Housing Act 1996

• (7) A notice is duly given under this paragraph to the landlord of a tenant if it is given to a person who receives on behalf of the landlord the rent payable by that tenant.

A person to whom such a notice is so given shall forward it as soon as may be to the landlord.

Right to inspect premises

4

• (1) The surveyor also has the right to inspect any common parts comprised in relevant premises or any appurtenant property.

• (2) In sub-paragraph (1)—

• “common parts”, in relation to a building or part of a building, includes the structure and exterior of the building or part and any common facilities within it;

• “relevant premises” means so much of—the building or buildings containing the dwellings let to members of the tenants’ association, andany other building or buildings,as constitute premises in relation to which management functions are discharged in respect of the costs of which service charges are payable by members of the association; and

• “appurtenant property” means so much of any property not contained in relevant premises as constitutes property in relation to which any such management functions are discharged.

For the purposes of the above definitions “management functions” includes functions with respect to the provision of services, or the repair, maintenance , improvement or insurance of property.

• (3) On being requested to do so, the landlord shall afford the surveyor reasonable access for the purposes of carrying out an inspection under this paragraph.

• (4) Such reasonable access shall be afforded to the surveyor free of charge.

This does not mean that the landlord cannot treat as part of his costs of management any costs incurred by him in connection with affording reasonable access to the surveyor.

• (5) A request is duly made under this paragraph to the landlord of a tenant if it is made to a person appointed by the landlord to deal with such requests or, if no such person has been appointed, to a person who receives on behalf of the landlord the rent payable by that tenant.

A person to whom such a request is made shall notify the landlord of the request as soon as may be.

Enforcement of rights by the court

5

• (1) If the landlord or other person to whom notice was given under paragraph 3 has not, by the end of the period of one month beginning with the date on which notice was given, complied with the notice, the court may, on the application of the surveyor, make an order requiring him to do so within such period as is specified in the order.

• (2) If the landlord does not, within a reasonable period after the making of a request under paragraph 4, afford the surveyor reasonable access for the purposes of carrying out an inspection under that paragraph, the court may, on the application of the surveyor, make an order requiring the landlord to do so on such date as is specified in the order.

• (3) An application for an order under this paragraph must be made before the end of the period of four months beginning with the date on which notice was given under paragraph 3 or the request was made under paragraph 4.

• (4) An order under this paragraph may be made in general terms or may require the landlord or other person to do specific things, as the court thinks fit.

Documents held by superior landlord

6

• (1) Where a landlord is required by a notice under paragraph 3 to afford the surveyor facilities for inspection or taking copies or extracts in respect of any document which is in the custody or under the control of a superior landlord—

• (a) the landlord shall on receiving the notice inform the surveyor as soon as may be of that fact and of the name and address of the superior landlord, and

• (b) the surveyor may then give the superior landlord notice in writing requiring him to afford the facilities in question in respect of the document.

• (2) Paragraphs 3 and 5(1) and (3) have effect, with any necessary modifications, in relation to a notice given to a superior landlord under this paragraph.

Effect of disposal by landlord

7

• (1) Where a notice under paragraph 3 has been given or a request under paragraph 4 has been made to a landlord, and at a time when any obligations arising out of the notice or request remain to be discharged by him—

• (a) he disposes of the whole or part of his interest as landlord of any member of the tenants’ association, and

• (b) the person acquiring that interest (“the transferee”) is in a position to discharge any of those obligations to any extent,

that person shall be responsible for discharging those obligations to that extent, as if he had been given the notice under paragraph 3 or had received the request under paragraph 4.

• (2) If the landlord is, despite the disposal, still in a position to discharge those obligations, he remains responsible for doing so.

Otherwise, the transferee is responsible for discharging them to the exclusion of the landlord.

• (3) In connection with the discharge of such obligations by the transferee, paragraphs 3 to 6 apply with the substitution for any reference to the date on which notice was given under paragraph 3 or the request was made under paragraph 4 of a reference to the date of the disposal.

• (4) In this paragraph “disposal” means a disposal whether by the creation or transfer of an estate or interest, and includes the surrender of a tenancy; and references to the transferee shall be construed accordingly.

Effect of person ceasing to be a relevant person

8

Where a notice under paragraph 3 has been given to a person other than the landlord and, at a time when any obligations arising out of the notice remain to be discharged by him, he ceases to be such a person as is mentioned in paragraph 3(2), then, if he is still in a position to discharge those obligations to any extent he remains responsible for discharging those obligations, and the provisions of this Schedule continue to apply to him, to that extent.

SCHEDULE 5

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SCHEDULE 6

Part I — Rights of first refusal

The following sections are substituted for sections 5 to 10 of the Landlord and Tenant Act 1987—

Part II — Enforcement by tenants of rights against purchaser

The following sections are substituted for sections 11 to 15 of the Landlord and Tenant Act 1987—

Part III — Enforcement of rights against subsequent purchasers and termination of rights

The following sections replace sections 16 and 17 of the Landlord and Tenant Act 1987—

Part IV — Consequential amendments

1

In section 4(2) of the Landlord and Tenant Act 1987 (relevant disposals: excluded disposals), in paragraph (aa) (disposals by way of security for a loan) omit the words “consisting of the creation of an estate or interest”.

2

Before section 19 of the Landlord and Tenant Act 1987, under the heading “Supplementary provisions”, insert—

(18A) (1) In this Part “the requisite majority of qualifying tenants of the constituent flats” means qualifying tenants of constituent flats with more than 50 per cent. of the available votes. (2) The total number of available votes shall be determined as follows— (a) where an offer notice has been served under section 5, that number is equal to the total number of constituent flats let to qualifying tenants on the date when the period specified in that notice as the period for accepting the offer expires; (b) where a notice is served under section 11A without a notice having been previously served under section 5, that number is equal to the total number of constituent flats let to qualifying tenants on the date of service of the notice under section 11A; (c) where a notice is served under section 12A, 12B or 12C without a notice having been previously served under section 5 or section 11A, that number is equal to the total number of constituent flats let to qualifying tenants on the date of service of the notice under section 12A, 12B or 12C, as the case may be. (3) There is one available vote in respect of each of the flats so let on the date referred to in the relevant paragraph of subsection (2), which shall be attributed to the qualifying tenant to whom it is let. (4) The persons constituting the requisite majority of qualifying tenants for one purpose may be different from the persons constituting such a majority for another purpose.

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3

• (1) Section 20(1) of the Landlord and Tenant Act 1987 (interpretation of Part I) is amended as follows.

• (2) For the definition of “acceptance notice” substitute—

“acceptance notice” has the meaning given by section 6(3);

.

• (3) For the definition of “constituent flat” substitute—

“constituent flat” shall be construed in accordance with section 5(1) or 11(2), as the case may require;

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• (4) Omit the definition of “the new landlord”.

• (5) After that definition insert—

• “the nominated person” means the person or persons for the time being nominated by the requisite majority of the qualifying tenants of the constituent flats for the purposes of section 6, 12A, 12B or 12C, as the case may require;

.

• (6) For the definition of “the protected interest” substitute—

“the protected interest” means the estate, interest or other subject-matter of an offer notice;

.

• (7) After that definition insert—

• “the protected period” has the meaning given by section 6(4);

.

• (8) For the definition of “purchase notice” substitute—

“purchase notice” has the meaning given by section 12B(2);

.

• (9) After that definition insert—

• “purchaser” has the meaning given by section 11(3);

.

• (10) In the definition of “the requisite majority” for “section 5(6) and (7)” substitute “ section 18A ”.

