Law

Commonhold and Leasehold Reform Act 2002

United Kingdom · statute

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In force since 2025-03-03, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 199 provisions
  1. Title and introductory text
  2. 1 Commonhold land
  3. 2 Application
  4. 3 Consent
  5. 4 Land which may not be commonhold
  6. 5 Registered details
  7. 6 Registration in error
  8. 7 Registration without unit-holders
  9. 8 Transitional period
  10. 9 Registration with unit-holders
  11. 10 Extinguished lease: liability
  12. 11 Definition
  13. 12 Unit-holder
  14. 13 Joint unit-holders
  15. 14 Use , maintenance and building safety
  16. 15 Transfer
  17. 16 Transfer: effect
  18. 17 Leasing: residential
  19. 18 Leasing: non-residential
  20. 19 Leasing: supplementary
  21. 20 Other transactions
  22. 21 Part-unit: interests
  23. 22 Part–unit: charging
  24. 23 Changing size
  25. 24 Changing size: charged unit
  26. 25 Definition
  27. 26 Use , maintenance and building safety
  28. 27 Transactions
  29. 28 Charges: general prohibition
  30. 29 New legal mortgages
  31. 30 Additions to common parts
  32. 31 Form and content: general
  33. 32 Regulations
  34. 33 Amendment
  35. 34 Constitution
  36. 35 Duty to manage
  37. 36 Voting
  38. 37 Enforcement and compensation
  39. 38 Commonhold assessment
  40. 38A Building safety assessment
  41. 39 Reserve fund
  42. 40 Rectification of documents
  43. 41 Enlargement
  44. 42 Ombudsman
  45. 43 Winding-up resolution
  46. 44 100 per cent. agreement
  47. 45 80 per cent. agreement
  48. 46 Termination application
  49. 47 Termination statement
  50. 48 The liquidator
  51. 49 Termination
  52. 50 Introduction
  53. 51 Succession order
  54. 52 Assets and liabilities
  55. 53 Transfer of responsibility
  56. 54 Termination of commonhold
  57. 55 Termination by court
  58. 56 Release of reserve fund
  59. 57 Multiple site commonholds
  60. 58 Development rights
  61. 59 Development rights: succession
  62. 60 Compulsory purchase
  63. 61 Home rights
  64. 62 Advice etc.
  65. 63 The Crown
  66. 64 Orders and regulations
  67. 65 Registration procedure
  68. 66 Jurisdiction
  69. 67 The register
  70. 68 Amendments
  71. 69 Interpretation
  72. 70 Index of defined expressions
  73. 71 The right to manage
  74. 72 Premises to which Chapter applies
  75. 73 RTM companies
  76. 74 RTM companies: membership and regulations
  77. 75 Qualifying tenants
  78. 76 Long leases
  79. 77 Long leases: further provisions
  80. 78 Notice inviting participation
  81. 79 Notice of claim to acquire right
  82. 80 Contents of claim notice
  83. 81 Claim notice: supplementary
  84. 82 Right to obtain information
  85. 83 Right of access
  86. 84 Counter-notices
  87. 85 Landlords etc. not traceable
  88. 86 Withdrawal of claim notice
  89. 87 Deemed withdrawal
  90. 87A Costs: general
  91. 87B Power of tribunal to order costs where claim ceases
  92. 88 Costs: general
  93. 89 Costs where claim ceases
  94. 90 The acquisition date
  95. 91 Notices relating to management contracts
  96. 92 Duties to give notice of contracts
  97. 93 Duty to provide information
  98. 94 Duty to pay accrued uncommitted service charges
  99. 95 Introductory
  100. 96 Management functions under leases
  101. 97 Management functions: supplementary
  102. 98 Functions relating to approvals
  103. 99 Approvals: supplementary
  104. 100 Enforcement of tenant covenants
  105. 101 Tenant covenants: monitoring and reporting
  106. 102 Statutory functions
  107. 103 Landlord contributions to service charges
  108. 104 Registration
  109. 105 Cessation of management
  110. 106 Agreements excluding or modifying right
  111. 107 Power of tribunal to order compliance
  112. 108 Application to Crown
  113. 109 Powers of trustees in relation to right
  114. 110 Power to prescribe procedure
  115. 111 Notices
  116. 112 Definitions
  117. 113 Index of defined expressions
  118. 114 Amendments of right to collective enfranchisement
  119. 115 Non-residential premises
  120. 116 Premises including railway track
  121. 117 Qualifying leases
  122. 118 Premises with resident landlord
  123. 119 Proportion of tenants required to participate
  124. 120 Abolition of residence condition
  125. 122 RTE companies
  126. 125 Right of access
  127. 126 Valuation date
  128. 127 Freeholder’s share of marriage value
  129. 128 Disregard of marriage value in case of very long leases
  130. 129 Amendments of right to acquire new lease
  131. 130 Replacement of residence test
  132. 131 Qualifying leases
  133. 132 Personal representatives
  134. 133 Crown leases
  135. 134 Valuation date
  136. 135 Landlord’s share of marriage value
  137. 136 Disregard of marriage value in case of very long leases
  138. 137 Amendments of 1967 Act
  139. 138 Abolition of residence test
  140. 139 Reduction of qualifying period as tenant etc
  141. 140 Exclusion of certain business tenancies
  142. 141 Tenancies not at low rent
  143. 142 Personal representatives
  144. 143 Abolition of limits on rights after lease extension
  145. 144 Exclusion of shared ownership leases
  146. 145 Tenant’s share of marriage value
  147. 146 Disregard of marriage value in case of very long leases
  148. 147 Purchase price for enfranchisement during lease extension
  149. 148 Applications to be to county court
  150. 149 Valuation by leasehold valuation tribunal
  151. 150 Extending meaning of service charge and management etc
  152. 151 Consultation about service charges
  153. 152 Statements of account
  154. 153 Notice to accompany demands for service charges
  155. 155 Liability to pay service charges: jurisdiction
  156. 156 Service charge contributions to be held in separate account
  157. 157 Service charges: minor and consequential amendments
  158. 158 Administration charges
  159. 159 Charges under estate management schemes
  160. 160 Third parties with management responsibilities
  161. 161 Restriction of resident landlord exception
  162. 162 Grounds for application by party to lease
  163. 163 Transfer of jurisdiction of court to tribunal
  164. 164 Insurance otherwise than with landlord’s insurer
  165. 165 Extension of right to challenge landlord’s choice of insurer
  166. 166 Requirement to notify long leaseholders that rent is due
  167. 167 Failure to pay small amount for short period
  168. 168 No forfeiture notice before determination of breach
  169. 169 Section 168: supplementary
  170. 170 Forfeiture for failure to pay service charge etc
  171. 171 Power to prescribe additional or different requirements
  172. 172 Application to Crown
  173. 173 Leasehold valuation tribunals
  174. 174 Procedure
  175. 175 Appeals
  176. 176 Consequential amendments
  177. 176A Transfer from court to First-tier Tribunal
  178. 176B Appeals from the First-tier Tribunal
  179. 176C Enforcement
  180. 177 Wales
  181. 178 Orders and regulations
  182. 179 Interpretation
  183. 180 Repeals
  184. 181 Commencement etc
  185. 182 Extent
  186. 183 Short title
  187. SCHEDULE 1 Application for registration: documents
  188. SCHEDULE 2 Land which may not be commonhold land
  189. SCHEDULE 3 Commonhold association
  190. SCHEDULE 4 Development rights
  191. SCHEDULE 5 Commonhold: consequential amendments
  192. SCHEDULE 6 Premises excluded from right to manage
  193. SCHEDULE 7 Right to manage: statutory provisions
  194. SCHEDULE 9 Meaning of service charge and management
  195. SCHEDULE 10 Service charges: minor and consequential amendments
  196. SCHEDULE 11 Administration charges
  197. SCHEDULE 12 Leasehold valuation tribunals: procedure
  198. SCHEDULE 13 Leasehold valuation tribunals: amendments
  199. SCHEDULE 14 Repeals

Proposed changes to this act

No one has proposed a change to this act yet.

199 provisions

161 Restriction of resident landlord exception

In section 21 of the 1987 Act (tenant’s right to apply to tribunal for appointment of manager), after subsection (3) insert— (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.

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162 Grounds for application by party to lease

(1) Section 35 of the 1987 Act (application by party to lease for variation of lease) is amended as follows. (2) In subsection (2) (grounds for application), for paragraph (b) substitute— (b) the insurance of the building containing the flat or of any such land or building as is mentioned in paragraph (a)(iii); . (3) After paragraph (f) of that subsection insert— (g) such other matters as may be prescribed by regulations made by the Secretary of State. (4) After subsection (3) insert— (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. (5) In section 53(2)(b) of the 1987 Act (regulations subject to negative Parliamentary procedure), after “section 20(4)” insert “ or 35(2)(g) ”.

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163 Transfer of jurisdiction of court to tribunal

(1) Part 4 of the 1987 Act (variation of leases) is amended as follows. (2) In section 35 (application by party to lease for variation of lease)— (a) in subsection (1), for “the court” substitute “ a leasehold valuation tribunal ”, and (b) in subsection (5), for “Rules of court” substitute “ Procedure regulations under Schedule 12 to the Commonhold and Leasehold Reform Act 2002 ”. (3) In section 36(1) (application by respondent for variation of other leases), for “court” substitute “ tribunal ”. (4) In section 37(1) (application by majority of parties for variation of leases), for “the court” substitute “ a leasehold valuation tribunal ”. (5) In section 38 (orders varying leases)— (a) in subsections (1) to (5), for “court” (in each place) substitute “ tribunal ”, (b) in subsection (6)— (i) for “The court” substitute “ A tribunal ”, and (ii) for “the court” substitute “ the tribunal ”, (c) in subsections (7) to (9), for “The court” substitute “ A tribunal ”, and (d) in subsection (10)— (i) for “the court”, in the first place, substitute “ a tribunal ”, and (ii) for “the court”, in the other two places, substitute “ the tribunal ”. (6) In section 39 (applications by third parties for orders varying leases)— (a) in subsection (3)(b), for “the court” substitute “ a leasehold valuation tribunal ”, (b) in subsection (4), for “The court” substitute “ A tribunal ”, and (c) in subsection (5)(b), for “court” substitute “ tribunal ”. (7) In section 40(1) (variation of insurance provisions of dwelling other than flat), for “the court” substitute “ a leasehold valuation tribunal ”. (8) In consequence of the preceding provisions, in section 52(2)(a) of the 1987 Act (jurisdiction of county courts), for “, 3 and 4” substitute “ and 3 ”.

