Commonhold and Leasehold Reform Act 2002

• (2) In subsection (1), for the words from “to pay” to the end substitute

by a tenant to pay a service charge or administration charge unless— (a) it is finally determined by (or on appeal from) a leasehold valuation tribunal or by a court, or by an arbitral tribunal in proceedings pursuant to a post-dispute arbitration agreement, that the amount of the service charge or administration charge is payable by him, or (b) the tenant has admitted that it is so payable.

• (3) For subsection (2) substitute—

(2) The landlord may not exercise a right of re-entry or forfeiture by virtue of subsection (1)(a) until after the end of the period of 14 days beginning with the day after that on which the final determination is made.

• (4) For subsection (3) substitute—

(3) For the purposes of this section it is finally determined that the amount of a service charge or administration charge is payable— (a) if a decision that it is payable is not appealed against or otherwise challenged, at the end of the time for bringing an appeal or other challenge, or (b) if such a decision is appealed against or otherwise challenged and not set aside in consequence of the appeal or other challenge, at the time specified in subsection (3A). (3A) The time referred to in subsection (3)(b) is the time when the appeal or other challenge is disposed of— (a) by the determination of the appeal or other challenge and the expiry of the time for bringing a subsequent appeal (if any), or (b) by its being abandoned or otherwise ceasing to have effect.

• (5) After subsection (4) insert—

(4A) References in this section to the exercise of a right of re-entry or forfeiture include the service of a notice under section 146(1) of the Law of Property Act 1925 (restriction on re-entry or forfeiture).

• (6) In subsection (5), after “this section” insert—

(a) “administration charge” has the meaning given by Part 1 of Schedule 11 to the Commonhold and Leasehold Reform Act 2002, (b) “arbitration agreement” and “arbitral tribunal” have the same meaning as in Part 1 of the Arbitration Act 1996 (c. 23) and “post-dispute arbitration agreement”, in relation to any matter, means an arbitration agreement made after a dispute about the matter has arisen, (c) “dwelling” has the same meaning as in the Landlord and Tenant Act 1985 (c. 70), and (d)

.

Power to prescribe additional or different requirements

171

• (1) The appropriate national authority may by regulations prescribe requirements which must be met before a right of re-entry or forfeiture may be exercised in relation to a breach of a covenant or condition in a long lease of an unmortgaged dwelling.

• (2) The regulations may specify that the requirements are to be in addition to, or instead of, requirements imposed otherwise than by the regulations.

• (3) In this section “long lease of a dwelling” does not include—

• (a) a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies,

• (b) a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or

• (c) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8).

• (4) For the purposes of this section a dwelling is unmortgaged if it is not subject to a mortgage, charge or lien.

• (5) In this section—

• “dwelling” has the same meaning as in the 1985 Act, and

• “long lease” has the meaning given by sections 76 and 77 of this Act, except that a shared ownership lease is a long lease whatever the tenant’s total share.

Crown application

Application to Crown

172

• (1) The following provisions apply in relation to Crown land (as in relation to other land)—

• (a) sections 18 to 30B 30I of (and the Schedule to) the 1985 Act (service charges, insurance and managing agents and building safety),

• (b) Part 2 of the 1987 Act (appointment of manager by the appropriate tribunal ),

• (c) Part 4 of the 1987 Act (variation of leases),

• (d) sections 46 to 49 49A of the 1987 Act (information to be furnished to tenants),

• (e) Chapter 5 of Part 1 of the 1993 Act (management audit),

• (f) section 81 of the Housing Act 1996 (c. 52) (restriction on termination of tenancy for failure to pay service charge etc.),

• (g) section 84 of (and Schedule 4 to) that Act (right to appoint surveyor), and

• (h) in this Chapter, the provisions relating to any of the provisions within paragraphs (a) to (g), Part 1 of Schedule 11 and sections 164 to 171.

• (2) Land is Crown land if there is or has at any time been an interest or estate in the land—

• (a) comprised in the Crown Estate,

• (b) belonging to Her Majesty in right of the Duchy of Lancaster,

• (c) belonging to the Duchy of Cornwall, or

• (d) belonging to a government department or held on behalf of Her Majesty for the purposes of a government department.

• (3) No failure by the Crown to perform a duty imposed by or by virtue of any of sections 21 to 23A of, or any of paragraphs 2 to 4A of the Schedule to, the 1985 Act makes the Crown criminally liable; but the High Court may declare any such failure without reasonable excuse to be unlawful.

• (4) Any sum payable under any of the provisions mentioned in subsection (1) by the Chancellor of the Duchy of Lancaster may be raised and paid under section 25 of the Duchy of Lancaster Act 1817 (c. 97) as an expense incurred in improvement of land belonging to Her Majesty in right of the Duchy.

• (5) Any sum payable under any such provision by the Duke of Cornwall (or any other possessor for the time being of the Duchy of Cornwall) may be raised and paid under section 8 of the Duchy of Cornwall Management Act 1863 (c. 49) as an expense incurred in permanently improving the possessions of the Duchy.

• (6) In section 56 of the 1987 Act (Crown land)—

• (a) in subsection (1), for “This Act” substitute “ Parts 1 and 3 and sections 42 to 42B (and so much of this Part as relates to those provisions) ”, and

• (b) in subsection (3), for “this Act” substitute “ the provisions mentioned in subsection (1) ”.

Chapter 6 — Leasehold valuation tribunals

Leasehold valuation tribunals

173

• (1) Any jurisdiction conferred on a leasehold valuation tribunal by or under any enactment is exercisable by a rent assessment committee constituted in accordance with Schedule 10 to the Rent Act 1977 (c. 42).

• (2) When so constituted for exercising any such jurisdiction a rent assessment committee is known as a leasehold valuation tribunal.

Procedure

174

Schedule 12 (leasehold valuation tribunals: procedure) has effect.

Appeals

175

• (1) A party to proceedings before a leasehold valuation tribunal may appeal to the Upper Tribunal from a decision of the leasehold valuation tribunal.

• (2) But the appeal may be made only with the permission of—

• (a) the leasehold valuation tribunal, or

• (b) the Upper Tribunal.

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

• (4) On the appeal the Upper Tribunal may exercise any power which was available to the leasehold valuation tribunal.

• (5) And a decision of the Upper Tribunal on the appeal may be enforced in the same way as a decision of the leasehold valuation tribunal.

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

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

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consequential amendments

176

Schedule 13 (minor and consequential amendments about leasehold valuation tribunals) has effect.