4

In section 20(2) of the Landlord and Tenant Act 1987, omit the words “or counter-offer” in each place where they occur.

5

In Part III of the Landlord and Tenant Act 1987 (compulsory acquisition by tenants of their landlord’s interest), in section 31 (determination of terms by rent assessment committees)—

• (a) for “rent assessment committee”, wherever occurring, substitute “ leasehold valuation tribunal ”;

• (b) for “such a committee” or “the committee”, wherever occurring, substitute “ the tribunal ”; and

• (c) omit subsection (5).

6

In section 52(1) of the Landlord and Tenant Act 1987 (jurisdiction of county courts) for “rent assessment committee” substitute “ leasehold valuation tribunal ”.

7

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8

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9

In section 54(4) of the Landlord and Tenant Act 1987 (saving for power under section 20(4)) for “either of the periods specified in section 5(2)” substitute “ any of the periods specified in section 5A(4) or (5), 5B(5) or (6), 5C(4) or (5), 5D(4) or (5) or 5E(3) ”.

10

In section 60(1) of the Landlord and Tenant Act 1987 (general interpretation), omit the definition of “rent assessment committee”.

11

• (1) In Schedule 1 to the Landlord and Tenant Act 1987 (discharge of mortgages, &c), in paragraph 1 (construction of provisions relating to discharge in pursuance of purchase notice)—

• (a) for the words “the new landlord” wherever they appear substitute “ the purchaser ”;

• (b) in the definition of “consideration payable”—

• (i) for the words “section 12(4)” substitute “ section 12B(7) ”, and

• (ii) for the words “section 16(2) or (3)” substitute “ section 16(4) or (5) ”;

• (c) in the definition of “nominated person”, for the words “section 12(1)” substitute “ section 12B(2) ”.

• (2) In paragraphs 2, 4 and 5 of that Schedule (duty of nominated person to redeem mortgages, payments into court and savings)—

• (a) for the words “section 12(4)(a)” wherever they appear substitute “ section 12B(5)(a) ”;

• (b) for the words “the new landlord” or “the new landlord’s” wherever they appear substitute “ the purchaser ” or “ the purchaser’s ”.

SCHEDULE 7

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SCHEDULE 8

Housing Act 1985 (c.68)

1

In section 553(2) of the Housing Act 1985, for paragraph (c) there shall be substituted—

(c) the tenancy is not by virtue of any provision of Part I of the Housing Act 1988 an assured shorthold tenancy;

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Housing Act 1988 (c.50)

2

• (1) The Housing Act 1988 shall be amended as follows.

• (2) In section 14, there shall be inserted at the end—

(9) This section shall apply in relation to an assured shorthold tenancy as if in subsection (1) the reference to an assured tenancy were a reference to an assured shorthold tenancy.

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• (3) In section 20, for the side-note and subsection (1) there shall be substituted—

(20) (1) Subject to subsection (3) below, an assured tenancy which is not one to which section 19A above applies is an assured shorthold tenancy if— (a) it is a fixed term tenancy granted for a term certain of not less than six months, (b) there is no power for the landlord to determine the tenancy at any time earlier than six months from the beginning of the tenancy, and (c) a notice in respect of it is served as mentioned in subsection (2) below.

.

• (4) In that section, after subsection (5) there shall be inserted—

(5A) Subsections (3) and (4) above do not apply where the new tenancy is one to which section 19A above applies.

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• (5) In section 22, in subsection (1), the words from “in respect of” to “above” shall be omitted.

• (6) In that section, after subsection (5) there shall be inserted—

(5A) Where— (a) an assured tenancy ceases to be an assured shorthold tenancy by virtue of falling within paragraph 2 of Schedule 2A to this Act, and (b) at the time when it so ceases to be an assured shorthold tenancy there is pending before a rent assessment committee an application in relation to it under this section, the fact that it so ceases to be an assured shorthold tenancy shall, in relation to that application, be disregarded for the purposes of this section.

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• (7) In section 34(3), after “whether or not” there shall be inserted “ , in the case of a tenancy to which the provision applies, ”.

• (8) In section 39(7), after “whether or not” there shall be inserted “ , in the case of a tenancy to which the provision applies, ”.

SCHEDULE 9

Right to enfranchisement

1

In the Leasehold Reform Act 1967, after section 1A there shall be inserted—

(1AA) (1) Where— (a) section 1(1) above would apply in the case of the tenant of a house but for the fact that the tenancy is not a tenancy at a low rent, and (b) the tenancy falls within subsection (2) below and is not an excluded tenancy, this Part of this Act shall have effect to confer on the tenant the same right to acquire the freehold of the house and premises as would be conferred by section 1(1) above if it were a tenancy at a low rent. (2) A tenancy falls within this subsection if— (a) it is granted for a term of years certain exceeding thirty-five years, whether or not it is (or may become) terminable before the end of that term by notice given by or to the tenant or by re-entry, forfeiture or otherwise, (b) it is for a term fixed by law under a grant with a covenant or obligation for perpetual renewal, unless it is a tenancy by sub-demise from one which is not a tenancy which falls within this subsection, (c) it is a tenancy taking effect under section 149(6) of the Law of Property Act 1925 (leases terminable after a death or marriage), or (d) it is a tenancy which— (i) is or has been granted for a term of years certain not exceeding thirty-five years, but with a covenant or obligation for renewal without payment of a premium (but not for perpetual renewal), and (ii) is or has been once or more renewed so as to bring to more than thirty-five years the total of the terms granted (including any interval between the end of a tenancy and the grant of a renewal). (3) A tenancy is an excluded tenancy for the purposes of subsection (1) above if— (a) the house which the tenant occupies under the tenancy is in an area designated for the purposes of this provision as a rural area by order made by the Secretary of State, (b) the freehold of that house is owned together with adjoining land which is not occupied for residential purposes and has been owned together with such land since the coming into force of section 106 of the Housing Act 1996, and (c) the tenancy was granted on or before the day on which that section came into force. (4) Where this Part of this Act applies as if there were a single tenancy of property comprised in two or more separate tenancies, then, if each of the separate tenancies falls within subsection (2) above, this section shall apply as if the single tenancy did so. (5) The power to make an order under subsection (3) above shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

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2

• (1) In consequence of paragraph 1 above, the Leasehold Reform Act 1967 shall be amended as follows.

• (2) In section 1(3A)(b) (extension of rights not to apply to existing lettings by charitable housing trusts), after “1A” there shall be inserted “ , 1AA ”.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) In section 9(1C) (price payable by tenant on enfranchisement by virtue of section 1A or 1B), after “1A” there shall be inserted “ , 1AA ”.

• (5) In section 9A(1) (compensation payable where right to enfranchisement arises by virtue of section 1A or 1B), after “1A” there shall be inserted “ , 1AA ”.

• (6) In section 32A(1)(b) (extensions to right to enfranchisement not to apply in relation to existing tenancies of property transferred for public benefit), at the end there shall be inserted “ or if section 1AA above were not in force ”.

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

• (8) In Part II of Schedule 3 (procedural provisions), in paragraph 6 (which makes provision about the contents of a tenant’s notice under Part I), after sub-paragraph (1) there shall be inserted—

(1A) Where the tenant gives the notice by virtue of section 1AA of this Act, sub-paragraph (1) above shall have effect with the substitution for paragraph (b) of— (“) such particulars of the tenancy as serve to identify the instrument creating the tenancy and show that the tenancy is one in relation to which section 1AA(1) of this Act has effect to confer a right to acquire the freehold of the house and premises;”.

.

