Leasehold and Freehold Reform Act 2024

Pt.1

Leasehold houses

Pt.1(crossheading)(ban)(on)(grant)(or)(assignment)(of)(certain)(long)(residential)(leases)(of)(houses)

Ban on grant or assignment of certain long residential leases of houses

s.1

Ban on grant or assignment of certain long residential leases of houses

s.1(1)

A person may not grant or enter into an agreement to grant a long residential lease of a house on or after the day on which this section comes into force, unless it is a permitted lease (see section 7).

s.1(2)

A person may not assign or enter into an agreement to assign the whole or a part of a lease which was granted on or after the day on which this section comes into force if—

s.1(2)(a)

at the time of the assignment the lease is a long residential lease of a house, but

s.1(2)(b)

at the time of the grant the lease was not a long residential lease of a house.

s.1(3)

This section does not affect—

s.1(3)(a)

the validity of a lease granted, or an assignment entered into, in breach of this section, and does not affect the powers of a person to grant or assign such a lease (whether under section 23(1) of the Land Registration Act 2002 or otherwise);

s.1(3)(b)

any contractual rights of a party to an agreement entered into in breach of this section.

Pt.1(crossheading)(key)(definitions)

Key definitions

s.2

Long residential leases of houses

s.2(1)

A lease is a “long residential lease of a house” if conditions A to C are met in relation to the lease.

s.2(2)

Condition A: the lease has a long term (see sections 3 and 4).

s.2(3)

Condition B: the lease demises one house (see section 5), with or without appurtenant property, and nothing else.

s.2(4)

Condition C: the lease is a residential lease (see section 6).

s.3

Leases which have a long term

s.3(1)

A lease has a “long term” in any of cases A to D.

s.3(2)

Case A: the lease is granted for a term certain exceeding 21 years.

s.3(3)

Case B: section 149(6) of the Law of Property Act 1925 applies to the lease (lease granted for life or until marriage or civil partnership) and the lease accordingly takes effect with a term fixed by law.

s.3(4)

Case C: the lease is granted with a covenant or obligation for perpetual renewal and accordingly takes effect with a term fixed by law - unless it is a sub-lease with a term fixed by law of 21 years or shorter.

s.3(5)

Case D: the lease is capable of forming part of a series of leases whose terms would extend beyond 21 years (see section 4).

s.3(6)

In determining whether a lease has a long term, it is irrelevant if the lease is, or may become, terminable by notice, re-entry or forfeiture.

s.4

Series of leases whose term would extend beyond 21 years

s.4(1)

A lease (“the original lease”) is “capable of forming part of a series of leases whose terms would extend beyond 21 years” if conditions A to C are met at the time when the original lease is granted.

s.4(2)

Condition A: the original lease does not have a long term under section 3(2), (3) or (4).

s.4(3)

Condition B: provision for the grant of another lease of the same house (the “new lease”) is included in—

s.4(3)(a)

the original lease, or

s.4(3)(b)

any related arrangements.

s.4(4)

Condition C: the total duration of— would exceed 21 years.

s.4(4)(a)

the term of the original lease,

s.4(4)(b)

the term of the new lease (if granted), and

s.4(4)(c)

the term or terms of any subsequent leases (if granted),

s.4(5)

In a case where the provision for the grant of the new lease, or for the grant of any subsequent lease, allows for the possibility of the term of the lease being one of a number of differing durations, the reference in condition C to the term of the lease is to the longest of those possible durations.

s.4(6)

A lease is a “lease of the same house” if the lease demises one house, being the house comprised in the original lease, with or without any appurtenant property, and nothing else.

s.4(7)

Arrangements are “related arrangements” if they are entered into in connection with the grant of the original lease (whether or not they are entered into in writing).

s.4(8)

A lease is a “subsequent lease” if—

s.4(8)(a)

it is not the new lease,

s.4(8)(b)

it is a lease of the same house, and

s.4(8)(c)

provision for the grant of the lease—

s.4(8)(c)(i)

is included in the original lease or any related arrangements,

s.4(8)(c)(ii)

would be included in the new lease (if granted), or

s.4(8)(c)(iii)

would be included in any other lease that (if granted) would itself be a subsequent lease.

s.5

Houses

s.5(1)

A “house” is a separate set of premises (on one or more floors) which—

s.5(1)(a)

forms the whole, or part, of a building, and

s.5(1)(b)

is constructed or adapted for use for the purposes of a dwelling.

s.5(2)

But where the separate set of premises forms part of a building, it is not a house if the whole of or a material part of the set of premises lies above or below some other part of the building.

s.6

Residential leases

A lease is a “residential lease” if it is a lease of a house and the terms of the lease do not prevent the house from being occupied under that lease as a separate dwelling.

s.7

Permitted leases

A lease is a “permitted lease” if—

s.7(a)

it is a long residential lease of a house, and

s.7(b)

it falls into one or more of the categories set out in Schedule 1.

Pt.1(crossheading) reg.of(permitted)(leases)

Regulation of permitted leases

s.8

Permitted leases: certification by the appropriate tribunal

s.8(1)

The appropriate tribunal must, on an application by a person, issue a certificate (a “permitted lease certificate”) in relation to a new long residential lease of a house, where the tribunal is satisfied that the lease is or will be a permitted lease falling within Part 1 of Schedule 1.

s.8(2)

An application under this section may be made and determined whether or not the application includes a draft of the instrument creating the new lease.

s.8(3)

The appropriate tribunal may issue a permitted lease certificate on such terms and conditions as it considers appropriate, but the certificate must—

s.8(3)(a)

identify the house or the land on which the house will be built, and

s.8(3)(b)

state the category or categories set out in Part 1 of Schedule 1 into which the lease will fall.

s.8(4)

If an application under this section relates to two or more leases, the appropriate tribunal may issue just one certificate relating to some or all of those leases.

s.9

Permitted leases: marketing restrictions

s.9(1)

This section applies in relation to the marketing of a house where—

s.9(1)(a)

the house is to be comprised in a new lease, and

s.9(1)(b)

the lease will be a long residential lease of the house.

s.9(2)

A person (“a promoter”) may not make any material marketing the house to be comprised in the lease available to any person, unless the permitted lease information relating to the lease is included in or provided with that material.

s.9(3)

The “permitted lease information”, in relation to a lease, means—

s.9(3)(a)

if the lease falls or will fall into one or more of the categories set out in Part 1 of Schedule 1, a copy of the permitted lease certificate together with a statement identifying that category or those categories,

s.9(3)(b)

if to the best of the knowledge and belief of the promoter at the time the material is made available the lease falls or will fall into one or more of the categories set out in Part 2 of Schedule 1, a statement identifying that category or those categories, or

s.9(3)(c)

if both paragraphs (a) and (b) apply to the lease, the information required under both those paragraphs.

s.9(4)

“Marketing” includes any form of advertising or promotion.

s.10

Permitted leases: transaction warning conditions

s.10(1)

A person may not, on or after the day on which section 1 comes into force—

s.10(1)(a)

enter into an agreement to grant a permitted lease unless the transaction warning conditions are met in relation to the agreement, or

s.10(1)(b)

subject to subsection (5), grant a permitted lease unless the transaction warning conditions are met in relation to the lease.

s.10(2)