Chapter 7 — General

Wales

177

The references to the 1985 Act, the 1987 Act and the 1993 Act in Schedule 1 to the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I.1999/672) are to be treated as referring to those Acts as amended by this Part.

Orders and regulations

178

• (1) An order or regulations under any provision of this Part—

• (a) may include incidental, supplementary, consequential and transitional provision,

• (b) may make provision generally or only in relation to specified cases, and

• (c) may make different provision for different purposes.

• (2) Regulations under Schedule 12 may make different provision for different areas.

• (3) Any power to make an order or regulations under this Part is exercisable by statutory instrument.

• (4) Regulations shall not be made by the Secretary of State under section 167 or 171 or paragraph 9(3)(b) or 10(3)(b) of Schedule 12 unless a draft of the instrument containing them has been laid before and approved by a resolution of each House of Parliament.

• (5) A statutory instrument containing an order or regulations made by the Secretary of State under this Part shall, if not so approved, be subject to annulment in pursuance of a resolution of either House of Parliament.

Interpretation

179

• (1) In this Part “the appropriate national authority” means—

• (a) the Secretary of State (as respects England), and

• (b) the National Assembly for Wales (as respects Wales).

• (2) In this Part—

• “the 1967 Act” means the Leasehold Reform Act 1967 (c. 88),

• “the 1985 Act” means the Landlord and Tenant Act 1985 (c. 70),

• “the 1987 Act” means the Landlord and Tenant Act 1987 (c. 31), and

• “the 1993 Act” means the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28).

Part 3 — Supplementary

Repeals

180

Schedule 14 (repeals) has effect.

Commencement etc

181

• (1) Apart from section 104 and sections 177 to 179, the preceding provisions (and the Schedules) come into force in accordance with provision made by order made by the appropriate authority.

• (2) The appropriate authority may by order make any transitional provisions or savings in connection with the coming into force of any provision in accordance with an order under subsection (1).

• (3) The power to make orders under subsections (1) and (2) is exercisable by statutory instrument.

• (4) In this section “the appropriate authority” means—

• (a) in relation to any provision of Part 1 or section 180 and Schedule 14 so far as relating to section 104, the Lord Chancellor, and

• (b) in relation to any provision of Part 2 or section 180 and Schedule 14 so far as otherwise relating, the Secretary of State (as respects England) and the National Assembly for Wales (as respects Wales).

Extent

182

This Act extends to England and Wales only.

Short title

183

This Act may be cited as the Commonhold and Leasehold Reform Act 2002.

SCHEDULE 1

Introduction

1

This Schedule lists the documents which are required by section 2 to accompany an application for the registration of a freehold estate as a freehold estate in commonhold land.

Commonhold association documents

2

The commonhold association’s certificate of incorporation under section 15 of the Companies Act 2006.

3

Any altered certificate of incorporation issued under section 80 of that Act (change of name).

4

The articles of association of the commonhold association.

Commonhold community statement

5

The commonhold community statement.

Consent

6

• (1) Where consent is required under or by virtue of section 3—

• (a) the consent,

• (b) an order of a court by virtue of section 3(2)(f) dispensing with the requirement for consent, or

• (c) evidence of deemed consent by virtue of section 3(2)(e).

• (2) In the case of a conditional order under section 3(2)(f), the order must be accompanied by evidence that the condition has been complied with.

Certificate

7

A certificate given by the directors of the commonhold association that—

• (a) the articles of association submitted with the application comply with regulations under paragraph 2(1) of Schedule 3,

• (b) the commonhold community statement submitted with the application satisfies the requirements of this Part,

• (c) the application satisfies Schedule 2,

• (d) the commonhold association has not traded, and

• (e) the commonhold association has not incurred any liability which has not been discharged.

SCHEDULE 2

“Flying freehold”

1

• (1) Subject to sub-paragraph (2), an application may not be made under section 2 wholly or partly in relation to land above ground level (“raised land”) unless all the land between the ground and the raised land is the subject of the same application.

• (2) An application for the addition of land to a commonhold in accordance with section 41 may be made wholly or partly in relation to raised land if all the land between the ground and the raised land forms part of the commonhold to which the raised land is to be added.

Agricultural land

2

An application may not be made under section 2 wholly or partly in relation to land if—

• (a) it is agricultural land within the meaning of the Agriculture Act 1947 (c. 48),

• (b) it is comprised in a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5), or

• (c) it is comprised in a farm business tenancy for the purposes of the Agricultural Tenancies Act 1995 (c. 8).

Contingent title

3

• (1) An application may not be made under section 2 if an estate in the whole or part of the land to which the application relates is a contingent estate.

• (2) An estate is contingent for the purposes of this paragraph if (and only if)—

• (a) it is liable to revert to or vest in a person other than the present registered proprietor on the occurrence or non-occurrence of a particular event, and

• (b) the reverter or vesting would occur by operation of law as a result of an enactment listed in sub-paragraph (3).

• (3) The enactments are—

• (a) the School Sites Act 1841 (c. 38) (conveyance for use as school),

• (b) the Lands Clauses Acts (compulsory purchase),

• (c) the Literary and Scientific Institutions Act 1854 (c. 112) (sites for institutions), and

• (d) the Places of Worship Sites Act 1873 (c. 50) (sites for places of worship).

• (4) Regulations may amend sub-paragraph (3) so as to—

• (a) add an enactment to the list, or

• (b) remove an enactment from the list.

SCHEDULE 3

Part 1 — Articles of Association

Introduction

1

In this Schedule “articles” means the articles of association of a commonhold association.

Form and content

2

• (1) Regulations shall make provision about the form and content of the articles.

• (2) A commonhold association may adopt provisions of the regulations for its articles.

• (3) The regulations may include provision which is to have effect for a commonhold association whether or not it is adopted under sub-paragraph (2).

• (4) A provision of the articles shall have no effect to the extent that it is inconsistent with the regulations.

• (5) Regulations under this paragraph shall have effect in relation to articles—

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

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

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

Alteration

3

• (1) Where a commonhold association alters its articles at a time when the land specified in its articles is commonhold land, the alteration shall have no effect until the altered version is registered in accordance with this paragraph.

• (2) If the commonhold association makes an application under this sub-paragraph the Registrar shall arrange for altered articles to be kept in his custody, and referred to in the register, in place of the unaltered version.

• (3) An application under sub-paragraph (2) must be accompanied by a certificate given by the directors of the commonhold association that the altered articles comply with regulations under paragraph 2(1).

