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Lord Dubs: I see that the Minister is not to be persuaded. I want to reflect on what he has said. I beg leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 99 agreed to.

Schedule 9 agreed to.

Clauses 100 to 105 agreed to.

Lord Lucas moved Amendment No. 255ZA:


After Clause 105, insert the following new clause--

Power for leasehold valuation tribunal to determine amount of costs payable under Leasehold Reform Act 1967

(". In section 21(1) of the Leasehold Reform Act 1967 (matters to be determined by leasehold valuation tribunal), after paragraph (b) there shall be inserted--
"(ba) the amount of any costs payable under section 9(4) or 14(2);".").

The noble Lord said: This amendment makes a small change to the powers currently available to leasehold valuation tribunals when they are resolving disputes over cases concerning the enfranchisement of houses under the Leasehold Reform Act 1967.

The amendment would provide that leasehold valuation tribunals may additionally determine the amount of any landlord's costs liable under the Act to be paid by the tenant. At the moment any dispute over these would have to be settled by separate court proceedings. This change would bring the 1967 Act into line with the Leasehold Reform, Housing and Urban Development Act 1993 which gives the leasehold valuation tribunals jurisdiction to determine costs incurred in the enfranchisement and lease extension process in relation to leasehold flats. I beg to move.

On Question, amendment agreed to.

18 Jun 1996 : Column 201

Lord Lucas moved Amendment No. 255A:


After Clause 105, insert the following new clause--

Priority of interests on grant of new lease

(". After section 58 of the Leasehold Reform, Housing and Urban Development Act 1993 there shall be inserted--
"Priority of interests on grant of new lease.
58A.--(1) Where a lease granted under section 56 takes effect subject to two or more interests to which the existing lease was subject immediately before its surrender, the interests shall have the same priority in relation to one another on the grant of the new lease as they had immediately before the surrender of the existing lease.
(2) Subsection (1) is subject to agreement to the contrary.
(3) Where a person who is entitled on the grant of a lease under section 56 to rights of occupation in relation to the flat comprised in that lease was entitled immediately before the surrender of the existing lease to rights of occupation in relation to the flat comprised in that lease, the rights to which he is entitled on the grant of the new lease shall be treated as a continuation of the rights to which he was entitled immediately before the surrender of the existing lease.
(4) In this section--
"the existing lease", in relation to a lease granted under section 56, means the lease surrendered on the grant of the new lease, and
"rights of occupation" has the same meaning as in the Matrimonial Homes Act 1983."").

The noble Lord said: This amendment deals with the treatment of third party interests binding a lease when a leaseholder is granted a new lease under the provisions of Chapter II of Part I of the Leasehold Reform, Housing and Urban Development Act 1993.

Section 58 of the 1993 Act already provides that if a lease is subject to a mortgage, then that mortgage shall take effect against the new extended lease in the same way as it applied to the old lease. Some uncertainty has arisen about the position where there is more than one third party interest to a lease.

New subsection 58A(1) of the 1993 Act inserted by this clause clarifies that when a new lease is granted under Part I of the 1993 Act, the interests which applied to the old lease shall apply to the new lease in the same priority as they applied to the old. New Section 58A(2) provides that this rule is subject to agreement to the contrary.

New Section 58A(3) provides that a spouse's rights of occupation under the Matrimonial Homes Act 1983 existing on the grant of the new lease is to be treated as a continuation of the rights to which he was entitled immediately before surrender of the old lease. That reverses the result that would otherwise follow under the Matrimonial Homes Act; namely, that the rights would be treated as created on the grant of the new lease. I beg to move.

On Question, amendment agreed to.

Lord Lucas moved Amendment No. 255B:


After Clause 105, insert the following new clause--

Estate management schemes in connection with enfranchisement by virtue of section 98

(".--(1) Chapter IV of Part I of the 1993 Act, except section 75(1), (estate management schemes in connection with enfranchisement by virtue of that Act) shall also have effect subject to the modifications mentioned in subsections (2) to (4) below.

18 Jun 1996 : Column 202

(2) In section 69(1) (definition of estate management schemes), for paragraphs (a) and (b) there shall be substituted--
"(a) acquiring the landlord's interest in their house and premises ("the house") under Part I of the Leasehold Reform Act 1967 by virtue of the provisions of section 1AA of that Act (as inserted by paragraph 1 of Schedule 8 to the Housing Act 1996), or
(b) acquiring the landlord's interest in any premises ("the premises") in accordance with Chapter I of this Part of this Act by virtue of the amendments of that Chapter made by paragraph 3 of Schedule 8 to the Housing Act 1996,".
(3) In section 70 (time limit for applications for approval), for "two years beginning with the date of the coming into force of this section" there shall be substituted "two years beginning with the coming into force of section (Estate management schemes in connection with enfranchisement by virtue of section 98) of the Housing Act 1996".
(4) In section 74 (effect of application for approval on claim to acquire freehold), in subsection (1)--
(a) in paragraph (b), in sub-paragraph (i), the words from "being" to the end shall be omitted, and
(b) after that paragraph there shall be inserted "and
(c) in the case of an application for the approval of a scheme as an estate management scheme, the scheme would extend to the house or premises if acquired in pursuance of the notice."
(5) Section 94(6) to (8) of the 1993 Act (estate management schemes relating to Crown land) shall also have effect with the substitution for any reference to a provision of Chapter IV of Part I of that Act of a reference to that provision as it has effect by virtue of subsection (1) above.
(6) In section 33 of the National Heritage Act 1983 (general functions of the Historic Buildings and Monuments Commission for England), after subsection (2B) there shall be inserted--
"(2C) In subsection (2B), references to provisions of the Leasehold Reform, Housing and Urban Development Act 1993 include references to those provisions as they have effect by virtue of section (Estate management schemes in connection with enfranchisement by virtue of section 98)(1) of the Housing Act 1996."
(7) In section 72 of the Planning (Listed Buildings and Conservation Areas) Act 1990 (general duty as respects conservation area in exercise of planning functions), at the end there shall be inserted--
"(3) In subsection (2), references to provisions of the Leasehold Reform, Housing and Urban Development Act 1993 include references to those provisions as they have effect by virtue of section (Estate management schemes in connection with enfranchisement by virtue of section 98)(1) of the Housing Act 1996."
(8) In this section, "the 1993 Act" means the Leasehold Reform, Housing and Urban Development Act 1993.").

The noble Lord said: Previously when Parliament has given lessees the right to enfranchise, Parliament has also made provision for the former landlord to be able to apply to have some continuing degree of control over property in the area. Landlords, or a group representing tenants, may apply for approval of an estate management scheme. A leasehold valuation tribunal may approve a scheme if the tribunal is satisfied that a scheme is necessary to maintain adequate standards of appearance and amenity or to regulate development. Landlords had two years from the commencement of the legislation to apply for such schemes. So the opportunity to apply under the 1993 Act expired on 31st October last year.

18 Jun 1996 : Column 203

Clause 98 enfranchises a new class of leaseholders. The new clause (Amendment No. 225B) provides a further two-year opportunity for any landlord to apply for an estate management scheme on the basis that the property will become enfranchisable after this legislation. The same procedures and criteria will apply to the approval of schemes as in the 1993 legislation. Landlords will be able to mount a case for a scheme only on the basis of property which becomes enfranchisable as a result of the current legislation, although if a new scheme is granted it can apply to all property within its area. I beg to move.

On Question, amendment agreed to.

[Amendment No. 255C had been withdrawn from the Marshalled List.]


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