The “transaction warning conditions” are as follows—

s.10(2)(a)

at least 7 days before the relevant date the grantor must give a warning notice relating to the permitted lease—

s.10(2)(a)(i)

to the proposed tenant, or

s.10(2)(a)(ii)

where there is more than one proposed tenant, to each of them;

s.10(2)(b)

a notice of receipt of the warning notice must be given to the grantor—

s.10(2)(b)(i)

by the proposed tenant, or

s.10(2)(b)(ii)

where there is more than one proposed tenant, jointly by all of the proposed tenants;

s.10(2)(c)

a reference to the warning notice and the notice of receipt must be included in or endorsed on the relevant instrument in the specified manner.

s.10(3)

A “warning notice” is a notice provided in a specified form and manner and containing—

s.10(3)(a)

sufficient information to identify the house to be comprised in the lease,

s.10(3)(b)

if the lease falls within Part 1 of Schedule 1, a copy of the permitted lease certificate,

s.10(3)(c)

if the lease falls into one or more of the categories set out in Part 2 of Schedule 1, a statement identifying that category or those categories,

s.10(3)(d)

if both paragraphs (b) and (c) apply to the lease, the information required under both those paragraphs, and

s.10(3)(e)

such other information as may be specified.

s.10(4)

A “notice of receipt” is a notice provided in a specified form and manner and containing such information as may be specified.

s.10(5)

A person does not breach subsection (1) in relation to the grant of a lease if—

s.10(5)(a)

the person previously entered into an agreement to grant that lease,

s.10(5)(b)

the transaction warning conditions were met in relation to that agreement, and

s.10(5)(c)

a reference to the warning notice and the notice of receipt relating to that agreement is included in or endorsed on the instrument creating the lease.

s.10(6)

This section does not apply to the grant of a permitted lease which falls within paragraph 6 of Schedule 1 (leases agreed before commencement).

s.10(7)

This section does not affect—

s.10(7)(a)

the validity of a lease granted in breach of subsection (1), and does not affect the powers of a person to grant such a lease (whether under section 23(1) of the Land Registration Act 2002 or otherwise);

s.10(7)(b)

any contractual rights of a party to an agreement entered into in breach of subsection (1).

s.10(8)

In this section—

s.10(9)

A statutory instrument containing regulations under this section is subject to the negative procedure.

Pt.1(crossheading)(land)(registration)

Land registration

s.11

Prescribed statements in new long leases

s.11(1)

This section applies to a lease of land which—

s.11(1)(a)

has a long term, and

s.11(1)(b)

is granted on or after the day on which section 1 comes into force.

s.11(2)

If the lease is not a long residential lease of a house, the lease must include a statement to that effect.

s.11(3)

If the lease is a permitted lease, the lease must include a statement to that effect.

s.11(4)

A statement under subsection (2) or (3) must comply with such requirements as may be prescribed by land registration rules under the Land Registration Act 2002.

s.11(5)

This section does not apply to—

s.11(5)(a)

a lease with a long term only by virtue of falling within section 3(5);

s.11(5)(b)

a lease which takes effect as a deemed surrender and regrant of a lease.

s.12

Restriction on title

s.12(1)

Subsection (3) applies where—

s.12(1)(a)

the Chief Land Registrar approves an application for registration of a lease (the “registered lease”),

s.12(1)(b)

section 11 applies to the registered lease, but

s.12(1)(c)

the registered lease does not contain a statement made in accordance with subsection (2) or (3) of that section.

s.12(2)

An “application for registration of a lease” is an application for—

s.12(2)(a)

completion by registration of a disposition of registered land, if that disposition is the grant of a lease, or

s.12(2)(b)

registration of a lease within section 4(1)(c) of the Land Registration Act 2002.

s.12(3)

The Chief Land Registrar must enter in the register a restriction that no registrable disposition, other than the grant of a legal charge, of the registered lease is to be completed by registration.

s.12(4)

The restriction under subsection (3) may be removed if the registered lease is varied to include a statement made in accordance with section 11(2) or (3).

s.12(5)

Subsection (6) applies where—

s.12(5)(a)

a restriction has been entered in the register in accordance with subsection (3) in relation to a registered lease, and

s.12(5)(b)

the Chief Land Registrar approves an application for registration of a deed of variation relating to the lease by virtue of which a new lease takes effect as a deemed surrender and regrant of the lease.

s.12(6)

The Chief Land Registrar must enter in the register a restriction that no registrable disposition, other than the grant of a legal charge, of the new lease is to be completed by registration.

s.12(7)

The restriction under subsection (6) may be removed if the Chief Land Registrar is satisfied that the new lease—

s.12(7)(a)

is not a long residential lease of a house, or

s.12(7)(b)

is a permitted lease.

s.12(8)

An expression used in this section and in the Land Registration Act 2002 has the same meaning in this section as in that Act.

Pt.1(crossheading)(redress)

Redress

s.13

Redress: right to acquire a freehold or superior leasehold estate

s.13(1)

This section applies where a long residential lease of a house is granted or assigned in breach of section 1.

s.13(2)

The rights holder in relation to the lease has the right to acquire (for no consideration)—

s.13(2)(a)

the freehold estate in the land comprised in the lease, and

s.13(2)(b)

any superior leasehold estate or estates in that land.

s.13(3)

References in the rest of this section, and in sections 14 to 16, to the right to acquire are to be construed in accordance with subsection (2).

s.13(4)

The right to acquire the freehold or leasehold estate is exercisable against the person holding that estate for the time being (the “landlord”).

s.13(5)

The “rights holder”, in relation to a lease, means—

s.13(5)(a)

in a case where a mortgagee or chargee has for the time being the right to deal with the house comprised in the lease, that person, or

s.13(5)(b)

in any other case the tenant for the time being under the lease.

s.13(6)

In this section, “superior leasehold estate”, in relation to a long residential lease of a house, means a leasehold estate that is superior to the long residential lease.

s.14

Redress: application of the right to acquire

s.14(1)

Section 13 ceases to apply in relation to a long residential lease of a house if—

s.14(1)(a)

the term of the lease expires (but see subsection (2)), or

s.14(1)(b)

the lease otherwise ceases to exist.

s.14(2)

Where the term of the lease expires, section 13 continues to apply for as long as the lease is continued under a relevant enactment.

s.14(3)

Section 13 ceases to apply in relation to a long residential lease of a house if the tenant for the time being under the lease acquires the freehold estate and any superior leasehold estate or estates in the land comprised in the lease (whether or not by exercising the right to acquire).

s.14(4)

In subsection (2) “relevant enactment” means—

s.14(4)(a)

Part 1 of the Landlord and Tenant Act 1954, or

s.14(4)(b)

Schedule 10 to the Local Government and Housing Act 1989.

s.15

Redress: general provision

s.15(1)

A lease to which section 13 applies is not as a result of any right to acquire—

s.15(1)(a)

registrable under the Land Charges Act 1972, or

s.15(1)(b)

to be taken to be an estate contract within the meaning of that Act.

s.15(2)

An agreement relating to a long residential lease of a house (whether or not contained in the instrument creating the lease or made before the grant of the lease) is of no effect to the extent that it makes provision—

s.15(2)(a)

excluding or modifying the right to acquire, or

s.15(2)(b)

providing for the surrender or termination of the lease, or for the imposition of any penalty, in the event of the rights holder taking steps to exercise the right to acquire.

s.15(3)

Subsection (2) does not prevent a tenant under a long residential lease of a house from—

s.15(3)(a)

surrendering the lease,

s.15(3)(b)

terminating the lease, or

s.15(3)(c)

entering into an agreement to acquire the freehold estate in the land comprised in the lease, or any superior leasehold estate or estates in that land, other than by way of exercising the right to acquire.