• (4) Where the Registrar amends the register on an application under sub-paragraph (2) he shall make any consequential amendments to the register which he thinks appropriate.

Disapplication of Companies Act 1985

4

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

Part 2 — Membership

Pre-commonhold period

5

During the period beginning with incorporation of a commonhold association and ending when land specified in its articles becomes commonhold land, the subscribers (or subscriber) to the association's memorandum of association shall be the sole members (or member) of the association.

Transitional period

6

• (1) This paragraph applies to a commonhold association during a transitional period.

• (2) The subscribers (or subscriber) to the association's memorandum of association shall continue to be members (or the member) of the association.

• (3) A person who for the time being is the developer in respect of all or part of the commonhold is entitled to be entered in the register of members of the association.

Unit-holders

7

A person is entitled to be entered in the register of members of a commonhold association if he becomes the unit-holder of a commonhold unit in relation to which the association exercises functions—

• (a) on the unit becoming commonhold land by registration with unit-holders under section 9, or

• (b) on the transfer of the unit.

Joint unit-holders

8

• (1) This paragraph applies where two or more persons become joint unit-holders of a commonhold unit—

• (a) on the unit becoming commonhold land by registration with unit-holders under section 9, or

• (b) on the transfer of the unit.

• (2) If the joint unit-holders nominate one of themselves for the purpose of this sub-paragraph, he is entitled to be entered in the register of members of the commonhold association which exercises functions in relation to the unit.

• (3) A nomination under sub-paragraph (2) must—

• (a) be made in writing to the commonhold association, and

• (b) be received by the association before the end of the prescribed period.

• (4) If no nomination is received by the association before the end of the prescribed period the person whose name appears first in the proprietorship register is on the expiry of that period entitled to be entered in the register of members of the association.

• (5) On the application of a joint unit-holder the court may order that a joint unit-holder is entitled to be entered in the register of members of a commonhold association in place of a person who is or would be entitled to be registered by virtue of sub-paragraph (4).

• (6) If joint unit-holders nominate one of themselves for the purpose of this sub-paragraph, the nominated person is entitled to be entered in the register of members of the commonhold association in place of the person entered by virtue of—

• (a) sub-paragraph (2),

• (b) sub-paragraph (5), or

• (c) this sub-paragraph.

Self-membership

9

A commonhold association may not be a member of itself.

No other members

10

A person may not become a member of a commonhold association otherwise than by virtue of a provision of this Schedule.

Effect of registration

11

A person who is entitled to be entered in the register of members of a commonhold association becomes a member when the company registers him in pursuance of its duty under section 113 of the Companies Act 2006 (duty to maintain register of members).

Termination of membership

12

Where a member of a commonhold association ceases to be a unit-holder or joint unit-holder of a commonhold unit in relation to which the association exercises functions—

• (a) he shall cease to be a member of the commonhold association, but

• (b) paragraph (a) does not affect any right or liability already acquired or incurred in respect of a matter relating to a time when he was a unit-holder or joint unit-holder.

13

A member of a commonhold association may resign by notice in writing to the association if (and only if) he is a member by virtue of paragraph 5 or 6 of this Schedule (and not also by virtue of any other paragraph).

Register of members

14

• (1) Regulations may make provision about the performance by a commonhold association of its duty under section 113 of the Companies Act 2006 (duty to maintain register of members) where a person—

• (a) becomes entitled to be entered in the register by virtue of paragraphs 5 to 8, or

• (b) ceases to be a member by virtue of paragraph 12 or on resignation.

• (2) The regulations may in particular require entries in the register to be made within a specified period.

• (3) A period specified under sub-paragraph (2) may be expressed to begin from—

• (a) the date of a notification under section 15(3),

• (b) the date on which the directors of the commonhold association first become aware of a specified matter, or

• (c) some other time.

• (4) A requirement by virtue of this paragraph shall be treated as a requirement of section 113 for the purposes of section 113(7) and (8) (offences).

Companies Act 1985

15

• (1) Section 112(1) of the Companies Act 2006 (initial members of company) applies to a commonhold association subject to the provisions of this Schedule.

• (2) The following provisions of that Act do not apply to a commonhold association—

• section 112(2) (new members);

• section 136 (membership of holding company).

Part 3 — Miscellaneous

Name

16

Regulations may provide—

• (a) that the name by which a commonhold association is registered under the Companies Act 2006 must satisfy specified requirements;

• (b) that the name by which a company other than a commonhold association is registered may not include a specified word or expression.

Statutory declaration

17

For the purposes of section 13 of the Companies Act 2006 (registration: statement of compliance) as it applies to a commonhold association, a reference to the requirements of that Act shall be treated as including a reference to a provision of or made under this Schedule.

SCHEDULE 4

Introductory

1

This Schedule sets out the matters which are development business for the purposes of section 58.

Works

2

The completion or execution of works on—

• (a) a commonhold,

• (b) land which is or may be added to a commonhold, or

• (c) land which has been removed from a commonhold.

Marketing

3

• (1) Transactions in commonhold units.

• (2) Advertising and other activities designed to promote transactions in commonhold units.

Variation

4

The addition of land to a commonhold.

5

The removal of land from a commonhold.

6

Amendment of a commonhold community statement (including amendment to redefine the extent of a commonhold unit).

Commonhold association

7

Appointment and removal of directors of a commonhold association.

SCHEDULE 5

Law of Property Act 1922 (c. 16)

1

At the end of paragraph 5 of Schedule 15 to the Law of Property Act 1922 (perpetually renewable leases) (which becomes sub-paragraph (1)) there shall be added—

(2) Sub-paragraph (3) applies where a grant— (a) relates to commonhold land, and (b) would take effect by virtue of sub-paragraph (1) as a demise for a term of two thousand years or a subdemise for a fixed term. (3) The grant shall be treated as if it purported to be a grant of the term referred to in sub-paragraph (2)(b) (and sections 17 and 18 of the Commonhold and Leasehold Reform Act 2002 (residential and non-residential leases) shall apply accordingly).

Law of Property Act 1925 (c. 20)

2

After section 101(1) of the Law of Property Act 1925 (mortgagee’s powers) there shall be added—

(1A) Subsection (1)(i) is subject to section 21 of the Commonhold and Leasehold Reform Act 2002 (no disposition of part-units)

.