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164 Insurance otherwise than with landlord’s insurer

(1) This section applies where a long lease of a house requires the tenant to insure the house with an insurer nominated or approved by the landlord (“the landlord’s insurer”). (2) The tenant is not required to effect the insurance with the landlord’s insurer if— (a) the house is insured under a policy of insurance issued by an authorised insurer, (b) the policy covers the interests of both the landlord and the tenant, (c) the policy covers all the risks which the lease requires be covered by insurance provided by the landlord’s insurer, (d) the amount of the cover is not less than that which the lease requires to be provided by such insurance, and (e) the tenant satisfies subsection (3). (3) To satisfy this subsection the tenant— (a) must have given a notice of cover to the landlord before the end of the period of fourteen days beginning with the relevant date, and (b) if (after that date) he has been requested to do so by a new landlord, must have given a notice of cover to him within the period of fourteen days beginning with the day on which the request was given. (4) For the purposes of subsection (3)— (a) if the policy has not been renewed the relevant date is the day on which it took effect and if it has been renewed it is the day from which it was last renewed, and (b) a person is a new landlord on any day if he acquired the interest of the previous landlord under the lease on a disposal made by him during the period of one month ending with that day. (5) A notice of cover is a notice specifying— (a) the name of the insurer, (b) the risks covered by the policy, (c) the amount and period of the cover, and (d) such further information as may be prescribed. (6) A notice of cover— (a) must be in the prescribed form, and (b) may be sent by post. (7) If a notice of cover is sent by post, it may be addressed to the landlord at the address specified in subsection (8). (8) That address is— (a) the address last furnished to the tenant as the landlord’s address for service in accordance with section 48 of the 1987 Act (notification of address for service of notices on landlord), or (b) if no such address has been so furnished, the address last furnished to the tenant as the landlord’s address in accordance with section 47 of the 1987 Act (landlord’s name and address to be contained in demands for rent). (9) But the tenant may not give a notice of cover to the landlord at the address specified in subsection (8) if he has been notified by the landlord of a different address in England and Wales at which he wishes to be given any such notice. (10) In this section— “authorised insurer”, in relation to a policy of insurance, means a person who may carry on in the United Kingdom the business of effecting or carrying out contracts of insurance of the sort provided under the policy without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000 (c. 8), “house” has the same meaning as for the purposes of Part 1 of the 1967 Act, “landlord” and “tenant” have the same meanings as in Chapter 1 of this Part, “long lease” has the meaning given by sections 76 and 77 of this Act, and “prescribed” means prescribed by regulations made by the appropriate national authority.

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165 Extension of right to challenge landlord’s choice of insurer

(1) Paragraph 8 of the Schedule to the 1985 Act (right to challenge landlord’s nomination of insurer) is amended as follows. (2) In sub-paragraphs (1) and (2), after “nominated” insert “ or approved ”. (3) In sub-paragraph (4), after “nominate” (in both places) insert “ or approve ”.

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166 Requirement to notify long leaseholders that rent is due

(1) A tenant under a long lease of a dwelling is not liable to make a payment of rent under the lease unless the landlord has given him a notice relating to the payment; and the date on which he is liable to make the payment is that specified in the notice. (2) The notice must specify— (a) the amount of the payment, (b) the date on which the tenant is liable to make it, and (c) if different from that date, the date on which he would have been liable to make it in accordance with the lease, and shall contain any such further information as may be prescribed. (3) The date on which the tenant is liable to make the payment must not be— (a) either less than 30 days or more than 60 days after the day on which the notice is given, or (b) before that on which he would have been liable to make it in accordance with the lease. (4) If the date on which the tenant is liable to make the payment is after that on which he would have been liable to make it in accordance with the lease, any provisions of the lease relating to non-payment or late payment of rent have effect accordingly. (5) The notice— (a) must be in the prescribed form, and (b) may be sent by post. (6) If the notice is sent by post, it must be addressed to a tenant at the dwelling unless he has notified the landlord in writing of a different address in England and Wales at which he wishes to be given notices under this section (in which case it must be addressed to him there). (7) In this section “rent” does not include— (a) a service charge (within the meaning of section 18(1) of the 1985 Act), or (b) an administration charge (within the meaning of Part 1 of Schedule 11 to this Act). (8) In this section “long lease of a dwelling” does not include— (a) a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies, (b) a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or (c) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8). (9) In this section— “dwelling” has the same meaning as in the 1985 Act, “landlord” and “tenant” have the same meanings as in Chapter 1 of this Part, “long lease” has the meaning given by sections 76 and 77 of this Act, and “prescribed” means prescribed by regulations made by the appropriate national authority.

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167 Failure to pay small amount for short period

(1) A landlord under a long lease of a dwelling may not exercise a right of re-entry or forfeiture for failure by a tenant to pay an amount consisting of rent, service charges or administration charges (or a combination of them) (“the unpaid amount”) unless the unpaid amount— (a) exceeds the prescribed sum, or (b) consists of or includes an amount which has been payable for more than a prescribed period. (2) The sum prescribed under subsection (1)(a) must not exceed £500. (3) If the unpaid amount includes a default charge, it is to be treated for the purposes of subsection (1)(a) as reduced by the amount of the charge; and for this purpose “default charge” means an administration charge payable in respect of the tenant’s failure to pay any part of the unpaid amount. (4) In this section “long lease of a dwelling” does not include— (a) a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies, (b) a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or (c) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8). (5) In this section— “administration charge” has the same meaning as in Part 1 of Schedule 11, “dwelling” has the same meaning as in the 1985 Act, “landlord” and “tenant” have the same meaning as in Chapter 1 of this Part, “long lease” has the meaning given by sections 76 and 77 of this Act, except that a shared ownership lease is a long lease whatever the tenant’s total share, “prescribed” means prescribed by regulations made by the appropriate national authority, and “service charge” has the meaning given by section 18(1) of the 1985 Act.

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168 No forfeiture notice before determination of breach

(1) A landlord under a long lease of a dwelling may not serve a notice under section 146(1) of the Law of Property Act 1925 (c. 20) (restriction on forfeiture) in respect of a breach by a tenant of a covenant or condition in the lease unless subsection (2) is satisfied. (2) This subsection is satisfied if— (a) it has been finally determined on an application under subsection (4) that the breach has occurred, (b) the tenant has admitted the breach, or (c) a court in any proceedings, or an arbitral tribunal in proceedings pursuant to a post-dispute arbitration agreement, has finally determined that the breach has occurred. (3) But a notice may not be served by virtue of subsection (2)(a) or (c) until after the end of the period of 14 days beginning with the day after that on which the final determination is made. (4) A landlord under a long lease of a dwelling may make an application to the appropriate tribunal for a determination that a breach of a covenant or condition in the lease has occurred. (5) But a landlord may not make an application under subsection (4) in respect of a matter which— (a) has been, or is to be, referred to arbitration pursuant to a post-dispute arbitration agreement to which the tenant is a party, (b) has been the subject of determination by a court, or (c) has been the subject of determination by an arbitral tribunal pursuant to a post-dispute arbitration agreement. (6) For the purposes of subsection (4), “appropriate tribunal” means— (a) in relation to a dwelling in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and (b) in relation to a dwelling in Wales, a leasehold valuation tribunal.

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169 Section 168: supplementary

(1) An agreement by a tenant under a long lease of a dwelling (other than a post-dispute arbitration agreement) is void in so far as it purports to provide for a determination— (a) in a particular manner, or (b) on particular evidence, of any question which may be the subject of an application under section 168(4). (2) For the purposes of section 168 it is finally determined that a breach of a covenant or condition in a lease has occurred— (a) if a decision that it has occurred is not appealed against or otherwise challenged, at the end of the period for bringing an appeal or other challenge, or (b) if such a decision is appealed against or otherwise challenged and not set aside in consequence of the appeal or other challenge, at the time specified in subsection (3). (3) The time referred to in subsection (2)(b) is the time when the appeal or other challenge is disposed of— (a) by the determination of the appeal or other challenge and the expiry of the time for bringing a subsequent appeal (if any), or (b) by its being abandoned or otherwise ceasing to have effect. (4) In section 168 and this section “long lease of a dwelling” does not include— (a) a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies, (b) a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or (c) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8). (5) In section 168 and this section— “arbitration agreement” and “arbitral tribunal” have the same meaning as in Part 1 of the Arbitration Act 1996 (c. 23) and “post-dispute arbitration agreement”, in relation to any breach (or alleged breach), means an arbitration agreement made after the breach has occurred (or is alleged to have occurred), “dwelling” has the same meaning as in the 1985 Act, “landlord” and “tenant” have the same meaning as in Chapter 1 of this Part, and “long lease” has the meaning given by sections 76 and 77 of this Act, except that a shared ownership lease is a long lease whatever the tenant’s total share. (6) Section 146(7) of the Law of Property Act 1925 (c. 20) applies for the purposes of section 168 and this section. (7) Nothing in section 168 affects the service of a notice under section 146(1) of the Law of Property Act 1925 in respect of a failure to pay— (a) a service charge (within the meaning of section 18(1) of the 1985 Act), or (b) an administration charge (within the meaning of Part 1 of Schedule 11 to this Act).

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170 Forfeiture for failure to pay service charge etc

(1) Section 81 of the Housing Act 1996 (c. 52) (restriction on forfeiture for failure to pay service charge) is amended as follows. (2) In subsection (1), for the words from “to pay” to the end substitute by a tenant to pay a service charge or administration charge unless— (a) it is finally determined by (or on appeal from) a leasehold valuation tribunal or by a court, or by an arbitral tribunal in proceedings pursuant to a post-dispute arbitration agreement, that the amount of the service charge or administration charge is payable by him, or (b) the tenant has admitted that it is so payable. (3) For subsection (2) substitute— (2) The landlord may not exercise a right of re-entry or forfeiture by virtue of subsection (1)(a) until after the end of the period of 14 days beginning with the day after that on which the final determination is made. (4) For subsection (3) substitute— (3) For the purposes of this section it is finally determined that the amount of a service charge or administration charge is payable— (a) if a decision that it is payable is not appealed against or otherwise challenged, at the end of the time for bringing an appeal or other challenge, or (b) if such a decision is appealed against or otherwise challenged and not set aside in consequence of the appeal or other challenge, at the time specified in subsection (3A). (3A) The time referred to in subsection (3)(b) is the time when the appeal or other challenge is disposed of— (a) by the determination of the appeal or other challenge and the expiry of the time for bringing a subsequent appeal (if any), or (b) by its being abandoned or otherwise ceasing to have effect. (5) After subsection (4) insert— (4A) References in this section to the exercise of a right of re-entry or forfeiture include the service of a notice under section 146(1) of the Law of Property Act 1925 (restriction on re-entry or forfeiture). (6) In subsection (5), after “this section” insert— (a) “administration charge” has the meaning given by Part 1 of Schedule 11 to the Commonhold and Leasehold Reform Act 2002, (b) “arbitration agreement” and “arbitral tribunal” have the same meaning as in Part 1 of the Arbitration Act 1996 (c. 23) and “post-dispute arbitration agreement”, in relation to any matter, means an arbitration agreement made after a dispute about the matter has arisen, (c) “dwelling” has the same meaning as in the Landlord and Tenant Act 1985 (c. 70), and (d) .