s.15(4)

The right to acquire in relation to a long residential lease of a house is not capable of subsisting apart from the lease.

s.15(5)

In this section, “rights holder” has the meaning given by section 13.

s.16

Redress regulations: exercising and giving effect to the right to acquire

s.16(1)

The Secretary of State may by regulations (“redress regulations”) make provision for and in connection with the exercise of the rights holder’s right to acquire in relation to a long residential lease of a house.

s.16(2)

Redress regulations may, in particular, include provision for or in connection with—

s.16(2)(a)

the period within which the right to acquire must be exercised;

s.16(2)(b)

the giving of notice by the rights holder to the landlord or any other specified person for the purpose of exercising the right to acquire (including the form and manner in which, and the period within which, any such notice must be given);

s.16(2)(c)

registration under the Land Charges Act 1972 or the Land Registration Act 2002 of any notice given by virtue of paragraph (b);

s.16(2)(d)

the giving of notice by the landlord to the rights holder or any other specified person for the purpose of accepting or rejecting the rights holder’s right to acquire (including the form and manner in which, and the period within which, any such notice must be given);

s.16(2)(e)

the making by the appropriate tribunal or a court of an order on an application by a specified person determining whether or not, in the absence of agreement between the rights holder and the landlord, the rights holder has the right to acquire (including provision for the order to be made subject to such terms and conditions as the tribunal or court considers appropriate, including terms about costs);

s.16(2)(f)

further steps that must be taken by the rights holder (including the provision of specified information or specified documents), and any conditions that must be met in relation to the taking of those further steps (including conditions about timing), in order to exercise the right to acquire;

s.16(2)(g)

requirements that must be met in relation to a conveyance executed to give effect to the right to acquire (a “relevant conveyance”), including requirements for the conveyance to include specified provisions in respect of specified easements or rights over property, rights of way or covenants (positive or restrictive);

s.16(2)(h)

any other requirements that must be met in relation to a relevant conveyance, including a requirement that the conveyance is granted free of specified incumbrances, and subject to such burdens as may be specified;

s.16(2)(i)

the effect of the execution of a relevant conveyance, including provision for the conveyance to have the effect of discharging the house comprised in the lease from any specified incumbrance (including a charge);

s.16(2)(j)

any statement which must be included in a relevant conveyance, including a statement identifying the conveyance as executed for the purposes of this Part, and any requirements that must be met in relation to such a statement (including any requirements prescribed by land registration rules under the Land Registration Act 2002);

s.16(2)(k)

the making by the appropriate tribunal or a court of an order (a “relevant order”) on an application by a specified person for the purpose of giving effect to the right to acquire (whether or not in connection with an application to the appropriate tribunal or a court for a determination as described in paragraph (e));

s.16(2)(l)

the modification of the right to acquire in relation to any appurtenant property comprised in the lease (including for the rights holder to continue to hold a lease of such property, or conferring on them a right to use the property);

s.16(2)(m)

the circumstances in which the rights holder exercising the right to acquire is to be treated as a purchaser for value of the legal estate of the land comprised in the lease;

s.16(2)(n)

the circumstances in which a mortgagee or chargee is to be treated for the purposes of section 13(5)(a) as having the right to deal with the house comprised in the lease;

s.16(2)(o)

in a case where the rights holder is a tenant for the time being under the lease—

s.16(2)(o)(i)

the circumstances in which a representative of the rights holder has the right to acquire instead of that tenant, and

s.16(2)(o)(ii)

the exercise by such a representative of any powers or duties of a rights holder conferred or imposed by this Part or under redress regulations;

s.16(2)(p)

the liability for specified costs in connection with the exercise of the right to acquire (including provision as to how to calculate such costs or for the amount of any costs payable to be determined, in the absence of agreement, by the appropriate tribunal or a court);

s.16(2)(q)

proceedings for the recovery by specified persons from the landlord who granted the lease of compensation for any loss or damage resulting from the breach of section 1, including provision as to how to calculate the value of such loss or damage, and conferring powers on the appropriate tribunal or a court in connection with the recovery of such compensation (including provision as to costs).

s.16(3)

Provision under subsection (2)(k) may, in particular, include provision—

s.16(3)(a)

for the making of a relevant order where the landlord cannot be found or identified, including where the rights holder has been unable to give notice for the purpose of exercising the right to acquire;

s.16(3)(b)

for a relevant order to determine the content of a relevant conveyance and who may execute it, and to be made subject to such further terms and conditions as the appropriate tribunal or court considers appropriate, including terms about costs.

s.16(4)

Redress regulations may include provision about cases where the rights holder’s right to acquire in relation to a lease is exercisable in relation to more than one landlord, including (but not limited to) provision—

s.16(4)(a)

for or in connection with functions to be carried out by one landlord (the “reversioner”) on behalf of the other landlords;

s.16(4)(b)

for the landlord holding the freehold estate to be the reversioner;

s.16(4)(c)

for another landlord to be the reversioner in specified circumstances;

s.16(4)(d)

for or in connection with the appointment or removal of a reversioner by order of the appropriate tribunal or a court, on an application by a specified person;

s.16(4)(e)

for things done by the reversioner to be binding on the other landlords and on their interests in the land comprised in the lease;

s.16(4)(f)

for or in connection with the provision of information, documents or other assistance by other landlords to the reversioner for the purpose of enabling the reversioner to carry out functions under redress regulations;

s.16(4)(g)

for the indemnification of the reversioner against any liability incurred by the reversioner in consequence of failure by other landlords to comply with any requirement imposed on them by redress regulations;

s.16(4)(h)

excluding the reversioner from liability to any of the other landlords in specified circumstances;

s.16(4)(i)

for or in connection with the making of an order by the appropriate tribunal or a court, on an application by the reversioner, directing how the right to acquire may be given effect if any of the other landlords cannot be found or identified, or in case of a dispute between the reversioner and any other landlord.

s.16(5)

Redress regulations may—

s.16(5)(a)

apply or incorporate (with or without modifications) any provision made by or under any relevant enactment;

s.16(5)(b)

amend or repeal any provision made by an Act.

s.16(6)

A statutory instrument containing redress regulations is subject to the negative procedure.

s.16(7)

In this section—

Pt.1(crossheading)(enforcement)

Enforcement

s.17

Enforcement by trading standards authorities

s.17(1)

It is the duty of every local weights and measures authority in England or Wales (an “enforcement authority”) to enforce the leasehold house restrictions in its area.

s.17(2)

In this section and in sections 18 to 23 the “leasehold house restrictions” means—

s.17(2)(a)

section 1(1) so far as it relates to an agreement to grant a lease,

s.17(2)(b)

section 1(1) so far as it relates to the grant of a lease,

s.17(2)(c)

section 1(2) so far as it relates to an agreement to assign a lease,

s.17(2)(d)

section 1(2) so far as it relates to the assignment of a lease,

s.17(2)(e)

section 9(2) (marketing restrictions on permitted leases),

s.17(2)(f)

section 10(1)(a) (conditions on agreement to grant permitted lease), and

s.17(2)(g)

section 10(1)(b) (conditions on grant of permitted lease).

s.17(3)

For the purposes of this section and sections 18 to 23, a breach of a leasehold house restriction is taken to occur in the area in which the house in question is located (and if the house is located in more than one area, the breach is taken to have occurred in each of those areas).

