Landlord and Tenant Act 1987

20 Construction of Part I and power of Secretary of State to prescribe modifications.

(1) In this Part— “acceptance notice” has the meaning given by section 6(3); “appropriate tribunal” means— in relation to premises in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and in relation to premises in Wales, a leasehold valuation tribunal; “associated company”, in relation to a body corporate, means another body corporate which is (within the meaning of section 1159 of the Companies Act 2006) that body’s holding company, a subsidiary of that body or another subsidiary of that body’s holding company; “constituent flat” shall be construed in accordance with section 5(1) or 11(2), as the case may require; “disposal” shall be construed in accordance with section 4(3) and section 4A (application of provisions to contracts), and references to the acquisition of an estate or interest shall be construed accordingly; “landlord”, in relation to any premises, shall be construed in accordance with section 2; . . . “the nominated person” means the person or persons for the time being nominated by the requisite majority of the qualifying tenants of the constituent flats for the purposes of section 6, 12A, 12B or 12C, as the case may require; “offer notice” means a notice served by a landlord under section 5; “the original disposal” means the relevant disposal referred to in section 11(1); “the protected interest” means the estate, interest or other subject-matter of an offer notice; “the protected period” has the meaning given by section 6(4); “purchase notice” has the meaning given by section 12B(2); “purchaser” has the meaning given by section 11(3); “qualifying tenant”, in relation to a flat, shall be construed in accordance with section 3; “relevant disposal” shall be construed in accordance with section 4; “the requisite majority”, in relation to qualifying tenants, shall be construed in accordance with section 18A; “transferee”, in relation to a disposal, shall be construed in accordance with section 4(3). (2) In this Part— (a) any reference to an offer . . . is a reference to an offer . . . made subject to contract, and (b) any reference to the acceptance of an offer . . . is a reference to its acceptance subject to contract. (3) Any reference in this Part to a tenant of a particular description shall be construed, in relation to any time when the interest under his tenancy has ceased to be vested in him, as a reference to the person who is for the time being the successor in title to that interest. (4) The Secretary of State may by regulations make such modifications of any of the provisions of sections 5 to 18 as he considers appropriate, and any such regulations may contain such incidental, supplemental or transitional provisions as he considers appropriate in connection with the regulations. (5) In subsection (4) “modifications” includes additions, omissions and alterations.

21 Tenant’s right to apply to court for appointment of manager.

(1) The tenant of a flat contained in any premises to which this Part applies may, subject to the following provisions of this Part, apply to the appropriate tribunal for an order under section 24 appointing a manager to act in relation to those premises. (2) Subject to subsection (3) and section 24ZA, this Part applies to premises consisting of the whole or part of a building if the building or part contains two or more flats. (3) This Part does not apply to any such premises at a time when— (a) the interest of the landlord in the premises is held by — (i) an exempt landlord or a resident landlord, or (ii) the Welsh Ministers in their new towns residuary capacity, (b) the premises are included within the functional land of any charity. (3A) But this Part is not prevented from applying to any premises because the interest of the landlord in the premises is held by a resident landlord if at least one-half of the flats contained in the premises are held on long leases which are not tenancies to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) applies. (4) An application for an order under section 24 may be made— (a) jointly by tenants of two or more flats if they are each entitled to make such an application by virtue of this section, and (b) in respect of two or more premises to which this Part applies; and, in relation to any such joint application as is mentioned in paragraph (a), references in this Part to a single tenant shall be construed accordingly. (5) Where the tenancy of a flat contained in any such premises is held by joint tenants, an application for an order under section 24 in respect of those premises may be made by any one or more of those tenants. (6) An application to the court for it to exercise in relation to any premises any jurisdiction to appoint a receiver or manager shall not be made by a tenant (in his capacity as such) in any circumstances in which an application could be made by him for an order under section 24 appointing a manager to act in relation to those premises. (7) References in this Part to a tenant do not include references to a tenant under a tenancy to which Part II of the Landlord and Tenant Act 1954 applies. (8) For the purposes of this Part, “appropriate tribunal” means— (a) in relation to premises in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and (b) in relation to premises in Wales, a leasehold valuation tribunal.

22 Preliminary notice by tenant.

(1) Before an application for an order under section 24 is made in respect of any premises to which this Part applies by a tenant of a flat contained in those premises, a notice under this section must (subject to subsection (3)) be served by the tenant on— (i) the landlord, and (ii) any person (other than the landlord) by whom obligations relating to the management of the premises or any part of them are owed to the tenant under his tenancy. (2) A notice under this section must— (a) specify the tenant’s name, the address of his flat and an address in England and Wales (which may be the address of his flat) at which any person on whom the notice is served may serve notices, including notices in proceedings, on him in connection with this Part; (b) state that the tenant intends to make an application for an order under section 24 to be made by the appropriate tribunal in respect of such premises to which this Part applies as are specified in the notice, but (if paragraph (d) is applicable) that he will not do so if the requirement specified in pursuance of that paragraph is complied with; (c) specify the grounds on which the tribunal would be asked to make such an order and the matters that would be relied on by the tenant for the purpose of establishing those grounds; (d) where those matters are capable of being remedied by any person on whom the notice is served, require him, within such reasonable period as is specified in the notice, to take such steps for the purpose of remedying them as are so specified; and (e) contain such information (if any) as the Secretary of State may by regulations prescribe. (3) The appropriate tribunal may (whether on the hearing of an application for an order under section 24 or not) by order dispense with the requirement to serve a notice under this section on a person in a case where it is satisfied that it would not be reasonably practicable to serve such a notice on the person, but the tribunal may, when doing so, direct that such other notices are served, or such other steps are taken, as it thinks fit. (4) In a case where— (a) a notice under this section has been served on the landlord, and (b) his interest in the premises specified in pursuance of subsection (2)(b) is subject to a mortgage, the landlord shall, as soon as is reasonably practicable after receiving the notice, serve on the mortgagee a copy of the notice.

23 Application to court for appointment of manager.

(1) No application for an order under section 24 shall be made to the appropriate tribunal unless— (a) in a case where a notice has been served under section 22, either— (i) the period specified in pursuance of paragraph (d) of subsection (2) of that section has expired without the person required to take steps in pursuance of that paragraph having taken them, or (ii) that paragraph was not applicable in the circumstances of the case; or (b) in a case where the requirement to serve such a notice has been dispensed with by an order under subsection (3) of that section, either— (i) any notices required to be served, and any other steps required to be taken, by virtue of the order have been served or (as the case may be) taken, or (ii) no direction was given by the tribunal when making the order. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24 Appointment of manager by a ... tribunal.