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171 Power to prescribe additional or different requirements

(1) The appropriate national authority may by regulations prescribe requirements which must be met before a right of re-entry or forfeiture may be exercised in relation to a breach of a covenant or condition in a long lease of an unmortgaged dwelling. (2) The regulations may specify that the requirements are to be in addition to, or instead of, requirements imposed otherwise than by the regulations. (3) In this section “long lease of a dwelling” does not include— (a) a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies, (b) a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or (c) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8). (4) For the purposes of this section a dwelling is unmortgaged if it is not subject to a mortgage, charge or lien. (5) In this section— “dwelling” has the same meaning as in the 1985 Act, and “long lease” has the meaning given by sections 76 and 77 of this Act, except that a shared ownership lease is a long lease whatever the tenant’s total share.

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172 Application to Crown

(1) The following provisions apply in relation to Crown land (as in relation to other land)— (a) sections 18 to 30B 30I of (and the Schedule to) the 1985 Act (service charges, insurance and managing agents and building safety), (b) Part 2 of the 1987 Act (appointment of manager by the appropriate tribunal ), (c) Part 4 of the 1987 Act (variation of leases), (d) sections 46 to 49 49A of the 1987 Act (information to be furnished to tenants), (e) Chapter 5 of Part 1 of the 1993 Act (management audit), (f) section 81 of the Housing Act 1996 (c. 52) (restriction on termination of tenancy for failure to pay service charge etc.), (g) section 84 of (and Schedule 4 to) that Act (right to appoint surveyor), and (h) in this Chapter, the provisions relating to any of the provisions within paragraphs (a) to (g), Part 1 of Schedule 11 and sections 164 to 171. (2) Land is Crown land if there is or has at any time been an interest or estate in the land— (a) comprised in the Crown Estate, (b) belonging to Her Majesty in right of the Duchy of Lancaster, (c) belonging to the Duchy of Cornwall, or (d) belonging to a government department or held on behalf of Her Majesty for the purposes of a government department. (3) No failure by the Crown to perform a duty imposed by or by virtue of any of sections 21 to 23A of, or any of paragraphs 2 to 4A of the Schedule to, the 1985 Act makes the Crown criminally liable; but the High Court may declare any such failure without reasonable excuse to be unlawful. (4) Any sum payable under any of the provisions mentioned in subsection (1) by the Chancellor of the Duchy of Lancaster may be raised and paid under section 25 of the Duchy of Lancaster Act 1817 (c. 97) as an expense incurred in improvement of land belonging to Her Majesty in right of the Duchy. (5) Any sum payable under any such provision by the Duke of Cornwall (or any other possessor for the time being of the Duchy of Cornwall) may be raised and paid under section 8 of the Duchy of Cornwall Management Act 1863 (c. 49) as an expense incurred in permanently improving the possessions of the Duchy. (6) In section 56 of the 1987 Act (Crown land)— (a) in subsection (1), for “This Act” substitute “ Parts 1 and 3 and sections 42 to 42B (and so much of this Part as relates to those provisions) ”, and (b) in subsection (3), for “this Act” substitute “ the provisions mentioned in subsection (1) ”.

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173 Leasehold valuation tribunals

(1) Any jurisdiction conferred on a leasehold valuation tribunal by or under any enactment is exercisable by a rent assessment committee constituted in accordance with Schedule 10 to the Rent Act 1977 (c. 42). (2) When so constituted for exercising any such jurisdiction a rent assessment committee is known as a leasehold valuation tribunal.

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174 Procedure

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

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175 Appeals

(1) A party to proceedings before a leasehold valuation tribunal may appeal to the Upper Tribunal from a decision of the leasehold valuation tribunal. (2) But the appeal may be made only with the permission of— (a) the leasehold valuation tribunal, or (b) the Upper Tribunal. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) On the appeal the Upper Tribunal may exercise any power which was available to the leasehold valuation tribunal. (5) And a decision of the Upper Tribunal on the appeal may be enforced in the same way as a decision of the leasehold valuation tribunal. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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176 Consequential amendments

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

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176A Transfer from court to First-tier Tribunal

(1) Where, in any proceedings before a court, there falls for determination a question which the First-tier Tribunal or the Upper Tribunal would have jurisdiction to determine under an enactment specified in subsection (2) on an appeal or application to the tribunal, the court— (a) may by order transfer to the First-tier Tribunal so much of the proceedings as relate to the determination of that question; (b) may then dispose of all or any remaining proceedings pending the determination of that question by the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal, as it thinks fit. (2) The enactments specified for the purposes of subsection (1) are— (a) this Act, (b) the Leasehold Reform Act 1967, (c) the Landlord and Tenant Act 1985, (d) the Landlord and Tenant Act 1987, (e) the Leasehold Reform, Housing and Urban Development Act 1993, and (f) the Housing Act 1996. (3) Where the First-tier Tribunal or the Upper Tribunal has determined the question, the court may give effect to the determination in an order of the court. (4) Rules of court may prescribe the procedure to be followed in a court in connection with or in consequence of a transfer under this section.

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176B Appeals from the First-tier Tribunal

(1) A person aggrieved by a decision of the First-tier Tribunal under or in connection with an enactment specified in section 176A(2) may appeal to the Upper Tribunal. (2) An appeal may not be brought under subsection (1) in relation to a decision on a point of law (as to which see instead section 11 of the Tribunals, Courts and Enforcement Act 2007 (right of appeal to Upper Tribunal)). (3) An appeal may not be brought under subsection (1) if the decision is set aside under section 9 of the Tribunals, Courts and Enforcement Act 2007 (review of decision of First-tier Tribunal). (4) An appeal may be brought under subsection (1) only if, on an application made by the person concerned, the First-tier Tribunal or Upper Tribunal has given its permission for the appeal to be brought. (5) In any case where the Upper Tribunal is determining an appeal under subsection (1), section 12(2) to (4) of the Tribunals, Courts and Enforcement Act 2007 (proceedings on appeal to the Upper Tribunal) apply.

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176C Enforcement

Any decision of the First-tier Tribunal or Upper Tribunal under or in connection with an enactment specified in section 176A(2), other than a decision ordering the payment of a sum (as to which see section 27 (enforcement) of the Tribunals, Courts and Enforcement Act 2007), is to be enforceable with the permission of a county court in the same way as orders of such a court.

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177 Wales

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

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178 Orders and regulations

(1) An order or regulations under any provision of this Part— (a) may include incidental, supplementary, consequential and transitional provision, (b) may make provision generally or only in relation to specified cases, and (c) may make different provision for different purposes. (2) Regulations under Schedule 12 may make different provision for different areas. (3) Any power to make an order or regulations under this Part is exercisable by statutory instrument. (4) Regulations shall not be made by the Secretary of State under section 167 or 171 or paragraph 9(3)(b) or 10(3)(b) of Schedule 12 unless a draft of the instrument containing them has been laid before and approved by a resolution of each House of Parliament. (5) A statutory instrument containing an order or regulations made by the Secretary of State under this Part shall, if not so approved, be subject to annulment in pursuance of a resolution of either House of Parliament.

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179 Interpretation

(1) In this Part “the appropriate national authority” means— (a) the Secretary of State (as respects England), and (b) the National Assembly for Wales (as respects Wales). (2) In this Part— “the 1967 Act” means the Leasehold Reform Act 1967 (c. 88), “the 1985 Act” means the Landlord and Tenant Act 1985 (c. 70), “the 1987 Act” means the Landlord and Tenant Act 1987 (c. 31), and “the 1993 Act” means the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28).

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181 Commencement etc

(1) Apart from section 104 and sections 177 to 179, the preceding provisions (and the Schedules) come into force in accordance with provision made by order made by the appropriate authority. (2) The appropriate authority may by order make any transitional provisions or savings in connection with the coming into force of any provision in accordance with an order under subsection (1). (3) The power to make orders under subsections (1) and (2) is exercisable by statutory instrument. (4) In this section “the appropriate authority” means— (a) in relation to any provision of Part 1 or section 180 and Schedule 14 so far as relating to section 104, the Lord Chancellor, and (b) in relation to any provision of Part 2 or section 180 and Schedule 14 so far as otherwise relating, the Secretary of State (as respects England) and the National Assembly for Wales (as respects Wales).

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183 Short title

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

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SCHEDULE 1 Application for registration: documents

Section 2 Introduction 1 This Schedule lists the documents which are required by section 2 to accompany an application for the registration of a freehold estate as a freehold estate in commonhold land. Commonhold association documents 2 The commonhold association’s certificate of incorporation under section 15 of the Companies Act 2006. 3 Any altered certificate of incorporation issued under section 80 of that Act (change of name). 4 The articles of association of the commonhold association. Commonhold community statement 5 The commonhold community statement. Consent 6 (1) Where consent is required under or by virtue of section 3— (a) the consent, (b) an order of a court by virtue of section 3(2)(f) dispensing with the requirement for consent, or (c) evidence of deemed consent by virtue of section 3(2)(e). (2) In the case of a conditional order under section 3(2)(f), the order must be accompanied by evidence that the condition has been complied with. Certificate 7 A certificate given by the directors of the commonhold association that— (a) the articles of association submitted with the application comply with regulations under paragraph 2(1) of Schedule 3, (b) the commonhold community statement submitted with the application satisfies the requirements of this Part, (c) the application satisfies Schedule 2, (d) the commonhold association has not traded, and (e) the commonhold association has not incurred any liability which has not been discharged.

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SCHEDULE 2 Land which may not be commonhold land

Section 4 “Flying freehold” 1 (1) Subject to sub-paragraph (2), an application may not be made under section 2 wholly or partly in relation to land above ground level (“raised land”) unless all the land between the ground and the raised land is the subject of the same application. (2) An application for the addition of land to a commonhold in accordance with section 41 may be made wholly or partly in relation to raised land if all the land between the ground and the raised land forms part of the commonhold to which the raised land is to be added. Agricultural land 2 An application may not be made under section 2 wholly or partly in relation to land if— (a) it is agricultural land within the meaning of the Agriculture Act 1947 (c. 48), (b) it is comprised in a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5), or (c) it is comprised in a farm business tenancy for the purposes of the Agricultural Tenancies Act 1995 (c. 8). Contingent title 3 (1) An application may not be made under section 2 if an estate in the whole or part of the land to which the application relates is a contingent estate. (2) An estate is contingent for the purposes of this paragraph if (and only if)— (a) it is liable to revert to or vest in a person other than the present registered proprietor on the occurrence or non-occurrence of a particular event, and (b) the reverter or vesting would occur by operation of law as a result of an enactment listed in sub-paragraph (3). (3) The enactments are— (a) the School Sites Act 1841 (c. 38) (conveyance for use as school), (b) the Lands Clauses Acts (compulsory purchase), (c) the Literary and Scientific Institutions Act 1854 (c. 112) (sites for institutions), and (d) the Places of Worship Sites Act 1873 (c. 50) (sites for places of worship). (4) Regulations may amend sub-paragraph (3) so as to— (a) add an enactment to the list, or (b) remove an enactment from the list.