s.17(4)

The duty in subsection (1) is subject to sections 19(4) (enforcement by another enforcement authority) and 22 (enforcement by the lead enforcement authority).

s.18

Financial penalties

s.18(1)

An enforcement authority may impose a financial penalty on a person if the authority is satisfied beyond reasonable doubt that the person has breached a leasehold house restriction.

s.18(2)

The amount of a penalty for a breach is to be such amount as the authority determines but—

s.18(2)(a)

is not to be less than £500, and

s.18(2)(b)

is not to be more than £30,000.

s.18(3)

Conduct within any one of the following paragraphs is to be regarded as a single breach of one leasehold house restriction— Subsection (5) is to be read in accordance with this subsection.

s.18(3)(a)

entering into an agreement to grant a lease in breach of section 1(1) and subsequently granting the lease in breach of that provision;

s.18(3)(b)

entering into an agreement to assign a lease in breach of section 1(2) and subsequently assigning the lease in breach of that provision;

s.18(3)(c)

entering into an agreement to grant a lease in breach of section 10(1)(a) and subsequently granting the lease in breach of section 10(1)(b).

s.18(4)

A person who makes marketing material available in relation to the same lease on more than one occasion in breach of section 9(2) is to be regarded as committing only one breach of that provision.

s.18(5)

The following are to be regarded as separate breaches— and accordingly an enforcement authority may impose a separate penalty in relation to each breach (or may impose a single penalty of an amount equal to the total of the amounts of the penalties that could have been separately imposed).

s.18(5)(a)

breaches by the same person of the same leasehold house restriction in relation to different leases, and

s.18(5)(b)

breaches by the same person of different leasehold house restrictions in relation to the same lease,

s.18(6)

The Secretary of State may by regulations amend an amount for the time being specified in subsection (2) to reflect a change in the value of money.

s.18(7)

A statutory instrument containing regulations under subsection (6) is subject to the negative procedure.

s.18(8)

Schedule 2 contains further provision about financial penalties under this section.

s.19

Financial penalties: cross-border enforcement

s.19(1)

An enforcement authority may impose a penalty under section 18 in respect of a breach of a leasehold house restriction which occurs outside that authority’s area (as well as in respect of a breach which occurs within that area).

s.19(2)

If an enforcement authority (“LA1”) proposes to impose a penalty in respect of a breach which occurred in the area of a different enforcement authority (“LA2”), LA1 must notify LA2 that it proposes to do so.

s.19(3)

If LA1 notifies LA2 under subsection (2) but does not impose the penalty, LA1 must notify LA2 of that fact.

s.19(4)

If an enforcement authority receives a notification under subsection (2), the authority is relieved of its duty under section 17(1) in relation to the breach unless the authority receives a notification under subsection (3).

s.19(5)

If an enforcement authority (“LA1”) imposes a penalty in respect of a breach which occurred in the area of a different enforcement authority (“LA2”), LA1 must notify LA2 of that fact.

s.20

Lead enforcement authority

s.20(1)

In this section and in sections 21 to 23 “lead enforcement authority” means—

s.20(1)(a)

the Secretary of State, or

s.20(1)(b)

a person whom the Secretary of State has arranged to be the lead enforcement authority in accordance with subsection (2).

s.20(2)

The Secretary of State may make arrangements for a local weights and measures authority in England or Wales to be the lead enforcement authority instead of the Secretary of State.

s.20(3)

The arrangements—

s.20(3)(a)

may include provision for payments by the Secretary of State;

s.20(3)(b)

may include provision about bringing the arrangements to an end.

s.20(4)

The Secretary of State may by regulations make transitional or saving provision which applies when there is a change in the lead enforcement authority.

s.20(5)

The regulations may relate to a specific change in the lead enforcement authority or to changes that might arise from time to time.

s.20(6)

A statutory instrument containing regulations under subsection (4) is subject to the negative procedure.

s.21

General duties of lead enforcement authority

s.21(1)

It is the duty of the lead enforcement authority to oversee the operation of the relevant provisions of this Part in England and Wales.

s.21(2)

The “relevant provisions of this Part” means the provisions of this Part except sections 11 and 12 (statements in leases and restriction on title).

s.21(3)

It is the duty of the lead enforcement authority to issue guidance to enforcement authorities about their enforcement of the leasehold house restrictions (and if the lead enforcement authority is not the Secretary of State, the Secretary of State may give directions as to the content of the guidance).

s.21(4)

It is the duty of the lead enforcement authority to provide information and advice to the public in England and Wales about the operation of the relevant provisions of this Part, in such form and manner as it considers appropriate.

s.21(5)

The lead enforcement authority may disclose information to an enforcement authority for the purposes of enabling that authority to determine whether there has been a breach of a leasehold house restriction.

s.21(6)

If the lead enforcement authority is not the Secretary of State, the lead enforcement authority must keep under review and from time to time advise the Secretary of State about—

s.21(6)(a)

the operation of the relevant provisions of this Part, and

s.21(6)(b)

social and commercial developments relating to the grant or assignment of long residential leases of houses in England and Wales.

s.22

Enforcement by lead enforcement authority

s.22(1)

The lead enforcement authority may—

s.22(1)(a)

take steps to enforce the leasehold house restrictions if it considers it is necessary or expedient to do so;

s.22(1)(b)

for that purpose, exercise any powers that an enforcement authority may exercise for the purpose of the enforcement of the leasehold house restrictions.

s.22(2)

If the lead enforcement authority proposes to take steps in respect of a breach (or suspected breach) of a leasehold house restriction, it must notify the enforcement authority for the area in which the breach occurred (or may have occurred) that it proposes to do so.

s.22(3)

If the lead enforcement authority notifies an enforcement authority under subsection (2) but does not take the proposed steps, the lead enforcement authority must notify the enforcement authority of that fact.

s.22(4)

If an enforcement authority receives a notification under subsection (2), the authority is relieved of its duty under section 17(1) in relation to the breach unless the authority receives a notification under subsection (3).

s.22(5)

But the lead enforcement authority may require the enforcement authority to assist the lead enforcement authority in taking steps to enforce the leasehold house restriction referred to in subsection (2).

s.23

Further powers and duties of enforcement authorities

s.23(1)

An enforcement authority must notify the lead enforcement authority if the enforcement authority believes that a breach of a leasehold house restriction has occurred in its area.

s.23(2)

An enforcement authority must report to the lead enforcement authority, whenever the lead enforcement authority requires and in such form and with such particulars as it requires, on that enforcement authority’s enforcement of the leasehold house restrictions.

s.23(3)

An enforcement authority must have regard to the guidance issued under section 21(3).

s.23(4)

For the investigatory powers available to an enforcement authority for the purposes of enforcing a leasehold house restriction, see Schedule 5 to the Consumer Rights Act 2015 (investigatory powers of enforcers etc).

s.23(5)

In paragraph 10 of Schedule 5 to the Consumer Rights Act 2015 (duties and powers to which Schedule 5 applies), at the appropriate places insert—

s.23(5)(a)

“section 17 of the Leasehold and Freehold Reform Act 2024;”;

s.23(5)(b)

“section 22 of the Leasehold and Freehold Reform Act 2024”.

s.23(6)

See also paragraph 44 of Schedule 5 to the Consumer Rights Act 2015 (exercise of functions outside enforcer’s area).

