(1) Regulations under section 32 may, in particular, require a commonhold community statement to make provision—
(a) requiring the directors of the commonhold association to establish and maintain one or more funds to finance the repair and maintenance of common parts;
(b) requiring the directors of the commonhold association to establish and maintain one or more funds to finance the repair and maintenance of commonhold units.
(2) Where a commonhold community statement provides for the establishment and maintenance of a fund in accordance with subsection (1) it must also make provision—
(a) requiring or enabling the directors of the commonhold association to set a levy from time to time,
(b) specifying the percentage of any levy set under paragraph (a) which is to be allocated to each unit,
(c) requiring each unit-holder to make payments in respect of the percentage of any levy set under paragraph (a) which is allocated to his unit, and
(d) requiring the directors of the commonhold association to serve notices on unit-holders specifying payments required to be made by them and the date on which each payment is due.
(3) For the purpose of subsection (2)(b)—
(a) the percentages allocated by a commonhold community statement to the commonhold units must amount in aggregate to 100;
(b) a commonhold community statement may specify 0 per cent. in relation to a unit.
(4) The assets of a fund established and maintained by virtue of this section shall not be used for the purpose of enforcement of any debt except a judgment debt referable to a reserve fund activity.
(5) For the purpose of subsection (4)—
(a) “reserve fund activity” means an activity which in accordance with the commonhold community statement can or may be financed from a fund established and maintained by virtue of this section,
(b) assets are used for the purpose of enforcement of a debt if, in particular, they are taken in execution or are made the subject of a charging order under section 1 of the Charging Orders Act 1979 (c. 53), and
(c) the reference to a judgment debt includes a reference to any interest payable on a judgment debt.
(1) A unit-holder may apply to the court for a declaration that—
(a) the articles of association of the relevant commonhold association do not comply with regulations under paragraph 2(1) of Schedule 3;
(b) the relevant commonhold community statement does not comply with a requirement imposed by or by virtue of this Part.
(2) On granting a declaration under this section the court may make any order which appears to it to be appropriate.
(3) An order under subsection (2) may, in particular—
(a) require a director or other specified officer of a commonhold association to take steps to alter or amend a document;
(b) require a director or other specified officer of a commonhold association to take specified steps;
(c) make an award of compensation (whether or not contingent upon the occurrence or non-occurrence of a specified event) to be paid by the commonhold association to a specified person;
(d) make provision for land to cease to be commonhold land.
(4) An application under subsection (1) must be made—
(a) within the period of three months beginning with the day on which the applicant became a unit-holder,
(b) within three months of the commencement of the alleged failure to comply, or
(c) with the permission of the court.
(1) This section applies to an application under section 2 if the commonhold association for the purposes of the application already exercises functions in relation to commonhold land.
(2) In this section—
(a) the application is referred to as an “application to add land”, and
(b) the land to which the application relates is referred to as the “added land”.
(3) An application to add land may not be made unless it is approved by a resolution of the commonhold association.
(4) A resolution for the purposes of subsection (3) must be passed—
(a) before the application to add land is made, and
(b) unanimously.
(5) Section 2(2) shall not apply to an application to add land; but the application must be accompanied by—
(a) the documents specified in paragraph 6 of Schedule 1,
(b) an application under section 33 for the registration of an amended commonhold community statement which makes provision for the existing commonhold and the added land, and
(c) a certificate given by the directors of the commonhold association that the application to add land satisfies Schedule 2 and subsection (3).
(6) Where sections 7 and 9 have effect following an application to add land—
(a) the references to “the commonhold land” in sections 7(2)(a) and (3)(d) and 9(3)(f) shall be treated as references to the added land, and
(b) the references in sections 7(2)(b) and (3)(c) and 9(3)(e) to the rights and duties conferred and imposed by the commonhold community statement shall be treated as a reference to rights and duties only in so far as they affect the added land.
(7) In the case of an application to add land where the whole of the added land is to form part of the common parts of a commonhold—
(a) section 7 shall not apply,
(b) on registration the commonhold association shall be entitled to be registered (if it is not already) as the proprietor of the freehold estate in the added land,
(c) the Registrar shall make any registration required by paragraph (b) (without an application being made), and
(d) the rights and duties conferred and imposed by the commonhold community statement shall, in so far as they affect the added land, come into force on registration.