• (9) In that Part of that Schedule, in paragraph 7(4) (admission in landlord’s notice of tenant’s right to have freehold to be binding on landlord, so far as relating to matters mentioned in section 1(1)(a) and (b)), for “mentioned in section 1(1)(a) and (b) of this Act” there shall be substituted “ relevant to the existence of that right ”.

Right to collective enfranchisement

3

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Right to new lease

4

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5

• (1) In Chapter VII of that Part (general), section 94 (Crown land) shall be amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) For subsection (12) there shall be substituted—

(12) For the purposes of this section “long lease which is at a low rent or for a particularly long term” shall be construed in accordance with sections 7, 8 and 8A.

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SCHEDULE 10

1

Chapter I of Part I of the Leasehold Reform, Housing and Urban Development Act 1993 shall be amended as follows.

2

In section 1(4) (right to acquire additional property satisfied by grant of rights over that property or other property)—

• (a) in paragraph (a), for “freeholder” there shall be substituted “ person who owns the freehold of that property ”, and

• (b) in paragraph (b), for “freeholder” there shall be substituted “ person who owns the freehold of that property ”.

3

• (1) Section 9 (the reversioner and other relevant landlords) shall be amended as follows.

• (2) In subsection (1), after “any premises” there shall be inserted “ the freehold of the whole of which is owned by the same person ”.

• (3) In subsection (2)—

• (a) after “such claim” there shall be inserted “ as is mentioned in subsection (1) ”, and

• (b) in paragraph (b), after “premises,” there shall be inserted “ every person who owns any freehold interest which it is proposed to acquire by virtue of section 1(2)(a), ”.

• (4) After that subsection there shall be inserted—

(2A) In the case of any claim to exercise the right to collective enfranchisement in relation to any premises the freehold of the whole of which is not owned by the same person— (a) the reversioner in respect of the premises shall for the purposes of this Chapter be the person identified as such by Part IA of Schedule 1 to this Act, and (b) every person who owns a freehold interest in the premises, every person who owns any freehold interest which it is proposed to acquire by virtue of section 1(2)(a), and every person who owns any leasehold interest which it is proposed to acquire under or by virtue of section 2(1)(a) or (b), shall be a relevant landlord for those purposes.

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• (5) In subsection (3), after “subsection (2)” there shall be inserted “ or (2A) ”.

4

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5

• (1) Section 11 (right of qualifying tenant to obtain information about superior interests etc.) shall be amended as follows.

• (2) In subsection (1)—

• (a) for “his immediate landlord”, in both places, there shall be substituted “ any immediate landlord of his ”, and

• (b) for “the person who owns the freehold of” there shall be substituted “ every person who owns a freehold interest in ”.

• (3) In subsection (2)(b), for “the tenant’s immediate landlord” there shall be substituted “ any immediate landlord of the tenant ”.

• (4) In subsection (3), for “the person who owns the freehold of” there shall be substituted “ any person who owns a freehold interest in ”.

• (5) In subsection (4), for paragraph (a) there shall be substituted—

(a) to any person who owns a freehold interest in the relevant premises, (aa) to any person who owns a freehold interest in any such property as is mentioned in subsection (3)(c),

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• (6) In subsection (8)(b)(i), after “premises” there shall be inserted “ or in any such property as is mentioned in subsection (3)(c) ”.

• (7) In subsection (9), in the definition of “the relevant premises”—

• (a) in paragraph (a), after “owns”, where it second occurs, there shall be inserted “ , or the persons who own the freehold interests in the flat own, ”, and

• (b) in paragraph (b), after “owns” there shall be inserted “ , or those persons own, ”.

6

• (1) Section 13 (notice by qualifying tenants of claim to exercise right to collective enfranchisement) shall be amended as follows.

• (2) In subsection (2), in paragraph (a)—

• (a) after “must” there shall be inserted—

(i) in a case to which section 9(2) applies,

,

and

• (b) after “premises;” there shall be inserted

and (ii) in a case to which section 9(2A) applies, be given to the person specified in the notice as the recipient;

.

• (3) After that subsection there shall be inserted—

(2A) In a case to which section 9(2A) applies, the initial notice must specify— (a) a person who owns a freehold interest in the premises, or (b) if every person falling within paragraph (a) is a person who cannot be found or whose identity cannot be ascertained, a relevant landlord, as the recipient of the notice.

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• (4) In subsection (3)(d)(i), there shall be inserted at the end “ or, if the freehold of the whole of the specified premises is not owned by the same person, each of the freehold interests in those premises ”.

7

• (1) Section 19 (effect of notice under section 13 on subsequent transactions by freeholder etc) shall be amended as follows.

• (2) In subsection (1)(a)—

• (a) for “the person who owns the freehold of the specified premises” there shall be substituted “ any person who owns the freehold of the whole or any part of the specified premises or the freehold of any property specified in the notice under section 13(3)(a)(ii) ”, and

• (b) in sub-paragraph (i), for the words from “any property” to the end there shall be substituted “ that property ”.

• (3) In subsection (2), for paragraph (a) there shall be substituted—

(a) any person who owns the freehold of the whole or any part of the specified premises or the freehold of any property specified in the notice under section 13(3)(a)(ii) disposes of his interest in those premises or that property,

.

• (4) In subsection (4), for paragraph (a) there shall be substituted—

(a) by any person who owns the freehold of the whole or any part of the specified premises or the freehold of any property specified in the notice under section 13(3)(a)(ii),

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8

• (1) Section 21 (reversioner’s counter-notice) shall be amended as follows.

• (2) In subsection (3)(d), for “the person who owns the freehold of the specified premises, or any other” there shall be substituted “ any ”.

• (3) In subsection (4), for “the person who owns the freehold of the specified premises or of any other” there shall be substituted “ any ”.

9

• (1) Section 26 (application to court where relevant landlords cannot be found) shall be amended as follows.

• (2) In subsection (1)(b), after “section 9(2)” there shall be inserted “ or (2A) ”.

• (3) In subsection (3), after “If” there shall be inserted “ , in a case to which section 9(2) applies, ”.

• (4) After that subsection there shall be inserted—

(3A) Where in a case to which section 9(2A) applies— (a) not less than two-thirds of the qualifying tenants of flats contained in any premises to which this Chapter applies desire to make a claim to exercise the right to collective enfranchisement in relation to those premises, and (b) paragraph (b) of subsection (1) does not apply, but (c) a copy of a notice of that claim cannot be given in accordance with Part II of Schedule 3 to any person to whom it would otherwise be required to be so given because he cannot be found or his identity cannot be ascertained, the court may, on the application of the qualifying tenants in question, make an order dispensing with the need to give a copy of such a notice to that person.

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• (5) In subsection (4), for “or (2)” there shall be substituted “ , (2) or (3A) ”.

• (6) In subsection (7), after “(2)” there shall be inserted “ or (3A) ”.

10

In section 30 (effect on acquisition of institution of compulsory acquisition procedures), at the end of subsection (2)(a) there shall be inserted “ or, where the freehold of the whole of the premises is not owned by the same person, any person who owns the freehold of part of them ”.

11

• (1) Section 34 (conveyance to nominee purchaser) shall be amended as follows.

• (2) In subsection (1)—

• (a) after “specified premises” there shall be inserted “ , of a part of those premises ”, and

• (b) after “those premises” there shall be inserted “ , that part of those premises ”.

• (3) In subsection (2), after “premises” there shall be inserted “ , the part of the specified premises ”.

12

• (1) Section 36 (nominee purchaser required to grant leases back to former freeholder) shall be amended as follows.

• (2) In subsection (1)—

• (a) for “the freehold of” there shall be substituted “ a freehold interest in ”, and

• (b) for “freehold”, where it second occurs, there shall be substituted “ interest ”.