Pt.1(crossheading)(general)

General

s.24

Part 1: Crown application

This Part binds the Crown.

s.25

Power to amend: permitted leases and definitions

s.25(1)

The Secretary of State may by regulations—

s.25(1)(a)

amend the following definitions—

s.25(1)(a)(i)

“long residential lease of a house” in section 2;

s.25(1)(a)(ii)

a lease which has a “long term” in section 3;

s.25(1)(a)(iii)

“house” in section 5;

s.25(1)(b)

amend Schedule 1.

s.25(2)

A statutory instrument containing (whether alone or with other provision)— is subject to the affirmative procedure.

s.25(2)(a)

regulations under subsection (1)(a), or

s.25(2)(b)

regulations under subsection (1)(b) which add a category of lease to Schedule 1 or omit a category of lease from that Schedule,

s.25(3)

Any other statutory instrument containing regulations under subsection (1)(b) is subject to the negative procedure.

s.25(4)

See also the powers to make regulations under paragraphs 2(1)(b), 3(1)(b), 7(2) and 8(1)(b) of Schedule 1.

s.25(5)

The provision that may be made by regulations under this section by virtue of section 122(1) (consequential etc provision) includes provision amending or repealing any provision of this Part.

s.26

Interpretation of Part 1

s.26(1)

In this Part—

s.26(2)

In this Part, references to the grant of a lease in relation to a lease which takes effect as a deemed surrender and regrant of a lease are to the regrant of the lease.

Pt.2

Leasehold enfranchisement and extension

Pt.2(crossheading)(eligibility)(for)(enfranchisement)(and)(extension)

Eligibility for enfranchisement and extension

s.27

Removal of qualifying period before enfranchisement and extension claims

s.27(1)

In section 1 of the Leasehold Reform Act 1967 (“the LRA 1967”) (tenants entitled to enfranchisement or extension)—

s.27(1)(a)

in subsection (1), omit paragraph (b) and the “and” preceding it;

s.27(1)(b)

in subsection (1ZC), in the words before paragraph (a), for “(1)(a) and (b)” substitute “(1)”.

s.27(2)

In section 39 of the Leasehold Reform, Housing and Urban Development Act 1993 (“the LRHUDA 1993”) (right of qualifying tenant of flat to acquire new lease)—

s.27(2)(a)

in subsection (1)—

s.27(2)(a)(i)

after “conferring on a” insert “qualifying”;

s.27(2)(a)(ii)

omit “, in the circumstances mentioned in subsection (2),”;

s.27(2)(b)

omit subsection (2) (requirement to have been a qualifying tenant for last two years);

s.27(2)(c)

omit subsection (3A) (right of personal representatives).

s.27(3)

Omit section 42(4A) of the LRHUDA 1993 (notices given by personal representatives).

s.28

Removal of restrictions on repeated enfranchisement and extension claims

s.28(1)

In the LRA 1967—

s.28(1)(a)

omit section 9(3)(b) and the “and” preceding it (prohibition on further claim);

s.28(1)(b)

in section 16, omit subsections (1)(b), (2) and (3) (prohibition of further extension of lease);

s.28(1)(c)

in section 20, omit subsections (5) and (6) (power of court to void further claims);

s.28(1)(d)

in section 23 (agreements excluding or modifying rights of tenant), in subsection (2)(b), omit the words from “or any provision” to “or any part of it”;

s.28(1)(e)

in Schedule 3, omit paragraph 4(3) (power of court to void further claims).

s.28(2)

In the LRHUDA 1993—

s.28(2)(a)

omit section 13(9) (prohibition of further claim for collective enfranchisement);

s.28(2)(b)

omit section 42(7) (prohibition of further claim for new lease).

s.29

Change of non-residential limit on collective enfranchisement claims

In section 4(1)(b) of the LRHUDA 1993 (non-residential limit on collective enfranchisement claims), for “25 per cent.” substitute “50%”.

s.30

Eligibility for enfranchisement and extension: specific cases

Schedule 3 makes provision about the availability of rights to enfranchisement and extension under the LRA 1967 and the LRHUDA 1993 in certain specific cases.

Pt.2(crossheading)(effects)(of)(enfranchisement)

Effects of enfranchisement

s.31

Acquisition of intermediate interests in collective enfranchisement

s.31(1)

The LRHUDA 1993 is amended as follows.

s.31(2)

In section 1 (the right to collective enfranchisement), for subsection (2)(b) substitute—

s.31(3)

Before Schedule 1 insert—

s.31(4)

Omit section 2 (acquisition of leasehold interests).

s.31(5)

In section 9 (the reversioner and other relevant landlords), in subsections (2) and (2A), for “section 2(1)(a) or (b)” substitute “Schedule A1”.

s.31(6)

In section 13 (notice by qualifying tenants of claim to exercise right), in subsection (3)(c), for sub-paragraph (i) substitute—

s.31(7)

In section 19 (effect of initial notice as respects subsequent transactions by freeholder etc), in subsection (1)(a)(ii), for “by virtue of section 2(1)(a) or (b)” substitute “under or by virtue of Schedule A1”.

s.31(8)

In section 21 (reversioner’s counter-notice), in subsection (3), after paragraph (b) insert—

s.31(9)

In section 26 (applications where relevant landlord cannot be found), in subsection (1)(i), for “section 2(1)” substitute “Schedule A1”.

s.31(10)

In Schedule 3 (initial notice: supplementary provisions), in paragraph 15 (inaccuracies or misdescription in initial notice)—

s.31(10)(a)

for the heading substitute “initial notice: inaccuracies or misdescription and variation”;

s.31(10)(b)

in sub-paragraph (2)(a), for “or 2” substitute “or Schedule A1”;

s.31(10)(c)

after sub-paragraph (2), insert—

s.32

Right to require leaseback by freeholder after collective enfranchisement

s.32(1)

The LRHUDA 1993 is amended as follows.

s.32(2)

In section 13(3) (contents of initial notice), after paragraph (c) insert—

s.32(3)

In section 21(3)(a) (contents of counter-notice), in sub-paragraph (ii), after “leaseback proposals” insert “under Part 2 or 3 of Schedule 9”.

s.32(4)

In section 36 (nominee purchaser required to grant leases back to former freeholder in certain circumstances)—

s.32(4)(a)

after subsection (1) insert—

s.32(4)(b)

in subsection (2), for “such lease” substitute “lease required under this section and Schedule 9 to be granted or accepted”;

s.32(4)(c)

in subsection (4), for “II or III” substitute “2, 3 or 3A”;

s.32(4)(d)

for the heading substitute “Required grant and acceptance of leasebacks in certain circumstances”.

s.32(5)

In Schedule 9 (grant of leases back to former freeholder)—

s.32(5)(a)

in paragraph 1(1), in the definition of “the demised premises”, for “II or III” substitute “2, 3 or 3A”;

s.32(5)(b)

after Part 3 insert—

s.32(5)(c)

in paragraph 10, after sub-paragraph (2) insert—

s.32(5)(d)

in paragraph 16(2), for “4 or 7” substitute “4, 7 or 7B”.