(1) The appropriate tribunal may, on an application for an order under this section, by order (whether interlocutory or final) appoint a manager to carry out in relation to any premises to which this Part applies— (a) such functions in connection with the management of the premises, or (b) such functions of a receiver, or both, as the tribunal thinks fit. (2) The appropriate tribunal may only make an order under this section in the following circumstances, namely— (a) where the tribunal is satisfied— (i) that any relevant person either is in breach of any obligation owed by him to the tenant under his tenancy and relating to the management of the premises in question or any part of them or (in the case of an obligation dependent on notice) would be in breach of any such obligation but for the fact that it has not been reasonably practicable for the tenant to give him the appropriate notice, and (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (iii) that it is just and convenient to make the order in all the circumstances of the case; (ab) where the tribunal is satisfied— (i) that unreasonable service charges have been made, or are proposed or likely to be made, and (ii) that it is just and convenient to make the order in all the circumstances of the case; (aba) where the tribunal is satisfied— (i) that unreasonable variable administration charges or prohibited administration charges have been made, or are proposed or likely to be made, and (ii) that it is just and convenient to make the order in all the circumstances of the case; (ac) where the tribunal is satisfied— (i) that any relevant person has failed to comply with any relevant provision of a code of practice approved by the Secretary of State under section 87 of the Leasehold Reform, Housing and Urban Development Act 1993 (codes of management practice), and (ii) that it is just and convenient to make the order in all the circumstances of the case; or (b) where the tribunal is satisfied that other circumstances exist which make it just and convenient for the order to be made. (2ZA) In this section “relevant person” means a person— (a) on whom a notice has been served under section 22, or (b) in the case of whom the requirement to serve a notice under that section has been dispensed with by an order under subsection (3) of that section. (2ZB) Subsection (2)(a) does not apply in respect of a breach of a building safety obligation by an accountable person for a higher-risk building. (2ZC) In this section— “accountable person” has the meaning given in section 72 of the Building Safety Act 2022; “building safety obligation” means an obligation of an accountable person under Part 4 of the Building Safety Act 2022 or regulations made under that Part; “higher-risk building” has the meaning given in section 65 of the Building Safety Act 2022. (2A) For the purposes of subsection (2)(ab) a service charge shall be taken to be unreasonable— (a) if the amount is unreasonable having regard to the items for which it is payable, (b) if the items for which it is payable are of an unnecessarily high standard, or (c) if the items for which it is payable are of an insufficient standard with the result that additional service charges are or may be incurred. In that provision and this subsection “service charge” means a service charge within the meaning of section 18(1) of the Landlord and Tenant Act 1985, other than one excluded from that section by section 27 of that Act (rent of dwelling registered and not entered as variable). (2B) In subsection (2)(aba) “variable administration charge” has the meaning given by paragraph 1 of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 , and “prohibited administration charge” means an administration charge which is not payable because of paragraph 2A of that Schedule. (2C) Where a special measures order relating to the building is in force, an order under this section may not provide for a manager to carry out a function which the special measures order provides is to be carried out by the special measures manager for the building. (2D) In this section— “special measures manager” means a person appointed under paragraph 4 of Schedule 7 to the Building Safety Act 2022; “special measures order” means an order under paragraph 4 of Schedule 7 to the Building Safety Act 2022. (2E) An order under this section may not provide for a manager to carry out a function in relation to a higher-risk building where Part 4 of the Building Safety Act 2022 or regulations made under that Part provide for that function to be carried out by an accountable person for that building. (3) The premises in respect of which an order is made under this section may, if the tribunal thinks fit, be either more or less extensive than the premises specified in the application on which the order is made. (4) An order under this section may make provision with respect to— (a) such matters relating to the exercise by the manager of his functions under the order, and (b) such incidental or ancillary matters, as the tribunal thinks fit; and, on any subsequent application made for the purpose by the manager, the tribunal may give him directions with respect to any such matters. (5) Without prejudice to the generality of subsection (4), an order under this section may provide— (a) for rights and liabilities arising under contracts to which the manager is not a party to become rights and liabilities of the manager; (b) for the manager to be entitled to prosecute claims in respect of causes of action (whether contractual or tortious) accruing before or after the date of his appointment; (c) for remuneration to be paid to the manager by any relevant person , or by the tenants of the premises in respect of which the order is made or by all or any of those persons; (d) for the manager’s functions to be exercisable by him (subject to subsection (9)) either during a specified period or without limit of time. (6) Any such order may be granted subject to such conditions as the tribunal thinks fit, and in particular its operation may be suspended on terms fixed by the tribunal. (7) In a case where an application for an order under this section was preceded by the service of a notice under section 22, the tribunal may, if it thinks fit, make such an order notwithstanding— (a) that any period specified in the notice in pursuance of subsection (2)(d) of that section was not a reasonable period, or (b) that the notice failed in any other respect to comply with any requirement contained in subsection (2) of that section or in any regulations applying to the notice under section 54(3). (8) The Land Charges Act 1972 and the Land Registration Act 2002 shall apply in relation to an order made under this section as they apply in relation to an order appointing a receiver or sequestrator of land. (9) The appropriate tribunal may, on the application of any person interested, vary or discharge (whether conditionally or unconditionally) an order made under this section; and if the order has been protected by an entry registered under the Land Charges Act 1972 or the Land Registration Act 2002, the tribunal may by order direct that the entry shall be cancelled. (9A) the tribunal shall not vary or discharge an order under subsection (9) on the application of any relevant person unless it is satisfied— (a) that the variation or discharge of the order will not result in a recurrence of the circumstances which led to the order being made, and (b) that it is just and convenient in all the circumstances of the case to vary or discharge the order. (10) An order made under this section shall not be discharged by the appropriate tribunal by reason only that, by virtue of section 21(3), the premises in respect of which the order was made have ceased to be premises to which this Part applies. (11) References in this Part to the management of any premises include references to the repair, maintenance , improvement or insurance of those premises.

24ZA Application for appointment of manager by special measures manager

(1) A special measures manager for an occupied higher-risk building may apply to the appropriate tribunal for an order under section 24 (as modified by subsection (4)) appointing a manager to act in relation to premises to which this section applies. (2) This section applies to premises consisting of the whole or part of the higher-risk building if the building or part contains two or more flats. (3) Section 22 applies in relation to such an application as if— (a) for subsection (1) there were substituted— (1) Before an application for an order under section 24 is made in respect of any premises to which section 24ZA applies by a special measures manager for an occupied higher-risk building, a notice under this section must (subject to subsection (3)) be served by the special measures manager on— (a) the landlord; (b) any person (other than the landlord) by whom obligations relating to the management of the premises or any part of them are owed to tenants of flats contained in those premises under a tenancy; (c) each accountable person for the higher-risk building. ; (b) for subsection (2)(a) there were substituted— (a) specify the special measures manager’s name and an address in England and Wales at which any person on whom the notice is served may serve notices, including notices in proceedings, on the special measures manager in connection with this Part; ; (c) in subsection (2)(b)— (i) for “tenant” there were substituted “special measures manager”; (ii) for “this Part” there were substituted “section 24ZA”; (d) in subsection (2)(c) for “tenant” there were substituted “special measures manager”. (4) Section 24 applies in relation to such an application as if— (a) in subsection (1) for “this Part” there were substituted “section 24ZA”; (b) for subsection (2) there were substituted— (2) The appropriate tribunal may only make an order under this section where it is satisfied— (a) that— (i) the relevant person is in breach of any obligation owed by the person to the special measures manager by virtue of a special measures order, and (ii) it is just and convenient to make the order in all the circumstances of the case; or (b) that other circumstances exist which make it just and convenient for the order to be made. ; (c) subsections (2A), (2B) and (10) were omitted. (5) In this section “special measures manager” has the meaning given by section 24(2D).

24A Jurisdiction of leasehold valuation tribunal.

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24B Leasehold valuation tribunal: applications and fees.

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25 Compulsory acquisition of landlord’s interest by qualifying tenants.

(1) This Part has effect for the purpose of enabling qualifying tenants of flats contained in any premises to which this Part applies to make an application to the court for an order providing for a person nominated by them to acquire their landlord’s interest in the premises without his consent; and any such order is referred to in this Part as “an acquisition order”. (2) Subject to subsections (4) and (5), this Part applies to premises if— (a) they consist of the whole or part of a building; and (b) they contain two or more flats held by tenants of the landlord who are qualifying tenants; and (c) the total number of flats held by such tenants is not less than two-thirds of the total number of flats contained in the premises. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) This Part does not apply to premises falling within subsection (2) if— (a) any part or parts of the premises is or are occupied or intended to be occupied otherwise than for residential purposes; and (b) the internal floor area of that part or those parts (taken together) exceeds 50 per cent. of the internal floor area of the premises (taken as a whole); and for the purposes of this subsection the internal floor area of any common parts shall be disregarded. (5) This Part also does not apply to any such premises at a time when— (a) the interest of the landlord in the premises is held by an exempt landlord or a resident landlord, or (b) the premises are included within the functional land of any charity. (6) The Secretary of State may by order substitute for the percentage for the time being specified in subsection (4)(b) such other percentage as is specified in the order.