3

At the end of section 149 of that Act (90-year term in place of certain determinable terms) there shall be added—

(7) Subsection (8) applies where a lease, underlease or contract— (a) relates to commonhold land, and (b) would take effect by virtue of subsection (6) as a lease, underlease or contract of the kind mentioned in that subsection. (8) The lease, underlease or contract shall be treated as if it purported to be a lease, underlease or contract of the kind referred to in subsection (7)(b) (and sections 17 and 18 of the Commonhold and Leasehold Reform Act 2002 (residential and non-residential leases) shall apply accordingly).

Limitation Act 1980 (c. 58)

4

After section 19 of the Limitation Act 1980 (actions for rent) there shall be inserted—

(19A) An action in respect of a right or duty of a kind referred to in section 37(1) of the Commonhold and Leasehold Reform Act 2002 (enforcement) shall not be brought after the expiration of six years from the date on which the cause of action accrued.

Housing Act 1985 (c. 68)

5

At the end of section 118 of the Housing Act 1985 (the right to buy) there shall be added—

(3) For the purposes of this Part, a dwelling-house which is a commonhold unit (within the meaning of the Commonhold and Leasehold Reform Act 2002) shall be treated as a house and not as a flat.

Insolvency Act 1986 (c. 45)

6

At the end of section 84 of the Insolvency Act 1986 (voluntary winding-up) there shall be added—

(4) This section has effect subject to section 43 of the Commonhold and Leasehold Reform Act 2002.

Law of Property (Miscellaneous Provisions) Act 1994 (c. 36)

7

• (1) Section 5 of the Law of Property (Miscellaneous Provisions) Act 1994 (discharge of obligations) shall be amended as follows.

• (2) In subsection (1) for the words “or of leasehold land” substitute “ of leasehold land or of a commonhold unit ”.

• (3) After subsection (3) insert—

(3A) If the property is a commonhold unit, there shall be implied a covenant that the mortgagor will fully and promptly observe and perform all the obligations under the commonhold community statement that are for the time being imposed on him in his capacity as a unit-holder or as a joint unit-holder.

• (4) For subsection (4) substitute—

(4) In this section— (a) “commonhold community statement”, “commonhold unit”, “joint unit-holder” and “unit-holder” have the same meanings as in the Commonhold and Leasehold Reform Act 2002, and (b) “mortgage” includes charge, and “mortgagor” shall be construed accordingly.

Trusts of Land and Appointment of Trustees Act 1996 (c. 47)

8

At the end of section 7 of the Trusts of Land and Appointment of Trustees Act 1996 (partition by trustees) there shall be added—

(6) Subsection (1) is subject to sections 21 (part-unit: interests) and 22 (part-unit: charging) of the Commonhold and Leasehold Reform Act 2002.

SCHEDULE 6

Buildings with substantial non-residential parts

1

• (1) This Chapter does not apply to premises falling within section 72(1) if the internal floor area—

• (a) of any non-residential part, or

• (b) (where there is more than one such part) of those parts (taken together),

exceeds 50% of the internal floor area of the premises (taken as a whole).

• (2) A part of premises is a non-residential part if it is neither—

• (a) occupied, or intended to be occupied, for residential purposes, nor

• (b) comprised in any common parts of the premises.

• (3) Where in the case of any such premises any part of the premises (such as, for example, a garage, parking space or storage area) is used, or intended for use, in conjunction with a particular dwelling contained in the premises (and accordingly is not comprised in any common parts of the premises), it shall be taken to be occupied, or intended to be occupied, for residential purposes.

• (4) For the purpose of determining the internal floor area of a building or of any part of a building, the floor or floors of the building or part shall be taken to extend (without interruption) throughout the whole of the interior of the building or part, except that the area of any common parts of the building or part shall be disregarded.

Buildings with self-contained parts in different ownership

2

Where different persons own the freehold of different parts of premises falling within section 72(1), this Chapter does not apply to the premises if any of those parts is a self-contained part of a building.

Premises with resident landlord and no more than four units

3

• (1) This Chapter does not apply to premises falling within section 72(1) if the premises—

• (a) have a resident landlord, and

• (b) do not contain more than four units.

• (2) Premises have a resident landlord if—

• (a) the premises are not, and do not form part of, a purpose-built block of flats (that is, a building which, as constructed, contained two or more flats),

• (b) a relevant freeholder, or an adult member of a relevant freeholder’s family, occupies a qualifying flat as his only or principal home, and

• (c) sub-paragraph (4) or (5) is satisfied.

• (3) A person is a relevant freeholder, in relation to any premises, if he owns the freehold of the whole or any part of the premises.

• (4) This sub-paragraph is satisfied if—

• (a) the relevant freeholder, or

• (b) the adult member of his family,

has throughout the last twelve months occupied the flat as his only or principal home.

• (5) This sub-paragraph is satisfied if—

• (a) immediately before the date when the relevant freeholder acquired his interest in the premises, the premises were premises with a resident landlord, and

• (b) he, or an adult member of his family, entered into occupation of the flat during the period of 28 days beginning with that date and has occupied the flat as his only or principal home ever since.

• (6) “Qualifying flat”, in relation to any premises and a relevant freeholder or an adult member of his family, means a flat or other unit used as a dwelling—

• (a) which is contained in the premises, and

• (b) the freehold of the whole of which is owned by the relevant freeholder.

• (7) Where the interest of a relevant freeholder in any premises is held on trust, the references in sub-paragraphs (2), (4) and (5)(b) to a relevant freeholder are to a person having an interest under the trust (whether or not also a trustee).

• (8) A person is an adult member of another’s family if he is—

• (a) the other’s spouse or civil partner,

• (b) a son, daughter, son-in-law or daughter-in-law of the other, or of the other’s spouse or civil partner, who has attained the age of 18, or

• (c) the father or mother of the other or of the other’s spouse or civil partner;

and “son” and “daughter” include stepson and stepdaughter (“son-in-law” and “daughter-in-law” being construed accordingly).

Premises owned by local housing authority

4

• (1) This Chapter does not apply to premises falling within section 72(1) if a local housing authority is the immediate landlord of any of the qualifying tenants of flats contained in the premises.

• (2) “Local housing authority” has the meaning given by section 1 of the Housing Act 1985 (c. 68).

Premises in relation to which rights previously exercised

5

• (1) This Chapter does not apply to premises falling within section 72(1) at any time if—

• (a) the right to manage the premises is at that time exercisable by a RTM company, or

• (b) that right has been so exercisable but has ceased to be so exercisable less than four years before that time.