• (3) In subsection (2), for “of the specified premises” there shall be substituted “ interest concerned ”.

13

In section 38 (interpretation of Chapter I), in subsection (3), after “section 9(2)(b)” there shall be inserted “ or (2A)(b) ”.

14

In Schedule 1 (conduct of proceedings by reversioner on behalf of other landlords), in Part I (identification of reversioner in case of premises with relevant landlords), in paragraph 1, after “2 to 4,” there shall be inserted “ in a case to which section 9(2) applies, ”.

15

In that Schedule, after Part I there shall be inserted—

(5A) Subject to paragraphs 5B to 5D, in a case to which section 9(2A) applies, the reversioner in respect of any premises is the person specified in the initial notice in accordance with section 13(2A) as the recipient. (5B) The court may, on the application of all the relevant landlords of any premises, appoint to be the reversioner in respect of those premises (in place of the person designated by paragraph 5A) such person as may have been determined by agreement between them. (5C) If it appears to the court, on the application of a relevant landlord of any premises— (a) that the respective interests of the relevant landlords of those premises, the absence or incapacity of the person referred to in paragraph 5A or other special circumstances require that some person other than the person there referred to should act as the reversioner in respect of the premises, or (b) that the person referred to in that paragraph is unwilling to act as the reversioner, the court may appoint to be the reversioner in respect of those premises (in place of the person designated by paragraph 5A) such person as it thinks fit. (5D) The court may also, on the application of any of the relevant landlords or of the nominee purchaser, remove the reversioner in respect of any premises and appoint another person in his place, if it appears to the court proper to do so by reason of any delay or default, actual or apprehended, on the part of the reversioner. (5E) A person appointed by the court under any of paragraphs 5B to 5D— (a) must be a relevant landlord; but (b) may be so appointed on such terms and conditions as the court thinks fit.

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16

In Schedule 2 (special categories of landlords), in paragraph 1(1), in the definition of “Chapter I landlord”, for “the reversioner or any other” there shall be substituted “ a ”.

17

• (1) Part II of Schedule 3 (which makes provision for the giving of copies of the notice under section 13 to relevant landlords) shall be amended as follows.

• (2) In paragraph 11, after “section 9(2)” there shall be inserted “ or (2A) ”.

• (3) In paragraph 12, in sub-paragraph (1), there shall be inserted at the beginning “ In a case to which section 9(2) applies, ”.

• (4) After that paragraph there shall be inserted—

(12A) (1) In a case to which section 9(2A) applies, the qualifying tenants by whom the initial notice is given shall, in addition to giving the initial notice to the person specified in it as the recipient, give a copy of the notice to every other person known or believed by them to be a relevant landlord of the specified premises. (2) The initial notice shall state whether copies are being given in accordance with sub-paragraph (1) to anyone other than the person specified in it as the recipient and, if so, to whom.

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• (5) In paragraph 13(3)(a), after “12(2)” there shall be inserted “ or, as the case may be, 12A(2) ”.

• (6) In paragraph 14(2)(b)—

• (a) after “12” there shall be inserted “ , 12A ”, and

• (b) for “either” there shall be substituted “ any ”.

18

• (1) Schedule 6 (purchase price payable by nominee purchaser) shall be amended as follows.

• (2) In paragraph 1(1) (interpretation)—

• (a) the definition of “the freeholder” shall be omitted, and

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In paragraph 2 (price payable for the freehold of the specified premises), in sub-paragraph (1)—

• (a) after “this paragraph,” there shall be inserted “ where the freehold of the whole of the specified premises is owned by the same person ”, and

• (b) for “the specified” there shall be substituted “ those ”.

• (4) In paragraph 3(1A), after paragraph (b) there shall be inserted—

(ba) an owner of an interest which the nominee purchaser is to acquire in pursuance of section 1(2)(a), or

.

• (5) After paragraph 5 there shall be inserted—

(5A) (1) Where different persons own the freehold of different parts of the specified premises— (a) a separate price shall be payable by the nominee purchaser for the freehold of each of those parts, and (b) sub-paragraph (2) shall apply to determine the price so payable. (2) Subject to sub-paragraph (3), the price payable by the nominee purchaser for the freehold of part of the specified premises shall be the aggregate of— (a) the value of the freeholder’s interest in the part as determined in accordance with paragraph 3, modified as mentioned in paragraph 5B, and (b) the freeholder’s share of the marriage value as determined in accordance with paragraph 4, modified as mentioned in paragraph 5C, and (c) any amount of compensation payable to the freeholder under paragraph 5. (3) Where the amount arrived at in accordance with sub-paragraph (2) is a negative amount, the price payable by the nominee purchaser for the freehold of the part shall be nil. (5B) (1) In its application in accordance with paragraph 5A(2)(a), paragraph 3 shall have effect with the following modifications. (2) In sub-paragraph (1)(a)(ii), there shall be inserted at the end “so far as relating to the part of the premises in which the freeholder’s interest subsists”. (3) In sub-paragraph (1A), after paragraph (a) there shall be inserted— (“) an owner of a freehold interest in the specified premises, or”. (4) In sub-paragraph (4)— (a) the words “the whole of” shall be omitted, and (b) for “2(1)(a)” there shall be substituted “5A(2)(a)”. (5C) (1) In its application in accordance with paragraph 5A(2)(b), paragraph 4 shall have effect with the following modifications. (2) In sub-paragraph (2)— (a) after “the specified premises” there shall be inserted “so far as relating to the part of the premises in which the freeholder’s interest subsists”, (b) after “participating tenants”, where it first occurs, there shall be inserted “in whose flats the freeholder’s interest subsists”, and (c) in paragraph (a), for “the”, where it second occurs, there shall be substituted “those”. (3) In sub-paragraph (3)— (a) after “the specified premises” there shall be inserted “so far as relating to the part of the premises in which the freeholder’s interest subsists”, and (b) in paragraph (a), for “2(1)(a)” there shall be substituted “5A(2)(a)”. (4) In sub-paragraph (4)(a), after “3(1)”, where it first occurs, there shall be inserted “as applied by paragraph 5A(2)(a)”.

.

• (6) For paragraph 8 there shall be substituted—

(8) (1) Where the owner of the intermediate leasehold interest will suffer any loss or damage to which this paragraph applies, there shall be payable to him such amount as is reasonable to compensate him for that loss or damage. (2) This paragraph applies to— (a) any diminution in value of any interest of the owner of the intermediate leasehold interest in other property resulting from the acquisition of his interest in the specified premises; and (b) any other loss or damage which results therefrom to the extent that it is referable to his ownership of any interest in other property. (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 specified premises to the extent that it is referable as mentioned in that paragraph. (4) In sub-paragraph (3) “development value”, in relation to the specified premises, means any increase in the value of the interest in the premises of the owner of the intermediate leasehold interest which is attributable to the possibility of demolishing, reconstructing or carrying out substantial works of construction on, the whole or a substantial part of the premises.

.

• (7) In paragraph 9 (owners of intermediate interests entitled to part of marriage value), in sub-paragraph (1), after “where” there shall be inserted “ paragraph 2 applies and ”.