Pt.2(crossheading)(effects)(of)(extension)

Effects of extension

s.33

Longer lease extensions

s.33(1)

In section 14(1) of the LRA 1967 (obligation to grant extended lease), for “fifty years” substitute “990 years”.

s.33(2)

In section 56(1) of the LRHUDA 1993 (obligation to grant new lease), in the words after paragraph (b), for “90 years” substitute “990 years”.

s.34

Lease extensions under the LRA 1967 on payment of premium at peppercorn rent

s.34(1)

The LRA 1967 is amended as follows.

s.34(2)

In section 14 (obligation to grant extended lease)— Section 14A (referred to in subsection (2)(a)) is inserted by section 35 of this Act.

s.34(2)(a)

in subsection (1), for “, in substitution for the existing tenancy” substitute

s.34(2)(b)

omit subsection (2)(c);

s.34(2)(c)

in subsection (3), in the words before paragraph (a), after “otherwise than on tender” insert “, in addition to the price payable,”;

s.34(2)(d)

after subsection (7) insert—

s.34(3)

In section 15 (terms of tenancy to be granted on extension)—

s.34(3)(a)

for subsection (2) substitute—

s.34(3)(b)

in subsection (3)—

s.34(3)(b)(i)

for “rent”, in the first place it occurs, substitute “peppercorn rent”;

s.34(3)(b)(ii)

for “the time when rent becomes payable in accordance with subsection (2) above” substitute “the original term date”;

s.34(3)(c)

in subsection (6)—

s.34(3)(c)(i)

omit “the first reference in subsection (2) above to that date shall have effect as a reference to the grant of the new tenancy; but”;

s.34(3)(c)(ii)

omit “(after making any necessary apportionment)”;

s.34(3)(c)(iii)

omit “rent and” in both places it occurs;

s.34(3)(c)(iv)

after “section 14(3)(a) above shall apply” insert “in respect of those matters”.

s.34(4)

In section 21(1) (jurisdiction of tribunals), omit paragraph (b).

s.34(5)

In section 31(2)(a) (ecclesiastical property), omit “or rent”.

s.34(6)

In Schedule 1 (enfranchisement or extension by sub-tenants), in paragraph 10(4)—

s.34(6)(a)

omit the words from the first “shall give effect to” to “intermediate landlord, and”;

s.34(6)(b)

for “any of those landlords” substitute “the landlord granting the new tenancy, the immediate landlord of whom the new tenancy will be held and any intermediate landlord”.

Pt.2(crossheading)(price)(payable)(on)(enfranchisement)(or)(extension)

Price payable on enfranchisement or extension

s.35

LRA 1967: determining price payable for freehold or lease extension

s.35(1)

The LRA 1967 is amended as follows.

s.35(2)

In section 9 (purchase price and costs of enfranchisement)—

s.35(2)(a)

before subsection (1) insert—

s.35(2)(b)

omit subsections (1) to (2).

s.35(3)

After section 14 insert—

s.36

LRHUDA 1993: determining price payable for collective enfranchisement or new lease

s.36(1)

The LRHUDA 1993 is amended as follows.

s.36(2)

In section 32 (determination of price for collective enfranchisement), for subsection (1) substitute—

s.36(3)

In section 56 (obligation to grant new lease)—

s.36(3)(a)

in subsection (1), for paragraph (b) substitute—

s.36(3)(b)

after subsection (1) insert—

s.36(4)

Omit Schedule 6 (purchase price payable by nominee purchaser).

s.36(5)

Omit Schedule 13 (premium and other amounts payable by tenant on grant of new lease).

s.37

Enfranchisement or extension: new method for calculating price payable

s.37(1)

Where this section applies to the acquisition of a freehold or grant of a lease, the price payable is—

s.37(1)(a)

the market value, and

s.37(1)(b)

the other compensation (if any).

s.37(2)

Schedule 4 sets out—

s.37(2)(a)

how the market value is to be determined — see Parts 1 to 5 and 7 of the Schedule, and

s.37(2)(b)

how to divide the market value into shares (where loss is suffered by certain landlords other than the landlord transferring the freehold or granting the lease) — see Part 6 of the Schedule.

s.37(3)

Schedule 5 sets out when other compensation is payable and how to determine its amount.

s.37(4)

Schedule 6 contains interpretation provision applicable to Schedules 4 and 5.

s.37(5)

Schedule 7 contains amendments of the LRA 1967 and the LRHUDA 1993 that are consequential on sections 35 and 36, this section and Schedules 4 to 6.

s.37(6)

These are the provisions under which this section applies to the acquisition of a freehold or grant of a lease—

s.37(6)(a)

section 9(A1) of the LRA 1967 (transfer of a freehold house under the LRA 1967);

s.37(6)(b)

section 14A(1) of the LRA 1967 (grant of an extended lease of a house under the LRA 1967);

s.37(6)(c)

section 32(1) of the LRHUDA 1993 (collective enfranchisement of a building under the LRHUDA 1993);

s.37(6)(d)

section 56(1)(b) of the LRHUDA 1993 (grant of a new lease of a flat under the LRHUDA 1993).

s.37(7)

This section has effect subject to the following provisions (which provide for the adjustment of the price payable where property is in the area of a management scheme)—

s.37(7)(a)

section 19(10)(b) of the LRA 1967;

s.37(7)(b)

section 70(12)(b) and (c) of the LRHUDA 1993.

s.37(8)

In this Part—

s.37(8)(a)

“transfer of a freehold house under the LRA 1967” means the conveyance or transfer of the freehold of a house and any other premises under Part 1 of the LRA 1967;

s.37(8)(b)

“grant of an extended lease of a house under the LRA 1967” means the grant of an extended lease of a house and any other premises under Part 1 of the LRA 1967;

s.37(8)(c)

“collective enfranchisement of a building under the LRHUDA 1993” means the acquisition by a nominee purchaser of a freehold and any other interests under Chapter 1 of Part 1 of the LRHUDA 1993;

s.37(8)(d)

“grant of a new lease of a flat under the LRHUDA 1993” means the grant of a new lease under Chapter 2 of Part 1 of the LRHUDA 1993.

Pt.2(crossheading)(costs)(of)(enfranchisement)(or)(extension)

Costs of enfranchisement or extension

s.38

Costs of enfranchisement and extension under the LRA 1967

s.38(1)

The LRA 1967 is amended as follows.

s.38(2)

In section 9 (costs of enfranchisement)—

s.38(2)(a)

in the heading, omit “and costs of enfranchisement,”;

s.38(2)(b)

omit subsections (4) and (4A);

s.38(2)(c)

omit subsection (5)(b).

s.38(3)

In section 10(1A) (landlord’s covenants on enfranchisement), omit the words from “and in the absence” to “assurance)”.

s.38(4)

In section 14 (costs of extension)—

s.38(4)(a)

omit subsections (2) and (2A);

s.38(4)(b)

omit subsection (3)(b).

s.38(5)

In section 15(9) (landlord’s covenants on extension), omit the words from “and in the absence” to “assurance)”.

s.38(6)

After section 19 insert—

s.38(7)

In section 20 (jurisdiction of county court), omit subsections (4) and (4A).

s.38(8)

In section 22(3)(a) (deposits), omit “and landlord’s costs”.

s.38(9)

In consequence of the amendments made by subsections (2) to (8)—

s.38(9)(a)

in section 9(5)(c) (landlord’s lien as vendor), for “him” substitute “the tenant”;

s.38(9)(b)

in section 14(3)(c) (conditions for grant of extended lease), for “him” substitute “the tenant”;

s.38(9)(c)

in section 17(4)(b) (redevelopment rights), omit the words from “but” to “the notice”;

s.38(9)(d)

in section 18(6)(b) (residential rights), omit the words from “but” to “the notice”;

s.38(9)(e)

in section 19(14)(b) (management powers), omit the words from “and” to “withdrawn”;

s.38(9)(f)

in section 27A(5) (compensation for ineffective claim in certain cases), for paragraph (b) substitute—

s.38(9)(g)

in section 32A(5) (property transferred for public benefit), omit paragraph (a).