• (2) Sub-paragraph (1)(b) does not apply where the right to manage the premises ceased to be exercisable by virtue of section 73(5).

• (3) The appropriate tribunal may, on an application made by a RTM company, determine that sub-paragraph (1)(b) is not to apply in any case if it considers that it would be unreasonable for it to apply in the circumstances of the case.

SCHEDULE 7

Covenants not to assign etc.

1

• (1) Section 19 of the Landlord and Tenant Act 1927 (c. 36) (covenants not to assign without approval etc.) has effect with the modifications provided by this paragraph.

• (2) Subsection (1) applies as if—

• (a) the reference to the landlord, and

• (b) the final reference to the lessor,

were to the RTM company.

• (3) Subsection (2) applies as if the reference to the payment of a reasonable sum in respect of any damage to or diminution in the value of the premises or neighbouring premises belonging to the landlord were omitted.

• (4) Subsection (3) applies as if—

• (a) the first and final references to the landlord were to the RTM company, and

• (b) the reference to the right of the landlord to require payment of a reasonable sum in respect of any damage to or diminution in the value of the premises or neighbouring premises belonging to him were omitted.

Defective premises

2

• (1) Section 4 of the Defective Premises Act 1972 (c. 35) (landlord’s duty of care by virtue of obligation or right to repair demised premises) has effect with the modifications provided by this paragraph.

• (2) References to the landlord (apart from the first reference in subsections (1) and (4)) are to the RTM company.

• (3) The reference to the material time is to the acquisition date.

Repairing obligations

3

• (1) The obligations imposed on a lessor by virtue of section 11 (repairing obligations in short leases) of the Landlord and Tenant Act 1985 (c. 70) (referred to in this Part as “the 1985 Act”) are, so far as relating to any lease of any flat or other unit contained in the premises, instead obligations of the RTM company.

• (2) The RTM company owes to any person who is in occupation of a flat or other unit contained in the premises otherwise than under a lease the same obligations as would be imposed on it by virtue of section 11 if that person were a lessee under a lease of the flat or other unit.

• (3) But sub-paragraphs (1) and (2) do not apply to an obligation to the extent that it relates to a matter concerning only the flat or other unit concerned.

• (4) The obligations imposed on the RTM company by virtue of sub-paragraph (1) in relation to any lease are owed to the lessor (as well as to the lessee).

• (5) Subsections (3A) to (5) of section 11 have effect with the modifications that are appropriate in consequence of sub-paragraphs (1) to (3).

• (6) The references in subsection (6) of section 11 to the lessor include the RTM company; and a person who is in occupation of a flat or other unit contained in the premises otherwise than under a lease has, in relation to the flat or other unit, the same obligation as that imposed on a lessee by virtue of that subsection.

• (7) The reference to the lessor in section 12(1)(a) of the 1985 Act (restriction on contracting out of section 11) includes the RTM company.

Service charges

4

• (1) Sections 18 to 30 of the 1985 Act (service charges) have effect with the modifications provided by this paragraph.

• (2) References to the landlord are to the RTM company.

• (3) References to a tenant of a dwelling include a person who is landlord under a lease of the whole or any part of the premises (so that sums paid by him in pursuance of section 103 of this Act are service charges).

• (4) Section 22(5) applies as if paragraph (a) were omitted and the person referred to in paragraph (b) were a person who receives service charges on behalf of the RTM company.

• (5) Section 26 does not apply.

Right to request information on insurance

5

• (1) Section 30A of, and the Schedule to, the 1985 Act (rights of tenants with respect to insurance) have effect with the modifications provided by this paragraph.

• (2) References to the landlord are to the RTM company.

• (3) References to a tenant include a person who is landlord under a lease of the whole or any part of the premises and has to make payments under section 103 of this Act.

• (4) Paragraphs 2(3) and 3(3) of the Schedule apply as if paragraph (a) were omitted and the person referred to in paragraph (b) were a person who receives service charges on behalf of the RTM company.

Managing agents

6

Section 30B of the 1985 Act (recognised tenants’ associations to be consulted about landlord’s managing agents) has effect as if references to the landlord were to the RTM company (and as if subsection (6) were omitted).

Right of first refusal

7

Where section 5 of the 1987 Act (right of first refusal: requirement that landlord serve offer notice on tenant) requires the landlord to serve an offer notice on the qualifying tenants of the flats contained in the premises, he must serve a copy of the offer notice on the RTM company.

Appointment of manager

8

• (1) Part 2 of the 1987 Act (appointment of manager by ... tribunal) has effect with the modifications provided by this paragraph.

• (2) References to the landlord are to the RTM company.

• (3) References to a tenant of a flat contained in the premises include a person who is landlord under a lease of the whole or any part of the premises.

• (4) Section 21(3) (exception for premises where landlord is exempt or resident or where premises are functional land of a charity) does not apply.

• (5) The references in paragraph (a)(i) of subsection (2) of section 24 to any obligation owed by the RTM company to the tenant under his tenancy include any obligations of the RTM company under this Act.

• (6) And the circumstances in which the appropriate tribunal may make an order under paragraph (b) of that subsection include any in which the RTM company no longer wishes the right to manage the premises to be exercisable by it.

• (7) The power in section 24 to make an order appointing a manager to carry out functions includes a power (in the circumstances specified in subsection (2) of that section) to make an order that the right to manage the premises is to cease to be exercisable by the RTM company.

• (8) And such an order may include provision with respect to incidental and ancillary matters (including, in particular, provision about contracts to which the RTM company is a party and the prosecution of claims in respect of causes of action, whether tortious or contractual, accruing before or after the right to manage ceases to be exercisable).

Right to acquire landlord’s interest

9

Part 3 of the 1987 Act (compulsory acquisition by tenants of landlord’s interest) does not apply.

Variation of leases

10

Sections 35, 36, 38 and 39 of the 1987 Act (variation of long leases relating to flats) have effect as if references to a party to a long lease (apart from those in section 38(8)) included the RTM company.

Service charges to be held in trust

11

• (1) Sections 42 to 42B of the 1987 Act (service charge contributions to be held in trust and in designated account) have effect with the modifications provided by this paragraph.

• (2) References to the payee are to the RTM company.

• (3) The definition of “tenant” in section 42(1) does not apply.

• (4) References to a tenant of a dwelling include a person who is landlord under a lease of the whole or any part of the premises.

• (5) The reference in section 42(2) to sums paid to the payee by the contributing tenants by way of relevant service charges includes payments made to the RTM company under section 94 or 103 of this Act.

