Commonhold and Leasehold Reform Bill [H.L.] -
Amendments to be debated in the House of Lords
- continued
House of Lords

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After Clause 140
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
240     Insert the following new Clause-- 
 ("SERVICE CHARGE CONTRIBUTIONS TO BE HELD IN TRUSt 
     .--(1)  Section 42 of the 1987 Act is amended as follows.
 
    (2)  In subsection (2) omit the words following "held by the payee" and substitute "in a separate designated client account for each dwelling or group of dwellings for which these are common service charges".
 
    (3)  After subsection (2) insert--
        (2A)  No tenant may be required to pay any relevant service charges except into a client account designated under subsection (2)".")
Service charge contributions to be held in trust.
  
After Clause 141
 
  
BY THE LORD RICHARD
 
240A     Insert the following new Clause-- 
     ("  .--(1)  The Landlord and Tenant Act 1987 is amended as follows.
 
    (2)  In section 35 of the 1987 Act (application by party to lease for variation of lease), leave out "court" and insert "leasehold valuation tribunal".
 
    (3)  In section 35(2)(a) of the 1987 Act (which provides the grounds for the variation of a lease of a flat based on repair or maintenance) after "under it" insert "circumstances when a lease "fails to make satisfactory provision" under this subsection includes the obligation to repair and maintain the property, the person responsible for the repair and maintenance and the frequency at which such works and services are undertaken".
 
    (4)  In section 35(2)(b) of the 1987 Act (which provides insurance matters as a ground for the variation of a lease of a flat) after "paragraph (a)(ii) or (iii)" insert "circumstances when a lease "fails to make satisfactory provision" under this subsection includes where the premises containing the flat are insured as part of a group of properties owned by the landlord or a superior landlord".
 
    (5)  In section 35(2)(e) of the 1987 Act (which provides that the recovery of expenditure by one party to a lease from another as a ground for the variation of a lease of a flat) after "other party" insert "reasonable expenditure means expenditure incurred or to be incurred as a result of repair, maintenance, management and administration of the building, insurance premiums and costs arising from loans in respect of works of repair and maintenance".
 
    (6)  After section 35(2)(f) of the 1987 Act insert--
    (g)  the payment and collection of service charges in advance of works (whether repairs or maintenance) being carried out;
    (h)  the charging and recovery of a reasonable rate of interest on arrears of service charges;
    (i)  such other grounds as shall be prescribed by the Secretary of State.
    (7)  In section 42(2) of the 1987 Act, substitute the words after "payee" for "in a separate bank or building society account designated as the client account specific to the building, or estate, subject to those charges".
 
    (8)  After section 42(2) of the 1987 Act insert--
        (2A)  A person who without reasonable excuse, fails to comply with subsection (2) commits a summary offence and is liable on conviction to a fine not exceeding level 4 on the standard scale".
    (9)  In section 60(1) of the 1987 Act (general interpretation) at the end of the definition of "landlord", insert "or a party to such a tenancy otherwise than as landlord or tenant".")
Variation of lease.
  
Clause 142
 
  
BY THE EARL OF CAITHNESS
 
241     Page 64, line 12, leave out subsection (3) 
242     Page 64, line 28, at end insert--
 
    ("(  )  If the landlord wishes to enforce his right to recover through proceedings, he shall be obliged to have--
    (a)  demanded rent, and
    (b)  given 30 days notice where more than one period is involved.")
 
  
BY THE LORD CHANCELLOR
 
243     Page 64, line 33, at end insert--
 
    ("(  )  In this section "long lease of a dwelling" does not include--
 
 
    (a)  a tenancy to which Part II of the Landlord and Tenant Act 1954 (business tenancies) applies,
1954 c. 56.
 
    (b)  a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 in relation to which that Act applies, or
1986 c. 5.
 
    (c)  a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.")
1995 c. 8.
244     Page 64, line 36, leave out (""long lease",") 
245     Page 64, line 37, after ("Part,") insert--
    (""long lease" has the meaning given by sections 73 and 74 of this Act,")
 
  
After Clause 142
 
  
BY THE LORD ALLI
 
246     Insert the following new 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.")Abolition of forfeiture.
  
BY THE BARONESS HANHAM
 
247     Insert the following new Clause-- 
     ("  .  In Schedule 9 to the Housing Act 1996 (low rent test: extension of rights), after subsection (3)(c) of paragraph 1 (1AA) insert--
 
, and
    (d)  the freeholder satisfies a leasehold valuation tribunal that the house is integral to the management of the estate concerned and has been leased on terms relating to that purpose.
    (4)  An application to a leasehold valuation tribunal in accordance with paragraph (d) above shall be made by the freeholder within two months of his receipt of the relevant notice of the leaseholder's claim to enfranchise under the terms of this Act."")
Low rent test: extension of rights.
247A*     Insert the following new Clause-- 
     ("  .--(1)  Any provision in a lease of a dwellinghouse to which this Act applies, whensoever created, requiring a tenant to insure with a nominated company and or through the agency of a lessor or any other person firm or company shall be void.
 