• (8) After that paragraph there shall be inserted—

(9A) (1) This paragraph applies where paragraph 5A applies and— (a) the price payable for the freehold of a part of the specified premises includes an amount in respect of the freeholder’s share of the marriage value, and (b) the nominee purchaser is to acquire any intermediate leasehold interests which subsist in that part. (2) The amount payable to the freeholder of the part in respect of his share of the marriage value shall be divided between the freeholder and the owners of the intermediate leasehold interests which subsist in that part in proportion to the value of their respective interests in the part (as determined for the purposes of paragraph 5A(2)(a) or paragraph 6(1)(b)(i), as the case may be). (3) Where an intermediate leasehold interest subsists not only in the part of the specified premises in which the freeholder’s interest subsists (“the relevant part”) but also in another part of those premises— (a) the value of the intermediate leasehold interest as determined for the purposes of paragraph 6(1)(b)(i) shall be apportioned between the relevant part and the other part of the specified premises in which it subsists, and (b) sub-paragraph (2) shall have effect as if the reference to the value of the intermediate leasehold interest in the relevant part as determined for the purposes of paragraph 6(1)(b)(i) were to the value of that interest as determined on an apportionment in accordance with paragraph (a). (4) Where the owner of an intermediate leasehold interest is entitled in accordance with sub-paragraph (2) to any part of the amount payable to the freeholder in respect of the freeholder’s share of the marriage value, the amount to which he is so entitled shall be payable to him by the freeholder.

.

• (9) For paragraph 13 there shall be substituted—

(13) (1) Where the owner of any such freehold or leasehold interest as is mentioned in paragraph 10(1) or (2) (“relevant interest”) will suffer any loss or damage to which this paragraph applies, there shall be payable to him such amount as is reasonable to compensate him for that loss or damage. (2) This paragraph applies to— (a) any diminution in value of any interest in other property belonging to the owner of a relevant interest, being diminution resulting from the acquisition of the property in which the relevant interest subsists; and (b) any other loss or damage which results therefrom to the extent that it is referable to his ownership of any interest in other property. (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 property in which the relevant interest subsists to the extent that it is referable to his ownership of any interest in other property. (4) In sub-paragraph (3) “development value”, in relation to the property in which the relevant interest subsists, means any increase in the value of the relevant interest which is attributable to the possibility of demolishing, reconstructing or carrying out substantial works of construction on, the whole or a substantial part of the property.

.

• (10) In paragraph 14 (valuation of freehold and intermediate leasehold interests), in sub-paragraph (1)—

• (a) in paragraph (a), for “the”, where it second occurs, there shall be substituted “ a ” and for “in accordance with paragraph 3” there shall be substituted “ for the relevant purposes ”,

• (b) in paragraph (b), for “in accordance with paragraph 7” there shall be substituted “ for the relevant purposes ”, and

• (c) for “the relevant” there shall be substituted “ those ”.

• (11) In that paragraph, after sub-paragraph (3) there shall be inserted—

(3A) Where sub-paragraph (2) applies— (a) for the purposes of paragraph 5A(2)(a), and (b) in relation to an intermediate leasehold interest in relation to which there is more than one immediately superior interest, any reduction in value made under that sub-paragraph shall be apportioned between the immediately superior interests.

.

• (12) In that paragraph, in sub-paragraph (5)(a)—

• (a) for “the”, where it first occurs, there shall be substituted “ a ”, and

• (b) after “2(1)(a)” there shall be inserted “ or, as the case may be, 5A(2)(a) ”.

• (13) In paragraph 15 (calculation of marriage value), there shall be inserted at the end—

(4) References in this paragraph to paragraph 4(2), (3) or (4) extend to that provision as it applies in accordance with paragraph 5A(2)(b).

.

• (14) In paragraph 16 (apportionment of marriage value), in sub-paragraph (2), for “the”, where it first occurs, there shall be substituted “ a ”.

• (15) In paragraph 17 (adjustment of compensation), in sub-paragraph (4)(a), after “2(1)(c)” there shall be inserted “ , 5A(2)(c) ”.

• (16) In that paragraph, there shall be inserted at the end—

(6) Where any reduction in value under sub-paragraph (2) of paragraph 14 is apportioned in accordance with sub-paragraph (3A) of that paragraph, any amount of compensation payable by virtue of this paragraph shall be similarly apportioned.

.

19

In Schedule 7 (conveyance to nominee purchaser on enfranchisement), in paragraph 1—

• (a) for sub-paragraphs (a) and (b) there shall be substituted—

(a) “the relevant premises” means, in relation to the conveyance of any interest, the premises in which the interest subsists; (b) “the freeholder” means, in relation to the conveyance of a freehold interest, the person whose interest is to be conveyed;

,

and

• (b) for sub-paragraph (d) there shall be substituted—

(d) “the appropriate time” means, in relation to the conveyance of a freehold interest, the time when the interest is to be conveyed to the nominee purchaser.

.

20

• (1) Schedule 9 (grant of leases back to former freeholder) shall be amended as follows.

• (2) In paragraph 1—

• (a) for the definition of “the appropriate time” there shall be substituted—

“the appropriate time”, in relation to a flat or other unit contained in the specified premises, means the time when the freehold of the flat or other unit is acquired by the nominee purchaser;

, and

• (b) for the definition of “the freeholder” there shall be substituted—

“the freeholder”, in relation to a flat or other unit contained in the specified premises, means the person who owns the freehold of the flat or other unit immediately before the appropriate time;

.

• (3) In paragraph 2, in sub-paragraph (1), for “contained in the specified premises” there shall be substituted “ falling within sub-paragraph (1A) ”, and after that sub-paragraph there shall be inserted—

(1A) A flat falls within this sub-paragraph if— (a) the freehold of the whole of it is owned by the same person, and (b) it is contained in the specified premises.

.

• (4) In paragraph 3, in sub-paragraph (1), for “contained in the specified premises” there shall be substituted “ falling within sub-paragraph (1A) ”, and after that sub-paragraph there shall be inserted—

(1A) A flat falls within this sub-paragraph if— (a) the freehold of the whole of it is owned by the same person, and (b) it is contained in the specified premises.

.

• (5) In paragraph 5, in sub-paragraph (1), for “contained in the specified premises” there shall be substituted “ falling within sub-paragraph (1A) ”, and after that sub-paragraph there shall be inserted—

(1A) A unit falls within this sub-paragraph if— (a) the freehold of the whole of it is owned by the same person, and (b) it is contained in the specified premises.

.

• (6) In paragraph 6, for sub-paragraphs (1) and (2) there shall be substituted—

(1) Sub-paragraph (2) applies where, immediately before the freehold of a flat or other unit contained in the specified premises is acquired by the nominee purchaser— (a) those premises are premises with a resident landlord by virtue of the occupation of the flat or other unit by the freeholder of it, and (b) the freeholder of the flat or other unit is a qualifying tenant of it. (2) If the freeholder of the flat or other unit (“the relevant unit”) by notice requires the nominee purchaser to do so, the nominee purchaser shall grant to the freeholder a lease of the relevant unit in accordance with section 36 and paragraph 7 below; and, on the grant of such a lease to the freeholder, he shall be deemed to have surrendered any lease of the relevant unit held by him immediately before the appropriate time.

.

• (7) In that paragraph, in sub-paragraph (3), for “(1)(c)” there shall be substituted “ (1)(b) ”.