(1) Regulations may provide that a commonhold association shall be a member of an approved ombudsman scheme.
(2) An “approved ombudsman scheme” is a scheme which is approved by the Secretary of State and which—
(a) provides for the appointment of one or more persons as ombudsman,
(b) provides for a person to be appointed as ombudsman only if the Secretary of State approves the appointment in advance,
(c) enables a unit-holder to refer to the ombudsman a dispute between the unit-holder and a commonhold association which is a member of the scheme,
(d) enables a commonhold association which is a member of the scheme to refer to the ombudsman a dispute between the association and a unit-holder,
(e) requires the ombudsman to investigate and determine a dispute referred to him,
(f) requires a commonhold association which is a member of the scheme to cooperate with the ombudsman in investigating or determining a dispute, and
(g) requires a commonhold association which is a member of the scheme to comply with any decision of the ombudsman (including any decision requiring the payment of money).
(3) In addition to the matters specified in subsection (2) an approved ombudsman scheme—
(a) may contain other provision, and
(b) shall contain such provision, or provision of such a kind, as may be prescribed.
(4) If a commonhold association fails to comply with regulations under subsection (1) a unit-holder may apply to the High Court for an order requiring the directors of the commonhold association to ensure that the association complies with the regulations.
(5) A reference in this section to a unit-holder includes a reference to a tenant of a unit.
(1) A winding-up resolution in respect of a commonhold association shall be of no effect unless—
(a) the resolution is preceded by a declaration of solvency,
(b) the commonhold association passes a termination-statement resolution before it passes the winding-up resolution, and
(c) each resolution is passed with at least 80 per cent. of the members of the association voting in favour.
(2) In this Part—
“declaration of solvency” means a directors’ statutory declaration made in accordance with section 89 of the Insolvency Act 1986 (c. 45),
“termination-statement resolution” means a resolution approving the terms of a termination statement (within the meaning of section 47), and
“winding-up resolution” means a resolution for voluntary winding-up within the meaning of section 84 of that Act.
(1) This section applies where a commonhold association—
(a) has passed a winding-up resolution and a termination-statement resolution with 100 per cent. of the members of the association voting in favour, and
(b) has appointed a liquidator under section 91 of the Insolvency Act 1986 (c. 45).
(2) The liquidator shall make a termination application within the period of six months beginning with the day on which the winding-up resolution is passed.
(3) If the liquidator fails to make a termination application within the period specified in subsection (2) a termination application may be made by—
(a) a unit-holder, or
(b) a person falling within a class prescribed for the purposes of this subsection.
(1) This section applies where a commonhold association—
(a) has passed a winding-up resolution and a termination-statement resolution with at least 80 per cent. of the members of the association voting in favour, and
(b) has appointed a liquidator under section 91 of the Insolvency Act 1986.
(2) The liquidator shall within the prescribed period apply to the court for an order determining—
(a) the terms and conditions on which a termination application may be made, and
(b) the terms of the termination statement to accompany a termination application.
(3) The liquidator shall make a termination application within the period of three months starting with the date on which an order under subsection (2) is made.
(4) If the liquidator fails to make an application under subsection (2) or (3) within the period specified in that subsection an application of the same kind may be made by—
(a) a unit-holder, or
(b) a person falling within a class prescribed for the purposes of this subsection.
(1) A “termination application” is an application to the Registrar that all the land in relation to which a particular commonhold association exercises functions should cease to be commonhold land.
(2) A termination application must be accompanied by a termination statement.
(3) On receipt of a termination application the Registrar shall note it in the register.
(1) A termination statement must specify—
(a) the commonhold association’s proposals for the transfer of the commonhold land following acquisition of the freehold estate in accordance with section 49(3), and
(b) how the assets of the commonhold association will be distributed.
(2) A commonhold community statement may make provision requiring any termination statement to make arrangements—
(a) of a specified kind, or
(b) determined in a specified manner,
about the rights of unit-holders in the event of all the land to which the statement relates ceasing to be commonhold land.
