Commonhold and Leasehold Reform Bill [H.L.] - continued        House of Lords
PART I, COMMONHOLD - continued
Commonhold unit - continued

back to previous text
 
Other transactions.     20. - (1) A commonhold community statement may not prevent or restrict the creation, grant or transfer by a unit-holder of-
 
 
    (a) an interest in his unit, or
 
    (b) a charge over his unit.
      (2) Subsection (1) is subject to sections 17 to 19 (which impose restrictions about leases).
 
      (3) It shall not be possible to create an interest in a commonhold unit unless the commonhold association-
 
 
    (a) is a party to the creation of the interest, or
 
    (b) consents in writing to the creation of the interest.
      (4) A commonhold association may act as described in subsection (3)(a) or (b) only in pursuance of a resolution which is passed unanimously.
 
      (5) An instrument or agreement shall be of no effect to the extent that it purports to create an interest in contravention of subsection (3).
 
      (6) In subsection (3) "interest" does not include-
 
 
    (a) a charge, or
 
    (b) an interest which arises by virtue of a charge.
Part-units.     21. - (1) It shall not be possible to create an interest or charge in or over-
 
 
    (a) part only of a commonhold unit, or
 
    (b) 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 an interest or charge in contravention of subsection (1).
 
      (3) Subsections (1) and (2) are subject to section 58.
 
Changing size.     22. - (1) An amendment of a commonhold community statement which redefines the extent of a commonhold unit may not be made unless the unit-holder consents-
 
 
    (a) in writing, and
 
    (b) before the amendment is made.
      (2) But regulations may enable a court to dispense with the requirement for consent on the application of a commonhold association in prescribed circumstances.
 
Changing size: charged unit.     23. - (1) This section applies to an amendment of a commonhold community statement which redefines the extent of a commonhold unit over which there is a registered charge.
 
      (2) The amendment may not be made unless the registered proprietor of the charge consents-
 
 
    (a) in writing, and
 
    (b) before the amendment is made.
      (3) But regulations may enable a court to dispense with the requirement for consent on the application of a commonhold association in prescribed circumstances.
 
      (4) If the amendment removes land from the commonhold unit, the charge shall by virtue of this subsection be extinguished to the extent that it relates to the land which is removed.
 
      (5) If the amendment adds land to the unit, the charge shall by virtue of this subsection be extended so as to relate to the land which is added.
 
      (6) Regulations may make provision-
 
 
    (a) requiring notice to be given to the Registrar in circumstances to which this section applies;
 
    (b) requiring the Registrar to alter the register to reflect the application of subsection (4) or (5).
 
Common parts
Definition.     24. - (1) In this Part "common parts" in relation to a commonhold means every part of the commonhold which is not for the time being a commonhold unit in accordance with the commonhold community statement.
 
      (2) A commonhold community statement may make provision in respect of a specified part of the common parts (a "limited use area") restricting-
 
 
    (a) the classes of person who may use it;
 
    (b) the kind of use to which it may be put.
      (3) A commonhold community statement-
 
 
    (a) may make provision which has effect only in relation to a limited use area, and
 
    (b) may make different provision for different limited use areas.
Use and maintenance.     25. A commonhold community statement must make provision-
 
 
    (a) regulating the use of the common parts;
 
    (b) requiring the commonhold association to insure the common parts;
 
    (c) requiring the commonhold association to repair and maintain the common parts.
Transactions.     26. - (1) Nothing in a commonhold community statement shall prevent or restrict-
 
 
    (a) the transfer by the commonhold association of its freehold estate in any part of the common parts, or
 
    (b) the creation by the commonhold association of an interest in any part of the common parts.
      (2) In this section "interest" does not include-
 
 
    (a) a charge, or
 
    (b) an interest which arises by virtue of a charge.
 
previous section contents continue
 
House of Lords home page Houses of Parliament home page House of Commons home page search page enquiries index

© Parliamentary copyright 2000
Prepared 21 December 2000