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SCHEDULE 3 Commonhold association

Section 34 Part 1 Articles of Association Introduction 1 In this Schedule “articles” means the articles of association of a commonhold association. Form and content 2 (1) Regulations shall make provision about the form and content of the articles. (2) A commonhold association may adopt provisions of the regulations for its articles. (3) The regulations may include provision which is to have effect for a commonhold association whether or not it is adopted under sub-paragraph (2). (4) A provision of the articles shall have no effect to the extent that it is inconsistent with the regulations. (5) Regulations under this paragraph shall have effect in relation to articles— (a) irrespective of the date of the articles, but (b) subject to any transitional provision of the regulations. (6) Section 20 of the Companies Act 2006 (default application of model articles) does not apply to a commonhold association. Alteration 3 (1) Where a commonhold association alters its articles at a time when the land specified in its articles is commonhold land, the alteration shall have no effect until the altered version is registered in accordance with this paragraph. (2) If the commonhold association makes an application under this sub-paragraph the Registrar shall arrange for altered articles to be kept in his custody, and referred to in the register, in place of the unaltered version. (3) An application under sub-paragraph (2) must be accompanied by a certificate given by the directors of the commonhold association that the altered articles comply with regulations under paragraph 2(1). (4) Where the Registrar amends the register on an application under sub-paragraph (2) he shall make any consequential amendments to the register which he thinks appropriate. Disapplication of Companies Act 1985 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 2 Membership Pre-commonhold period 5 During the period beginning with incorporation of a commonhold association and ending when land specified in its articles becomes commonhold land, the subscribers (or subscriber) to the association's memorandum of association shall be the sole members (or member) of the association. Transitional period 6 (1) This paragraph applies to a commonhold association during a transitional period. (2) The subscribers (or subscriber) to the association's memorandum of association shall continue to be members (or the member) of the association. (3) A person who for the time being is the developer in respect of all or part of the commonhold is entitled to be entered in the register of members of the association. Unit-holders 7 A person is entitled to be entered in the register of members of a commonhold association if he becomes the unit-holder of a commonhold unit in relation to which the association exercises functions— (a) on the unit becoming commonhold land by registration with unit-holders under section 9, or (b) on the transfer of the unit. Joint unit-holders 8 (1) This paragraph applies where two or more persons become joint unit-holders of a commonhold unit— (a) on the unit becoming commonhold land by registration with unit-holders under section 9, or (b) on the transfer of the unit. (2) If the joint unit-holders nominate one of themselves for the purpose of this sub-paragraph, he is entitled to be entered in the register of members of the commonhold association which exercises functions in relation to the unit. (3) A nomination under sub-paragraph (2) must— (a) be made in writing to the commonhold association, and (b) be received by the association before the end of the prescribed period. (4) If no nomination is received by the association before the end of the prescribed period the person whose name appears first in the proprietorship register is on the expiry of that period entitled to be entered in the register of members of the association. (5) On the application of a joint unit-holder the court may order that a joint unit-holder is entitled to be entered in the register of members of a commonhold association in place of a person who is or would be entitled to be registered by virtue of sub-paragraph (4). (6) If joint unit-holders nominate one of themselves for the purpose of this sub-paragraph, the nominated person is entitled to be entered in the register of members of the commonhold association in place of the person entered by virtue of— (a) sub-paragraph (2), (b) sub-paragraph (5), or (c) this sub-paragraph. Self-membership 9 A commonhold association may not be a member of itself. No other members 10 A person may not become a member of a commonhold association otherwise than by virtue of a provision of this Schedule. Effect of registration 11 A person who is entitled to be entered in the register of members of a commonhold association becomes a member when the company registers him in pursuance of its duty under section 113 of the Companies Act 2006 (duty to maintain register of members). Termination of membership 12 Where a member of a commonhold association ceases to be a unit-holder or joint unit-holder of a commonhold unit in relation to which the association exercises functions— (a) he shall cease to be a member of the commonhold association, but (b) paragraph (a) does not affect any right or liability already acquired or incurred in respect of a matter relating to a time when he was a unit-holder or joint unit-holder. 13 A member of a commonhold association may resign by notice in writing to the association if (and only if) he is a member by virtue of paragraph 5 or 6 of this Schedule (and not also by virtue of any other paragraph). Register of members 14 (1) Regulations may make provision about the performance by a commonhold association of its duty under section 113 of the Companies Act 2006 (duty to maintain register of members) where a person— (a) becomes entitled to be entered in the register by virtue of paragraphs 5 to 8, or (b) ceases to be a member by virtue of paragraph 12 or on resignation. (2) The regulations may in particular require entries in the register to be made within a specified period. (3) A period specified under sub-paragraph (2) may be expressed to begin from— (a) the date of a notification under section 15(3), (b) the date on which the directors of the commonhold association first become aware of a specified matter, or (c) some other time. (4) A requirement by virtue of this paragraph shall be treated as a requirement of section 113 for the purposes of section 113(7) and (8) (offences). Supplementary provisions 15 (1) Section 112(1) of the Companies Act 2006 (initial members of company) applies to a commonhold association subject to the provisions of this Schedule. (2) The following provisions of that Act do not apply to a commonhold association— section 112(2) (new members); section 136 (membership of holding company). Part 3 Miscellaneous Name 16 Regulations may provide— (a) that the name by which a commonhold association is registered under the Companies Act 2006 must satisfy specified requirements; (b) that the name by which a company other than a commonhold association is registered may not include a specified word or expression. Statement of compliance 17 For the purposes of section 13 of the Companies Act 2006 (registration: statement of compliance) as it applies to a commonhold association, a reference to the requirements of that Act shall be treated as including a reference to a provision of or made under this Schedule.

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SCHEDULE 4 Development rights

Section 58 Introductory 1 This Schedule sets out the matters which are development business for the purposes of section 58. Works 2 The completion or execution of works on— (a) a commonhold, (b) land which is or may be added to a commonhold, or (c) land which has been removed from a commonhold. Marketing 3 (1) Transactions in commonhold units. (2) Advertising and other activities designed to promote transactions in commonhold units. Variation 4 The addition of land to a commonhold. 5 The removal of land from a commonhold. 6 Amendment of a commonhold community statement (including amendment to redefine the extent of a commonhold unit). Commonhold association 7 Appointment and removal of directors of a commonhold association.

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SCHEDULE 5 Commonhold: consequential amendments

Section 68 Law of Property Act 1922 (c. 16) 1 At the end of paragraph 5 of Schedule 15 to the Law of Property Act 1922 (perpetually renewable leases) (which becomes sub-paragraph (1)) there shall be added— (2) Sub-paragraph (3) applies where a grant— (a) relates to commonhold land, and (b) would take effect by virtue of sub-paragraph (1) as a demise for a term of two thousand years or a subdemise for a fixed term. (3) The grant shall be treated as if it purported to be a grant of the term referred to in sub-paragraph (2)(b) (and sections 17 and 18 of the Commonhold and Leasehold Reform Act 2002 (residential and non-residential leases) shall apply accordingly). Law of Property Act 1925 (c. 20) 2 After section 101(1) of the Law of Property Act 1925 (mortgagee’s powers) there shall be added— (1A) Subsection (1)(i) is subject to section 21 of the Commonhold and Leasehold Reform Act 2002 (no disposition of part-units) . 3 At the end of section 149 of that Act (90-year term in place of certain determinable terms) there shall be added— (7) Subsection (8) applies where a lease, underlease or contract— (a) relates to commonhold land, and (b) would take effect by virtue of subsection (6) as a lease, underlease or contract of the kind mentioned in that subsection. (8) The lease, underlease or contract shall be treated as if it purported to be a lease, underlease or contract of the kind referred to in subsection (7)(b) (and sections 17 and 18 of the Commonhold and Leasehold Reform Act 2002 (residential and non-residential leases) shall apply accordingly). Limitation Act 1980 (c. 58) 4 After section 19 of the Limitation Act 1980 (actions for rent) there shall be inserted— Commonhold Actions for breach of commonhold duty 19A An action in respect of a right or duty of a kind referred to in section 37(1) of the Commonhold and Leasehold Reform Act 2002 (enforcement) shall not be brought after the expiration of six years from the date on which the cause of action accrued. Housing Act 1985 (c. 68) 5 At the end of section 118 of the Housing Act 1985 (the right to buy) there shall be added— (3) For the purposes of this Part, a dwelling-house which is a commonhold unit (within the meaning of the Commonhold and Leasehold Reform Act 2002) shall be treated as a house and not as a flat. Insolvency Act 1986 (c. 45) 6 At the end of section 84 of the Insolvency Act 1986 (voluntary winding-up) there shall be added— (4) This section has effect subject to section 43 of the Commonhold and Leasehold Reform Act 2002. Law of Property (Miscellaneous Provisions) Act 1994 (c. 36) 7 (1) Section 5 of the Law of Property (Miscellaneous Provisions) Act 1994 (discharge of obligations) shall be amended as follows. (2) In subsection (1) for the words “or of leasehold land” substitute “ of leasehold land or of a commonhold unit ”. (3) After subsection (3) insert— (3A) If the property is a commonhold unit, there shall be implied a covenant that the mortgagor will fully and promptly observe and perform all the obligations under the commonhold community statement that are for the time being imposed on him in his capacity as a unit-holder or as a joint unit-holder. (4) For subsection (4) substitute— (4) In this section— (a) “commonhold community statement”, “commonhold unit”, “joint unit-holder” and “unit-holder” have the same meanings as in the Commonhold and Leasehold Reform Act 2002, and (b) “mortgage” includes charge, and “mortgagor” shall be construed accordingly. Trusts of Land and Appointment of Trustees Act 1996 (c. 47) 8 At the end of section 7 of the Trusts of Land and Appointment of Trustees Act 1996 (partition by trustees) there shall be added— (6) Subsection (1) is subject to sections 21 (part-unit: interests) and 22 (part-unit: charging) of the Commonhold and Leasehold Reform Act 2002.