(3) A termination statement must comply with a provision made by the commonhold community statement in reliance on subsection (2).
(4) Subsection (3) may be disapplied by an order of the court—
(a) generally,
(b) in respect of specified matters, or
(c) for a specified purpose.
(5) An application for an order under subsection (4) may be made by any member of the commonhold association.
(1) This section applies where a termination application has been made in respect of particular commonhold land.
(2) The liquidator shall notify the Registrar of his appointment.
(3) In the case of a termination application made under section 44 the liquidator shall either—
(a) notify the Registrar that the liquidator is content with the termination statement submitted with the termination application, or
(b) apply to the court under section 112 of the Insolvency Act 1986 (c. 45) to determine the terms of the termination statement.
(4) The liquidator shall send to the Registrar a copy of a determination made by virtue of subsection (3)(b).
(5) Subsection (4) is in addition to any requirement under section 112(3) of the Insolvency Act 1986.
(6) A duty imposed on the liquidator by this section is to be performed as soon as possible.
(7) In this section a reference to the liquidator is a reference—
(a) to the person who is appointed as liquidator under section 91 of the Insolvency Act 1986, or
(b) in the case of a members’ voluntary winding up which becomes a creditors’ voluntary winding up by virtue of sections 95 and 96 of that Act, to the person acting as liquidator in accordance with section 100 of that Act.
(1) This section applies where a termination application is made under section 44 and—
(a) a liquidator notifies the Registrar under section 48(3)(a) that he is content with a termination statement, or
(b) a determination is made under section 112 of the Insolvency Act 1986 (c. 45) by virtue of section 48(3)(b).
(2) This section also applies where a termination application is made under section 45.
(3) The commonhold association shall by virtue of this subsection be entitled to be registered as the proprietor of the freehold estate in each commonhold unit.
(4) The Registrar shall take such action as appears to him to be appropriate for the purpose of giving effect to the termination statement.
(1) Section 51 applies where a petition is presented under section 124 of the Insolvency Act 1986 for the winding up of a commonhold association by the court.
(2) For the purposes of this Part—
(a) an “insolvent commonhold association” is one in relation to which a winding-up petition has been presented under section 124 of the Insolvency Act 1986,
(b) a commonhold association is the “successor commonhold association” to an insolvent commonhold association if the land specified for the purpose of section 34(1)(a) is the same for both associations, and
(c) a “winding-up order” is an order under section 125 of the Insolvency Act 1986 for the winding up of a commonhold association.
(1) At the hearing of the winding-up petition an application may be made to the court for an order under this section (a “succession order”) in relation to the insolvent commonhold association.
(2) An application under subsection (1) may be made only by—
(a) the insolvent commonhold association,
(b) one or more members of the insolvent commonhold association, or
(c) a provisional liquidator for the insolvent commonhold association appointed under section 135 of the Insolvency Act 1986.
(3) An application under subsection (1) must be accompanied by—
(a) prescribed evidence of the formation of a successor commonhold association, and
(b) a certificate given by the directors of the successor commonhold association that its articles of association comply with regulations under paragraph 2(1) of Schedule 3.
(4) The court shall grant an application under subsection (1) unless it thinks that the circumstances of the insolvent commonhold association make a succession order inappropriate.
(1) Where a succession order is made in relation to an insolvent commonhold association this section applies on the making of a winding-up order in respect of the association.
(2) The successor commonhold association shall be entitled to be registered as the proprietor of the freehold estate in the common parts.
(3) The insolvent commonhold association shall for all purposes cease to be treated as the proprietor of the freehold estate in the common parts.
(4) The succession order—
(a) shall make provision as to the treatment of any charge over all or any part of the common parts;
(b) may require the Registrar to take action of a specified kind;
(c) may enable the liquidator to require the Registrar to take action of a specified kind;
(d) may make supplemental or incidental provision.
(1) Where a succession order is made in relation to an insolvent commonhold association this section applies on the making of a winding-up order in respect of the association.
(2) The successor commonhold association shall be treated as the commonhold association for the commonhold in respect of any matter which relates to a time after the making of the winding-up order.
(3) On the making of the winding-up order the court may make an order requiring the liquidator to make available to the successor commonhold association specified—
(a) records;
(b) copies of records;
(c) information.