26 Qualifying tenants.

(1) Subject to subsections (2) and (3), a person is a qualifying tenant of a flat for the purposes of this Part if he is the tenant of the flat under a long lease other than one constituting a tenancy to which Part II of the Landlord and Tenant Act 1954 applies. (2) A person is not to be regarded as being a qualifying tenant of a flat contained in any particular premises consisting of the whole or part of a building if by virtue of one or more long leases none of which constitutes a tenancy to which Part II of the Landlord and Tenant Act 1954 applies, he is the tenant not only of the flat in question but also of at least two other flats contained in those premises. (3) A tenant of a flat under a long lease whose landlord is a qualifying tenant of that flat is not to be regarded as being a qualifying tenant of that flat. (4) For the purposes of subsection (2) any tenant of a flat contained in the premises in question who is a body corporate shall be treated as the tenant of any other flat so contained and let to an associated company, as defined in section 20(1).

27 Preliminary notice by tenants.

(1) Before an application for an acquisition order is made in respect of any premises to which this Part applies, a notice under this section must (subject to subsection (3)) be served on the landlord by qualifying tenants of the flats contained in the premises who, at the date when it is served, constitute the requisite majority of such tenants. (2) A notice under this section must— (a) specify the names of the qualifying tenants by whom it is served, the addresses of their flats and the name and the address in England and Wales of a person on whom the landlord may serve notices (including notices in proceedings) in connection with this Part instead of serving them on those tenants; (b) state that those tenants intend to make an application for an acquisition order to be made by the court in respect of such premises to which this Part applies as are specified in the notice, but (if paragraph (d) is applicable) that they will not do so if the landlord complies with the requirement specified in pursuance of that paragraph; (c) specify the grounds on which the court would be asked to make such an order and the matters that would be relied on by the tenants for the purpose of establishing those grounds; (d) where those matters are capable of being remedied by the landlord, require the landlord, within such reasonable period as is specified in the notice, to take such steps for the purpose of remedying them as are so specified; and (e) contain such information (if any) as the Secretary of State may by regulations prescribe. (3) The court may by order dispense with the requirement to serve a notice under this section in a case where it is satisfied that it would not be reasonably practicable to serve such a notice on the landlord, but the court may, when doing so, direct that such other notices are served, or such other steps are taken, as it thinks fit. (4) Any reference in this Part to the requisite majority of qualifying tenants of the flats contained in any premises is a reference to qualifying tenants of the flats so contained with not less than two-thirds of the available votes; and for the purposes of this subsection— (a) the total number of available votes shall correspond to the total number of those flats for the time being let to qualifying tenants; and (b) there shall be one available vote in respect of each of the flats so let which shall be attributed to the qualifying tenant to whom it is let. (5) Nothing in this Part shall be construed as requiring the persons constituting any such majority in any one context to be the same as the persons constituting any such majority in any other context.

28 Applications for acquisition orders.

(1) An application for an acquisition order in respect of any premises to which this Part applies must be made by qualifying tenants of the flats contained in the premises who, at the date when it is made, constitute the requisite majority of such tenants. (2) No such application shall be made to the court unless— (a) in a case where a notice has been served under section 27, either— (i) the period specified in pursuance of paragraph (d) of subsection (2) of that section has expired without the landlord having taken the steps that he was required to take in pursuance of that provision, or (ii) that paragraph was not applicable in the circumstances of the case; or (b) in a case where the requirement to serve such a notice has been dispensed with by an order under subsection (3) of that section, either— (i) any notices required to be served, and any other steps required to be taken, by virtue of the order have been served or (as the case may be) taken, or (ii) no direction was given by the court when making the order. (3) An application for an acquisition order may, subject to the preceding provisions of this Part, be made in respect of two or more premises to which this Part applies. (4) Rules of court shall make provision— (a) for requiring notice of an application for an acquisition order in respect of any premises to be served on such descriptions of persons as may be specified in the rules; and (b) for enabling persons served with any such notice to be joined as parties to the proceedings. (5) The Land Charges Act 1972 and the Land Registration Act 2002 shall apply in relation to an application for an acquisition order as they apply in relation to other pending land actions. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29 Conditions for making acquisition orders.

(1) The court may, on an application for an acquisition order, make such an order in respect of any premises if— (a) the court is satisfied— (i) that those premises were, at the date of service on the landlord of the notice (if any) under section 27 and on the date when the application was made, premises to which this Part applies, and (ii) that they have not ceased to be such premises since the date when the application was made, and (b) either of the conditions specified in subsections (2) and (3) is fulfilled with respect to those premises, and (c) the court considers it appropriate to make the order in the circumstances of the case. (2) The first of the conditions referred to in subsection (1)(b) is that the court is satisfied— (a) that the landlord either is in breach of any obligation owed by him to the applicants under their leases and relating to the ... management of the premises in question, or any part of them, or (in the case of an obligation dependent on notice) would be in breach of any such obligation but for the fact that it has not been reasonably practicable for the tenant to give him the appropriate notice, and (b) that the circumstances by virtue of which he is (or would be) in breach of any such obligation are likely to continue, . . . (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (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. (3) The second of those conditions is that, both at the date when the application was made and throughout the period of two years immediately preceding that date, there was in force an appointment under Part II of a person to act as manager in relation to the premises in question which was made by reason of an act or omission on the part of the landlord. (4) An acquisition order may, if the court thinks fit— (a) include any yard, garden, outhouse or appurtenance belonging to, or usually enjoyed with, the premises specified in the application on which the order is made; (b) exclude any part of the premises so specified. (5) Where— (a) the premises in respect of which an application for an acquisition order is made consist of part only of more extensive premises in which the landlord has an interest, and (b) it appears to the court that the landlord’s interest in the latter premises is not reasonably capable of being severed, either in the manner contemplated by the application or in any manner authorised by virtue of subsection (4)(b), then, notwithstanding that paragraphs (a) and (b) of subsection (1) apply, the court shall not make an acquisition order on the application. (6) In a case where an application for an acquisition order was preceded by the service of a notice under section 27, the court may, if it thinks fit, make such an order notwithstanding— (a) that any period specified in the notice in pursuance of subsection (2)(d) of that section was not a reasonable period, or (b) that the notice failed in any other respect to comply with any requirement contained in subsection (2) of that section or in any regulations applying to the notice under section 54(3). (7) Where any premises are premises to which this Part applies at the time when an application for an acquisition order is made in respect of them, then, for the purposes of this section and the following provisions of this Part, they shall not cease to be such premises by reason only that— (a) the interest of the landlord in them subsequently becomes held by — (i) an exempt landlord or a resident landlord, or (ii) the Welsh Ministers in their new towns residuary capacity, or (b) they subsequently become included within the functional land of any charity.

30 Content of acquisition orders.

(1) Where an acquisition order is made by the court, the order shall (except in a case falling within section 33(1)) provide for the nominated person to be entitled to acquire the landlord’s interest in the premises specified in the order on such terms as may be determined— (a) by agreement between the landlord and the qualifying tenants in whose favour the order is made, or (b) in default of agreement, by the appropriate tribunal under section 31. (2) An acquisition order may be granted subject to such conditions as the court thinks fit, and in particular its operation may be suspended on terms fixed by the court. (3) References in this Part, in relation to an acquisition order, to the nominated person are references to such person or persons as may be nominated for the purposes of this Part by the persons applying for the order. (4) Those persons must secure that the nominated person is joined as a party to the application, and no further nomination of a person for the purposes of this Part shall be made by them after the order is made (whether in addition to, or in substitution for, the existing nominated person) except with the approval of the court. (5) Where the landlord is, by virtue of any covenant, condition or other obligation, precluded from disposing of his interest in the premises in respect of which an acquisition order has been made unless the consent of some other person is obtained— (a) he shall use his best endeavours to secure that the consent of that person to that disposal is obtained and, if it appears to him that that person is obliged not to withhold his consent unreasonably but has nevertheless so withheld it, shall institute proceedings for a declaration to that effect; but (b) if— (i) the landlord has discharged any duty imposed on him by paragraph (a), and (ii) the consent of that person has been withheld, and (iii) no such declaration has been made, the order shall cease to have effect. (6) The Land Charges Act 1972 and the Land Registration Act 2002 shall apply in relation to an acquisition order as they apply in relation to an order affecting land made by the court for the purpose of enforcing a judgment or recognisance. (7) For the purposes of this Part, “appropriate tribunal” means— (a) in relation to premises in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and (b) in relation to premises in Wales, a leasehold valuation tribunal.

