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

back to previous amendments
 
  
After Clause 135
 
  
BY THE BARONESS MADDOCK
THE LORD GOODHART
 
235     Insert the following new Clause-- 
     ("  .--(1)  Schedule 4A of the 1967 Act (certain leases granted by housing associations) is amended as follows.
 
    (2)  In paragraph 3(1), after "a lease granted by a housing association" insert ", or which reverts to a housing association on expiry,".
 
    (3)  In paragraph 3(2), omit paragraph (d).")
Expiry of leases.
  
BY THE LORD KINGSLAND
 
235A     Insert the following new Clause--
 
    ("  .  In section 22 of the 1967 Act, insert--
 
     (3A)  If a tenant has given notice to acquire the freehold under this Part of the Act, and has received a notice from the landlord in response to his claim, but has not applied to the leasehold valuation tribunal to determine any of the matters referred to in section 21(1) within six months of the date of the landlord's notice, the tenant's notice shall be deemed to be withdrawn."&#M10;&#M10;")Validity of tenants' notice etc.
235B     Insert the following new Clause-- 
     ("  .  In subsection 37(1)(d) of the 1967 Act, for the words "the time when he gives notice in accordance with this Act of his desire to have it" substitute "the date when the landlord gives his notice in response to the tenant's notice of claim, in accordance with sub-paragraph 7(1) of Schedule 3 to this Act."")Valuation date for houses fixed at date of landlord's counter-notice.
  
After Clause 137
 
  
BY THE LORD RICHARD
 
235C     Insert the following new Clause-- 
     ("  .--(1)  Section 1 of the 1967 Act is amended as follows.
 
    (2)  In subsection (1) omit "occupying the house as his residence".
 
    (3)  Omit subsections (2) and (3)."&#M10;&#M10;")
Right to enfranchisement or extension.
  
BY THE BARONESS HANHAM
 
235D     Insert the following new Clause-- 
     ("  .--(1)  Section 5 of the 1967 Act is amended as follows.
 
    (2)  In subsection (5)--
    (a)  for the words "nor shall any right of a tenant arising from a notice under this Act of his desire to have the freehold or to have an extended lease be an overriding interest" there is substituted "any right of a tenant arising from a notice under this Act of his desire to have the freehold or to have an extended lease shall be an overriding interest"; and
    (b)  omit the words after "Land Registration Act 1925", the first time it occurs.")
Notices of claim to be overriding interest.
  
Before Clause 138
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
236     Insert the following new Clause-- 
     ("  .--(1)  No lease of a flat in a building completed after this section comes into force may be granted at a premium unless the term of the lease is not less than 150 years.
 
    (2)  In this section "flat" has the same meaning as in Chapter I of this Part.")
Minimum term for leases at a premium.
  
Clause 138
 
  
BY THE LORD RICHARD
 
236A     Page 61, line 5, after ("properties") insert (", enfranchised houses and flats") 
236B     Page 61, line 6, at end insert--
 
    ("(2)  Enfranchised houses and flats" means houses and buildings divided into flats where the freehold has been acquired pursuant to the 1967 Act and the 1993 Act.".")
 
237     [Renumbered as amendment 238YA] 
  
Schedule 9
 
  
BY THE LORD RICHARD
 
237A     Page 92, line 8, at end insert ("and estate charges and management costs arising from Estate Management Schemes under section 19 of the 1967 Act and section 69 of the 1993 Act and payable by owners of enfranchised houses and flats") 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
238     Page 92, line 8, at end insert--
 
    ("  .--(1)  Section 21 of the 1987 Act is amended as follows.
 
    (2)  In subsection (3)(a) for "or a resident landlord" there is substituted "(aa) the interest of the landlord in the premises is held by a resident landlord and more than half the flats in their premises are held on long leases,".
 
    (3)  After subsection (7) insert--
        (8)  References in this Part to a landlord (except in subsection (3)) include any person who is responsible under a lease for the management of the premises or any part of the premises.".")
 
  
Before Clause 139
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
238YA     Insert the following new Clause-- 
 ("VARIATION OF LEASEs 
     .--(1)  Section 35 of the 1987 Act is amended as follows.
 
    (2)  In subsection (1) for "the court" insert "a leasehold valuation tribunal".
 
    (3)  After subsection (2) insert--
        (2A)  For the purposes of subsection (2)(a) and (c), a lease fails to make satisfactory provision if it fails to make specific provision as to--
      (a)  the obligations of repair and maintenance;
      (b)  who is responsible for those obligations; or
      (c)  the frequency with work of a recurrent nature is to be carried out.
        (2B)  For the purposes of subsection (2)(b) a lease of a building fails to make satisfactory provisions if it does not require the entire building to be insured under a single policy".
    (4)  After subsection (3) insert--
        (3A)  For the purposes of subsection (2)(e) "expenditures" includes--
      (a)  expenditures incurred as a result of works of repairs or maintenance carried out or commissioned to be carried out;
      (b)  expenditures insured in respect of administration;
      (c)  insurance premiums for insurance under subsection (2)(b);
      (d)  the cost of arranging a loan in respect of works of repair or maintenance; and
      (e)  interest on any such loan.
        (3B)  For the purposes of subsection (2)(e) a lease fails to make satisfactory provisions if it fails to make provisions for--
      (a)  advance payment of service charges relating to works of repair or maintenance being carried out or intended to be carried out;
      (b)  the charging of interest at a rate not exceeding a prescribed maximum rate on arrears of service charges.".")
Variation of leases.
  