(4) An order under subsection (3) may include terms as to—
(a) timing;
(b) payment.
(1) This section applies where the court—
(a) makes a winding-up order in respect of a commonhold association, and
(b) has not made a succession order in respect of the commonhold association.
(2) The liquidator of a commonhold association shall as soon as possible notify the Registrar of—
(a) the fact that this section applies,
(b) any directions given under section 168 of the Insolvency Act 1986 (c. 45) (liquidator: supplementary powers),
(c) any notice given to the court and the registrar of companies in accordance with section 172(8) of that Act (liquidator vacating office after final meeting),
(d) any notice given to the Secretary of State under section 174(3) of that Act (completion of winding-up),
(e) any application made to the registrar of companies under section 202(2) of that Act (insufficient assets: early dissolution),
(f) any notice given to the registrar of companies under section 205(1)(b) of that Act (completion of winding-up), and
(g) any other matter which in the liquidator’s opinion is relevant to the Registrar.
(3) Notification under subsection (2)(b) to (f) must be accompanied by a copy of the directions, notice or application concerned.
(4) The Registrar shall—
(a) make such arrangements as appear to him to be appropriate for ensuring that the freehold estate in land in respect of which a commonhold association exercises functions ceases to be registered as a freehold estate in commonhold land as soon as is reasonably practicable after he receives notification under subsection (2)(c) to (f), and
(b) take such action as appears to him to be appropriate for the purpose of giving effect to a determination made by the liquidator in the exercise of his functions.
(1) This section applies where the court makes an order by virtue of section 6(6)(c) or 40(3)(d) for all the land in relation to which a commonhold association exercises functions to cease to be commonhold land.
(2) The court shall have the powers which it would have if it were making a winding-up order in respect of the commonhold association.
(3) A person appointed as liquidator by virtue of subsection (2) shall have the powers and duties of a liquidator following the making of a winding-up order by the court in respect of a commonhold association.
(4) But the order of the court by virtue of section 6(6)(c) or 40(3)(d) may—
(a) require the liquidator to exercise his functions in a particular way;
(b) impose additional rights or duties on the liquidator;
(c) modify or remove a right or duty of the liquidator.
Section 39(4) shall cease to have effect in relation to a commonhold association (in respect of debts and liabilities accruing at any time) if—
(a) the court makes a winding-up order in respect of the association,
(b) the association passes a voluntary winding-up resolution, or
(c) the court makes an order by virtue of section 6(6)(c) or 40(3)(d) for all the land in relation to which the association exercises functions to cease to be commonhold land.
(1) A commonhold may include two or more parcels of land, whether or not contiguous.
(2) But section 1(1) of this Act is not satisfied in relation to land specified in the articles of association of a commonhold association unless a single commonhold community statement makes provision for all the land.
(3) Regulations may make provision about an application under section 2 made jointly by two or more persons, each of whom is the registered freeholder of part of the land to which the application relates.
(4) The regulations may, in particular—
(a) modify the application of a provision made by or by virtue of this Part;
(b) disapply the application of a provision made by or by virtue of this Part;
(c) impose additional requirements.
(1) In this Part—
“the developer” means a person who makes an application under section 2, and
“development business” has the meaning given by Schedule 4.
(2) A commonhold community statement may confer rights on the developer which are designed—
(a) to permit him to undertake development business, or
(b) to facilitate his undertaking of development business.
(3) Provision made by a commonhold community statement in reliance on subsection (2) may include provision—
(a) requiring the commonhold association or a unit-holder to co-operate with the developer for a specified purpose connected with development business;
(b) making the exercise of a right conferred by virtue of subsection (2) subject to terms and conditions specified in or to be determined in accordance with the commonhold community statement;
(c) making provision about the effect of breach of a requirement by virtue of paragraph (a) or a term or condition imposed by virtue of paragraph (b);
(d) disapplying section 41(2) and (3).
(4) Subsection (2) is subject—
(a) to regulations under section 32, and
(b) in the case of development business of the kind referred to in paragraph 7 of Schedule 4, to the articles of association of the commonhold association.