    (2)  Such provision shall continue to be effective so far as it relates to the insurance of a dwellinghouse against the usual household risks, for the full reinstatement value and index-linked, with any reputable insurance company.")
Insurance provision under a lease.
247B*     Insert the following new Clause-- 
     ("  .--(1)  Section 1 of the Landlord and Tenant Act 1987 is amended as follows.
 
    (2)  In subsection (2), before paragraph (a) insert--
    (za)  they consist of an individual house;"")
Tenants of houses on long leases to have rights of first refusal on disposals by landlord.
  
Clause 143
 
  
BY THE LORD ALLI
 
     The Lord Alli gives notice of his intention to oppose the Question that Clause 143 stand part of the Bill. 
  
Clause 144
 
  
BY THE LORD CHANCELLOR
 
248     Page 66, leave out lines 13 to 15 
249     Page 66, line 17, at end insert (", and
    long lease" has the meaning given by sections 73 and 74 of this Act, except that a shared ownership lease is a long lease whatever the tenant's total share.")
 
  
BY THE LORD ALLI
 
     The Lord Alli gives notice of his intention to oppose the Question that Clause 144 stand part of the Bill. 
  
Clause 145
 
  
BY THE LORD ALLI
 
     The Lord Alli gives notice of his intention to oppose the Question that Clause 145 stand part of the Bill. 
  
After Clause 145
 
  
BY THE BARONESS HANHAM
 
250     Insert the following new Clause-- 
     ("  .  In section 3 of the Landlord and Tenant Act 1954 (continuation of tenancies to which section 1 applies), omit subsection (3).")Continuation of tenancies.
251     Insert the following new Clause-- 
     ("  .  In section 9 of the Leasehold Reform Act 1967, at the end of subsection (1C), the words "with the omission of the assumption set out in paragraph (b) of that subsection" shall be omitted.")End of tenancy.
  
Schedule 11
 
  
BY THE LORD KINGSLAND
 
252     Page 95, line 40, after ("tribunal") insert ("and to any such other party as the leasehold valuation tribunal may direct") 
253     Page 95, line 40, at end insert (", or to supply any documents,") 
254     Page 95, line 41, after ("may") insert (", on the application of a party or of its own initiative,") 
255     Page 95, line 42, after ("tribunal") insert ("and to the other party or parties as the case may be") 
256     Page 96, line 6, after ("a") insert ("directions hearing and a") 
257     Page 96, line 8, at end insert ("and for the making of directions at such a hearing or review") 
258     Page 96, line 23, at end insert--
 
    ("(2)  Procedure regulations may include provision empowering leasehold valuation tribunals to dismiss applications or transferred proceedings, in whole or in part, or to exclude the whole or part of any party's case, on the ground that a party has failed to comply with a direction or directions made by a leasehold valuation tribunal within the period for compliance specified by the leasehold valuation tribunal.")
 
259     Page 96, line 26, at end insert ("if all the parties so request") 
260     Page 96, line 29, at end insert ("if all the parties so request") 
261     Page 97, line 9, after ("pay") insert ("the whole or part of") 
262     Page 97, line 16, at end insert--
    ("(c)  costs have been thrown away as a result of his failure to comply with a direction or directions made by a leasehold valuation tribunal within the period for compliance specified by the leasehold valuation tribunal,
    (d)  in the opinion of the leasehold valuation tribunal he acted unreasonably in commencing or prosecuting the proceedings, or
    (e)  in the opinion of the leasehold valuation tribunal the proceedings were occasioned by his unreasonable acts or omissions")
 
263     Page 97, line 17, leave out sub-paragraph (3) and insert--
 
    ("(  )  In determining the amount of costs that a party is to pay to another party under this paragraph, the leasehold valuation tribunal shall have regard to the financial resources of the party who is to pay the costs.")
 
264     Page 97, line 23, at end insert ("or in accordance with section 85 of this Act") 
  
Clause 149
 
  
BY THE LORD KINGSLAND
 
265     Page 68, line 24, at end insert--
 
    ("(5)  Every appeal will be limited to a review of the decision of the leasehold valuation tribunal unless the Lands Tribunal considers that, for an individual appeal, it would be in the interests of justice to hold a re-hearing.
 
    (6)  The Lands Tribunal shall not receive oral evidence or evidence which was not before the leasehold valuation tribunal unless it considers that it would be in the interests of justice to do so.")
 
  
Schedule 13
 
  
BY THE LORD KINGSLAND
 
266     Page 99, line 41, column 3, leave out ("Section 23(2).") 
  
BY THE EARL OF CAITHNESS
 
267     Page 100, leave out line 53 
  
Clause 155
 
  
BY THE LORD WILLIAMS OF ELVEL
 
268     Page 69, line 35, after ("provisions") insert ("except for sections 68 to 110,") 
269     Page 69, line 37, at end insert--
 
    ("(  )  Sections 68 to 110 shall come into force six months after the date on which this Act receives Royal Assent.")
 
 
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Prepared 26 February 2001