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SCHEDULE 6 Premises excluded from right to manage

Section 72 Buildings with substantial non-residential parts 1 (1) This Chapter does not apply to premises falling within section 72(1) if the internal floor area— (a) of any non-residential part, or (b) (where there is more than one such part) of those parts (taken together), exceeds 50% of the internal floor area of the premises (taken as a whole). (2) A part of premises is a non-residential part if it is neither— (a) occupied, or intended to be occupied, for residential purposes, nor (b) comprised in any common parts of the premises. (3) Where in the case of any such premises any part of the premises (such as, for example, a garage, parking space or storage area) is used, or intended for use, in conjunction with a particular dwelling contained in the premises (and accordingly is not comprised in any common parts of the premises), it shall be taken to be occupied, or intended to be occupied, for residential purposes. (4) For the purpose of determining the internal floor area of a building or of any part of a building, the floor or floors of the building or part shall be taken to extend (without interruption) throughout the whole of the interior of the building or part, except that the area of any common parts of the building or part shall be disregarded. Buildings with self-contained parts in different ownership 2 Where different persons own the freehold of different parts of premises falling within section 72(1), this Chapter does not apply to the premises if any of those parts is a self-contained part of a building. Premises with resident landlord and no more than four units 3 (1) This Chapter does not apply to premises falling within section 72(1) if the premises— (a) have a resident landlord, and (b) do not contain more than four units. (2) Premises have a resident landlord if— (a) the premises are not, and do not form part of, a purpose-built block of flats (that is, a building which, as constructed, contained two or more flats), (b) a relevant freeholder, or an adult member of a relevant freeholder’s family, occupies a qualifying flat as his only or principal home, and (c) sub-paragraph (4) or (5) is satisfied. (3) A person is a relevant freeholder, in relation to any premises, if he owns the freehold of the whole or any part of the premises. (4) This sub-paragraph is satisfied if— (a) the relevant freeholder, or (b) the adult member of his family, has throughout the last twelve months occupied the flat as his only or principal home. (5) This sub-paragraph is satisfied if— (a) immediately before the date when the relevant freeholder acquired his interest in the premises, the premises were premises with a resident landlord, and (b) he, or an adult member of his family, entered into occupation of the flat during the period of 28 days beginning with that date and has occupied the flat as his only or principal home ever since. (6) “Qualifying flat”, in relation to any premises and a relevant freeholder or an adult member of his family, means a flat or other unit used as a dwelling— (a) which is contained in the premises, and (b) the freehold of the whole of which is owned by the relevant freeholder. (7) Where the interest of a relevant freeholder in any premises is held on trust, the references in sub-paragraphs (2), (4) and (5)(b) to a relevant freeholder are to a person having an interest under the trust (whether or not also a trustee). (8) A person is an adult member of another’s family if he is— (a) the other’s spouse or civil partner, (b) a son, daughter, son-in-law or daughter-in-law of the other, or of the other’s spouse or civil partner, who has attained the age of 18, or (c) the father or mother of the other or of the other’s spouse or civil partner; and “son” and “daughter” include stepson and stepdaughter (“son-in-law” and “daughter-in-law” being construed accordingly). Premises owned by local housing authority 4 (1) This Chapter does not apply to premises falling within section 72(1) if a local housing authority is the immediate landlord of any of the qualifying tenants of flats contained in the premises. (2) “Local housing authority” has the meaning given by section 1 of the Housing Act 1985 (c. 68). Premises in relation to which rights previously exercised 5 (1) This Chapter does not apply to premises falling within section 72(1) at any time if— (a) the right to manage the premises is at that time exercisable by a RTM company, or (b) that right has been so exercisable but has ceased to be so exercisable less than four years before that time. (2) Sub-paragraph (1)(b) does not apply where the right to manage the premises ceased to be exercisable by virtue of section 73(5). (3) The appropriate tribunal may, on an application made by a RTM company, determine that sub-paragraph (1)(b) is not to apply in any case if it considers that it would be unreasonable for it to apply in the circumstances of the case.

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SCHEDULE 7 Right to manage: statutory provisions

Section 102 Covenants not to assign etc. 1 (1) Section 19 of the Landlord and Tenant Act 1927 (c. 36) (covenants not to assign without approval etc.) has effect with the modifications provided by this paragraph. (2) Subsection (1) applies as if— (a) the reference to the landlord, and (b) the final reference to the lessor, were to the RTM company. (3) Subsection (2) applies as if the reference to the payment of a reasonable sum in respect of any damage to or diminution in the value of the premises or neighbouring premises belonging to the landlord were omitted. (4) Subsection (3) applies as if— (a) the first and final references to the landlord were to the RTM company, and (b) the reference to the right of the landlord to require payment of a reasonable sum in respect of any damage to or diminution in the value of the premises or neighbouring premises belonging to him were omitted. Defective premises 2 (1) Section 4 of the Defective Premises Act 1972 (c. 35) (landlord’s duty of care by virtue of obligation or right to repair demised premises) has effect with the modifications provided by this paragraph. (2) References to the landlord (apart from the first reference in subsections (1) and (4)) are to the RTM company. (3) The reference to the material time is to the acquisition date. Repairing obligations : England 3 (1) The obligations imposed on a lessor by virtue of section 11 (repairing obligations in short leases) of the Landlord and Tenant Act 1985 (c. 70) (referred to in this Part as “the 1985 Act”) are, so far as relating to any lease of any flat or other unit contained in the premises, instead obligations of the RTM company. (2) The RTM company owes to any person who is in occupation of a flat or other unit contained in the premises otherwise than under a lease the same obligations as would be imposed on it by virtue of section 11 if that person were a lessee under a lease of the flat or other unit. (3) But sub-paragraphs (1) and (2) do not apply to an obligation to the extent that it relates to a matter concerning only the flat or other unit concerned. (4) The obligations imposed on the RTM company by virtue of sub-paragraph (1) in relation to any lease are owed to the lessor (as well as to the lessee). (5) Subsections (3A) to (5) of section 11 have effect with the modifications that are appropriate in consequence of sub-paragraphs (1) to (3). (6) The references in subsection (6) of section 11 to the lessor include the RTM company; and a person who is in occupation of a flat or other unit contained in the premises otherwise than under a lease has, in relation to the flat or other unit, the same obligation as that imposed on a lessee by virtue of that subsection. (7) The reference to the lessor in section 12(1)(a) of the 1985 Act (restriction on contracting out of section 11) includes the RTM company. Repairing obligations: Wales 3A. (1) The obligations imposed on a landlord by virtue of section 91 (landlord’s obligation: fitness for human habitation), section 92 (landlord’s obligation to keep dwelling in repair) and section 93 (obligations under sections 91 and 92: supplementary) of the Renting Homes Wales Act 2016 (anaw 1) (referred to in this paragraph as “the 2016 Act”) are, so far as relating to any occupation contract of any flat or other unit contained in the premises, instead obligations of the RTM company. (2) The RTM company owes to any person who is in occupation of a flat or other unit contained in the premises otherwise than under an occupation contract the same obligations as would be imposed on it by virtue of sections 91, 92 and 93 of the 2016 Act if that person were a contract-holder under an occupation contract of the flat or other unit. (3) But sub-paragraphs (1) and (2) do not apply to an obligation to the extent that it relates to a matter concerning only the flat or other unit concerned. (4) The obligations imposed on the RTM company by virtue of sub-paragraph (1) in relation to any occupation contract are owed to the landlord (as well as to the contract-holder). (5) Where appropriate, sections 95 to 97 of the 2016 Act have effect with such modifications as are necessary in consequence of sub-paragraphs (1) to (3). (6) The references in section 98 of the 2016 Act to the landlord include the RTM company; and a person who is in occupation of a flat or other unit contained in the premises otherwise than under an occupation contract has, in relation to the flat or other unit, the same obligation as that imposed on a contract-holder by virtue of that section. (7) In this paragraph, the following terms have the same meaning as in section 7 of the 2016 Act— (a) “contract-holder” (see section 7 (see also section 48) of that Act); (b) “occupation contract” (see section 7 of that Act). Service charges 4 (1) Sections 18 to 30 of the 1985 Act (service charges) have effect with the modifications provided by this paragraph. (2) References to the landlord are to the RTM company. (3) References to a tenant of a dwelling include a person who is landlord under a lease of the whole or any part of the premises (so that sums paid by him in pursuance of section 103 of this Act are service charges). (4) Section 22(5) applies as if paragraph (a) were omitted and the person referred to in paragraph (b) were a person who receives service charges on behalf of the RTM company. (5) Section 26 does not apply. Right to request information on insurance 5 (1) Section 30A of, and the Schedule to, the 1985 Act (rights of tenants with respect to insurance) have effect with the modifications provided by this paragraph. (2) References to the landlord are to the RTM company. (3) References to a tenant include a person who is landlord under a lease of the whole or any part of the premises and has to make payments under section 103 of this Act. (4) Paragraphs 2(3) and 3(3) of the Schedule apply as if paragraph (a) were omitted and the person referred to in paragraph (b) were a person who receives service charges on behalf of the RTM company. Managing agents 6 Section 30B of the 1985 Act (recognised tenants’ associations to be consulted about landlord’s managing agents) has effect as if references to the landlord were to the RTM company (and as if subsection (6) were omitted). Right of first refusal 7 Where section 5 of the 1987 Act (right of first refusal: requirement that landlord serve offer notice on tenant) requires the landlord to serve an offer notice on the qualifying tenants of the flats contained in the premises, he must serve a copy of the offer notice on the RTM company. Appointment of manager 8 (1) Part 2 of the 1987 Act (appointment of manager by ... tribunal) has effect with the modifications provided by this paragraph. (2) References to the landlord are to the RTM company. (3) References to a tenant of a flat contained in the premises include a person who is landlord under a lease of the whole or any part of the premises. (4) Section 21(3) (exception for premises where landlord is exempt or resident or where premises are functional land of a charity) does not apply. (5) The references in paragraph (a)(i) of subsection (2) of section 24 to any obligation owed by the RTM company to the tenant under his tenancy include any obligations of the RTM company under this Act. (6) And the circumstances in which the appropriate tribunal may make an order under paragraph (b) of that subsection include any in which the RTM company no longer wishes the right to manage the premises to be exercisable by it. (7) The power in section 24 to make an order appointing a manager to carry out functions includes a power (in the circumstances specified in subsection (2) of that section) to make an order that the right to manage the premises is to cease to be exercisable by the RTM company. (8) And such an order may include provision with respect to incidental and ancillary matters (including, in particular, provision about contracts to which the RTM company is a party and the prosecution of claims in respect of causes of action, whether tortious or contractual, accruing before or after the right to manage ceases to be exercisable). Right to acquire landlord’s interest 9 Part 3 of the 1987 Act (compulsory acquisition by tenants of landlord’s interest) does not apply. Variation of leases 10 Sections 35, 36, 38 and 39 of the 1987 Act (variation of long leases relating to flats) have effect as if references to a party to a long lease (apart from those in section 38(8)) included the RTM company. Service charges to be held in trust 11 (1) Sections 42 to 42B of the 1987 Act (service charge contributions to be held in trust and in designated account) have effect with the modifications provided by this paragraph. (2) References to the payee are to the RTM company. (3) The definition of “tenant” in section 42(1) does not apply. (4) References to a tenant of a dwelling include a person who is landlord under a lease of the whole or any part of the premises. (5) The reference in section 42(2) to sums paid to the payee by the contributing tenants by way of relevant service charges includes payments made to the RTM company under section 94 or 103 of this Act. (6) Section 42A(5) applies as if paragraph (a) were omitted and the person referred to in paragraph (b) were a person who receives service charges on behalf of the RTM company. Information to be furnished to tenants 12 (1) Sections 46 to 48 of the 1987 Act (information to be furnished to tenants) have effect with the modifications provided by this paragraph. (2) References to the landlord include the RTM company. (3) References to a tenant include a person who is landlord under a lease of the whole or any part of the premises; and in relation to such a person the reference in section 47(4) to sums payable to the landlord under the terms of the tenancy are to sums paid by him under section 103 of this Act. Statutory duties relating to certain covenants 13 (1) The Landlord and Tenant Act 1988 (c. 26) (statutory duties in connection with covenants against assigning etc.) has effect with the modifications provided by this paragraph. (2) The reference in section 1(2)(b) to the covenant is to the covenant as it has effect subject to section 98 of this Act. (3) References in section 3(2), (4) and (5) to the landlord are to the RTM company. Tenants’ right to management audit 14 (1) Chapter 5 of Part 1 (tenants’ right to management audit by landlord) of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (referred to in this Part as “the 1993 Act”) has effect with the modifications provided by this paragraph. (2) References to the landlord (other than the references in section 76(1) and (2) to “the same landlord”) are to the RTM company. (3) References to a tenant include a person who is landlord under a lease of the whole or any part of the premises and has to make payments under section 103 of this Act. (4) Section 80(5) applies as if the reference to a person who receives rent were to a person who receives service charges. Right to appoint surveyor 15 (1) Section 84 of the Housing Act 1996 (c. 52) and Schedule 4 to that Act (apart from paragraph 7) (right of recognised tenants’ association to appoint surveyor to advise on matters relating to service charges) have effect as if references to the landlord were to the RTM company. (2) Section 84(5) and paragraph 4(5) of Schedule 4 apply as if the reference to a person who receives rent were to a person who receives service charges. Administration charges 16 Schedule 11 to this Act has effect as if references to the landlord (or a party to a lease) included the RTM company.