31 Determination of terms by ... tribunal.

(1) The appropriate tribunal shall have jurisdiction to determine the terms on which the landlord’s interest in the premises specified in an acquisition order may be acquired by the nominated person to the extent that those terms have not been determined by agreement between the landlord and either— (a) the qualifying tenants in whose favour the order was made, or (b) the nominated person; and (subject to subsection (2)) the tribunal shall determine any such terms on the basis of what appears to them to be fair and reasonable. (2) Where an application is made under this section for the tribunal to determine the consideration payable for the acquisition of a landlord’s interest in any premises, the tribunal shall do so by determining an amount equal to the amount which, in their opinion, that interest might be expected to realise if sold on the open market by a willing seller on the appropriate terms and on the assumption that none of the tenants of the landlord of any premises comprised in those premises was buying or seeking to buy that interest. (3) In subsection (2) “the appropriate terms” means all of the terms to which the acquisition of the landlord’s interest in pursuance of the order is to be subject (whether determined by agreement as mentioned in subsection (1) or on an application under this section) apart from those relating to the consideration payable. (4) On any application under this section the interests of the qualifying tenants in whose favour the acquisition order was made shall be represented by the nominated person, and accordingly the parties to any such application shall not include those tenants. (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) Nothing in this section shall be construed as authorising the appropriate tribunal to determine any terms dealing with matters in relation to which provision is made by section 32 or 33.

32 Discharge of existing mortgages.

(1) Where the landlord’s interest in any premises is acquired in pursuance of an acquisition order, the instrument by virtue of which it is so acquired shall (subject to subsection (2) and Part II of Schedule 1) operate to discharge the premises from any charge on that interest to secure the payment of money or the performance of any other obligation by the landlord or any other person. (2) Subsection (1) does not apply to any such charge if— (a) it has been agreed between the landlord and either— (i) the qualifying tenants in whose favour the order was made, or (ii) the nominated person, that the landlord’s interest should be acquired subject to the charge, or (b) the court is satisfied, whether on the application for the order or on an application made by the person entitled to the benefit of the charge, that in the exceptional circumstances of the case it would be fair and reasonable that the landlord’s interest should be so acquired, and orders accordingly. (3) This section and Part II of Schedule 1 shall apply, with any necessary modifications, to mortgages and liens as they apply to charges; but nothing in those provisions shall apply to a rentcharge.

33 Acquisition order where landlord cannot be found.

(1) Where an acquisition order is made by the court in a case where the landlord cannot be found, or his identity cannot be ascertained, the order shall provide for the landlord’s interest in the premises specified in the order to vest in the nominated person on the following terms, namely— (a) such terms as to payment as are specified in subsection (2), and (b) such other terms as the court thinks fit, being terms which, in the opinion of the court, correspond so far as possible to those on which the interest might be expected to be transferred if it were being transferred by the landlord. (2) The terms as to payment referred to in subsection (1)(a) are terms requiring the payment into court of— (a) such amount as a surveyor selected by the Senior President of Tribunals may certify to be in his opinion the amount which the landlord’s interest might be expected to realise if sold as mentioned in section 31(2); and (b) any amounts or estimated amounts remaining due to the landlord from any tenants of his of any premises comprised in the premises in respect of which the order is made, being amounts or estimated amounts determined by the court as being due from those persons under the terms of their leases. (3) Where any amount or amounts required by virtue of subsection (2) to be paid into court are so paid, the landlord’s interest shall, by virtue of this section, vest in the nominated person in accordance with the order.

34 Discharge of acquisition order and withdrawal by tenants.

(1) If, on an application by a landlord in respect of whose interest an acquisition order has been made, the court is satisfied— (a) that the nominated person has had a reasonable time within which to effect the acquisition of that interest in pursuance of the order but has not done so, or (b) that the number of qualifying tenants of flats contained in the premises in question who desire to proceed with the acquisition of the landlord’s interest is less than the requisite majority of qualifying tenants of the flats contained in those premises, or (c) that the premises in question have ceased to be premises to which this Part applies, the court may discharge the order. (2) Where— (a) a notice is served on the landlord by the qualifying tenants by whom a notice has been served under section 27 or (as the case may be) by whom an application has been made for an acquisition order, or by the person nominated for the purposes of this Part by any such tenants, and (b) the notice indicates an intention no longer to proceed with the acquisition of the landlord’s interest in the premises in question, the landlord may (except in a case where subsection (4) applies) recover under this subsection any costs reasonably incurred by him in connection with the disposal by him of that interest down to the time when the notice is served ; and, if the notice is served after the making of an acquisition order, that order shall cease to have effect. (3) If (whether before or after the making of an acquisition order) the nominated person becomes aware— (a) that the number of qualifying tenants of flats contained in the premises in question who desire to proceed with the acquisition of the landlord’s interest is less than the requisite majority of qualifying tenants of the flats contained in those premises, or (b) that those premises have ceased to be premises to which this Part applies, he shall forthwith serve on the landlord a notice indicating an intention no longer to proceed with the acquisition of that interest, and subsection (2) shall apply accordingly. (4) If, at any time when any proceedings taken under or by virtue of this Part are pending before the court or the Upper Tribunal— (a) such a notice as is mentioned in subsection (2) or (3) is served on the landlord, or (b) the nominated person indicates that he is no longer willing to act in the matter and nobody is nominated for the purposes of this Part in his place, or (c) the number of qualifying tenants of flats contained in the premises in question who desire to proceed with the acquisition of the landlord’s interest falls below the requisite majority of qualifying tenants of the flats contained in those premises, or (d) those premises cease to be premises to which this Part applies, or if the court discharges an acquisition order under subsection (1), the landlord may recover such costs incurred by him in connection with the disposal by him of his interest in those premises as the court or (as the case may be) the Tribunal may determine. (5) The costs that may be recovered by the landlord under subsection (2) or (4) include costs incurred by him in connection with any proceedings under this Part (other than proceedings before the appropriate tribunal). (6) Any liability for costs arising under this section shall be the joint and several liability of the following persons, namely— (a) where the liability arises before the making of an application for an acquisition order, the tenants by whom a notice was served under section 27, or (b) where the liability arises after the making of such an application, the tenants by whom the application was made, together with (in either case) any person nominated by those tenants for the purposes of this Part. (7) In relation to any time when a tenant falling within paragraph (a) or (b) of subsection (6) has ceased to have vested in him the interest under his lease, that paragraph shall be construed as applying instead to the person who is for the time being the successor in title to that interest. (8) Nothing in this section shall be construed as authorising the court to discharge an acquisition order where the landlord’s interest has already been acquired in pursuance of the order. (9) If— (a) an acquisition order is discharged, or ceases to have effect, by virtue of any provision of this Part, and (b) the order has been protected by an entry registered under the Land Charges Act 1972 or the Land Registration Act 2002, the court may by order direct that that entry shall be cancelled.

