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Amendment Paper as at
Monday 11th March 2002

CONSIDERATION OF BILL


COMMONHOLD AND LEASEHOLD REFORM BILL [LORDS], AS AMENDED

NOTE

The Amendments have been arranged in accordance with the proposed Programme Motion.

NEW CLAUSES RELATING TO PART 1

Judgement creditor of commonhold association
   

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

NC17

To move the following Clause:—

    '(1)   A judgement creditor of a commonhold association may apply to the court for an order enabling him to enforce payment of all or part of his debt against a unit-holder.

    (2)   In considering whether to make such an order the court shall—

      (a) not order a unit-holder to pay a greater part of the debt than the amount he would be expected to have contributed to it by payments under section 37 or 38, and

      (b) give due credit for the payments which the unit-holder has made under those sections.'.


Restriction on building
   

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

NC18

To move the following Clause:—

    '(1)   In this Part "a partial building" means part only of a building, unless that part is divided vertically from the remainder of the building and is not structurally dependent on it.

    (2)   No person shall erect a partial building on commonhold land.'.


   

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

85

Page     2,     line     21     [Clause     3],     at beginning insert 'Subject to subsection (2A)'.

   

Mr Adrian Sanders
Sue Doughty

2

Page     2,     line     22     [Clause     3],     leave out 'anyone who'.

   

Mr Adrian Sanders
Sue Doughty

3

Page     2,     line     23     [Clause     3],     leave out 'is'.

   

Mr Adrian Sanders
Sue Doughty

4

Page     2,     line     25     [Clause     3],     leave out 'is the registered proprietor' and insert 'not fewer than 75 per cent. of the registered proprietors'.

   

Mr Adrian Sanders
Sue Doughty

5

Page     2,     line     27     [Clause     3],     after '(c)', insert 'anyone who'.

   

Mr Michael Wills

10

Page     2,     line     29     [Clause     3],     leave out paragraph (d).

   

Mr Adrian Sanders
Sue Doughty

6

Page     2,     line     29     [Clause     3],     after '(d)', insert 'anyone who'.

   

Mr Adrian Sanders
Sue Doughty

7

Page     2,     line     30     [Clause     3],     after '(e)', insert 'anyone who'.

   

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

86

Page     2,     line     42     [Clause     3],     at end insert—

    '(2A)   Where the conditions set out in section 1 to 10 of the Leasehold Reform Housing and Urban Development Act 1993 (right to collective enfranchisement) as herein amended are satisfied in respect of any premises to which those sections apply, regulations made under subsection (2) above shall make provision in respect of such premises dispensing with the consent of the persons:

      (a) mentioned in subsection (1)(a) hereof;

      (b) mentioned in subsection (1)(b) hereof where no more than 20 per cent. of qualifying tenants within the meaning of the said 1993 Act as amended herein refuse to consent;

      (c) mentioned in subsections (1)(c) and (d) hereof:

            (i) insofar as the charge or the caution (as the case may be) is over the whole or part of the freehold estate in the land; and

            (ii) insofar as the charge or the caution (as the case may be) is over flats held by qualifying tenants who constitute no more than 20 per cent. of the qualifying tenants of the premises.

        (2B)   Regulations under subsections (2) and (2A) hereof shall make provision:

        (a) where consent has been dispensed with under subsection (2A)(a) hereof:

        (i) for the compensation of persons mentioned in subsection (1)(a) hereof, including provisions determining who shall be obliged to pay the compensation and how and by whom the compensation is to be determined, and

        (ii) for the granting of a commonhold unit to any such person who has vacant possession of a flat in the building;

        (b) where consent has been dispensed with under subsection (2A)(b) hereof for the continuation of the leases of qualifying tenants who refuse to become unit-holders of a commonhold unit; and

        (c) where consent has been dispensed with under subsection (2A)(c) hereof for the substitution of the charge or caution of persons mentioned under subsection (1)(c) and (d) for a charge or caution over the commonhold unit of the person.'.


       

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

    81

    Page     92,     line     5     [Schedule     2],     leave out paragraph 1 and insert—

        'Partial building    (1)   An application may not be made under section 2 in relation to land which consists of, or includes, a partial building.'.


       

    Mr Michael Wills

    11

    Page     3,     line     31     [Clause     6],     leave out from 'be' to end of line 32 and insert 'altered by the Registrar under Schedule 4 to the Land Registration Act 2002 (alteration of register).'.

       

    Mr Michael Wills

    12

    Page     3,     line     41     [Clause     6],     leave out 'rectification' and insert 'alteration'.


       

    Mr Michael Wills

    13

    Page     4,     line     8     [Clause     6],     leave out from first 'of' to '(indemnity)' in line 9 and insert 'Schedule 8 to the Land Registration Act 2002'.


       

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

    75

    Page     9,     line     39     [Clause     19],     at end insert—

        '(6)   On the grant of a lease of a commonhold unit, the landlord shall inform the tenant of the effect of section 48( )—

        (a) by including an explanation in any written lease, and

        (b) in any other case by giving the tenant notice in a prescribed form.'.


       

    Mr Michael Wills

    32

    Page     10,     line     4     [Clause     20],     leave out 'other than a term of years absolute' and insert 'of a prescribed kind'.


       

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

    76

    Page     12,     line     41     [Clause     27],     at end insert—

        '(3)   On the grant of a lease of common parts, the commonhold association shall inform the tenant of the effect of section 48( )—

        (a) by including an explanation in any written lease, and

        (b) in any other case by giving the tenant notice in a prescribed form.'.


       

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

    68

    Page     96,     line     25     [Schedule     3],     at end insert—

        '(3)   Sections 364 and 365 of that Act (annual return (company not having a share capital) and time for completion of annual return) shall not apply to a commonhold association.'.


       

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

    87

    Page     18,     line     3     [Clause     37],     at end insert—

        '(5)   Any monies payable by a unit-holder to the commonhold association under:

        (a) the commonhold community statement;

        (b) the memorandum or articles of the commonhold association; or

        (c) regulations made under subsections (1) and (2) hereof

           shall be a charge over that unit-holder's unit ("a commonhold association charge") and enforceable as a first legal charge in priority to all other charges or encumbrances over that unit-holder's unit.

        (6)   The existence or potential existence of a commonhold association 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 commonhold association charge, would have been a first legal charge.'.

       

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

    77

    Page     18,     line     11     [Clause     38],     at end insert—

        '(ba) enabling the directors to add to their estimate any sum which a unit-holder was previously required to pay under this section but which remains unpaid despite all reasonable efforts by the directors to enforce payment,'.

       

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

    78

    Page     18,     line     13     [Clause     38],     at end insert 'but permitting the directors not to allocate any part of a sum added under paragraph (ba) to the unit to which it was previously allocated but unpaid,'.

     
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    Prepared 11 Mar 2002