SCHEDULE 11

Claims under Part I of the Leasehold Reform Act 1967

1

• (1) After section 27 of the Leasehold Reform Act 1967 there shall be inserted—

(27A) (1) This section applies where, on or after 15th January 1999— (a) a tenant of any property makes a claim to acquire the freehold or an extended lease of it, and (b) the claim is not made at least two years before the term date of the tenancy in respect of which the claim is made (“the existing tenancy”). (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 tenancy, or (c) the existing tenancy is continued under paragraph 3(1) of Schedule 3 to this Act by virtue of the claim. (3) Compensation under subsection (2) above 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) above shall be equal to the difference between— (a) the rent for the appropriate period under the existing tenancy, and (b) the rent which might reasonably be expected to be payable for that period were the property to which the existing tenancy 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 tenancy. (5) For the purposes of subsection (2) above, a claim to acquire the freehold or an extended lease is not effective if it ceases to have effect for any reason other than— (a) the acquisition in pursuance of the claim of the interest to which it relates, or (b) the lapsing of the claim under any provision of this Act excluding the tenant’s liability for costs. (6) For the purposes of subsections (3) and (4) above, the appropriate period is— (a) in a case falling within paragraph (a) of subsection (2) above, 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 tenancy is terminated before then, with the date of its termination; (b) in a case falling within paragraph (b) of subsection (2) above, 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 tenancy, and (ii) ending six months after the date on which the claim ceases to have effect, or, if the existing tenancy is terminated before then, with the date of its termination; and (c) in a case falling within paragraph (c) of subsection (2) above, the period for which the existing tenancy is continued under paragraph 3(1) of Schedule 3 to this Act. (7) For the purposes of this section— (a) references to a claim to acquire the freehold or an extended lease shall be taken as references to a notice of a person’s desire to acquire it under Part I of this Act and as including a claim made by a tenant not entitled to acquire it, and (b) references to the date on which a claim ceases to have effect shall, in relation to a notice which is not a valid notice, be taken as references to the date on which the notice is set aside by the court or withdrawn or would, if valid, cease to have effect, 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. (27B) (1) Where a tenant’s liability to pay compensation under section 27A above relates to a period during which there has been a change in the interest immediately expectant on the determination of his tenancy, that section shall have effect with the following modifications. (2) For subsections (3) and (4) there shall be substituted— (“) Compensation under subsection (2) above 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 tenancy. (4) Compensation under subsection (2) above shall— (a) in the case of the interest which is immediately expectant on the determination of the existing tenancy 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 tenancy, be the right of the person in whom the interest was vested immediately before it ceased to be so expectant. (4A) 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 tenancy for the part of the appropriate period during which the interest was immediately expectant on the determination of that tenancy, 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 tenancy 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 tenancy.” (3) In subsection (6), for “(3) and (4)” there shall be substituted “(3) to (4A)”.

• (2) In section 21(1) of that Act (matters to be determined by leasehold valuation tribunal), after paragraph (c) there shall be inserted—

(ca) the amount of any compensation payable under section 27A;

.

Claims under Chapter I of Part I of the Leasehold Reform, Housing and Urban Development Act 1993

2

• (1) After section 37 of the Leasehold Reform, Housing and Urban Development Act 1993 there shall be inserted—

(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. (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)”.

• (2) In section 91(2) of that Act (matters to be determined by leasehold valuation tribunal), after paragraph (c) there shall be inserted—

(ca) the amount of any compensation payable under section 37A;

.

Claims under Chapter II of Part I of the Leasehold Reform, Housing and Urban Development Act 1993

3

• (1) After section 61 of the Leasehold Reform, Housing and Urban Development Act 1993 there shall be inserted—

(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) (1) Where a tenant’s liability to pay compensation under section 61A relates to a period during which there has been a change in the interest immediately expectant on the determination of his lease, that section shall have effect with the following modifications. (2) For subsections (3) and (4) there shall be substituted— (“) Compensation under subsection (2) shall become payable at the end of the appropriate period and there shall be a separate right to compensation in respect of each of the interests which, during that period, have been immediately expectant on the determination of the existing lease. (4) 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. (4A) 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 (5), for “(3) and (4)” there shall be substituted “(3) to (4A)”.

• (2) In section 91(2) of that Act (matters to be determined by leasehold valuation tribunal), after paragraph (c) there shall be inserted—

(cb) the amount of any compensation payable under section 61A;

.

SCHEDULE 12

Administration of housing benefit

1

• (1) Section 134 of the Social Security Administration Act 1992 (arrangements for housing benefit) is amended as follows.

• (2) For subsection (1) (administering authority and form of benefit) substitute—

(1) Housing benefit provided by virtue of a scheme under section 123 of the Social Security Contributions and Benefits Act 1992 (in this Part referred to as “the housing benefit scheme”) shall be funded and administered by the appropriate housing authority or local authority. (1A) Housing benefit in respect of payments which the occupier of a dwelling is liable to make to a housing authority shall take the form of a rent rebate or, in prescribed cases, a rent allowance funded and administered by that authority. The cases that may be so prescribed do not include any where the payment is in respect of property within the authority’s Housing Revenue Account. (1B) In any other case housing benefit shall take the form of a rent allowance funded and administered by the local authority for the area in which the dwelling is situated or by such other local authority as is specified by an order made by the Secretary of State.

.

• (3) In subsection (2)(b) omit the words “or rates”.

• (4) Omit subsections (3), (4), (6) and (7).

• (5) For subsection (5) (agreements with other authorities for carrying out of functions) substitute—

(5) Authorities may— (a) agree that one shall discharge functions relating to housing benefit on another’s behalf; or (b) discharge any such functions jointly or arrange for their discharge by a joint committee. (5A) Nothing in this section shall be read as excluding the general provisions of the Local Government Act 1972 or the Local Government (Scotland) Act 1973 from applying in relation to the housing benefit functions of a local authority.

.

• (6) In subsection (9) for the words from “the rebates or allowances” to the end substitute “ the housing benefit which will be paid by the authority in any year will not exceed the permitted total or any subsidiary limit specified by order of the Secretary of State. ”.

• (7) In subsection (11) for the words from “the rebates or allowances” to the end substitute “ the housing benefit paid by them during the year exceeds the permitted total or any subsidiary limit specified by order of the Secretary of State. ”.

• (8) For subsection (12) substitute—

(12) The Secretary of State— (a) shall by order specify the permitted total of housing benefit payable by any authority in any year; and (b) may by order specify one or more subsidiary limits on the amount of housing benefit payable by any authority in any year in respect of any matter or matters specified in the order. The power to specify the permitted total or a subsidiary limit may be exercised by fixing an amount or by providing rules for its calculation.

.

Administration of council tax benefit

2

In section 138 of the Social Security Administration Act 1992 (council tax benefit: nature of benefit), at the end of subsection (1) insert—

References in any enactment or instrument (whenever passed or made) to payment, in relation to council tax benefit, include any of those ways of giving the benefit. .

3

• (1) Section 139 of the Social Security Administration Act 1992 (arrangements for council tax benefit) is amended as follows.

• (2) For subsections (4) and (5) (agreements with other authorities for carrying out of functions) substitute—

(4) Nothing in this section shall be read as excluding the general provisions of the Local Government Act 1972 or the Local Government (Scotland) Act 1973 from applying in relation to the council tax benefit functions of a local authority.

.

• (3) In subsection (7) for the words from “the benefits which will be allowed” to the end substitute “ the amount of benefit which will be paid by them in any year will not exceed the permitted total or any subsidiary limit specified by order of the Secretary of State. ”.

• (4) In subsection (9) for the words from “the benefits allowed by it” to the end substitute “ the amount of benefit paid by them in any year exceeds the permitted total or any subsidiary limit specified by order of the Secretary of State. ”.

• (5) For subsection (10) substitute—

(10) The Secretary of State— (a) shall by order specify the permitted total of council tax benefit payable by any authority in any year; and (b) may by order specify one or more subsidiary limits on the amount of council tax benefit payable by any authority in any year in respect of any matter or matters specified in the order. The power to specify the permitted total or a subsidiary limit may be exercised by fixing an amount or by providing rules for its calculation.