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SCHEDULE 9 Meaning of service charge and management

Section 150 Loans in respect of service charges 1 The Housing Act 1985 (c. 68) has effect subject to the following amendments. 2 (1) Section 450A (right to a loan in respect of service charges for repairs in certain cases after exercise of right to buy) is amended as follows. (2) In subsection (2), after “repairs” insert “ or improvements ”. (3) In subsection (5)(a), after “repairs” insert “ or improvements ”. 3 In section 450B(1)(b) (power to make loan in respect of service charges for repairs in other cases), after “repairs” insert “ or improvements ”. 4 In section 458(1) (minor definitions for purposes of Part 14 of the Act), insert at the end— “service charge” has the meaning given by section 18(1) of the Landlord and Tenant Act 1985 (c. 70). 5 In section 459 (index of defined expressions for Part 14 of the Act), in the entry relating to “service charge”, for “section 621A” substitute “ section 458 ”. 6 In section 621A (meaning of service charge for purposes of the Act), insert at the end— (5) But this section does not apply in relation to Part 14. Service charges 7 In section 18(1)(a) of the 1985 Act (meaning of service charge), after “maintenance” insert “ , improvements ”. Appointment of manager 8 In section 24(11) of the 1987 Act (appointment of manager by leasehold valuation tribunal: meaning of management), after “maintenance” insert “ , improvement ”. Right to acquire landlord’s interest 9 (1) Section 29 of that Act (conditions for making orders for compulsory acquisition by tenants of landlord’s interest) is amended as follows. (2) In subsection (2), in paragraph (a), omit “repair, maintenance, insurance or”. (3) After that subsection insert— (2A) The reference in subsection (2) to the management of any premises includes a reference to the repair, maintenance, improvement or insurance of those premises. Tenants’ right to management audit 10 In section 84 of the 1993 Act (interpretation of provisions concerning tenants’ right to management audit), in the definition of “management functions”, after “maintenance” insert “ , improvement ”. Codes of management practice 11 In section 87(8) of that Act (approval by Secretary of State of codes of management practice: meaning of management functions and service charge)— (a) in paragraph (a), after “maintenance” insert “ , improvement ”, and (b) in paragraph (c)(i), after “maintenance” insert “ , improvements ”. Right to appoint surveyor 12 In paragraph 4(2) of Schedule 4 to the Housing Act 1996 (c. 52) (right of surveyor appointed by tenants’ association to inspect premises: meaning of management functions), after “maintenance” insert “ , improvement ”. Power to amend certain provisions 13 An order amending— (a) any of the provisions amended by paragraphs 7 to 12, or (b) section 27A(3) of the 1985 Act (as inserted by section 155), may be made by the appropriate national authority for or in connection with altering the meaning of “service charge”, “management” or “management functions”.

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SCHEDULE 10 Service charges: minor and consequential amendments

Section 157 Insurance 8 (1) Paragraph 2 of the Schedule to the 1985 Act (request for summary of insurance cover) is amended as follows. (2) In sub-paragraph (1), for “require the landlord in writing” substitute “ by notice in writing require the landlord ”. (3) In sub-paragraph (2), for “request may be made” substitute “ notice may be served ”. (4) In sub-paragraph (3)— (a) for “request is duly” substitute “ notice under this paragraph is duly ”, and (b) for “whom a request” substitute “ whom such a notice ”. (5) In sub-paragraph (4), for “one month of the request,” substitute “ the period of twenty-one days beginning with the day on which he receives the notice, ”. (6) In sub-paragraph (6), for “request” substitute “ notice ”. 9 For paragraph 3 of that Schedule (request to inspect insurance policy etc. after obtaining summary of insurance cover) substitute— Inspection of insurance policy etc. 3 (1) Where a service charge is payable by the tenant of a dwelling which consists of or includes an amount payable directly or indirectly for insurance, the tenant may by notice in writing require the landlord— (a) to afford him reasonable facilities for inspecting any relevant policy or associated documents and for taking copies of or extracts from them, or (b) to take copies of or extracts from any such policy or documents and either send them to him or afford him reasonable facilities for collecting them (as he specifies). (2) 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). (3) A notice under this paragraph is duly served on the landlord if it is served on— (a) an agent of the landlord named as such in the rent book or similar document, or (b) the person who receives the rent on behalf of the landlord; and a person on whom such a notice is so served shall forward it as soon as may be to the landlord. (4) The landlord shall comply with a requirement imposed by a notice under this paragraph within the period of twenty-one days beginning with the day on which he receives the notice. (5) To the extent that a notice under this paragraph requires the landlord to afford facilities for inspecting documents— (a) he shall 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. (6) The landlord may make a reasonable charge for doing anything else in compliance with a requirement imposed by a notice under this paragraph. (7) In this paragraph— “relevant policy” includes a policy of insurance under which the dwelling was insured for the period of insurance immediately preceding that current when the notice is served (being, in the case of a flat, a policy covering the building containing it), and “associated documents” means accounts, receipts or other documents which provide evidence of payment of any premiums due under a relevant policy in respect of the period of insurance which is current when the notice is served or the period of insurance immediately preceding that period. 10 (1) Paragraph 4 of that Schedule (insurance effected by superior landlord) is amended as follows. (2) In sub-paragraph (1)— (a) for “a request is made” substitute “ a notice is served ”, (b) for “to whom the request is made” substitute “ on whom the notice is served ”, (c) for “make a written request for the relevant information to the person who is his landlord” substitute “ by notice in writing require the person who is his landlord to give him the relevant information ”, (d) for “that request” substitute “ the notice ”, and (e) for “secretary’s request” substitute “ secretary’s notice ”. (3) In sub-paragraph (2)— (a) for “request under paragraph 3 relates” substitute “ notice under paragraph 3 imposes a requirement relating ”, and (b) for “to whom the request is made” substitute “ on whom the notice is served ”. 11 After that paragraph insert— Effect of change of landlord 4A (1) This paragraph applies where, at a time when a duty imposed on the landlord or a superior landlord by virtue of any of paragraphs 2 to 4 remains to be discharged by him, he disposes of the whole or part of his interest as landlord or superior landlord). (2) If the landlord or superior landlord is, despite the disposal, still in a position to discharge the duty to any extent, he remains responsible for discharging it to that extent. (3) If the other person is in a position to discharge the duty to any extent, he is responsible for discharging it to that extent. (4) Where the other person is responsible for discharging the duty to any extent (whether or not the landlord or superior landlord is also responsible for discharging it to that or any other extent)— (a) references to the landlord or superior landlord in paragraphs 2 to 4 are to, or include, the other person so far as is appropriate to reflect his responsibility for discharging the duty to that extent, but (b) in connection with its discharge by that person, paragraphs 2(4) and 3(4) apply as if the reference to the day on which the landlord receives the notice were to the date of the disposal referred to in sub-paragraph (1). 12 In paragraph 5 of that Schedule, for the words from “the validity” onwards substitute “ any duty imposed by virtue of any of paragraphs 2 to 4A; but a person is not required to comply with more than a reasonable number of requirements imposed by any one person. ” 13 In paragraph 6 of that Schedule, for “paragraph 2, 3 or 4” substitute “ any of paragraphs 2 to 4A ”; and for the heading before that paragraph substitute “ Offence of failure to comply ”. Trust of service charges paid by only one tenant 15 (1) Section 42 of the 1987 Act (service charge contributions of tenants to be held in trust) is amended as follows. (2) In subsection (1)— (a) after “costs” insert “ , 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, ”, (b) at the end of the definition of “the contributing tenants” insert “ and “the sole contributing tenant” means that tenant; ”, and (c) in the definition of “the payee”, for “under the terms of their leases” substitute “ , or that tenant, under the terms of their leases, or his lease ”. (3) In subsection (2), after “tenants” insert “ , or the sole contributing tenant, ”. (4) In subsection (3), insert at the end “ , or the person who is the sole contributing tenant for the time being. ” (5) In subsection (4), insert at the end “ or the sole contributing tenant shall be treated as so entitled to the residue of any such fund. ” (6) In subsection (6), for “a contributing tenant” substitute “ any of the contributing tenants ”. (7) In subsection (7), for “If after the termination of any such lease there are no longer any contributing tenants,” substitute “ On the termination of the lease of the last of the contributing tenants, or of the lease of the sole contributing tenant, ”. (8) In subsection (8)— (a) for “a contributing tenant” substitute “ any of the contributing tenants, or the sole contributing tenant, ”, and (b) after “his lease” insert “ (whenever it was granted) ”. (9) In subsection (9)— (a) after “so created” insert “ , in the case of a lease of any of the contributing tenants, ”, and (b) insert at the end “ 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. ”

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SCHEDULE 11 Administration charges

