open market by a willing landlord on the following assumptions—

• (i) that no premium is payable in connection with the letting,

• (ii) that the letting confers no security of tenure, and

• (iii) that, except as otherwise provided by this paragraph, the letting is on the same terms as the existing lease.

• (5) For the purposes of subsections (3) and (4), the appropriate period is—

• (a) in a case falling within paragraph (a) of subsection (2), the period—

• (i) beginning with the termination date specified in the notice mentioned in that paragraph, and

• (ii) ending with the earliest date of termination which could have been specified in a notice under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 served immediately after the date on which the claim ceases to have effect, or, if the existing lease is terminated before then, with the date on which it is terminated;

• (b) in a case falling within paragraph (b) of subsection (2), the period—

• (i) beginning with the later of six months from the date on which the claim is made and the term date of the existing lease, and

• (ii) ending six months after the date on which the claim ceases to have effect, or, if the existing lease is terminated before then, with the date of its termination; and

• (c) in a case falling within paragraph (c) of subsection (2), the period for which the existing lease is continued under paragraph 5(1) of Schedule 12.

• (6) For the purposes of subsection (2), a claim to a new lease is not effective if it ceases to have effect for any reason other than—

• (a) the application of section 47(1) or 55(2), or

• (b) the acquisition of the new lease in pursuance of the claim.

• (7) For the purposes of this section—

• (a) references to a claim to acquire a new lease shall be taken as references to a notice given, or purporting to be given (whether by a qualifying tenant or not), under section 42, and

• (b) references to the date on which a claim ceases to have effect shall, in the case of a claim made by a notice which is not a valid notice under section 42, be taken as references to the date on which the notice is set aside by the court or is withdrawn or would, if valid, cease to have effect or be deemed to have been withdrawn, that date being taken, where the notice is set aside, or would, if valid, cease to have effect, in consequence of a court order, to be the date when the order becomes final.

61B