(5) Regulations may make provision regulating or restricting the exercise of rights conferred by virtue of subsection (2).
(6) Where a right is conferred on a developer by virtue of subsection (2), if he sends to the Registrar a notice surrendering the right—
(a) the Registrar shall arrange for the notice to be kept in his custody and referred to in the register,
(b) the right shall cease to be exercisable from the time when the notice is registered under paragraph (a), and
(c) the Registrar shall inform the commonhold association as soon as is reasonably practicable.
(1) If during a transitional period the developer transfers to another person the freehold estate in the whole of the commonhold, the successor in title shall be treated as the developer in relation to any matter arising after the transfer.
(2) If during a transitional period the developer transfers to another person the freehold estate in part of the commonhold, the successor in title shall be treated as the developer for the purpose of any matter which—
(a) arises after the transfer, and
(b) affects the estate transferred.
(3) If after a transitional period or in a case where there is no transitional period—
(a) the developer transfers to another person the freehold estate in the whole or part of the commonhold (other than by the transfer of the freehold estate in a single commonhold unit), and
(b) the transfer is expressed to be inclusive of development rights,
the successor in title shall be treated as the developer for the purpose of any matter which arises after the transfer and affects the estate transferred.
(4) Other than during a transitional period, a person shall not be treated as the developer in relation to commonhold land for any purpose unless he—
(a) is, or has been at a particular time, the registered proprietor of the freehold estate in more than one of the commonhold units, and
(b) is the registered proprietor of the freehold estate in at least one of the commonhold units.
(1) Where a freehold estate in commonhold land is transferred to a compulsory purchaser the land shall cease to be commonhold land.
(2) But subsection (1) does not apply to a transfer if the Registrar is satisfied that the compulsory purchaser has indicated a desire for the land transferred to continue to be commonhold land.
(3) The requirement of consent under section 21(2)(c) shall not apply to transfer to a compulsory purchaser.
(4) Regulations may make provision about the transfer of a freehold estate in commonhold land to a compulsory purchaser.
(5) The regulations may, in particular—
(a) make provision about the effect of subsections (1) and (2) (including provision about that part of the commonhold which is not transferred);
(b) require the service of notice;
(c) confer power on a court;
(d) make provision about compensation;
(e) make provision enabling a commonhold association to require a compulsory purchaser to acquire the freehold estate in the whole, or a particular part, of the commonhold;
(f) provide for an enactment relating to compulsory purchase not to apply or to apply with modifications.
(6) Provision made by virtue of subsection (5)(a) in respect of land which is not transferred may include provision—
(a) for some or all of the land to cease to be commonhold land;
(b) for a provision of this Part to apply with specified modifications.
(7) In this section “compulsory purchaser” means—
(a) a person acquiring land in respect of which he is authorised to exercise a power of compulsory purchase by virtue of an enactment, and
(b) a person acquiring land which he is obliged to acquire by virtue of a prescribed enactment or in prescribed circumstances.
In the following provisions of this Part a reference to a tenant includes a reference to a person who has home rights (within the meaning of section 30(2) of the Family Law Act 1996 (c. 27) (rights in respect of matrimonial or civil partnership home)) in respect of a commonhold unit—
(a) section 19,
(b) section 35, and
(c) section 37.
(1) The Secretary of State may give financial assistance to a person in relation to the provision by that person of information, training or general advice about, or a dispute resolution service in connection with—
(a) any aspect of the law of commonhold land, so far as relating to residential matters , or
(b) any other matter relating to commonhold land and residential matters.
(2) Financial assistance under this section may be given in such form and on such terms as the Secretary of State thinks appropriate.
(3) The terms may, in particular, require repayment in specified circumstances.
(1) In this Part “prescribed” means prescribed by regulations.
(2) Regulations under this Part shall be made by the Secretary of State.
(3) Regulations under this Part—
(a) shall be made by statutory instrument,
(b) may include incidental, supplemental, consequential and transitional provision,
(c) may make provision generally or only in relation to specified cases,
(d) may make different provision for different purposes, and
(e) shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(1) The Secretary of State may make rules about—
(a) the procedure to be followed on or in respect of commonhold registration documents, and
(b) the registration of freehold estates in commonhold land.