.

Subsidy

4

After section 140 of the Social Security Administration Act 1992 insert—

(140A) (1) For each year the Secretary of State shall pay a subsidy to each authority administering housing benefit or council tax benefit. (2) He shall pay— (a) rent rebate subsidy to each housing authority; (b) rent allowance subsidy to each local authority; and (c) council tax benefit subsidy to each billing authority or levying authority. (3) In the following provisions of this Part “subsidy”, without more, refers to subsidy of any of those descriptions. (140B) (1) The amount of subsidy to be paid to an authority shall be calculated in the manner specified by order made by the Secretary of State. (2) Subject as follows, the amount of subsidy shall be calculated by reference to the amount of relevant benefit paid by the authority during the year, with any additions specified in the order but subject to any deductions so specified. In the case of a housing authority in England and Wales, any Housing Revenue Account rebates paid by them shall be excluded from the total. (3) The order may provide that the amount of subsidy in respect of any matter shall be a fixed sum or shall be nil. (4) The Secretary of State may deduct from the amount which would otherwise be payable by way of subsidy such amount as he considers it unreasonable to pay by way of subsidy. (5) The Secretary of State may pay to an authority as part of the subsidy an additional amount in respect of the costs of administering the relevant benefit. Any such additional amount shall be a fixed sum specified by, or shall be calculated in the manner specified by, an order made by the Secretary of State. (6) In this section “relevant benefit” means housing benefit or council tax benefit, as the case may be. (7) Nothing in this section shall be taken to imply that any such addition or deduction as is mentioned in subsection (2) or (4) above may not be determined by reference to— (a) the amount of relevant benefit paid by the authority during a previous year; or (b) the amount of subsidy paid to the authority in respect of a previous year, under this section. (8) The amount of subsidy payable to an authority shall be calculated to the nearest pound, disregarding an odd amount of 50 pence or less and treating an odd amount exceeding 50 pence as a whole pound. (140C) (1) Subsidy shall be paid by the Secretary of State in such instalments, at such times, in such manner and subject to such conditions as to claims, records, certificates, audit or otherwise as may be provided by order of the Secretary of State. (2) The order may provide that if an authority has not, within such period as may be specified in the order, complied with the conditions so specified as to claims, records, certificate, audit or otherwise, the Secretary of State may estimate the amount of subsidy payable to the authority and employ for that purpose such criteria as he considers relevant. (3) Where subsidy has been paid to an authority and it appears to the Secretary of State— (a) that subsidy has been overpaid; or (b) that there has been a breach of any condition specified in an order under this section, he may recover from the authority the whole or such part of the payment as he may determine. Without prejudice to other methods of recovery, a sum recoverable under this subsection may be recovered by withholding or reducing subsidy. (4) An order made by the Secretary of State under this section may be made before, during or after the end of the year or years to which it relates. (140D) (1) Rent rebate subsidy is payable— (a) in the case of a local authority in England and Wales, for the credit of a revenue account of theirs other than their Housing Revenue Account or Housing Repairs Account; (b) in the case of a local authority in Scotland, for the credit of their rent rebate account; (c) in the case of a development corporation in England and Wales or the Development Board for Rural Wales, for the credit of their housing account; and (d) in the case of a new town corporation in Scotland or Scottish Homes, for the credit of the account to which rent rebates granted by them, or it, are debited. (2) Every local housing authority in England and Wales shall for each year carry to the credit of their Housing Revenue Account from some other revenue account of theirs which is not a Housing Repairs Account an amount equal to the aggregate of— (a) so much of each Housing Revenue Account rebate paid by them during the year as was paid— (i) in the exercise of a discretion conferred by the housing benefit scheme; or (ii) in pursuance of any modification of that scheme under section 134(8)(b) above; and (b) unless the authority otherwise determine, so much of each such rebate as was paid in pursuance of such modifications of that scheme as are mentioned in section 134(8)(a) above. (140E) (1) Where two or more authorities make arrangements for the discharge of any of their functions relating to housing benefit or council tax benefit— (a) by one authority on behalf of itself and one or more other authorities; or (b) by a joint committee, the Secretary of State may make such payments as he thinks fit to the authority or committee in respect of their expenses in carrying out those functions. (2) The provisions of sections 140B and 140C (subsidy: calculation and supplementary provisions) apply in relation to a payment under this section as in relation to a payment of subsidy. (3) The Secretary of State may (without prejudice to the generality of his powers in relation to the amount of subsidy) take into account the fact that an amount has been paid under this section in respect of expenses which would otherwise have been met in whole or in part by the participating authorities. (140F) (1) Any power under this Part to make provision by order for or in relation to a year does not require the making of a new order each year. (2) Any order made under the power may be revoked or varied at any time, whether before, during or after the year to which it relates. (140G) In this Part, unless the context otherwise requires— - “Housing Repairs Account” means an account kept under section 77 of the Local Government and Housing Act 1989; - “Housing Revenue Account” means the account kept under section 74 of the Local Government and Housing Act 1989, and— 1. references to property within that account have the same meaning as in Part VI of that Act, and 2. “Housing Revenue Account rebate” means a rebate debited to that account in accordance with that Part; - “rent rebate subsidy” and “rent allowance subsidy” shall be construed in accordance with section 134 above; - “year” means a financial year within the meaning of the Local Government Finance Act 1992.

.

Transitional provision

5

• (1) The Secretary of State may by order make such transitional provision, and such consequential provision and savings, as appear to him appropriate in connection with the coming into force of the provisions of this Schedule.

• (2) Without prejudice to the generality of that power, the order may provide for the recovery by the withholding or reduction of subsidy payable under the provisions inserted by paragraph 4 above of any amount which would have been recoverable under the provisions of Part VIII of the Social Security Administration Act 1992 repealed by this Act.

• (3) Section 189(3) to (7) of the Social Security Administration Act 1992 (general provisions as to regulations and orders) apply in relation to the power conferred by sub-paragraph (1) as they apply in relation to a power conferred by that Act to make an order.

• (4) A statutory instrument containing an order under this paragraph shall be subject to annulment in pursuance of a resolution of either House of Parliament.

SCHEDULE 13

Rent Act 1977 (c.42)

1

In section 63(7) of the Rent Act 1977 (expenditure on rent officers to be met by Secretary of State), in paragraph (a), for “or an order under section 121 of the Housing Act 1988” substitute “ or an order under section 122 of the Housing Act 1996 ”.

Housing Act 1985 (c.68)

2

In section 425(2)(b) of the Housing Act 1985 (housing subsidy: local contribution differential), for “section 135” substitute “ section 140A ”.

Social Security Administration Act 1992 (c.5)

3

• (1) The Social Security Administration Act 1992 is amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In section 116(4) (legal proceedings for offences: definition of “appropriate authority”)—

• (a) omit paragraph (a);

• (b) in paragraph (b), for “that subsection” substitute “ section 134 below ”; and

• (c) in paragraph (c), for “that subsection” substitute “ that section ”.

• (4) In section 176 (consultation with representative organisations), in subsection (1)(b) for “section 134(12), 135, 139 or 140 above” substitute “ any provision of Part VIII above ”.

• (5) In section 189(8) (requirement for consent of the Treasury), for “135, 140” substitute “ 140B, 140C ”.

• (6) In section 191 (interpretation: general)—

• (a) at the appropriate place insert—

“council tax benefit scheme” shall be construed in accordance with section 139(1) above;

;

• (b) in the definition of “rate rebate”, “rent rebate” and “rent allowance”, omit the reference to rate rebate;

• (c) omit the definitions of “rates” and “rating authority”.