• (6) Section 42A(5) applies as if paragraph (a) were omitted and the person referred to in paragraph (b) were a person who receives service charges on behalf of the RTM company.

Information to be furnished to tenants

12

• (1) Sections 46 to 48 of the 1987 Act (information to be furnished to tenants) have effect with the modifications provided by this paragraph.

• (2) References to the landlord include the RTM company.

• (3) References to a tenant include a person who is landlord under a lease of the whole or any part of the premises; and in relation to such a person the reference in section 47(4) to sums payable to the landlord under the terms of the tenancy are to sums paid by him under section 103 of this Act.

Statutory duties relating to certain covenants

13

• (1) The Landlord and Tenant Act 1988 (c. 26) (statutory duties in connection with covenants against assigning etc.) has effect with the modifications provided by this paragraph.

• (2) The reference in section 1(2)(b) to the covenant is to the covenant as it has effect subject to section 98 of this Act.

• (3) References in section 3(2), (4) and (5) to the landlord are to the RTM company.

Tenants' right to management audit

14

• (1) Chapter 5 of Part 1 (tenants’ right to management audit by landlord) of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (referred to in this Part as “the 1993 Act”) has effect with the modifications provided by this paragraph.

• (2) References to the landlord (other than the references in section 76(1) and (2) to “the same landlord”) are to the RTM company.

• (3) References to a tenant include a person who is landlord under a lease of the whole or any part of the premises and has to make payments under section 103 of this Act.

• (4) Section 80(5) applies as if the reference to a person who receives rent were to a person who receives service charges.

Right to appoint surveyor

15

• (1) Section 84 of the Housing Act 1996 (c. 52) and Schedule 4 to that Act (apart from paragraph 7) (right of recognised tenants’ association to appoint surveyor to advise on matters relating to service charges) have effect as if references to the landlord were to the RTM company.

• (2) Section 84(5) and paragraph 4(5) of Schedule 4 apply as if the reference to a person who receives rent were to a person who receives service charges.

Administration charges

16

Schedule 11 to this Act has effect as if references to the landlord (or a party to a lease) included the RTM company.

SCHEDULE 8

Land Compensation Act 1973 (c. 26)

1

• (1) Section 12A of the Land Compensation Act 1973 (tenants participating in collective enfranchisement or entitled to individual lease extension) is amended as follows.

• (2) In subsection (2)(b)—

• (a) in sub-paragraph (i), for “participating tenant in relation to” substitute “ participating member of a RTE company which is making ”, and

• (b) in sub-paragraph (ii), for the words from “one” to “made” substitute “ a member of a RTE company which has made an acquisition ”.

• (3) In subsection (4), for “nominee purchaser” substitute “ RTE company ”.

• (4) In subsection (9), for paragraph (b) substitute—

(b) “participating member” and “RTE company” have the same meanings as in Chapter 1 of Part 1 of that Act; and (c) the reference to the making of an acquisition by a RTE company shall be construed in accordance with section 38(2) of that Act.

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

2

The 1993 Act has effect subject to the following amendments.

3

• (1) Section 1 (right to collective enfranchisement) is amended as follows.

• (2) In subsection (1), for the words from “on qualifying tenants” to the end of paragraph (b) substitute “ the right to acquire the freehold of premises to which this Chapter applies on the relevant date, at a price determined in accordance with this Chapter, exercisable subject to and in accordance with this Chapter by a company (referred to in this Chapter as a RTE company) of which qualifying tenants of flats contained in the premises are members; ”.

• (3) In subsection (2)(a), for the words from “the qualifying tenants” to “have acquired,” substitute “ the RTE company by which the right to collective enfranchisement is exercised is entitled, subject to and in accordance with this Chapter, to acquire, ”.

• (4) In subsection (5)—

• (a) for “qualifying tenants” substitute “ a RTE company ”, and

• (b) for “those tenants are” substitute “ the RTE company is ”.

4

For section 2(1) (acquisition of leasehold interests) substitute—

(1) Where the right to collective enfranchisement is exercised by a RTE company in relation to any premises to which this Chapter applies (“the relevant premises”), then, subject to and in accordance with this Chapter— (a) there shall be acquired by the RTE company every interest to which this paragraph applies by virtue of subsection (2); and (b) the RTE company shall be entitled to acquire any interest to which this paragraph applies by virtue of subsection (3); and any interest which the RTE company so acquires shall be acquired in the manner mentioned in section 1(1).

5

In section 11(4) (right of qualifying tenant to obtain information about superior interests), for “by the tenant in connection with the making” substitute “ in connection with the making by a RTE company ”.

6

• (1) Section 13 (initial notice) is amended as follows.

• (2) In subsection (3)—

• (a) in paragraph (e), after “premises” insert “ who are participating members of the RTE company ”, and

• (b) for paragraph (f) substitute—

(f) state the name and registered office of the RTE company;

.

• (3) After subsection (5) insert—

(5A) A copy of a notice under this section must be given to each person who at the relevant date is the qualifying tenant of a flat contained in the premises specified under subsection (3)(a)(i).

• (4) In subsection (11), for “nominee purchaser” substitute “ RTE company ”.

• (5) In subsection (13), for “contains restrictions on participating in the exercise of the right to collective enfranchisement” substitute “ specifies circumstances in which the fact that a qualifying tenant is a member of a RTE company is to be disregarded when considering whether the requirement in subsection (2)(b) is satisfied ”.

7

• (1) Section 17 (access for valuation purposes) is amended as follows.

• (2) In subsection (1), for “nominee purchaser” substitute “ RTE company ”.

• (3) In subsection (2)—

• (a) for “nominee purchaser” (in both places) substitute “ RTE company ”, and

• (b) for “his” substitute “ its ”.

8

• (1) Section 18 (duty to disclose existence of agreements affecting premises etc.) is amended as follows.

• (2) In subsection (1)—

• (a) for “nominee purchaser”, in the first and last place, substitute “ RTE company ”, and

• (b) for “tenant”, in the first place, substitute “ member ”.

• (3) In subsection (2)—

• (a) for “nominee purchaser” (in each place) substitute “ RTE company ”, and

• (b) for “tenants” substitute “ members ”.

9

• (1) Section 20 (right of reversioner to require evidence of tenant’s right to participate) is amended as follows.