(2) Rules under this section—
(a) shall be made by statutory instrument in the same manner as land registration rules within the meaning of the Land Registration Act 2002 (c. 9),
(b) may make provision for any matter for which provision is or may be made by land registration rules, and
(c) may provide for land registration rules to have effect in relation to anything done by virtue of or for the purposes of this Part as they have effect in relation to anything done by virtue of or for the purposes of that Act.
(3) Rules under this section may, in particular, make provision—
(a) about the form and content of a commonhold registration document;
(b) enabling the Registrar to cancel an application by virtue of this Part in specified circumstances;
(c) enabling the Registrar, in particular, to cancel an application by virtue of this Part if he thinks that plans submitted with it (whether as part of a commonhold community statement or otherwise) are insufficiently clear or accurate;
(d) about the order in which commonhold registration documents and general registration documents are to be dealt with by the Registrar;
(e) for registration to take effect (whether or not retrospectively) as from a date or time determined in accordance with the rules.
(4) The rules may also make provision about satisfaction of a requirement for an application by virtue of this Part to be accompanied by a document; in particular the rules may—
(a) permit or require a copy of a document to be submitted in place of or in addition to the original;
(b) require a copy to be certified in a specified manner;
(c) permit or require the submission of a document in electronic form.
(5) A commonhold registration document must be accompanied by such fee (if any) as is specified for that purpose by order under section 102 of the Land Registration Act 2002 (c. 9)(fee orders).
(6) In this section—
“commonhold registration document” means an application or other document sent to the Registrar by virtue of this Part, and
“general registration document” means a document sent to the Registrar under a provision of the Land Registration Act 2002.
(1) In this Part “the court” means the High Court or the county court .
(2) Provision made by or under this Part conferring jurisdiction on a court shall be subject to provision made under section 1 of the Courts and Legal Services Act 1990 (c. 41) (allocation of business between High Court and county courts).
(3) A power under this Part to confer jurisdiction on a court includes power to confer jurisdiction on a tribunal established under an enactment.
(4) Rules of court or rules of procedure for a tribunal may make provision about proceedings brought—
(a) under or by virtue of any provision of this Part, or
(b) in relation to commonhold land.
(1) In this Part—
“the register” means the register of title to freehold and leasehold land kept under section 1 of the Land Registration Act 2002,
“registered” means registered in the register, and
“the Registrar” means the Chief Land Registrar.
(2) Regulations under any provision of this Part may confer functions on the Registrar (including discretionary functions).
(3) The Registrar shall comply with any direction or requirement given to him or imposed on him under or by virtue of this Part.
(4) Where the Registrar thinks it appropriate in consequence of or for the purpose of anything done or proposed to be done in connection with this Part, he may—
(a) make or cancel an entry on the register;
(b) take any other action.
(5) Subsection (4) is subject to section 6(2).
(1) In this Part—
“higher-risk building” has the meaning given by section 115 of the Building Safety Act 2022,
“higher-risk commonhold” means a commonhold in England that includes all or any part of a higher-risk building,
“instrument” includes any document, and
“object”, in relation to a commonhold association, means an object stated in the association's articles of association (see section 31 of the Companies Act 2006);
(2) In this Part—
(a) a reference to a duty to insure includes a reference to a duty to use the proceeds of insurance for the purpose of rebuilding or reinstating, and
(b) a reference to maintaining property includes a reference to decorating it and to putting it into sound condition.
(3) A provision of the Law of Property Act 1925 (c. 20), the Companies Act 2006 or the Land Registration Act 2002 (c.9) defining an expression shall apply to the use of the expression in this Part unless the contrary intention appears.
(1) This Chapter makes provision for the acquisition and exercise of rights in relation to the management of premises to which this Chapter applies by a company which, in accordance with this Chapter, may acquire and exercise those rights (referred to in this Chapter as a RTM company).
(2) The rights are to be acquired and exercised subject to and in accordance with this Chapter and are referred to in this Chapter as the right to manage.
(1) This Chapter applies to premises if—
(a) they consist of a self-contained building or part of a building, with or without appurtenant property,
(b) they contain two or more flats held by qualifying tenants, and
(c) the total number of flats held by such tenants is not less than two-thirds of the total number of flats contained in the premises.