BY THE BARONESS GARDNER OF PARKES
THE LORD KINGSLAND
 
238ZA     Insert the following new Clause-- 
     ("  .  After section 41 of the Landlord and Tenant Act 1987, insert--Reserve funds.
 Reserve funds.     41A.--(1)  Notwithstanding the specific terms of any lease of the whole or part of the building, where the tenants of two or more dwellings are required under the terms of their leases to contribute to the same costs by the payment of service charges, the person responsible for the exercise of the management of the premises under the lease shall establish one or more reserve funds to finance the repair and maintenance of the common parts and common services.
 
    (2)  Any demand for payment of service charges shall state the level of contribution within the total sum requested which will be paid into the reserve fund.
 
    (3)  The person responsible for the management of the premises may from time to time vary the level of contribution made to the reserve fund from the service charge contributions, but the level of contributions may not be nil.
 
    (4)  Regulations shall make provision for the preparation of a rolling management programme for repair and maintenance and for its presentation to the contributing tenants.
 
    (5)  In this section--
    service charge" means a service charge within the meaning of section 18(1) of the Landlord and Tenant Act 1985, other than one excluded from that section by section 27 of that Act (rent dwelling registered and not entered as variable); and
    the person responsible for the management of the premises" means either--
          (a)  the person who is the landlord under the lease,
          (b)  the Right to Manage company which has acquired the management functions under Part II of this Act, or
          (c)  a manager appointed under Part II of the 1987 Act to act in relation to the premises or any premises containing or contained in the premises".")
 
  
Clause 139
 
  
BY THE LORD KINGSLAND
 
238A     Page 61, line 20, at end insert--
    ("(  )  if it is an agreement to appoint a managing agent,")
 
  
BY THE EARL OF CAITHNESS
 
     The Earl of Caithness gives notice of his intention to oppose the Question that Clause 139 stand part of the Bill. 
  
After Clause 139
 
  
BY THE LORD LEA OF CRONDALL
THE BARONESS GIBSON OF MARKET RASEN
 
239     Insert the following new Clause-- 
     ("  .--(1)  Section 30B of the 1985 Act is amended as follows.
 
    (2)  After subsection (3)(b) insert "; and
    (c)  giving reasons in writing for any decision made by the landlord relating to the manner in which the managing agent has been discharging his obligations and the desirability of his continuing to discharge them".
    (3)  After subsection (4)(a)(ii) insert "; and
          (iii)  giving reasons in writing for any decision made by the landlord relating to the manner in which the managing agent has been discharging his obligations and the desirability of his continuing to discharge them;".")
Discharging obligations by managing agent.
  
BY THE LORD RICHARD
 
239A     Insert the following new Clause-- 
     ("  .--(1)  In section 21(1) of the 1985 Act for the words "A tenant may require a landlord in writing to supply him with a written summary of the costs incurred" substitute "A landlord shall provide on an annual basis to each tenant paying a variable service charge a service charge statement to include the balance of the account at the beginning of the year, costs incurred and the balance at the end of the year".
 
    (2)  In section 21(1)(a) and (b) of the 1985 Act for the words "the date of the request" substitute "two months prior to the date of the statement".
 
    (3)  In section 21 of the 1985 Act omit subsections (2), (3) and (4).
 
    (4)  In section 21(6) of the 1985 Act, after sub-paragraph (b) insert--
    (c)  the accountant shall also provide a statement explaining the nature of the procedures undertaken in the preparation of the certificate and the form of this statement may be prescribed by order of the Secretary of State".
    (5)  In section 22(2) of the 1985 Act for the words "within six months of obtaining the summary" substitute "at any time".
 
    (6)  In section 22(2)(a) of the 1985 Act, after the words "other documents" insert "including the insurance policy relating to the building or a summary thereof and any bank or building society statements relating to the designated client account for the building or estate".
 
    (7)  In section 22(5) of the 1985 Act, after sub-paragraph (b) insert--
    (c)  provide photocopies of any document, either to be collected by the tenant or sent by post at the tenant's cost".")
Statement of costs and accounts.
  
BY THE BARONESS HANHAM
 
239B     Insert the following new Clause-- 
     ("  .--(1)  Section 21 of the Landlord and Tenant Act 1985 is amended as follows.
 
    (2)  At end of subsection (6)(b) insert "on his request or otherwise, and which give him reasonable assurance that the certified summary is free from material misstatement, irregularity or error, having regard to current Landlord and Tenant legislation and applying the accepted accounting practices of his professional body".")
Protecting leaseholders monies.
  
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.
 
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