• (2) In subsection (1), for “nominee purchaser a notice requiring him, in the case of any person by whom the initial notice was given, to deduce the title of that person” substitute “ RTE company a notice requiring it, in the case of any qualifying tenant of a flat contained in the specified premises who was a participating member of the company at the relevant time, to deduce the title of that qualifying tenant ”.

• (3) In subsection (2), for “nominee purchaser” substitute “ RTE company ”.

• (4) In subsection (3)—

• (a) for “nominee purchaser” (in both places) substitute “ RTE company ”,

• (b) for “person” (in each place) substitute “ qualifying tenant ”, and

• (c) for “included among the persons who gave the notice” substitute “ members of the RTE company ”.

10

• (1) Section 21 (reversioner’s counter notice) is amended as follows.

• (2) In subsection (1), for “nominee purchaser” substitute “ RTE company ”.

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

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

• (5) In subsection (4)—

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

• (b) for “by the nominee purchaser” substitute “ by the RTE company ”.

• (6) In subsection (5)—

• (a) for “nominee purchaser” (in both places) substitute “ RTE company ”,

• (b) for “his” substitute “ its ”, and

• (c) for “him” substitute “ it ”.

11

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

• (2) In subsection (1)—

• (a) in paragraph (a), for “nominee purchaser” substitute “ RTE company ”, and

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

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

12

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

13

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

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

• (3) In subsection (2), for “nominee purchaser” substitute “ RTE company ”.

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

• (5) In subsection (4)—

• (a) for “nominee purchaser” (in both places) substitute “ RTE company ”, and

• (b) for “him” (in both places) substitute “ it ”.

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

14

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

• (2) In subsection (1), for—

• (a) “nominee purchaser” (in each place), and

• (b) “he”,

substitute “ RTE company ”.

• (3) In subsection (3), for “participating tenants were” substitute “ RTE company was ”.

• (4) In subsections (4) and (5), for “nominee purchaser” substitute “ RTE company ”.

• (5) In subsection (6)—

• (a) for “nominee purchaser” (in both places) substitute “ RTE company ”, and

• (b) for “him” (in both places) substitute “ it ”.

15

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

• (2) In subsection (1)—

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

• (b) for “qualifying tenants in question” substitute “ RTE company ”, and

• (c) for “on behalf of those tenants” substitute “ by the RTE company ”.

• (3) In subsection (2)—

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

• (b) for “qualifying tenants in question” substitute “ RTE company ”.

• (4) In subsection (3), for “those tenants” substitute “ the RTE company ”.

• (5) In subsection (3A)—

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

• (b) for “qualifying tenants in question” substitute “ RTE company ”.

• (6) In subsection (4)—

• (a) for “applicants” substitute “ RTE company ”, and

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

• (7) In subsection (5)—

• (a) for “applicants” (in both places) substitute “ RTE company ”, and

• (b) for “their” substitute “ its ”.

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

• (9) In subsection (9), for “persons making the application on any person who the applicants know or have” substitute “ RTE company on any person who it knows or has ”.

16

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

• (2) In subsection (1)—

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

• (b) for “that person or those persons” substitute “ the RTE company ”,

• (c) for “applicants had” substitute “ RTE company had ”, and

• (d) for “their” (in both places) substitute “ its ”.

• (3) In subsection (3)—

• (a) for “any person or persons” substitute “ the RTE company ”,

• (b) for “his or their” substitute “ its ”, and

• (c) for “person or persons to whom the conveyance is made” substitute “ RTE company ”.

• (4) In subsection (6)—

• (a) for “any person or persons” substitute “ the RTE company ”, and

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

• (5) In subsection (7)—

• (a) for “any person or persons” substitute “ the RTE company ”, and

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

17

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

• (2) In subsection (1), for “participating tenants” substitute “ RTE company ”.

• (3) For subsection (2) substitute—

(2) A notice of withdrawal must be given to— (a) each person who is the qualifying tenant of a flat contained in the specified premises; (b) the reversioner in respect of the specified premises; and (c) every other relevant landlord who has given to the RTE company a notice under paragraph 7(1) or (4) of Schedule 1.

• (4) In subsection (4), for the words from “participating tenants” to the end of paragraph (b) substitute

RTE company under subsection (1)— (a) the company, and (b) (subject to subsection (5)) every person who is, or has at any time been, a participating member of the company,

.

• (5) In subsection (5)—

• (a) in paragraph (a), for “participating” substitute “ qualifying ”,

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

• (c) for “shall be construed in accordance with section 14(10)” substitute “ includes an assent by personal representatives, and assignment by operation of law where the assignment is to a trustee in bankruptcy or to a mortgagee under section 89(2) of the Law of Property Act 1925 (c. 20) (foreclosure of leasehold mortgage) ”.

• (6) In subsections (6) and (7), for “nominee purchaser” substitute “ RTE company ”.

• (7) In the sidenote, for “participating tenants” substitute “ RTE company ”.

18

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

• (2) After subsection (4) insert—

(4A) The initial notice shall be deemed to have been withdrawn if— (a) a winding-up order or an administration order is made, or a resolution for voluntary winding up is passed, with respect to the RTE company, (b) a receiver or a manager of the RTE company’s undertaking is duly appointed, or possession is taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the RTE company comprised in or subject to the charge, (c) a voluntary arrangement proposed in the case of the RTE company for the purposes of Part 1 of the Insolvency Act 1986 (c. 45) is approved under that Part of that Act, or (d) the RTE company’s name is struck off the register under section 652 or 652A of the Companies Act 1985 (c. 6).

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

19

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

20

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

• (2) In subsection (5)—

• (a) in paragraph (a), for “nominee purchaser” substitute “ RTE company ”, and

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

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

21

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

• (2) In subsection (1)—

• (a) for “nominee purchaser” substitute “ RTE company ”, and

• (b) for “him” substitute “ it ”.

• (3) In subsection (5)—

• (a) for “nominee purchaser” substitute “ RTE company ”,

• (b) for “him” substitute “ it ”, and

• (c) for “he” substitute “ it ”.

22

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

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

• (3) In subsection (3)—

• (a) for “nominee purchaser’s” substitute “ RTE company’s ”, and

• (b) for “him” substitute “ it ”.

• (4) In subsections (4) and (5), for “nominee purchaser” substitute “ RTE company ”.

23

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

24

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

25

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

• (2) In subsection (1)—

• (a) for “him” substitute “ it ”, and

• (b) for “nominee purchaser” substitute “ RTE company ”.

• (3) In subsection (2), for “nominee purchaser” substitute “ RTE company ”.