(2) A building is a self-contained building if it is structurally detached.
(3) A part of a building is a self-contained part of the building if—
(a) it constitutes a vertical division of the building,
(b) the structure of the building is such that it could be redeveloped independently of the rest of the building, and
(c) subsection (4) applies in relation to it.
(4) This subsection applies in relation to a part of a building if the relevant services provided for occupiers of it—
(a) are provided independently of the relevant services provided for occupiers of the rest of the building, or
(b) could be so provided without involving the carrying out of works likely to result in a significant interruption in the provision of any relevant services for occupiers of the rest of the building.
(5) Relevant services are services provided by means of pipes, cables or other fixed installations.
(6) Schedule 6 (premises excepted from this Chapter) has effect.
(1) This section specifies what is a RTM company.
(2) A company is a RTM company in relation to premises if—
(a) it is a private company limited by guarantee, and
(b) its articles of association state that its object, or one of its objects, is the acquisition and exercise of the right to manage the premises.
(3) But a company is not a RTM company if it is a commonhold association (within the meaning of Part 1).
(4) And a company is not a RTM company in relation to premises if another company is already a RTM company in relation to the premises or to any premises containing or contained in the premises.
(5) If the freehold of any premises is conveyed or transferred to a company which is a RTM company in relation to the premises, or any premises containing or contained in the premises, it ceases to be a RTM company when the conveyance or transfer is executed.
(1) The persons who are entitled to be members of a company which is a RTM company in relation to premises are—
(a) qualifying tenants of flats contained in the premises, and
(b) from the date on which it acquires the right to manage (referred to in this Chapter as the “acquisition date”), landlords under leases of the whole or any part of the premises.
(2) The appropriate national authority shall make regulations about the content and form of the articles of association of RTM companies.
(3) A RTM company may adopt provisions of the regulations for its articles.
(4) The regulations may include provision which is to have effect for a RTM company whether or not it is adopted by the company.
(5) A provision of the articles of a RTM company has no effect to the extent that it is inconsistent with the regulations.
(6) The regulations have effect in relation to articles—
(a) irrespective of the date of the articles, but
(b) subject to any transitional provisions of the regulations.
(7) Section 20 of the Companies Act 2006 (default application of model articles) does not apply to a RTM company.
(1) This section specifies whether there is a qualifying tenant of a flat for the purposes of this Chapter and, if so, who it is.
(2) Subject as follows, a person is the qualifying tenant of a flat if he is tenant of the flat under a long lease.
(3) Subsection (2) does not apply where the lease is a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies.
(4) Subsection (2) does not apply where—
(a) the lease was granted by sub-demise out of a superior lease other than a long lease,
(b) the grant was made in breach of the terms of the superior lease, and
(c) there has been no waiver of the breach by the superior landlord.
(5) No flat has more than one qualifying tenant at any one time; and subsections (6) and (7) apply accordingly.
(6) Where a flat is being let under two or more long leases, a tenant under any of those leases which is superior to that held by another is not the qualifying tenant of the flat.
(7) Where a flat is being let to joint tenants under a long lease, the joint tenants shall (subject to subsection (6)) be regarded as jointly being the qualifying tenant of the flat.
(1) This section and section 77 specify what is a long lease for the purposes of this Chapter.
(2) Subject to section 77, a lease is a long lease if—
(a) it is granted for a term of years certain exceeding 21 years, whether or not it is (or may become) terminable before the end of that term by notice given by or to the tenant, by re-entry or forfeiture or otherwise,
(b) it is for a term fixed by law under a grant with a covenant or obligation for perpetual renewal (but is not a lease by sub-demise from one which is not a long lease),
(c) it takes effect under section 149(6) of the Law of Property Act 1925 (c. 20) (leases terminable after a death or marriage or the formation of a civil partnership),
(d) it was granted in pursuance of the right to buy conferred by Part 5 of the Housing Act 1985 (c. 68) or in pursuance of the right to acquire on rent to mortgage terms conferred by that Part of that Act,
(e) it is a shared ownership lease, whether granted in pursuance of that Part of that Act or otherwise, where the tenant’s total share is 100 per cent., or
(f) it was granted in pursuance of that Part of that Act as it has effect by virtue of section 17 of the Housing Act 1996 (c. 52) (the right to acquire).