s.39

Costs of enfranchisement and extension under the LRHUDA 1993

s.39(1)

The LRHUDA 1993 is amended as follows.

s.39(2)

In section 28 (withdrawal of acquisition), omit subsections (4) to (7).

s.39(3)

In section 29 (deemed withdrawal), omit subsections (6) to (8).

s.39(4)

In section 32(2) (vendor’s lien), omit paragraph (c).

s.39(5)

Omit section 33 (costs of enfranchisement).

s.39(6)

In section 56(3) (conditions of grant of new lease), omit paragraph (b).

s.39(7)

In section 57(8) (landlord’s covenants on extension), omit the words from “and in the absence” to “assurance)”.

s.39(8)

Omit section 60 (costs of extension) and the italic heading preceding it.

s.39(9)

Before section 90 insert—

s.39(10)

In Schedule 7, in paragraph 2(2) (terms of enfranchisement), omit the words from “and in the absence” to “assurance)”.

s.39(11)

In consequence of the amendments made by subsections (2) to (10)—

s.39(11)(a)

in section 15(7) (appointment and replacement of nominee purchaser)—

s.39(11)(a)(i)

for the words from “he shall not be liable” to “but if” substitute “and”;

s.39(11)(a)(ii)

for “under section 33” substitute “as otherwise referred to in section 89A”;

s.39(11)(b)

in section 31(5) (designation for inheritance tax purposes), omit paragraph (a);

s.39(11)(c)

in the italic heading before section 32, omit “and costs of enfranchisement”;

s.39(11)(d)

in section 52 (withdrawal from acquisition of new lease), omit subsection (3);

s.39(11)(e)

in section 74 (effect of estate management schemes on freehold claims), omit subsection (4).

Pt.2(crossheading)(jurisdiction)(of)(the)(county)(court)(and)(tribunals)

Jurisdiction of the county court and tribunals

s.40

Replacement of sections 20 and 21 of the LRA 1967

For sections 20 and 21 of the LRA 1967 (jurisdiction of county court and tribunals) substitute—

s.41

References to “the court” in Part 1 of the LRA 1967

s.41(1)

The LRA 1967 is amended as follows.

s.41(2)

In the following provisions, for “the court” substitute “the appropriate tribunal” in each place it occurs—

s.41(2)(a)

section 2;

s.41(2)(b)

section 27;

s.41(2)(c)

in Schedule 1—

s.41(2)(c)(i)

paragraph 3;

s.41(2)(c)(ii)

paragraph 4;

s.41(2)(d)

in Schedule 3—

s.41(2)(d)(i)

paragraph 6(3);

s.41(2)(d)(ii)

paragraph 7(5);

s.41(2)(e)

in Schedule 4A—

s.41(2)(e)(i)

paragraph 3(3);

s.41(2)(e)(ii)

paragraph 3A(3);

s.41(2)(e)(iii)

paragraph 4A(6).

s.41(3)

In the following provisions, for “into court” substitute “into the tribunal” in each place it occurs—

s.41(3)(a)

sections 11 to 13, including the heading of section 13;

s.41(3)(b)

section 27;

s.41(3)(c)

in Schedule 1, paragraph 4(3)(c).

s.41(4)

In the following provisions, after “court” insert “or tribunal”—

s.41(4)(a)

section 5(7);

s.41(4)(b)

section 13(3)(b);

s.41(4)(c)

section 37(7);

s.41(4)(d)

in Schedule 3, paragraph 5, in both places it occurs.

s.41(5)

In section 11(5), for “in court” substitute “in the tribunal”.

s.41(6)

In section 13(3), in the words after paragraph (b)—

s.41(6)(a)

after “a court” insert “or tribunal”;

s.41(6)(b)

omit “other than the county court”;

s.41(6)(c)

after “the court” insert “or tribunal”.

s.41(7)

In section 27A(7)(b)—

s.41(7)(a)

after “the court” insert “or the appropriate tribunal”;

s.41(7)(b)

after “court order” insert “or order of a tribunal”.

s.42

Amendment of Part 1 of the LRHUDA 1993

s.42(1)

The LRHUDA 1993 is amended as follows.

s.42(2)

After section 27 insert—

s.42(3)

In section 48 (applications where terms in dispute or failure to enter into new lease)—

s.42(3)(a)

after subsection (3) insert—

s.42(3)(b)

in subsection (4), for “Any such order” substitute “An order under subsection (3)”.

s.42(4)

In section 49 (applications where landlord fails to give counter-notice or further counter-notice)—

s.42(4)(a)

after subsection (4) insert—

s.42(4)(b)

in subsection (5), for “Any such order” substitute “An order under subsection (4)”.

s.42(5)

In section 90 (jurisdiction of county courts)—

s.42(5)(a)

omit subsection (2);

s.42(5)(b)

in subsection (3), for “or (2)” substitute “or section 91A”;

s.42(5)(c)

omit subsection (4).

s.42(6)

For section 91 (jurisdiction of tribunals) substitute—

s.42(7)

In section 92 (enforcement of obligations under Chapters 1 and 2)—

s.42(7)(a)

in the heading, for “Enforcement of” substitute “Power to order compliance with”;

s.42(7)(b)

in subsection (1), after “The court” insert “or appropriate tribunal”;

s.42(7)(c)

after subsection (2) insert—

s.43

References to “the court” in Part 1 of the LRHUDA 1993

s.43(1)

The LRHUDA 1993 is amended as follows.

s.43(2)

In the following provisions, for “the court” substitute “the appropriate tribunal” in each place it occurs—

s.43(2)(a)

sections 22 to 27;

s.43(2)(b)

sections 46 to 51;

s.43(2)(c)

section 74(3)(c);

s.43(2)(d)

in Schedule 1—

s.43(2)(d)(i)

paragraphs 2 to 5;

s.43(2)(d)(ii)

paragraphs 5B to 5E;

s.43(2)(d)(iii)

paragraph 6(3);

s.43(2)(e)

in Schedule 3, paragraph 15(2);

s.43(2)(f)

in Schedule 5—

s.43(2)(f)(i)

paragraph 1(1);

s.43(2)(f)(ii)

paragraph 2(1);

s.43(2)(g)

in Schedule 11, paragraph 6(3);

s.43(2)(h)

in Schedule 12, paragraph 9(2).

s.43(3)

In the following provisions, for “into court” substitute “into the tribunal” in each place it occurs—

s.43(3)(a)

section 27;

s.43(3)(b)

section 51;

s.43(3)(c)

in Schedule 1, paragraph 6(3)(c);

s.43(3)(d)

in Schedule 5, paragraphs 2 to 4, including the heading of paragraph 4;

s.43(3)(e)

in Schedule 8, paragraphs 2 and 4, including the heading of paragraph 4.

s.43(4)

In section 19(6), after “any court” insert “or tribunal”.

s.43(5)

In section 26(9), for “Rules of court” substitute “Tribunal Procedure Rules, and regulations under Schedule 12 to the Commonhold and Leasehold Reform Act 2002 (leasehold valuation tribunals: procedure),”.

s.43(6)

In section 37A(8)(b)—

s.43(6)(a)

after “the court” insert “or the appropriate tribunal”;

s.43(6)(b)

after “court order” insert “or order of a tribunal”.

