Amendments proposed to the Commonhold and Leasehold Reform Bill [Lords], As Amended - continued House of Commons

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Landlord's share of marriage value

   

Mr Adrian Sanders
Sue Doughty

NC1

To move the following Clause:—

       'Paragraphs 4, 4A and 4B of Schedule 13 to the 1993 Act (landlord's share of marriage value) are hereby repleaed.'.


Enfranchised properties located within 'scheme area'

   

Mr Adrian Sanders
Sue Doughty

NC4

To move the following Clause:—

    '.—(1)   This Chapter shall from the commencement of this Act apply to a dwelling within the meaning of the Leasehold Reform Act 1967, as amended, and the Leasehold Reform, Housing and Urban Development Act 1993, as amended, which—

      (a) has been enfranchised;

      (b) is situated within an area ("scheme area") in respect of which a scheme of management has been approved and is in force pursuant to section 19 of the Leasehold Reform Act 1967 or Chapter IV of the Leasehold Reform, Housing and Urban Development Act 1993.

    (2)   The right to manage provisions of this Chapter shall come into operation two months after a notice has been served by, or on behalf of not less than one half of the owners of enfranchised properties within the scheme area, and the form of notice shall be prescribed by regulations and shall be deemed to have been served from the seventh day after the notice has been sent by first class recorded delivery post addressed to the landlord or his agent at his last known address or left at such premises.

    (3)   On demand, the landlord shall provide an enfranchised owner intending to join with others to serve a notice of right to manage with the names and addresses of all enfranchised owners within the scheme area.'.


Notices of claim to be overriding interest

   

Mr Adrian Sanders
Sue Doughty

NC5

To move the following Clause:—

    '.—(1)   Section 5 of the 1967 Act is amended as follows.

    (2)   In subsection (5)—

      (a) for the words "nor shall any right of a tenant arising from a notice under this Act of his desire to have the freehold or to have an extended lease be an overriding interest" there is substituted "any right of a tenant arising from a notice under this Act of his desire to have the freehold or to have an extended lease shall be an overriding interest"; and

      (b) omit the words after "Land Registration Act 1925", the first time it occurs.'.


Contractor party as employee of manager party
   

Mr William Cash
Mr Geoffrey Clifton-Brown
Andrew Selous
Mr John Taylor
Mr Bill Wiggin
Dr Julian Lewis

NC16

*To move the following Clause:—

    '(1)   Where a contractor party is an employee of the manager party, the acquisition of the right to manage by the RTM company shall be deemed to be the transfer of an undertaking for the purposes of the Transfer of Undertakings (Protection of Employment) Regulations 1981.

    (2)   In every other case an existing management contract shall, unless novated by the contractor party and the RTM company, be deemed to be frustrated.'.


Leases exceeding 21 years
   

Mr William Cash
Mr Geoffrey Clifton-Brown
Andrew Selous
Mr John Taylor
Mr Bill Wiggin
Dr Julian Lewis

NC19

*To move the following Clause:—

    '.—(1)   This section shall apply to any lease granted for a term of years certain exceeding 21 years, whether or not it is terminable before the end of the term by notice given by or to the tenant or by re-entry, forfeiture or otherwise and whether made before or after the coming into force of this section, where the rent reserved for the time being is less than £1,000 per annum.

    (2)   In this section a right of forfeiture shall mean a provision in a lease whereby the landlord under a lease has a right to re-enter the premises demised (or part thereof) upon the happening of specified events, whether the right to re-enter is expressed as a condition or as a proviso on breach of covenant or otherwise howsoever.

    (3)   No landlord may re-enter the premises demised (nor any part thereof) pursuant to a right of forfeiture, insofar as the exercise of the right of forfeiture is based on the non-payment of money.

    (4)   Where a tenant fails to pay monies payable under the terms of the lease, the person entitled to payment of the said monies shall be entitled to a first legal charge (herein referred to as a "landlord's charge") over the lease for the monies payable and for his reasonable costs and expenses of and in connection with the landlord's charge and the enforcement thereof, such costs and expenses to be payable on the indemnity basis.

    (5)   Subject to the next subsection, a landlord's charge shall have priority to all charges, underleases and other encumbrances estates easements estoppels and rights of whatever description created by or deriving title from or through the tenant, whether at law or in equity and whether created or existing before or after the coming into force of this Act (hereinafter referred to as "subsidiary interests").

