Amendments proposed to the Commonhold and Leasehold Reform Bill [܃f3lords] - continued House of Commons

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Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous

24

*Clause     36,     page     17,     line     23,     at end insert—

       'and (c) provision for monies payable by a unit-holder to the commonhold association under sub-sections (1) and (2) hereof and under provisions made under section 37(1) hereof to be a charge over that unit-holder's unit and enforceable as a first legal charge in priority to all other charges or encumbrances over that unit-holder's unit.'


   

Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous

49

*Clause     38,     page     18,     line     27,     at end insert—

    '(3A)   The assets of a fund established and maintained by virtue of this section shall be treated as monies reserved for future expenditure.

    (3B)   Any sums paid into a fund established and maintained by virtue of this section by a unit-holder, and any investments representing those sums, shall (together with any income accruing thereon) be held by the commonhold association on trust either as a single fund, or, if the commonhold association deems appropriate, as two or more separate funds.

    (3C)   The commonhold association shall hold any trust fund—

      (a) on trust to defray costs incurred in connection with the matters for which the relevant contributions were payable (whether incurred by the commonhold association itself or by another person), and

      (b) subject to that, on trust for the persons who are the contributing unit-holders for the time-being.

    (3D)   Subject to subsections (3F) and (3G), the contributing unit-holders shall be treated as entitled by virtue of subsection (3C)(b) to such shares in the residue of any such fund as are proportionate to their respective liabilities to pay a proportion of the levy set under subsection (2).

    (3E)   If the Secretary of State by order so provides, any sums standing to the credit of any trust fund may, instead of being invested in any other manner authorised by law, be invested in such manner as may be specified in the order; and any such order may contain such incidental, supplemental or transitional provisions as the Secretary of State considers appropriate in connection with the order.

    (3F)   On the transfer of a commonhold unit, the unit-holder shall not be entitled to any part of any trust fund, and any part of such trust fund which is attributable to relevant contributions paid in accordance with this section shall accordingly continue to be held on the trusts referred to in subsection (3C).

    (3G)   Any trust fund established under this section shall be exempt from any tax in respect of contributions made to it by the unit holders, whether (apart from this provision) a liability to tax may be imposed on the commonhold association or the contributing unit-holder.'.


   

Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous

51

*Clause     40,     page     19,     leave out line 30 and insert—

      '(b) by a majority of 75 per cent. of the members of the commonhold community association who cast a vote on resolution.'


   

Mr Adrian Sanders
Sue Doughty

6

Clause     42,     page     21,     line     9,     at end insert 'in person, by secret ballot'.


   

Mr Michael Wills

18

Clause     59,     page     28,     line     19,     leave out subsection (3) and insert—

    '(3)   The requirement of consent under section [Part-unit:interests](2)(c) shall not apply to transfer to a compulsory purchaser.'.


   

Mr Michael Wills

21

Schedule     5,     page     96,     leave out lines 27 to 32.


   

Mr Michael Wills

19

Clause     68,     page     32,     line     23,     at end insert—

       'Residential commonhold unit                              Section 17'.


NEW CLAUSES RELATING TO PART I

Part-unit: interests
   

Mr Michael Wills

NC2

To move the following Clause:—

    (1)   'It shall not be possible to create an interest in part only of a commonhold unit.

    (2)   But subsection (1) shall not prevent—

      (a) the creation of a term of years absolute in part only of a residential commonhold unit where the term satisfies prescribed conditions,

      (b) the creation of a term of years absolute in part only of a non-residential commonhold unit, or

      (c) the transfer of the freehold estate in part only of a commonhold unit where the commonhold association consents in writing to the transfer.

    (3)   An instrument or agreement shall be of no effect to the extent that it purports to create an interest in contravention of subsection (1).

    (4)   Subsection (5) applies where—

      (a) land becomes commonhold land or is added to a commonhold unit, and

      (b) immediately before that event there is an interest in the land which could not be created after that event by reason of subsection (1).

    (5)   The interest shall be extinguished by virtue of this subsection to the extent that it could not be created by reason of subsection (1).

    (6)   Section 17(2) and (4) shall apply (with any necessary modifications) in relation to subsection (2)(a) and (b) above.

    (7)   Where part only of a unit is held under a lease, regulations may modify the application of a provision which—

      (a) is made by or by virtue of this Part, and

      (b) applies to a unit-holder or a tenant or both.

    (8)   Section 20(4) shall apply in relation to subsection (2)(c) above.

    (9)   Where the freehold interest in part only of a commonhold unit is transferred, the part transferred—

      (a) becomes a new commonhold unit by virtue of this subsection, or

      (b) in a case where the request for consent under subsection (2)(c) states that this paragraph is to apply, becomes part of a commonhold unit specified in the request.

    (10)   Regulations may make provision, or may require a commonhold(4)community statement to make provision, about—

      (a) registration of units created by virtue of subsection (9);

      (b) the adaptation of provision made by or by virtue of this Part or by or by virtue of a commonhold community statement to a case where units are created or modified by virtue of subsection (9).'.


Part-unit: charging
   

Mr Michael Wills

NC3

To move the following Clause:—

    (1)   'It shall not be possible to create a charge over part only of an interest in a commonhold unit.

    (2)   An instrument or agreement shall be of no effect to the extent that it purports to create a charge in contravention of subsection (1).

    (3)   Subsection (4) applies where—

      (a) land becomes commonhold land or is added to a commonhold unit, and

      (b) immediately before that event there is a charge over the land which could not be created after that event by reason of subsection (1).

       The charge shall be extinguished by virtue of this subsection to the extent that it could not be created by reason of subsection (1).'.


Advice
   

Mr Michael Wills

NC4

To move the following Clause:—

    (1)   'The Lord Chancellor may give financial assistance to a person in relation to the provision by that person of general advice about an aspect of the law of commonhold land, so far as relating to residential matters.

    (2)   Financial assistance under this section may be given in such form and on such terms as the Lord Chancellor thinks appropriate.

    (3)   The terms may, in particular, require repayment in specified circumstances.'.


Conversion of existing buildings
   

Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous

NC5

*To move the following Clause:—

    '(1)   Notwithstanding the provisions of sections 2 and 3, in order to facilitate the creation of commonhold from an existing freehold building, the following provisions shall apply—

      (a) existing long leases may continue and comprise part of a commonhold;

      (b) where leasholders do not wish to become unit-owners and have signified this accordingly, existing long leases will continue and the commonhold association shall be regarded as the unit-holder, with the obligation to the leaseholder as the freeholder of the unit;

      (c) existing rights applicable to long leases shall continue to be maintained; and

      (d) existing rights applicable to mortgages shall be maintained.

    (2)   Conversion may take place where no less than 50 per cent. of the long leaseholders consent to convert to commonhold.

    (3)   Where more than 10 per cent. of leaseholders object to this conversion, they may apply to a tribunal court indicating the grounds for their objections; and the tribunal may then confirm or prevent the conversion having regard to the circumstances'.


Flying commonhold
   

Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous

NC6

*To move the following Clause:—

    '(1)   Commonhold land may consist of, or include, a building, or part of a building, which is above or below other land.

    (2)   Where subsections (1) applies, a positive covenant relating to the commonhold or the other land entered into between the commonhold association and the registered proprietor of an estate in the whole or part of the other land shall be enforceable by and against their successors in title if the covenant so provides.'


   

Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous

67

*Clause     69,     page     33,     line     12,     at end add—

    '(3)   But this Chapter does not apply to any part of a building which is not occupied, nor intended to be occupied, for residential use'.



 
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