(3) “Shared ownership lease” means a lease—
(a) granted on payment of a premium calculated by reference to a percentage of the value of the demised premises or the cost of providing them, or
(b) under which the tenant (or his personal representatives) will or may be entitled to a sum calculated by reference, directly or indirectly, to the value of those premises.
(4) “Total share”, in relation to the interest of a tenant under a shared ownership lease, means his initial share plus any additional share or shares in the demised premises which he has acquired.
(1) A lease terminable by notice after a death, a marriage or the formation of a civil partnership is not a long lease if—
(a) the notice is capable of being given at any time after the death or marriage of , or the formation of a civil partnership by, the tenant,
(b) the length of the notice is not more than three months, and
(c) the terms of the lease preclude both its assignment otherwise than by virtue of section 92 of the Housing Act 1985 (assignments by way of exchange) and the sub-letting of the whole of the demised premises.
(2) Where the tenant of any property under a long lease, on the coming to an end of the lease, becomes or has become tenant of the property or part of it under any subsequent tenancy (whether by express grant or by implication of law), that tenancy is a long lease irrespective of its terms.
(3) A lease—
(a) granted for a term of years certain not exceeding 21 years, but with a covenant or obligation for renewal without payment of a premium (but not for perpetual renewal), and
(b) renewed on one or more occasions so as to bring to more than 21 years the total of the terms granted (including any interval between the end of a lease and the grant of a renewal),
is to be treated as if the term originally granted had been one exceeding 21 years.
(4) Where a long lease—
(a) is or was continued for any period under Part 1 of the Landlord and Tenant Act 1954 (c. 56) or under Schedule 10 to the Local Government and Housing Act 1989 (c. 42), or
(b) was continued for any period under the Leasehold Property (Temporary Provisions) Act 1951 (c. 38),
it remains a long lease during that period.
(5) Where in the case of a flat there are at any time two or more separate leases, with the same landlord and the same tenant, and—
(a) the property comprised in one of those leases consists of either the flat or a part of it (in either case with or without appurtenant property), and
(b) the property comprised in every other lease consists of either a part of the flat (with or without appurtenant property) or appurtenant property only,
there shall be taken to be a single long lease of the property comprised in such of those leases as are long leases.
(1) Before making a claim to acquire the right to manage any premises, a RTM company must give notice to each person who at the time when the notice is given—
(a) is the qualifying tenant of a flat contained in the premises, but
(b) neither is nor has agreed to become a member of the RTM company.
(2) A notice given under this section (referred to in this Chapter as a “notice of invitation to participate”) must—
(a) state that the RTM company intends to acquire the right to manage the premises,
(b) state the names of the members of the RTM company,
(c) invite the recipients of the notice to become members of the company, and
(d) contain such other particulars (if any) as may be required to be contained in notices of invitation to participate by regulations made by the appropriate national authority.
(3) A notice of invitation to participate must also comply with such requirements (if any) about the form of notices of invitation to participate as may be prescribed by regulations so made.
(4) A notice of invitation to participate must either—
(a) be accompanied by a copy of the articles of association of the RTM company, or
(b) include a statement about inspection and copying of the articles of association of the RTM company.
(5) A statement under subsection (4)(b) must—
(a) specify a place (in England or Wales) at which the articles of association may be inspected,
(b) specify as the times at which they may be inspected periods of at least two hours on each of at least three days (including a Saturday or Sunday or both) within the seven days beginning with the day following that on which the notice is given,
(c) specify a place (in England or Wales) at which, at any time within those seven days, a copy of the articles of association may be ordered, and
(d) specify a fee for the provision of an ordered copy, not exceeding the reasonable cost of providing it.
(6) Where a notice given to a person includes a statement under subsection (4)(b), the notice is to be treated as not having been given to him if he is not allowed to undertake an inspection, or is not provided with a copy, in accordance with the statement.
(7) A notice of invitation to participate is not invalidated by any inaccuracy in any of the particulars required by or by virtue of this section.