35 Application by party to lease for variation of lease.

(1) Any party to a long lease of a flat may make an application to the appropriate tribunal for an order varying the lease in such manner as is specified in the application. (2) The grounds on which any such application may be made are that the lease fails to make satisfactory provision with respect to one or more of the following matters, namely— (a) the repair or maintenance of— (i) the flat in question, or (ii) the building containing the flat, or (iii) any land or building which is let to the tenant under the lease or in respect of which rights are conferred on him under it; (b) the insurance of the building containing the flat or of any such land or building as is mentioned in paragraph (a)(iii); (c) the repair or maintenance of any installations (whether they are in the same building as the flat or not) which are reasonably necessary to ensure that occupiers of the flat enjoy a reasonable standard of accommodation; (d) the provision or maintenance of any services which are reasonably necessary to ensure that occupiers of the flat enjoy a reasonable standard of accommodation (whether they are services connected with any such installations or not, and whether they are services provided for the benefit of those occupiers or services provided for the benefit of the occupiers of a number of flats including that flat); (e) the recovery by one party to the lease from another party to it of expenditure incurred or to be incurred by him, or on his behalf, for the benefit of that other party or of a number of persons who include that other party; (f) the computation of a service charge payable under the lease. (g) such other matters as may be prescribed by regulations made by the Secretary of State. (3) For the purposes of subsection (2)(c) and (d) the factors for determining, in relation to the occupiers of a flat, what is a reasonable standard of accommodation may include— (a) factors relating to the safety and security of the flat and its occupiers and of any common parts of the building containing the flat; and (b) other factors relating to the condition of any such common parts. (3A) For the purposes of subsection (2)(e) the factors for determining, in relation to a service charge payable under a lease, whether the lease makes satisfactory provision include whether it makes provision for an amount to be payable (by way of interest or otherwise) in respect of a failure to pay the service charge by the due date. (4) For the purposes of subsection (2)(f) a lease fails to make satisfactory provision with respect to the computation of a service charge payable under it if— (a) it provides for any such charge to be a proportion of expenditure incurred, or to be incurred, by or on behalf of the landlord or a superior landlord; and (b) other tenants of the landlord are also liable under their leases to pay by way of service charges proportions of any such expenditure; and (c) the aggregate of the amounts that would, in any particular case, be payable by reference to the proportions referred to in paragraphs (a) and (b) would either exceed or be less than the whole of any such expenditure. (5) Procedure regulations under Schedule 12 to the Commonhold and Leasehold Reform Act 2002 and Tribunal Procedure Rules shall make provision— (a) for requiring notice of any application under this Part to be served by the person making the application, and by any respondent to the application, on any person who the applicant, or (as the case may be) the respondent, knows or has reason to believe is likely to be affected by any variation specified in the application, and (b) for enabling persons served with any such notice to be joined as parties to the proceedings. (6) For the purposes of this Part a long lease shall not be regarded as a long lease of a flat if— (a) the demised premises consist of or include three or more flats contained in the same building; or (b) the lease constitutes a tenancy to which Part II of the Landlord and Tenant Act 1954 applies. (8) In this section “service charge” has the meaning given by section 18(1) of the 1985 Act. (9) For the purposes of this section and sections 36 to 39, “appropriate tribunal” means— (a) if one or more of the long leases concerned relates to property in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and (b) if one or more of the long leases concerned relates to property in Wales, a leasehold valuation tribunal.

36 Application by respondent for variation of other leases.

(1) Where an application (“the original application”) is made under section 35 by any party to a lease, any other party to the lease may make an application to the tribunal asking it, in the event of its deciding to make an order effecting any variation of the lease in pursuance of the original application, to make an order which effects a corresponding variation of each of such one or more other leases as are specified in the application. (2) Any lease so specified— (a) must be a long lease of a flat under which the landlord is the same person as the landlord under the lease specified in the original application; but (b) need not be a lease of a flat which is in the same building as the flat let under that lease, nor a lease drafted in terms identical to those of that lease. (3) The grounds on which an application may be made under this section are— (a) that each of the leases specified in the application fails to make satisfactory provision with respect to the matter or matters specified in the original application; and (b) that, if any variation is effected in pursuance of the original application, it would be in the interests of the person making the application under this section, or in the interests of the other persons who are parties to the leases specified in that application, to have all of the leases in question (that is to say, the ones specified in that application together with the one specified in the original application) varied to the same effect.

37 Application by majority of parties for variation of leases.

(1) Subject to the following provisions of this section, an application may be made to the appropriate tribunal in respect of two or more leases for an order varying each of those leases in such manner as is specified in the application. (2) Those leases must be long leases of flats under which the landlord is the same person, but they need not be leases of flats which are in the same building, nor leases which are drafted in identical terms. (3) The grounds on which an application may be made under this section are that the object to be achieved by the variation cannot be satisfactorily achieved unless all the leases are varied to the same effect. (4) An application under this section in respect of any leases may be made by the landlord or any of the tenants under the leases. (5) Any such application shall only be made if— (a) in a case where the application is in respect of less than nine leases, all, or all but one, of the parties concerned consent to it; or (b) in a case where the application is in respect of more than eight leases, it is not opposed for any reason by more than 10 per cent. of the total number of the parties concerned and at least 75 per cent. of that number consent to it. (6) For the purposes of subsection (5)— (a) in the case of each lease in respect of which the application is made, the tenant under the lease shall constitute one of the parties concerned (so that in determining the total number of the parties concerned a person who is the tenant under a number of such leases shall be regarded as constituting a corresponding number of the parties concerned); and (b) the landlord shall also constitute one of the parties concerned.

38 Orders ... varying leases.

(1) If, on an application under section 35, the grounds on which the application was made are established to the satisfaction of the tribunal, the tribunal may (subject to subsections (6) and (7)) make an order varying the lease specified in the application in such manner as is specified in the order. (2) If— (a) an application under section 36 was made in connection with that application, and (b) the grounds set out in subsection (3) of that section are established to the satisfaction of the tribunal with respect to the leases specified in the application under section 36, the tribunal may (subject to subsections (6) and (7)) also make an order varying each of those leases in such manner as is specified in the order. (3) If, on an application under section 37, the grounds set out in subsection (3) of that section are established to the satisfaction of the tribunal with respect to the leases specified in the application, the tribunal may (subject to subsections (6) and (7)) make an order varying each of those leases in such manner as is specified in the order. (4) The variation specified in an order under subsection (1) or (2) may be either the variation specified in the relevant application under section 35 or 36 or such other variation as the tribunal thinks fit. (5) If the grounds referred to in subsection (2) or (3) (as the case may be) are established to the satisfaction of the tribunal with respect to some but not all of the leases specified in the application, the power to make an order under that subsection shall extend to those leases only. (6) A tribunal shall not make an order under this section effecting any variation of a lease if it appears to the tribunal — (a) that the variation would be likely substantially to prejudice— (i) any respondent to the application, or (ii) any person who is not a party to the application, and that an award under subsection (10) would not afford him adequate compensation, or (b) that for any other reason it would not be reasonable in the circumstances for the variation to be effected. (7) A tribunal shall not, on an application relating to the provision to be made by a lease with respect to insurance, make an order under this section effecting any variation of the lease— (a) which terminates any existing right of the landlord under its terms to nominate an insurer for insurance purposes; or (b) which requires the landlord to nominate a number of insurers from which the tenant would be entitled to select an insurer for those purposes; or (c) which, in a case where the lease requires the tenant to effect insurance with a specified insurer, requires the tenant to effect insurance otherwise than with another specified insurer. (8) A tribunal may, instead of making an order varying a lease in such manner as is specified in the order, make an order directing the parties to the lease to vary it in such manner as is so specified; and accordingly any reference in this Part (however expressed) to an order which effects any variation of a lease or to any variation effected by an order shall include a reference to an order which directs the parties to a lease to effect a variation of it or (as the case may be) a reference to any variation effected in pursuance of such an order. (9) A tribunal may by order direct that a memorandum of any variation of a lease effected by an order under this section shall be endorsed on such documents as are specified in the order. (10) Where a tribunal makes an order under this section varying a lease the tribunal may, if it thinks fit, make an order providing for any party to the lease to pay, to any other party to the lease or to any other person, compensation in respect of any loss or disadvantage that the tribunal considers he is likely to suffer as a result of the variation.