    (6)   Notwithstanding the previous subsection, no local land charge within the meaning of the Local Land Charges Act 1975 shall be a subsidiary interest.

    (7)   Subject to the next subsection, a landlord's charge may be enforced in any manner in which a first legal charge may be enforced.

    (8)   The landlord's charge may only be enforced by sale with leave of the High Court or the County Court.

    (9)   On such a sale, the purchaser shall purchase free from all subsidiary interests.

    (10)   Where a landlord's charge has no reasonably realisable commercial value, the landlord may apply to the High Court or the County Court for an order terminating the lease, but such an order shall not release the tenant from any pre-existing obligation under the lease.

    (11)   Any person holding any subsidiary interest shall be entitled to have subrogated to him the landlord's charge on payment of the sums secured by the landlord's charge and shall be entitled to add his reasonable costs and expenses of and in connection the said exercise of the right of subrogation to the landlord's charge, such costs and expenses to be assessed on the indemnity basis.

    (12)   Where more than one person holding a subsidiary interest wishes to have subrogated to him the landlord's charge, the priority as between such persons shall be determined in accordance with the rules of equity.

    (13)   Where on a sale of the lease pursuant to subsection (8) hereof, there is a surplus after payment of all the monies secured by the landlord's charge, the distribution of the said surplus shall be made in accordance with the rules of equity.

    (14)   Rules of Court shall provide for service on the tenant and on persons holding subsidiary interests of any application made pursuant to subsection (8) hereof for leave to enforce the landlord's charge by sale and for the circumstances in which such service may be dispensed with.

    (15)   Notwithstanding the provisions in subsections (4) and (11) hereof permitting the adding of costs and expenses to the landlord's charge, the High Court and the County Court shall have the power to make in substitution for the said provisions some different order as to incidence, basis and amount of the costs and expenses of the holder of the landlord's charge and of the lessee and of any other person where such different order would be just.

    (16)   The figure for the annual rental specified in subsection (1) hereof may be varied from time to time by regulations made by the Secretary of State.

    (17)   Nothing herein shall affect the validity or effect of a forfeiture of a lease, whether by re-entry on or service of originating process seeking to re-enter the premises demised (or part thereof) or otherwise, effected before the coming into effect of this section.

    (18)   "Lease" in this section shall include underleases and "landlord" and "tenant" shall be construed accordingly.

    (19)   The existence or potential existence of a landlord's charge shall not prevent any person who is restricted or prohibited whether by statute or otherwise from lending money save on the security of a first legal charge from lending money on the security of a charge which, but for the existence or potential existence of the landlord's charge, would have been a first legal charge.'.


   

Mr Adrian Sanders
Sue Doughty

25

Page     34,     line     20     [Clause     72],     at end insert ', or—

      (d) they consist of individual houses and blocks of flats comprised in an estate management scheme.'.


   

Mr William Cash
Mr Geoffrey Clifton-Brown
Andrew Selous
Mr John Taylor
Mr Bill Wiggin
Dr Julian Lewis

73

*Page     100,     line     6     [Schedule     6],     leave out sub-paragraph (4).


   

Mr William Cash
Mr Geoffrey Clifton-Brown
Andrew Selous
Mr John Taylor
Mr Bill Wiggin
Dr Julian Lewis

74

*Page     101     [Schedule     6],     leave out lines 13 to 15.


   

Mr William Cash
Mr Geoffrey Clifton-Brown
Andrew Selous
Mr John Taylor
Mr Bill Wiggin
Dr Julian Lewis

84

*Page     35,     line     30     [Clause     74],     after the 'company', insert—

    '(4A)   The regulations shall include provisions which shall insure that in the opinion of the appropriate national authority RTM companies shall have access to sufficient working capital to function effectively.'.


   

Mr William Cash
Mr Geoffrey Clifton-Brown
Andrew Selous
Mr John Taylor
Mr Bill Wiggin
Dr Julian Lewis

83

*Page     38,     line     46     [Clause     78],     after 'before', insert—

    '(2A)   The delivery of a notice of invitation to participate by hand at or by recorded delivery to the flat held by the person required to be served under section 78(2) hereof shall be deemed to be good service on the day of such service.'.

 
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