s.43(7)

In section 61A(7)(b)—

s.43(7)(a)

after “the court” insert “or the appropriate tribunal”;

s.43(7)(b)

after “court order” insert “or order of a tribunal”.

s.43(8)

In section 101(9), in the words before paragraph (a), after “a decision” insert “or order”.

s.43(9)

In Schedule 1, in paragraph 6(2), in the words after paragraph (b), for “the court” substitute “the appropriate tribunal”.

s.43(10)

In Schedule 3—

s.43(10)(a)

in paragraph 10(1)(d)(ii), after “the court” insert “or the appropriate tribunal”;

s.43(10)(b)

in paragraph 10(2), after “a court” insert “or tribunal”.

s.43(11)

In Schedule 8, in paragraph 4(3)—

s.43(11)(a)

in paragraph (b), after “any court” insert “or tribunal”;

s.43(11)(b)

in the words after paragraph (b)—

s.43(11)(b)(i)

after “a court” insert “or tribunal”;

s.43(11)(b)(ii)

omit “other than the county court”;

s.43(11)(b)(iii)

after “the court” insert “or tribunal”.

s.43(12)

In Schedule 11, in paragraph 6(1), in the words after paragraph (c), for “the court” substitute “the appropriate tribunal”.

s.43(13)

In Schedule 12—

s.43(13)(a)

in paragraph 8(1)(c)(ii), after “the court” insert “or the appropriate tribunal”;

s.43(13)(b)

in paragraph 8(2), after “a court” insert “or tribunal”.

s.43(14)

In the headings before sections 22 and 46, omit “court or”.

Pt.2(crossheading)(jurisdiction)(of)(the)(high)(court)

Jurisdiction of the High Court

s.44

No first-instance applications to the High Court in tribunal matters

s.44(1)

Where jurisdiction in respect of a matter is conferred on the appropriate tribunal exclusively under the LRA 1967 or a specified provision of the LRHUDA 1993, a person may not apply to the High Court in respect of that matter.

s.44(2)

Subsection (1) has no effect in relation to any proceedings that may be brought in the High Court for the purpose of challenging a decision, declaration, direction or order of the appropriate tribunal.

s.44(3)

The specified provisions of the LRHUDA 1993 are—

s.44(3)(a)

Chapters 1, 2, 4 and 7 of Part 1;

s.44(3)(b)

section 88.

s.44(4)

In subsection (1) “appropriate tribunal” has the same meaning as in the LRA 1967 or the specified provision of the LRHUDA 1993 (whichever is relevant).

s.44(5)

For the purposes of this section, jurisdiction in respect of a matter is conferred on the appropriate tribunal exclusively where—

s.44(5)(a)

a provision of the LRA 1967 or the LRHUDA 1993 provides for the matter to be determined by the appropriate tribunal alone (and not by a court or the appropriate tribunal), or

s.44(5)(b)

proceedings in respect of the matter fall within the jurisdiction of the appropriate tribunal by virtue of section 21A of the LRA 1967 or section 91A of the LRHUDA 1993.

Pt.2(crossheading)(enfranchisement)(and)(extension)(miscellaneous)(amendments)

Enfranchisement and extension: miscellaneous amendments

s.45

Miscellaneous amendments

Schedule 8 contains miscellaneous further amendments to existing legislation relating to enfranchisement and extension.

Pt.2(crossheading)(preservation)(of)(existing)(law)(for)(certain)(purposes)

Preservation of existing law for certain purposes

s.46

LRA 1967: preservation of existing law for certain enfranchisements

After section 7 of the LRA 1967 insert—

Pt.2(crossheading)(consequential)(amendments)(to)(other)(legislation)

Consequential amendments to other legislation

s.47

Part 2: consequential amendments to other legislation

Schedule 9 contains amendments to other legislation that are consequential on this Part.

Pt.3

Other rights of long leaseholders

Pt.3(crossheading)(new)(right)(to)(replace)(rent)(with)(peppercorn)(rent)

New right to replace rent with peppercorn rent

s.48

Right to vary long lease to replace rent with peppercorn rent

Schedule 10 confers on certain leaseholders the right to a variation of their leases so that the whole or part of the rent payable becomes and will remain a peppercorn rent.

Pt.3(crossheading)(the)(right)(to)(manage)

The right to manage

s.49

Change of non-residential limit on right to manage claims

In Schedule 6 to the Commonhold and Leasehold Reform Act 2002 (“the CLRA 2002”), in paragraph 1(1) (non-residential limit on right to manage claims), for “25 per cent.” substitute “50%”.

s.50

Costs of right to manage claims

s.50(1)

The CLRA 2002 is amended as follows.

s.50(2)

In section 82 (right to obtain information before right to manage claim)—

s.50(2)(a)

in subsection (2)(b), omit “on payment of a reasonable fee”;

s.50(2)(b)

after subsection (3) insert—

s.50(3)

After section 87 insert—

s.50(4)

Omit sections 88 and 89 (costs of right to manage claims).

s.51

Compliance with obligations arising under Chapter 1 of Part 2 of the CLRA 2002

s.51(1)

Section 107 of the CLRA 2002 (enforcement of obligations) is amended as follows.

s.51(2)

In subsection (1), for “county court” substitute “appropriate tribunal”.

s.51(3)

After subsection (2) insert—

s.51(4)

For the heading substitute “Power of tribunal to order compliance”.

s.52

No first-instance applications to the High Court in tribunal matters

s.52(1)

Where jurisdiction in respect of a matter is conferred on the appropriate tribunal under Chapter 1 of Part 2 of the CLRA 2002, a person may not apply to the High Court in respect of that matter.

s.52(2)

Subsection (1) has no effect in relation to any proceedings that may be brought in the High Court for the purpose of challenging a decision, declaration, direction or order of the appropriate tribunal.

s.52(3)

In subsection (1) “appropriate tribunal” has the same meaning as in the Chapter mentioned in that subsection.

Pt.4

Regulation of leasehold

Pt.4(crossheading)(service)(charges)

Service charges

s.53

Extension of regulation to fixed service charges

s.53(1)

The Landlord and Tenant Act 1985 (“the LTA 1985”) is amended in accordance with subsections (2) to (6).

s.53(2)

In section 18 (meaning of “service charge” and “relevant costs”)—

s.53(2)(a)

in the heading, after ““service charge”” insert “, “variable service charge””;

s.53(2)(b)

for subsections (1) and (2) substitute—

s.53(2)(c)

in subsection (3)(b), for “a service charge” substitute “a variable service charge”.

s.53(3)

In the provisions referred to in subsection (4)—

s.53(3)(a)

for “service charge” substitute “variable service charge”;

s.53(3)(b)

for “service charges” substitute “variable service charges”.

s.53(4)

The provisions are—

s.53(4)(a)

in section 19 (reasonableness of service charges), the heading and subsections (1) and (2);

s.53(4)(b)

in section 20 (consultation requirements), the heading and subsection (2);

s.53(4)(c)

in section 20A (grant-aided works), the heading and subsections (1) and (2);

s.53(4)(d)

in section 20B (time limit on making demands), the heading and subsection (1) in the first place “service charge” occurs;

s.53(4)(e)

in section 20D (remediation works), the heading and subsections (4) and (5);

s.53(4)(f)

in section 20F (excluded costs for higher-risk buildings), the heading and subsection (2);