39 Effect of orders varying leases: applications by third parties.

(1) Any variation effected by an order under section 38 shall be binding not only on the parties to the lease for the time being but also on other persons (including any predecessors in title of those parties), whether or not they were parties to the proceedings in which the order was made or were served with a notice by virtue of section 35(5). (2) Without prejudice to the generality of subsection (1), any variation effected by any such order shall be binding on any surety who has guaranteed the performance of any obligation varied by the order; and the surety shall accordingly be taken to have guaranteed the performance of that obligation as so varied. (3) Where any such order has been made and a person was, by virtue of section 35(5), required to be served with a notice relating to the proceedings in which it was made, but he was not so served, he may— (a) bring an action for damages for breach of statutory duty against the person by whom any such notice was so required to be served in respect of that person’s failure to serve it; (b) apply to the appropriate tribunal for the cancellation or modification of the variation in question. (4) A tribunal may, on an application under subsection (3)(b) with respect to any variation of a lease— (a) by order cancel that variation or modify it in such manner as is specified in the order, or (b) make such an order as is mentioned in section 38(10) in favour of the person making the application, as it thinks fit. (5) Where a variation is cancelled or modified under paragraph (a) of subsection (4)— (a) the cancellation or modification shall take effect as from the date of the making of the order under that paragraph or as from such later date as may be specified in the order, and (b) the tribunal may by order direct that a memorandum of the cancellation or modification shall be endorsed on such documents as are specified in the order; and, in a case where a variation is so modified, subsections (1) and (2) above shall, as from the date when the modification takes effect, apply to the variation as modified.

40 Application for variation of insurance provisions of lease of dwelling other than a flat.

(1) Any party to a long lease of a dwelling may make an application to the appropriate tribunal for an order varying the lease, in such manner as is specified in the application, on the grounds that the lease fails to make satisfactory provision with respect to any matter relating to the insurance of the dwelling, including the recovery of the costs of such insurance. (2) Sections 36 and 38 shall apply to an application under subsection (1) subject to the modifications specified in subsection (3). (3) Those modifications are as follows— (a) in section 36— (i) in subsection (1), the reference to section 35 shall be read as a reference to subsection (1) above, and (ii) in subsection (2), any reference to a flat shall be read as a reference to a dwelling; and (b) in section 38— (i) any reference to an application under section 35 shall be read as a reference to an application under subsection (1) above, and (ii) any reference to an application under section 36 shall be read as a reference to an application under section 36 as applied by subsection (2) above. (4) For the purpose of this section, a long lease shall not be regarded as a long lease of a dwelling if— (a) the demised premises consist of three or more dwellings; or (b) the lease constitutes a tenancy to which Part II of the Landlord and Tenant Act 1954 applies. (4A) Without prejudice to subsection (4), an application under subsection (1) may not be made by a person who is a tenant under a long lease of a dwelling if, by virtue of that lease and one or more other long leases of dwellings, he is also a tenant from the same landlord of at least two other dwellings. (4B) For the purposes of subsection (4A), any tenant of a dwelling who is a body corporate shall be treated as a tenant of any other dwelling held from the same landlord which is let under a long lease to an associated company, as defined in section 20(1). (5) In this section “dwelling” means a dwelling other than a flat. (6) For the purposes of subsection (1), “appropriate tribunal” means— (a) if one or more of the dwellings concerned is in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and (b) if one or more of the dwellings concerned is in Wales, a leasehold valuation tribunal.

41 Amendments relating to service charges.

(1) Sections 18 to 30 of the 1985 Act (regulation of service charges payable by tenants) shall have effect subject to the amendments specified in Schedule 2 (which include amendments— (a) extending the provisions of those sections to dwellings other than flats, and (b) introducing certain additional limitations on service charges). (2) Sections 45 to 51 of the Housing Act 1985 (which are, so far as relating to dwellings let on long leases, superseded by sections 18 to 30 of the 1985 Act as amended by Schedule 2) shall cease to have effect in relation to dwellings so let.

42 Service charge contributions to be held in trust.

(1) This section applies where the tenants of two or more dwellings may be required under the terms of their leases to contribute to the same costs , or the tenant of a dwelling may be required under the terms of his lease to contribute to costs to which no other tenant of a dwelling may be required to contribute, by the payment of service charges; and in this section— “the contributing tenants” means those tenants; and “the sole contributing tenant” means that tenant; “the payee” means the landlord or other person to whom any such charges are payable by those tenants , or that tenant, under the terms of their leases, or his lease; “relevant service charges” means any such charges; “service charge” has the meaning given by section 18(1) of the 1985 Act, except that it does not include a service charge payable by the tenant of a dwelling the rent of which is registered under Part IV of the Rent Act 1977, unless the amount registered is, in pursuance of section 71(4) of that Act, entered as a variable amount; “tenant” does not include a tenant of an exempt landlord; and “trust fund” means the fund, or (as the case may be) any of the funds, mentioned in subsection (2) below. (2) Any sums paid to the payee by the contributing tenants , or the sole contributing tenant, by way of relevant service charges, and any investments representing those sums, shall (together with any income accruing thereon) be held by the payee either as a single fund or, if he thinks fit, in two or more separate funds. (3) The payee shall hold any trust fund— (a) on trust to defray costs incurred in connection with the matters for which the relevant service charges were payable (whether incurred by himself or by any other person), and (b) subject to that, on trust for the persons who are the contributing tenants for the time being , or the person who is the sole contributing tenant for the time being. (4) Subject to subsections (6) to (8), the contributing tenants shall be treated as entitled by virtue of subsection (3)(b) to such shares in the residue of any such fund as are proportionate to their respective liabilities to pay relevant service charges or the sole contributing tenant shall be treated as so entitled to the residue of any such fund. (5) If the Secretary of State by order so provides, any sums standing to the credit of any trust fund may, instead of being invested in any other manner authorised by law, be invested in such manner as may be specified in the order; and any such order may contain such incidental, supplemental or transitional provisions as the Secretary of State considers appropriate in connection with the order. (6) On the termination of the lease of any of the contributing tenants the tenant shall not be entitled to any part of any trust fund, and (except where subsection (7) applies) any part of any such fund which is attributable to relevant service charges paid under the lease shall accordingly continue to be held on the trusts referred to in subsection (3). (7) On the termination of the lease of the last of the contributing tenants, or of the lease of the sole contributing tenant, any trust fund shall be dissolved as at the date of the termination of the lease, and any assets comprised in the fund immediately before its dissolution shall— (a) if the payee is the landlord, be retained by him for his own use and benefit, and (b) in any other case, be transferred to the landlord by the payee. (8) Subsections (4), (6) and (7) shall have effect in relation to any of the contributing tenants, or the sole contributing tenant, subject to any express terms of his lease (whenever it was granted) which relate to the distribution, either before or (as the case may be) at the termination of the lease, of amounts attributable to relevant service charges paid under its terms (whether the lease was granted before or after the commencement of this section). (9) Subject to subsection (8), the provisions of this section shall prevail over the terms of any express or implied trust created by a lease so far as inconsistent with those provisions, other than an express trust so created , in the case of a lease of any of the contributing tenants, before the commencement of this section or, in the case of the lease of the sole contributing tenant, before the commencement of paragraph 15 of Schedule 10 to the Commonhold and Leasehold Reform Act 2002.