...

4

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

SCHEDULE 14

Housing Act 1985 (c.68)

1

In section 88(1) of the Housing Act 1985 (cases where the secure tenant is a successor) after paragraph (e) insert

or (f) the tenancy was previously an introductory tenancy and he was a successor to the introductory tenancy.

.

2

In section 104(2) of the Housing Act 1985 (provision of information about secure tenancies) for the words “on the grant of the tenancy” substitute “ when the secure tenancy arises ”.

3

After section 115 of the Housing Act 1985 insert—

(115A) In this Part “introductory tenancy” has the same meaning as in Chapter I of Part V of the Housing Act 1996.

.

4

In section 117 of the Housing Act 1985 (index of defined expressions: Part IV) insert at the appropriate place—

introductory tenancy	section 115A

.

5

In Schedule 1 to the Housing Act 1985 (tenancies which are not secure tenancies) after paragraph 1 insert—

(1A) A tenancy is not a secure tenancy if it is an introductory tenancy or a tenancy which has ceased to be an introductory tenancy— (a) by virtue of section 133(3) of the Housing Act 1996 (disposal on death to non-qualifying person), or (b) by virtue of the tenant, or in the case of a joint tenancy every tenant, ceasing to occupy the dwelling-house as his only or principal home.

.

SCHEDULE 15

Introductory

1

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

Remand in custody or on bail

2

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

3

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

4

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

Further remand

5

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

Postponement of taking of recognizance

6

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

SCHEDULE 16

Housing Act 1985 (c.68)

1

In section 106 of the Housing Act 1985 (information about allocation of secure tenancies) at the end insert—

(6) The provisions of this section do not apply to a landlord authority which is a local housing authority so far as they impose requirements corresponding to those to which such an authority is subject under sections 166 and 168 of the Housing Act 1996 (provision of information about housing registers and allocation schemes).

.

2

• (1) Schedule 1 to the Housing Act 1985 (tenancies which are not secure tenancies) is amended as follows.

• (2) In paragraph 2 (premises occupied in connection with employment) at the beginning of sub-paragraph (1), (2) and (3) insert in each case “ Subject to sub-paragraph (4B) ”.

• (3) In sub-paragraph (4) of that paragraph—

• (a) at the beginning insert “ Subject to sub-paragraph (4A) and (4B) ”, and

• (b) omit the words from “until” to the end.

• (4) After sub-paragraph (4) of that paragraph insert—

(4A) Except where the landlord is a local housing authority, a tenancy under sub-paragraph (4) shall become a secure tenancy when the periods during which the conditions mentioned in sub-paragraph (1), (2) or (3) are not satisfied with respect to the tenancy amount in aggregate to more than three years. (4B) Where the landlord is a local housing authority, a tenancy under sub-paragraph (1), (2), (3) or (4) shall become a secure tenancy if the authority notify the tenant that the tenancy is to be regarded as a secure tenancy.

.

• (5) In paragraph 5 (temporary accommodation for persons taking up employment) in sub-paragraph (1)—

• (a) for the words from the beginning to first “grant” substitute “ Subject to sub-paragraphs (1A) and (1B), a tenancy is not a secure tenancy ”, and

• (b) omit from “unless” to the end.

• (6) After sub-paragraph (1) of that paragraph insert

(1A) Except where the landlord is a local housing authority, a tenancy under sub-paragraph (1) shall become a secure tenancy on the expiry of one year from the grant or on earlier notification by the landlord to the tenant that the tenancy is to be regarded as a secure tenancy. (1B) Where the landlord is a local housing authority, a tenancy under sub-paragraph (1) shall become a secure tenancy if at any time the authority notify the tenant that the tenancy is to be regarded as a secure tenancy.

.

• (7) In paragraph 10 (student lettings) in sub-paragraph (1)—

• (a) for the words from the beginning to “sub-paragraph (3)” substitute “ Subject to sub-paragraphs (2A) and (2B), a tenancy of a dwelling-house is not a secure tenancy ”, and

• (b) omit from “unless” to the end.

• (8) After sub-paragraph (2) of that paragraph insert—

(2A) Except where the landlord is a local housing authority, a tenancy under sub-paragraph (1) shall become a secure tenancy on the expiry of the period specified in sub-paragraph (3) or on earlier notification by the landlord to the tenant that the tenancy is to be regarded as a secure tenancy. (2B) Where the landlord is a local housing authority, a tenancy under sub-paragraph (1) shall become a secure tenancy if at any time the authority notify the tenant that the tenancy is to be regarded as a secure tenancy.

.

• (9) In sub-paragraph (3) of that paragraph for the words “sub-paragraph (1)” substitute “ sub-paragraph (2A) ”.

Asylum and Immigration Act 1996 (c. 49)

3

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

SCHEDULE 17

Local Authority Social Services Act 1970 (c.42)

1

In Schedule 1 to the Local Authority Social Services Act 1970 (enactments conferring functions assigned to Social Services Committee) for the entry relating to the Housing Act 1985 substitute—

Housing Act 1996 Section 213(1)(b)	Co-operation in relation to homeless persons and persons threatened with homelessness.

.

Greater London Council (General Powers) Act 1984 (c.xxvii)

2

In section 39 of the Greater London Council (General Powers) Act 1984 (occupants removed from buildings to have priority housing need) for “Part III of the Housing Act 1985 (housing the homeless)” substitute “ Part VII of the Housing Act 1996 (homelessness) ”.

Housing Act 1985 (c.68)

3

In Schedule 1 to the Housing Act 1985 (tenancies which are not secure tenancies), for paragraph 4 (accommodation for homeless persons) substitute—

(4) A tenancy granted in pursuance of any function under Part VII of the Housing Act 1996 (homelessness) is not a secure tenancy unless the local housing authority concerned have notified the tenant that the tenancy is to be regarded as a secure tenancy.

.

Housing (Scotland) Act 1987 (c.26)

4

In section 42 of the Housing (Scotland) Act 1987 (application of Part II to cases arising in England and Wales: request for co-operation)—

• (a) in subsection (1) for “section 67(1) of the Housing Act 1985” substitute “ section 198(1) of the Housing Act 1996 ”; and

• (b) in subsections (2) and (3) for “section 72 of the Housing Act 1985” substitute “ section 213 of the Housing Act 1996 ”.

SCHEDULE 18

Part I — Housing management

Repeal of Part IV of the Housing Act 1988

1

Part IV of the Housing Act 1988 (change of landlord: secure tenants) is hereby repealed.

Payments to encourage local housing authority tenants to move to other accommodation

2

• (1) A local housing authority may make payments to or for the benefit of a tenant or licensee of a dwelling-house within its Housing Revenue Account with a view to assisting or encouraging that person to move to qualifying accommodation.

• (2) In sub-paragraph (1) “qualifying accommodation” means a dwelling-house made available to the person concerned as tenant or licensee by any of the following—

• (a) the local housing authority making the grant or any other local housing authority;

• (aa) a private registered provider of social housing;

or

• (b) a registered social landlord.

• (3) The reference in sub-paragraph (1) to a dwelling-house being within the Housing Revenue Account of a local housing authority is to a dwelling-house to which section 74(1) of the Local Government and Housing Act 1989 for the time being applies.

• (4) In this paragraph—

• “dwelling-house” has the meaning given by section 112 of the Housing Act 1985; and

• “tenant” does not include a tenant under a long tenancy as defined in section 115 of that Act.

Consultation with respect to housing management

3

• (1) Part II of the Housing Act 1985 (provision of housing accommodation) is amended as follows.

• (2) After section 27B insert—