Section 158 Part 1 Administration charges Meaning of “administration charge” 1 (1) In this Part of this Schedule “administration charge” means an amount payable by a tenant of a dwelling as part of or in addition to the rent which is payable, directly or indirectly— (a) for or in connection with the grant of approvals under his lease, or applications for such approvals, (b) for or in connection with the provision of information or documents by or on behalf of the landlord or a person who is party to his lease otherwise than as landlord or tenant, (c) in respect of a failure by the tenant to make a payment by the due date to the landlord or a person who is party to his lease otherwise than as landlord or tenant, or (d) in connection with a breach (or alleged breach) of a covenant or condition in his lease. (2) But an amount payable by the tenant of a dwelling the rent of which is registered under Part 4 of the Rent Act 1977 (c. 42) is not an administration charge, unless the amount registered is entered as a variable amount in pursuance of section 71(4) of that Act. (3) In this Part of this Schedule “variable administration charge” means an administration charge payable by a tenant which is neither— (a) specified in his lease, nor (b) calculated in accordance with a formula specified in his lease. (4) An order amending sub-paragraph (1) may be made by the appropriate national authority. Reasonableness of administration charges 2 A variable administration charge is payable only to the extent that the amount of the charge is reasonable. No administration charge payable for certain rents 2A (1) No administration charge is payable for, in connection with or in respect of, the payment of a relevant rent. (2) A “relevant rent” is a rent (or any part of a rent) which, by virtue of the Leasehold Reform (Ground Rent) Act 2022, is permitted only to be a peppercorn rent. (3) “Peppercorn rent” has the same meaning as in that Act (see section 4(3) of that Act). Application for order varying lease 3 (1) Any party to a lease of a dwelling may apply to the appropriate tribunal for an order varying the lease in such manner as is specified in the application on the grounds that— (a) any administration charge specified in the lease is unreasonable, ... (b) any formula specified in the lease in accordance with which any administration charge is calculated is unreasonable., or (c) an administration charge specified in the lease is not payable because of paragraph 2A. (2) If the grounds on which the application was made are established to the satisfaction of the tribunal, it may make an order varying the lease in such manner as is specified in the order. (3) The variation specified in the order may be— (a) the variation specified in the application, or (b) such other variation as the tribunal thinks fit. (4) The tribunal may, instead of making an order varying the 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. (5) The tribunal may by order direct that a memorandum of any variation of a lease effected by virtue of this paragraph be endorsed on such documents as are specified in the order. (6) Any such variation of a lease 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), whether or not they were parties to the proceedings in which the order was made. Notice in connection with demands for administration charges 4 (1) A demand for the payment of an administration charge must be accompanied by a summary of the rights and obligations of tenants of dwellings in relation to administration charges. (2) The appropriate national authority may make regulations prescribing requirements as to the form and content of such summaries of rights and obligations. (3) A tenant may withhold payment of an administration charge which has been demanded from him if sub-paragraph (1) is not complied with in relation to the demand. (4) Where a tenant withholds an administration charge under this paragraph, any provisions of the lease relating to non-payment or late payment of administration charges do not have effect in relation to the period for which he so withholds it. Liability to pay administration charges 5 (1) An application may be made to the appropriate tribunal for a determination whether an administration charge is payable and, if it is, as to— (a) the person by whom it is payable, (b) the person to whom it is payable, (c) the amount which is payable, (d) the date at or by which it is payable, and (e) the manner in which it is payable. (2) Sub-paragraph (1) applies whether or not any payment has been made. (3) The jurisdiction conferred on the appropriate tribunal in respect of any matter by virtue of sub-paragraph (1) is in addition to any jurisdiction of a court in respect of the matter. (4) No application under sub-paragraph (1) may be made in respect of a matter which— (a) has been agreed or admitted by the tenant, (b) has been, or is to be, referred to arbitration pursuant to a post-dispute arbitration agreement to which the tenant is a party, (c) has been the subject of determination by a court, or (d) has been the subject of determination by an arbitral tribunal pursuant to a post-dispute arbitration agreement. (5) But the tenant is not to be taken to have agreed or admitted any matter by reason only of having made any payment. (6) An agreement by the tenant of a dwelling (other than a post-dispute arbitration agreement) is void in so far as it purports to provide for a determination— (a) in a particular manner, or (b) on particular evidence, of any question which may be the subject matter of an application under sub-paragraph (1). Limitation of administration charges: costs of proceedings 5A (1) A tenant of a dwelling in England may apply to the relevant court or tribunal for an order reducing or extinguishing the tenant's liability to pay a particular administration charge in respect of litigation costs. (2) The relevant court or tribunal may make whatever order on the application it considers to be just and equitable. (3) In this paragraph— (a) “litigation costs” means costs incurred, or to be incurred, by the landlord in connection with proceedings of a kind mentioned in the table, and (b) “the relevant court or tribunal” means the court or tribunal mentioned in the table in relation to those proceedings. Proceedings to which costs relate | “The relevant court or tribunal” Court proceedings | The court before which the proceedings are taking place or, if the application is made after the proceedings are concluded, the county court First-tier Tribunal proceedings | The First-tier Tribunal Upper Tribunal proceedings | The Upper Tribunal Arbitration proceedings | The arbitral tribunal or, if the application is made after the proceedings are concluded, the county court. Interpretation 6 (1) This paragraph applies for the purposes of this Part of this Schedule. (2) “Tenant” includes a statutory tenant. (3) “Dwelling” and “statutory tenant” (and “landlord” in relation to a statutory tenant) have the same meanings as in the 1985 Act. (4) “Post-dispute arbitration agreement”, in relation to any matter, means an arbitration agreement made after a dispute about the matter has arisen. (5) “Arbitration agreement” and “arbitral tribunal” have the same meanings as in Part 1 of the Arbitration Act 1996 (c. 23). (6) “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. Part 2 Amendments of Landlord and Tenant Act 1987 7 The 1987 Act has effect subject to the following amendments. 8 (1) Section 24 (appointment of manager by leasehold valuation tribunal) is amended as follows. (2) In subsection (2), after paragraph (ab) insert— (aba) where the tribunal is satisfied— (i) that unreasonable variable 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; . (3) After subsection (2A) insert— (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. 9 In section 46 (interpretation of provisions concerning information to be furnished to tenants), insert at the end— (3) In this Part “administration charge” has the meaning given by paragraph 1 of Schedule 11 to the Commonhold and Leasehold Reform Act 2002. 10 (1) Section 47 (landlord’s name and address to be contained in demands for rent etc.) is amended as follows. (2) In subsection (2), after “service charge” insert “ or an administration charge ”. (3) In subsection (3), after “service charges” insert “ or (as the case may be) administration charges ”. 11 (1) Section 48 (notification by landlord of address for service of notices) is amended as follows. (2) In subsection (2), for “or service charge” substitute “ , service charge or administration charge ”. (3) In subsection (3)— (a) for “or service charge” substitute “ , service charge or administration charge ”, and (b) for “or (as the case may be) service charges” substitute “ , service charges or (as the case may be) administration charges ”.

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SCHEDULE 12 Leasehold valuation tribunals: procedure

Section 174 Procedure regulations 1 The Welsh Ministers may make regulations about the procedure of leasehold valuation tribunals (“procedure regulations”). Applications 2 Procedure regulations may include provision— (a) about the form of applications to leasehold valuation tribunals, (b) about the particulars that must be contained in such applications, (c) requiring the service of notices of such applications, and (d) for securing consistency where numerous applications are or may be brought in respect of the same or substantially the same matters. Transfers 3 (1) Where in any proceedings before a court there falls for determination a question falling within the jurisdiction of a leasehold valuation tribunal, the court— (a) may by order transfer to a leasehold valuation tribunal so much of the proceedings as relate to the determination of that question, and (b) may then dispose of all or any remaining proceedings, or adjourn the disposal of all or any remaining proceedings pending the determination of that question by the leasehold valuation tribunal, as it thinks fit. (2) When the leasehold valuation tribunal has determined the question, the court may give effect to the determination in an order of the court. (3) Rules of court may prescribe the procedure to be followed in a court in connection with or in consequence of a transfer under this paragraph. (4) Procedure regulations may prescribe the procedure to be followed in a leasehold valuation tribunal consequent on a transfer under this paragraph. Information 4 (1) A leasehold valuation tribunal may serve a notice requiring any party to proceedings before it to give to the leasehold valuation tribunal any information which the leasehold valuation tribunal may reasonably require. (2) The information shall be given to the leasehold valuation tribunal within such period (not being less than 14 days) from the service of the notice as is specified in the notice. (3) A person commits an offence if he fails, without reasonable excuse, to comply with a notice served on him under sub-paragraph (1). (4) A person guilty of an offence under sub-paragraph (3) is liable on summary conviction to a fine not exceeding level 3 on the standard scale. Pre-trial reviews 5 (1) Procedure regulations may include provision for the holding of a pre-trial review (on the application of a party to proceedings or on the motion of a leasehold valuation tribunal). (2) Procedure regulations may provide for the exercise of the functions of a leasehold valuation tribunal in relation to, or at, a pre-trial review by a single member of the panel provided for in Schedule 10 to the Rent Act 1977 (c. 42) who is qualified to exercise them. (3) A member is qualified to exercise the functions specified in sub-paragraph (2) if he was appointed to that panel by the Lord Chancellor. Parties 6 Procedure regulations may include provision enabling persons to be joined as parties to proceedings. Dismissal 7 Procedure regulations may include provision empowering leasehold valuation tribunals to dismiss applications or transferred proceedings, in whole or in part, on the ground that they are— (a) frivolous or vexatious, or (b) otherwise an abuse of process. Determination without hearing 8 (1) Procedure regulations may include provision for the determination of applications or transferred proceedings without an oral hearing. (2) Procedure regulations may provide for the determinations without an oral hearing by a single member of the panel provided for in Schedule 10 to the Rent Act 1977. Fees 9 (1) Procedure regulations may include provision requiring the payment of fees in respect of an application or transfer of proceedings to, or oral hearing by, a leasehold valuation tribunal in a case under— (a) the 1985 Act (service charges and choice of insurers), (b) Part 2 of the 1987 Act (managers), (c) Part 4 of the 1987 Act (variation of leases), (d) section 168(4) of this Act, or (e) Schedule 11 to this Act. (2) Procedure regulations may empower a leasehold valuation tribunal to require a party to proceedings to reimburse any other party to the proceedings the whole or part of any fees paid by him. (3) The fees payable shall be such as are specified in or determined in accordance with procedure regulations; but the fee (or, where fees are payable in respect of both an application or transfer and an oral hearing, the aggregate of the fees) payable by a person in respect of any proceedings shall not exceed— (a) £500, or (b) such other amount as may be specified in procedure regulations. (4) Procedure regulations may provide for the reduction or waiver of fees by reference to the financial resources of the party by whom they are to be paid or met. (5) If they do so they may apply, subject to such modifications as may be specified in the regulations, any other statutory means-testing regime as it has effect from time to time. Costs 10 (1) A leasehold valuation tribunal may determine that a party to proceedings shall pay the costs incurred by another party in connection with the proceedings in any circumstances falling within sub-paragraph (2). (2) The circumstances are where— (a) he has made an application to the leasehold valuation tribunal which is dismissed in accordance with regulations made by virtue of paragraph 7, or (b) he has, in the opinion of the leasehold valuation tribunal, acted frivolously, vexatiously, abusively, disruptively or otherwise unreasonably in connection with the proceedings. (3) The amount which a party to proceedings may be ordered to pay in the proceedings by a determination under this paragraph shall not exceed— (a) £500, or (b) such other amount as may be specified in procedure regulations. (4) A person shall not be required to pay costs incurred by another person in connection with proceedings before a leasehold valuation tribunal except by a determination under this paragraph or in accordance with provision made by any enactment other than this paragraph. Enforcement 11 Procedure regulations may provide for decisions of leasehold valuation tribunals to be enforceable, with the permission of the county court, in the same way as orders of the county court.