• (4) In the sidenote, for “Nominee purchaser” substitute “ RTE company ”.

26

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

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

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

27

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

• (2) In subsection (1), after the definition of “introductory tenancy” insert—

“participating member” has the meaning given by section 4B; “the notice of invitation to participate” means the notice given under section 12A;

.

• (3) In that subsection, after the definition of “the right to collective enfranchisement” insert—

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

.

• (4) In subsection (2), for—

• (a) “the nominee purchaser”, in the first place, substitute “ a RTE company ”, and

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

28

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

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

• (3) In subsection (5), for “nominee purchaser” substitute “ RTE company ”.

29

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

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

• (3) In subsection (11), for “nominee purchaser” substitute “ RTE company ”.

30

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

• (2) For “nominee purchaser” (in each place) substitute “ RTE company ”.

• (3) In subsection (3), for “him” substitute “ it ”.

31

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

• (2) In subsection (2), for “nominee purchaser” substitute “ RTE company ”.

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

32

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

• (2) In subsection (1)—

• (a) in paragraph (a), for “participate in the making of a claim to exercise” substitute “ be, or do any thing as, a member of a RTE company for the purpose of the exercise of ”,

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

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

• (3) In subsection (4)(a), for “participate in the making of a claim to exercise” substitute “ be, or do any thing as, a member of a RTE company for the purpose of the exercise of ”.

33

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

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

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

34

In section 97(1) (registration)—

• (a) for “the tenant” substitute “ a RTE company, tenant ”, and

• (b) for “a tenant” substitute “ a RTE company or tenant ”.

35

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

36

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

• (2) For “nominee purchaser” (in each place) substitute “ RTE company ”.

• (3) In paragraph 6(3), for “participating tenants” substitute “ RTE company ”.

37

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

• (2) In paragraphs 1, 2(1), 3(1) and (2) and 4(1), for “not participate in the giving of” substitute “ be disregarded when considering whether the requirement in section 13(2)(b) is satisfied in relation to ”.

• (3) In paragraph 3(3), for “to participate in the giving of such a notice of claim” substitute “ such a notice of claim to be given ”.

• (4) In paragraph 4(2)—

• (a) in paragraph (b), for “participating” substitute “ qualifying ”, and

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

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

• (6) In paragraph 7—

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

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

• (c) in sub-paragraph (2), for the words from “entitled” to the end substitute “ a member of the RTE company. ”

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

• (a) for “qualifying tenants” substitute “ RTE company ”, and

• (b) for “them” substitute “ it ”,

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

• (8) In paragraph 12A(1)—

• (a) for “qualifying tenants” substitute “ RTE company ”, and

• (b) for “them” substitute “ it ”.

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

• (10) In paragraph 14—

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

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

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

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

(16) Where any of the members of the RTE company by which an initial notice is given was not the qualifying tenant of a flat contained in the premises at the relevant date even though his name was stated in the notice, the notice is not invalidated on that account, so long as a sufficient number of qualifying tenants of flats contained in the premises were members of the company at that date; and for this purpose a “sufficient number” is a number (greater than one) which is not less than one-half of the total number of flats contained in the premises at that date.

38

In Schedule 4 (information to be furnished by reversioner about exercise of rights under Chapter 2), for “nominee purchaser” (in each place) substitute “ RTE company ”.

39

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

• (2) For “nominee purchaser” (in each place) substitute “ RTE company ”.

• (3) In paragraph 4, for “the participating tenants” substitute “ its members ”.

40

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

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

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

• (4) In paragraph 3(1)(c), for “the tenant” substitute “ the member ”.

• (5) In paragraph 4(2)—

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

• (b) for “participating tenants, once” substitute “ those participating members, once ”.

• (6) In paragraph 10(2), for “he” substitute “ it ”.

41

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

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

• (3) In paragraph 4, for “him” (in both places) substitute “ it ”.

42

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

• (2) For “nominee purchaser” (in each place) substitute “ RTE company ”.

• (3) In paragraph 3(1)—

• (a) for “any participating tenant” substitute “ any member of the RTE company ”, and

• (b) for “a participating tenant” substitute “ any of its members ”.

• (4) In paragraph 4(3), for “him” (in both places) substitute “ it ”.

43

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

SCHEDULE 9

Loans in respect of service charges

1

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

2

• (1) Section 450A (right to a loan in respect of service charges for repairs in certain cases after exercise of right to buy) is amended as follows.

• (2) In subsection (2), after “repairs” insert “ or improvements ”.

• (3) In subsection (5)(a), after “repairs” insert “ or improvements ”.

3

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

4

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

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

5

In section 459 (index of defined expressions for Part 14 of the Act), in the entry relating to “service charge”, for “section 621A” substitute “ section 458 ”.

6

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

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

Service charges

7

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

Appointment of manager

8

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

Right to acquire landlord’s interest

9

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

• (2) In subsection (2), in paragraph (a), omit “repair, maintenance, insurance or”.

• (3) After that subsection insert—

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

Tenants' right to management audit

10

In section 84 of the 1993 Act (interpretation of provisions concerning tenants’ right to management audit), in the definition of “management functions”, after “maintenance” insert “ , improvement ”.

Codes of management practice

11

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

• (a) in paragraph (a), after “maintenance” insert “ , improvement ”, and

• (b) in paragraph (c)(i), after “maintenance” insert “ , improvements ”.

Right to appoint surveyor

12

In paragraph 4(2) of Schedule 4 to the Housing Act 1996 (c. 52) (right of surveyor appointed by tenants’ association to inspect premises: meaning of management functions), after “maintenance” insert “ , improvement ”.

Power to amend certain provisions

13

An order amending—

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

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

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

SCHEDULE 10

Information held by superior landlord

1

For section 23 of the 1985 Act (information held by superior landlord) substitute—

(23) (1) If a statement of account which the landlord is required to supply under section 21 relates to matters concerning a superior landlord and the landlord is not in possession of the relevant information— (a) he may by notice in writing require the person who is his landlord to give him the relevant information (and so on, if that person is not himself the superior landlord), and (b) the superior landlord must comply with the requirement within a reasonable time. (2) If a notice under section 22 imposes a requirement in relation to documents held by a superior landlord— (a) the landlord shall immediately inform the tenant or secretary of that fact and of the name and address of the superior landlord, and (b) section 22 then applies in relation to the superior landlord (as in relation to the landlord).

Change of landlord

2

After that section insert—