Commonhold and Leasehold Reform Bill [H.L.] - continued        House of Lords
PART II, LEASEHOLD REFORM - continued

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Invitation to participate.     119. - (1) After section 12 of the 1993 Act insert-
 
 

"The notice of invitation to participate
Notice by RTE company inviting participation.     12A. - (1) Before making a claim to exercise the right to collective enfranchisement with respect to any premises, a RTE company must give notice to each person who at the time when the notice is given-
 
 
    (a) is the qualifying tenant of a flat contained in the premises, but
 
    (b) neither is nor has agreed to become a participating member of the RTE company.
      (2) A notice given under this section (a "notice of invitation to participate") must-
 
 
    (a) state that the RTE company intends to exercise the right to collective enfranchisement with respect to the premises,
 
    (b) explain the rights and obligations of the members of the RTE company with respect to the exercise of the right (including their rights and obligations in relation to meeting the price payable in respect of the freehold, and any other interests to be acquired in pursuance of this Chapter, and associated costs),
 
    (c) include an estimate of that price and those costs,
 
    (d) invite the recipients of the notice to become participating members of the RTE company, and
 
    (e) contain such other particulars (if any) as may be required to be contained in notices of invitation to participate by regulations made by the Secretary of State.
      (3) The notice of invitation to participate must also comply with such requirements (if any) about the form of such notices as may be prescribed by regulations so made."
 
      (2) In section 13 of the 1993 Act, after subsection (2ZA) (inserted by section 117(3)) insert-
 
 
    "(2ZB) The initial notice may not be given unless each person required to be given a notice of invitation to participate has been given such a notice at least 14 days before."
 
Consequential amendments.     120. Schedule 8 (amendments consequential on sections 117 to 119) has effect.
 
Right of access.     121. - (1) In subsection (1) of section 17 of the 1993 Act (access by reversioner or other relevant landlord for purposes of valuation), insert at the end "or if it is reasonable in connection with any other matter arising out of the claim to exercise the right to collective enfranchisement".
 
      (2) For the sidenote of that section substitute "Rights of access."
 
 
Purchase price
Valuation date.     122. In Schedule 6 to the 1993 Act (purchase price payable), for "the valuation date" (in each place) substitute "the relevant date".
 
Freeholder's share of marriage value.     123. In paragraph 4(1) of Schedule 6 to the 1993 Act (freeholder's share of marriage value), for the words after "freeholder's share of the marriage value is" substitute "50 per cent. of that amount".
 
Disregard of marriage value in case of very long leases.     124. - (1) Paragraph 4 of Schedule 6 to the 1993 Act is amended as follows.
 
      (2) In sub-paragraph (2) (meaning of marriage value), insert at the beginning "Subject to sub-paragraph (2A),".
 
      (3) After that sub-paragraph insert-
 
 
    "(2A) Where at the relevant date the unexpired term of each of the leases held by participating members of the RTE company exceeds eighty years, the marriage value shall be taken to be nil."
 
 
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