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SCHEDULE 13 Leasehold valuation tribunals: amendments

Section 176 Leasehold Reform Act 1967 (c. 88) 1 The 1967 Act has effect subject to the following amendments. 2 In section 9 (costs of enfranchisement), after subsection (4) insert— (4A) Subsection (4) above does not require a person to bear the costs of another person in connection with an application to a leasehold valuation tribunal. 3 In section 14 (costs of lease extension), after subsection (2) insert— (2A) Subsection (2) above does not require a person to bear the costs of another person in connection with an application to a leasehold valuation tribunal. 4 In section 20 (county court), after subsection (4) insert— (4A) Where the court certifies particulars of delay or default to the Lands Tribunal under subsection (4)(b) above, the Lands Tribunal may make any order as to costs of proceedings before the Lands Tribunal which the court may make in relation to proceedings in the court. 5 In section 21 (leasehold valuation tribunals), after subsection (2) insert— (2A) For the purposes of this Part of this Act a matter is to be treated as determined by (or on appeal from) a leasehold valuation tribunal— (a) if the decision on the matter is not appealed against, at the end of the period for bringing an appeal; or (b) if that decision is appealed against, at the time when the appeal is disposed of. (2B) An appeal is disposed of— (a) if it is determined and the period for bringing any further appeal has ended; or (b) if it is abandoned or otherwise ceases to have effect. 6 In paragraph 8 of Schedule 2 (county court), after sub-paragraph (1) insert— (1A) Where the court certifies particulars of delay or default to the Lands Tribunal under sub-paragraph (1)(b) above, the Lands Tribunal may make any order as to costs of proceedings before the Lands Tribunal which the court may make in relation to proceedings in the court. Housing Act 1980 (c. 51) 7 (1) Section 142 of the Housing Act 1980 (role of leasehold valuation tribunals under 1967 Act) is amended as follows. (2) In subsection (1), for “rent assessment committee constituted under Schedule 10 to the 1977 Act” substitute “ leasehold valuation tribunal ”. (3) In subsection (3), for “Part 2 of that Schedule” substitute “ Schedule 22 to this Act ”. Landlord and Tenant Act 1987 (c. 31) 8 The 1987 Act has effect subject to the following amendments. 9 In section 24(9A) (appointment of manager), for “court” substitute “ tribunal ”. 10 In section 47(3) (landlord’s name and address to be contained in demands for rent etc.), after “court” insert “ or tribunal ”. 11 In section 48(3) (notification by landlord of address for service of notices), after “court” insert “ or tribunal ”. Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) 12 The 1993 Act has effect subject to the following amendments. 13 (1) Section 70 (approval by leasehold valuation tribunal of estate management scheme) is amended as follows. (2) For subsection (6) substitute— (6) Where the application is to be considered in an oral hearing, the tribunal shall afford to any person making representations under subsection (4)(b) about the application an opportunity to appear at the hearing. (3) After subsection (10) insert— (10A) Any person who makes representations under subsection (4)(b) about an application for the approval of a scheme may appeal from a decision of the tribunal in proceedings on the application. 14 In section 88(2) (jurisdiction of leasehold valuation tribunals in cases of Crown enfranchisement), for “rent assessment committee constituted for the purposes of this section” substitute “ leasehold valuation tribunal ”. 15 In section 91(1) (jurisdiction of leasehold valuation tribunals), for “such a rent assessment committee” substitute “ a leasehold valuation tribunal ”. Housing Act 1996 (c. 52) 16 In section 81 of the Housing Act 1996 (restriction on termination of tenancy for failure to pay service charge), after subsection (5) insert— (5A) Any order of a court to give effect to a determination of a leasehold valuation tribunal shall be treated as a determination by the court for the purposes of this section.

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SCHEDULE 14 Repeals

Section 180 Short title and chapter | Extent of repeal Leasehold Reform Act 1967 (c. 88) | In section 1— in subsection (1), the words “, occupying the house as his residence,” and the words “, and occupying it as his residence,”, subsection (2), and in subsection (3)(a), the words “and occupied by”. In section 1AA— in subsection (1)(b), the words “falls within subsection (2) below and”, and subsections (2) and (4). In section 2— in subsection (3), the words “and occupied by” and the words from “and are occupied” to the end, and in subsection (4), the words “or a subletting”. In section 3(3), the words “, except section 1AA,”. In section 6— in subsection (2), the words “in respect of his occupation of the house”, subsection (3), and in subsection (5), the words “or statutory owners, as the case may be,” the words “or them” and the words “or (3)”. In section 7— in subsection (1), the words “while occupying it as his residence”, the words “, and occupying the house as his residence,” and paragraph (b) and the word “and” before it, in subsection (4), the words “while so occupying the house” and the words “occupying in right of the tenancy”, and subsection (6). In section 9— in subsection (1), the words “who reside in the house”, in subsection (1A)(a), the words “and, where the tenancy has been extended under this Part of this Act, that the tenancy will terminate on the original term date”, and subsection (1C)(a). In section 16— subsection (1)(a), in subsection (2), the words “or occupied”, the words “(a) or” and the words “the freehold or”, in subsection (3), the words “the freehold or” and the proviso, and in subsection (4), the words “the freehold or”. Section 21(1A) and (3) to (4A). In section 37— in subsection (4), the words “, except section 1AA,”, and in subsection (5), the words from the beginning to “but”. In Schedule 3, in paragraph 6, sub-paragraph (1)(d) and, in sub-paragraph (2), the words “and (d)”. In Schedule 4A, in paragraph 3(2)(d), the word “assign,”. Land Compensation Act 1973 (c. 26) | In section 12A(9), the word “and” at the end of paragraph (a). Housing Act 1980 (c. 51) | In section 142— subsection (2), and in subsection (3), the words from the beginning to “and”. In Schedule 21, paragraph 1. In Schedule 22— Part 1, and in Part 2, paragraph 8(4) to (6). Landlord and Tenant Act 1985 (c. 70) | Section 19(2A) to (3). Sections 31A to 31C. In section 39, the entry relating to the expression “flat”. In the Schedule— in the heading before paragraph 2, the words “Request for”, in the heading before paragraph 4, the words “Request relating to”, in the heading before paragraph 5, the words “on request”, and paragraph 8(5). Housing and Planning Act 1986 (c. 63) | In Schedule 5, paragraph 9(2). Landlord and Tenant Act 1987 (c. 31) | Section 23(2). Sections 24A and 24B. In section 29(2)(a), the words “repair, maintenance, insurance or”. In section 38, in the sidenote, the words “by the court”. In section 42— in subsection (2), the words “, and any investments representing those sums,”, subsection (5), and in subsection (8), the words “(whether the lease was granted before or after the commencement of this section)”. Section 52A. In section 53(2), the words “, 42(5)” and the words “under section 52A(3) or”. Section 56(2). In Schedule 2, paragraphs 3, 5, 6 and 7. Local Government and Housing Act 1989 (c. 42) | In Schedule 11, paragraphs 10 and 91. Tribunals and Inquiries Act 1992 (c. 53) | In Schedule 3, paragraph 13. Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) | In section 2(3), the words “, on behalf of the tenants by whom the right to collective enfranchisement is exercised”. In section 5— in subsection (1), the words “which is at a low rent or for a particularly long term”, and in subsection (2)(c), the words “at a low rent or for a particularly long term”. Section 6. In section 7(3), the words “at a low rent”. Section 8. Section 8A . In section 10— subsection (2), subsection (3), subsection (4A), and in subsection (6), the definition of “qualifying flat”. In section 11(6), the words “by the qualifying tenan t”. In section 12— subsection (1)(a), subsection (2), subsection (4), and subsection (6). In section 13— in subsection (2), sub-paragraph (i) of paragraph (b) and the words following that paragraph, and in subsection (3)(e), the words “the following particulars”, the word “namely” and sub-paragraphs (ii) and (iii). Section 14. Section 15. Section 16. In section 18— in subsection (1), paragraph (b) and the word “or” before it, the words “or shareholding” (in both places) and the words “or established”, and in subsection (2), the words “or shareholding” and the words “or (b)”. In section 28— subsection (3), and in subsection (4), the words “or (3)”. In section 29— subsection (5)(a) and (b), and subsection (7). In section 33— in subsection (1), the words “, 29(7)”, and subsections (6) and (7). In section 37A— subsection (7), and in subsection (8)(a), the words “(whether by persons who are qualifying tenants or not)”. In section 38(1), the definitions of “the nominee purchaser” and “the participating tenants”. In section 39— in subsection (2), paragraph (b) and the word “and” before it, subsections (2A) and (2B), subsection (3)(c) and (d), and subsections (4A) and (5). Section 42(3)(b)(iii) and (iv) and (4). In section 45(5), the words “and (b)”. Section 62(4). Section 75(4) and (5). In section 88— in subsection (2)(b), the words “constituted for the purposes of that Part of that Act”, and subsections (3) to (5) and (7). In section 91— in subsection (1), the words from the beginning to “this section; and”, subsections (3) to (8), subsection (10), and in subsection (11), the words from “and the reference” to the end. In section 93(2)(b)— the words “become a participating tenant for the purposes of Chapter 1 or has”, the words “section 13 or (as the case may be)”, the words “entitlement or”, and the words “(i) or”. In section 94— in subsections (3) and (4), the words “which is at a low rent or for a particularly long term”, in subsection (10), the words from “and references in this subsection” to the end, and in subsection (12), the words “which is at a low rent or for a particularly long term” and the words “, 8 and 8A”. In section 99(5)(a)— the words “13 or”, and the words “by each of the tenants, or (as the case may be)”. In section 101(1), the definition of “rent assessment committee”. In Schedule 3— in the heading before paragraph 7, the words “against participating tenant”, paragraphs 8 and 9, and in paragraph 10(1), in paragraph (a), the words from “and references” to the end and, in paragraph (b), the words “(whether by persons who are qualifying tenants or not)”. In Schedule 5, paragraph 5(2)(a), (b) and (c). In Schedule 6, in paragraph 1(1), the definition of “the valuation date”. In Schedule 13, in paragraph 1, the definition of “the valuation date”. Housing Act 1996 (c. 52) | Section 82. Section 83(1) and (3). Section 86(4) and (5). Section 105(3). Sections 111 and 112. Section 119. In Schedule 6, in Part 4, paragraphs 7 and 8. In Schedule 9, paragraphs 2(3) and (7), 3, 4 and 5(2) and (3). In Schedule 10— paragraph 4, and in paragraph 18(2), paragraph (b) and the word “and” before it. Housing Grants, Construction and Regeneration Act 1996 (c. 53) | In Schedule 1, paragraph 12. Commonhold and Leasehold Reform Act 2002 (c. 15) | Section 104.

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