42A Service charge contributions to be held in designated account

(1) The payee must hold any sums standing to the credit of any trust fund in a designated account at a relevant financial institution. (2) An account is a designated account in relation to sums standing to the credit of a trust fund if— (a) the relevant financial institution has been notified in writing that sums standing to the credit of the trust fund are to be (or are) held in it, and (b) no other funds are held in the account, (b) any other sums held in the account are sums standing to the credit of one or more other trust funds, and the account is an account of a description specified in regulations made by the Secretary of State. appropriate national authority (2A) The appropriate national authority may by regulations ensure that a payee who holds more than one trust fund in the same designated account cannot move any of those funds to another designated account unless conditions specified in the regulations are met. (3) Any of the contributing tenants, or the sole contributing tenant, may by notice in writing require the payee— (a) to afford him reasonable facilities for inspecting documents evidencing that subsection (1) is , or regulations under subsection (2A) are, complied with and for taking copies of or extracts from them such documents, or (b) to take copies of or extracts from any such documents and either send them to him or afford him reasonable facilities for collecting them (as he specifies). (4) If the tenant is represented by a recognised tenants’ association and he consents, the notice may be served by the secretary of the association instead of by the tenant (and in that case any requirement imposed by it is to afford reasonable facilities, or to send copies or extracts, to the secretary). (5) A notice under this section subsection (3) is duly served on the payee if it is served on— (a) an agent of the payee named as such in the rent book or similar document, or (b) the person who receives the rent on behalf of the payee; and a person on whom such a notice is so served must forward it as soon as may be to the payee. (6) The payee must comply with a requirement imposed by a notice under this section subsection (3) within the period of twenty-one days beginning with the day on which he receives the notice. (7) To the extent that a notice under this section subsection (3) requires the payee to afford facilities for inspecting documents— (a) he must do so free of charge, but (b) he may treat as part of his costs of management any costs incurred by him in doing so. (8) The payee may make a reasonable charge for doing anything else in compliance with a requirement imposed by a notice under this section subsection (3) . (9) Any of the contributing tenants, or the sole contributing tenant, may withhold payment of a service charge if he has reasonable grounds for believing that the payee has failed to comply with the duty imposed on him by subsection (1); and any provisions of his tenancy relating to non-payment or late payment of service charges do not have effect in relation to the period for which he so withholds it. (9A) Regulations under subsection (2A) may include provision about — (a) the circumstances in which a contributing tenant who has reasonable grounds for believing that the payee has not complied with a duty imposed on him by the regulations may withhold payment of a service charge, (b) the period for which payment may be so withheld, (c) the amount of service charge that may be so withheld; and the regulations may provide that any provisions of the contributing tenant's tenancy relating to non-payment or late payment of service charge do not have effect in relation to the period for which the payment is so withheld. (10) Nothing in this section or in regulations under subsection (2A) applies to the payee if the circumstances are such as are specified in regulations made by the Secretary of State appropriate national authority . (10A) Regulations under this section may— (a) make different provision for different cases, including different provision for different areas, (b) contain such supplementary, incidental, consequential, transitional, transitory or saving provision as the appropriate national authority considers appropriate. (10B) Regulations under this section are to be made by statutory instrument which— (a) in the case of regulations made by the Secretary of State, is to be subject to annulment in pursuance of a resolution of either House of Parliament, and (b) in the case of regulations made by the Welsh Ministers, is to be subject to annulment in pursuance of a resolution of the National Assembly for Wales. (11) In this section— “the appropriate national authority”— (a) in relation to England, means the Secretary of State, and (b) in relation to Wales, means the Welsh Ministers, “recognised tenants’ association” has the same meaning as in the 1985 Act, and “relevant financial institution” has the meaning given by regulations made by the Secretary of State appropriate national authority ; and expressions used both in section 42 and this section have the same meaning as in that section.

42B Failure to comply with section 42A

(1) If a person fails, without reasonable excuse, to comply with a duty imposed on him by or by virtue of section 42A he commits an offence. (2) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 4 on the standard scale. (3) Where an offence under this section committed by a body corporate is proved— (a) to have been committed with the consent or connivance of a director, manager, secretary or other similar officer of the body corporate, or a person purporting to act in such a capacity, or (b) to be due to any neglect on the part of such an officer or person, he, as well as the body corporate, is guilty of the offence and liable to be proceeded against and punished accordingly. (4) Where the affairs of a body corporate are managed by its members, subsection (3) applies in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate. (5) Proceedings for an offence under this section may be brought by a local housing authority (within the meaning of section 1 of the Housing Act 1985 (c. 68)).

43 Rights of tenants with respect to insurance.

– (1) The following section shall be inserted after section 30 of the 1985 Act— Insurance Rights of tenants with respect to insurance. 30A The Schedule to this Act (which confers on tenants certain rights with respect to the insurance of their dwellings) shall have effect. (2) Schedule 3 to this Act shall be added to the 1985 Act as the Schedule to that Act.

44 Recognised tenants’ associations to be consulted about managing agents.

The following section shall be inserted in the 1985 Act after the section 30A inserted by section 43— Managing agents Recognised tenants’ associations to be consulted about managing agents. 30B (1) A recognised tenants’ association may at any time serve a notice on the landlord requesting him to consult the association in accordance with this section on matters relating to the appointment or employment by him of a managing agent for any relevant premises. (2) Where, at the time when any such notice is served by a recognised tenants’ association, the landlord does not employ any managing agent for any relevant premises, the landlord shall, before appointing such a managing agent, serve on the association a notice specifying— (a) the name of the proposed managing agent; (b) the landlord’s obligations to the tenants represented by the association which it is proposed that the managing agent should be required to discharge on his behalf; and (c) a period of not less than one month beginning with the date of service of the notice within which the association may make observations on the proposed appointment. (3) Where, at the time when a notice is served under subsection (1) by a recognised tenants’ association, the landlord employs a managing agent for any relevant premises, the landlord shall, within the period of one month beginning with the date of service of that notice, serve on the association a notice specifying— (a) the landlord’s obligations to the tenants represented by the association which the managing agent is required to discharge on his behalf; and (b) a reasonable period within which the association may make observations on the manner in which the managing agent has been discharging those obligations, and on the desirability of his continuing to discharge them. (4) Subject to subsection (5), a landlord who has been served with a notice by an association under subsection (1) shall, so long as he employs a managing agent for any relevant premises— (a) serve on that association at least once in every five years a notice specifying— (i) any change occurring since the date of the last notice served by him on the association under this section in the obligations which the managing agent has been required to discharge on his behalf; and (ii) a reasonable period within which the association may make observations on the manner in which the managing agent has discharged those obligations since that date, and on the desirability of his continuing to discharge them; (b) serve on that association, whenever he proposes to appoint any new managing agent for any relevant premises, a notice specifying the matters mentioned in paragraphs (a) to (c) of subsection (2). (5) A landlord shall not, by virtue of a notice served by an association under subsection (1), be required to serve on the association a notice under subsection (4)(a) or (b) if the association subsequently serves on the landlord a notice withdrawing its request under subsection (1) to be consulted by him. (6) Where— (a) a recognised tenants’ association has served a notice under subsection (1) with respect to any relevant premises, and (b) the interest of the landlord in those premises becomes vested in a new landlord, that notice shall cease to have effect with respect to those premises (without prejudice to the service by the association on the new landlord of a fresh notice under that subsection with respect to those premises). (7) Any notice served by a landlord under this section shall specify the name and the address in the United Kingdom of the person to whom any observations made in pursuance of the notice are to be sent; and the landlord shall have regard to any such observations that are received by that person within the period specified in the notice. (8) In this section— “landlord”, in relation to a recognised tenants’ association, means the immediate landlord of the tenants represented by the association or a person who has a right to enforce payment of service charges payable by any of those tenants; “managing agent”, in relation to any relevant premises, means an agent of the landlord appointed to discharge any of the landlord’s obligations to the tenants represented by the recognised tenants’ association in question which relate to the management by him of those premises; and “tenant” includes a statutory tenant; and for the purposes of this section any premises (whether a building or not) are relevant premises in relation to a recognised tenants’ association if any of the tenants represented by the association may be required under the terms of their leases to contribute by the payment of service charges to costs relating to those premises.

