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

back to previous text
   

Ms Sally Keeble

47

Page     76,     line     31     [Clause     153],     at end insert—

    '(1A)   Subsection (1) applies whether or not any payment has been made.'.


   

Ms Sally Keeble

48

Page     78,     line     31     [Clause     154],     at end insert—

    '(9A)   Nothing in this section applies to the payee if the circumstances are such as are specified in regulations made by the Secretary of State.'.


   

Ms Sally Keeble

49

Page     124,     line     23     [Schedule     11],     leave out from 'Schedule' to end of line 28 and insert '"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.'.


   

Ms Sally Keeble

50

Page     125,     line     12     [Schedule     11],     at end insert—

'Notice in connection with demands for administration charges

    3A (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.'.

   

Ms Sally Keeble

51

Page     125,     line     21     [Schedule     11],     at end insert—

      '(1A) Sub-paragraph (1) applies whether or not any payment has been made.'.


   

Ms Sally Keeble

52

Page     81,     line     38     [Clause     161],     leave out 'by the landlord ("a nominated' and insert 'or approved by the landlord ("the landlord's'.

   

Ms Sally Keeble

53

Page     81,     line     39     [Clause     161],     leave out 'a nominated' and insert 'the landlord's'.


   

Ms Sally Keeble

54

Page     82,     line     3     [Clause     161],     leave out 'a nominated' and insert 'the landlord's'.


   

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

70

Page     83,     line     30     [Clause     162],     leave out 'must be in a prescribed form' and insert 'must contain such information as may be prescribed'.


GOVERNMENT NEW CLAUSES 9, 10, 11 AND OTHER NEW CLAUSES RELATING TO FORFEITURE OF LEASES

Failure to pay small amount for short period
   

Ms Sally Keeble

NC9

To move the following Clause:—

          '(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.'.


Power to prescribe additional or different requirements

   

Ms Sally Keeble

NC10

To move the following Clause:—

          '(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.'.


Notice to accompany demands for service charges

   

Ms Sally Keeble

NC11

To move the following Clause:—

       'After section 21A of the 1985 Act (inserted by section 151) insert—

    "21B   Notice to accompany demands for service charges

    (1)   A demand for the payment of a service charge must be accompanied by a summary of the rights and obligations of tenants of dwellings in relation to service charges.

    (2)   The Secretary of State 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 a service charge which has been demanded from him if subsection (1) is not complied with in relation to the demand.

    (4)   Where a tenant withholds a service charge under this section, any provisions of the lease relating to non-payment or late payment of service charges do not have effect in relation to the period for which he so withholds it.

    (5)   Regulations under subsection (2) may make different provision for different purposes.

    (6)   Regulations under subsection (2) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.".'.


Abolition of forfeiture
   

Mr Adrian Sanders
Sue Doughty
Dr Brian Iddon
Paul Flynn
Mr Barry Gardiner
Mr Terry Lewis

NC3

To move the following Clause:—

       'A right of re-entry or forfeiture under any proviso or stipulation in a lease of a dwelling for a breach of covenant or condition in the lease shall not be enforceable by action or otherwise.'.


Balance of proceeds of forfeiture to be paid to leaseholder
   

Dr Brian Iddon
Mr Kelvin Hopkins

NC6

To move the following Clause:—

    '( )   Where a forfeiture action is successful, after deduction of all debts any balance shall be paid to the leaseholder.'.


Restrictions on and relief against forfeiture of leases and underleases
   

Dr Brian Iddon
Mr Kelvin Hopkins
Lynne Jones

NC8

To move the following Clause:—

       '. In section 146 of the Law of Property Act 1925 (c. 20) (restriction on forfeiture) there is inserted—

          (4A)   Where the court has made an order for forfeiture pursuant to subsections (1) to (4) above, any balance remaining after the payment of the lessee's debts owed to the lessor shall be paid to the lessee".'.


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.'.

 
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