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46 Application of Part VI, etc.

(1) This Part applies to premises which consist of or include a dwelling and are not held under a tenancy to which Part II of the Landlord and Tenant Act 1954 applies. (1A) But this Part does not apply if the dwelling is in Wales and is subject to an occupation contract (see section 7 of the Renting Homes (Wales) Act 2016 (anaw 1)). (2) In this Part “service charge” has the meaning given by section 18(1) of the 1985 Act. (3) In this Part “administration charge” has the meaning given by paragraph 1 of Schedule 11 to the Commonhold and Leasehold Reform Act 2002.

47 Landlord’s name and address to be contained in demands for rent etc.

(1) Where any written demand is given to a tenant of premises to which this Part applies, the demand must contain the following information, namely— (a) the name and address of the landlord, and (b) if that address is not in England and Wales, an address in England and Wales at which notices (including notices in proceedings) may be served on the landlord by the tenant. (2) Where— (a) a tenant of any such premises is given such a demand, but (b) it does not contain any information required to be contained in it by virtue of subsection (1), then (subject to subsection (3)) any part of the amount demanded which consists of a service charge or an administration charge (“the relevant amount”) shall be treated for all purposes as not being due from the tenant to the landlord at any time before that information is furnished by the landlord by notice given to the tenant. (3) The relevant amount shall not be so treated in relation to any time when, by virtue of an order of any court or tribunal, there is in force an appointment of a receiver or manager whose functions include the receiving of service charges or (as the case may be) administration charges from the tenant. (4) In this section “demand” means a demand for rent or other sums payable to the landlord under the terms of the tenancy.

47A Building safety information to be contained in demands for rent etc: England

(1) Where premises to which this Part applies are premises in England which consist of or include a dwelling in a higher-risk building, any written demand given to a tenant of the premises must contain the relevant building safety information. (2) Where— (a) a tenant of such premises is given such a demand, but (b) the demand does not contain the relevant building safety information, any part of the amount demanded which consists of a service charge or an administration charge (“the relevant amount”) is to be treated for all purposes as not being due from the tenant to the landlord at any time before the landlord gives the relevant building safety information to the tenant. (3) But the relevant amount is not to be so treated in relation to any time when— (a) by virtue of an order of any court or tribunal there is in force an appointment of a receiver or manager whose functions include the receiving of service charges or administration charges from the tenant, or (b) a special measures order (within the meaning of Schedule 7 to the Building Safety Act 2022) is in force. (4) In this section— “demand” has the meaning given in section 47; “higher-risk building” has the meaning given in section 115 of the Building Safety Act 2022; “relevant building safety information” has the meaning given in section 49A.

48 Notification by landlord of address for service of notices.

(1) A landlord of premises to which this Part applies shall by notice furnish the tenant with an address in England and Wales at which notices (including notices in proceedings) may be served on him by the tenant. (2) Where a landlord of any such premises fails to comply with subsection (1), any rent , service charge or administration charge otherwise due from the tenant to the landlord shall (subject to subsection (3)) be treated for all purposes as not being due from the tenant to the landlord at any time before the landlord does comply with that subsection. (3) Any such rent , service charge or administration charge shall not be so treated in relation to any time when, by virtue of an order of any court or tribunal, there is in force an appointment of a receiver or manager whose functions include the receiving of rent , service charges or (as the case may be) administration charges from the tenant.

49 Extension of circumstances in which notices are sufficiently served.

In section 196 of the Law of Property Act 1925 (regulations respecting notices), any reference in subsection (3) or (4) to the last-known place of abode or business of the person to be served shall have effect, in its application to a notice to be served by a tenant on a landlord of premises to which this Part applies, as if that reference included a reference to— (a) the address last furnished to the tenant by the landlord in accordance with section 48, or (b) if no address has been so furnished in accordance with section 48, the address last furnished to the tenant by the landlord in accordance with section 47.

49A Notification by landlord of building safety information: England

(1) Where premises to which this Part applies are premises in England which consist of or include a dwelling in a higher-risk building, the landlord must give the tenant a notice containing the relevant building safety information. (2) Where a landlord fails to give a notice to a tenant in accordance with subsection (1), any rent, service charge or administration charge otherwise due from the tenant to the landlord is to be treated for all purposes as not being due from the tenant to the landlord at any time before the landlord gives the notice to the tenant. (3) But any such rent, service charge or administration charge is not to be so treated in relation to any time when— (a) by virtue of an order of any court or tribunal there is in force an appointment of a receiver or manager whose functions include the receiving of rent, service charges or administration charges from the tenant, or (b) a special measures order (within the meaning of Schedule 7 to the Building Safety Act 2022) is in force. (4) The requirement to give a notice to a tenant under subsection (1) may be satisfied by giving the notice to them at a time when they are a prospective tenant. (5) In this section “relevant building safety information” means— (a) the fact that the premises consist of or include a dwelling in a higher-risk building; (b) the name of each person listed in subsection (6); (c) an email address and telephone number through which each person listed in subsection (6) may be contacted; (d) a postal address in England and Wales at which notices (including notices in proceedings) may be served by the tenant on the principal accountable person for the higher-risk building; (e) a postal address for the regulator; (f) such other information as may be prescribed in regulations made by the Secretary of State. (6) The persons are— (a) the principal accountable person for the higher-risk building; (b) any special measures manager for the higher-risk building; (c) the regulator. (7) In this section— “higher-risk building” has the meaning given in section 115 of the Building Safety Act 2022; “principal accountable person” has the meaning given in section 115 of that Act; “the regulator” has the meaning given in section 115 of that Act; “special measures manager” has the meaning given in paragraph 1 of Schedule 7 to that Act.

50 Continuation of former landlord’s liability to tenant where no notice of assignment.

In section 3 of the 1985 Act (duty to inform tenant of assignment of landlord’s interest) the following subsections shall be inserted after subsection (3)— (3A) The person who was the landlord under the tenancy immediately before the assignment (“the old landlord”) shall be liable to the tenant in respect of any breach of any covenant, condition or agreement under the tenancy occurring before the end of the relevant period in like manner as if the interest assigned were still vested in him; and where the new landlord is also liable to the tenant in respect of any such breach occurring within that period, he and the old landlord shall be jointly and severally liable in respect of it. (3B) In subsection (3A) “the relevant period” means the period beginning with the date of the assignment and ending with the date when— (a) notice in writing of the assignment, and of the new landlord’s name and address, is given to the tenant by the new landlord (whether in accordance with subsection (1) or not), or (b) notice in writing of the assignment, and of the new landlord’s name and last-known address, is given to the tenant by the old landlord, whichever happens first.

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52 Jurisdiction of county courts.

(1) The county court shall have jurisdiction to hear and determine any question arising under any provision to which this section applies (other than a question falling within the jurisdiction of the appropriate tribunal by virtue of section 13(1) or 31(1)). (2) This section applies to— (a) any provision of Parts I and 3; (b) any provision of section 42; and (c) any provision of sections 46 to 48. (3) Where any proceedings under any provision to which this section applies are being taken in the county court, the county court shall have jurisdiction to hear and determine any other proceedings joined with those proceedings, notwithstanding that the other proceedings would, apart from this subsection, be outside the court’s jurisdiction. (4) If a person takes any proceedings under any such provision in the High Court he shall not be entitled to recover any more costs of those proceedings than those to which he would have been entitled if the proceedings had been taken in the county court; and in any such case the taxing master shall have the same power of directing on what county court scale costs are to be allowed, and of allowing any item of costs, as the judge would have had if the proceedings had been taken in the county court. (5) Subsection (4) shall not apply where the purpose of taking the proceedings in the High Court was to enable them to be joined with any proceedings already pending before that court (not being proceedings taken under any provision to which this section applies).