Commonhold and Leasehold Reform Bill - continued        House of Lords
PART II, LEASEHOLD REFORM - continued
Exercising right - continued

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Landlord contributions to service charges.     100. - (1) This section applies where-
 
 
    (a) the premises contain at least one flat or other unit not subject to a lease held by a qualifying tenant (an "excluded unit"),
 
    (b) the service charges payable under leases of flats contained in the premises which are so subject fall to be calculated as a proportion of the relevant costs, and
 
    (c) the proportions of the relevant costs so payable, when aggregated, amount to less than the whole of the relevant costs.
      (2) Where the premises contain only one excluded unit, the person who is the appropriate person in relation to the excluded unit must pay to the RTM company the difference between-
 
 
    (a) the relevant costs, and
 
    (b) the aggregate amount payable in respect of the relevant costs under leases of flats contained in the premises which are held by qualifying tenants.
      (3) Where the premises contain more than one excluded unit, each person who is the appropriate person in relation to an excluded unit must pay to the RTM company the appropriate proportion of that difference.
 
      (4) And the appropriate proportion in the case of each such person is the proportion of the internal floor area of all of the excluded units which is internal floor area of the excluded unit in relation to which he is the appropriate person.
 
      (5) The appropriate person in relation to an excluded unit-
 
 
    (a) if it is subject to a lease, is the landlord under the lease,
 
    (b) if it is subject to more than one lease, is the immediate landlord under whichever of the leases is inferior to all the others, and
 
    (c) if it is not subject to any lease, is the freeholder.
 
Supplementary
Registration.     101. - (1) In section 49(1) of the Land Registration Act 1925 (rules to provide for rights, interests and claims to be protected by notice), insert at the end-
 
 
    "(l) the right to manage being exercisable by a RTM company under Chapter I of Part II of the Commonhold and Leasehold Reform Act 2001."
      (2) In section 64 of that Act (production of certificates for noting on certain dealings etc.), insert at the end-
 
 
    "(8) Subsection (1) above shall also not require the production of the land certificate or of any charge certificate when a person applies for the registration of a notice in respect of the right to manage being exercisable by a RTM company under Chapter I of Part II of the Commonhold and Leasehold Reform Act 2001."
 
      (3) After section 111 of that Act insert-
 
 
"Caution relating to right to manage.     111A. A caution may be lodged under section 53 of this Act in respect of the right to manage being exercisable by a RTM company under Chapter I of Part II of the Commonhold and Leasehold Reform Act 2001."
 
Cessation of management.     102. - (1) This section makes provision about the circumstances in which, after a RTM company has acquired the right to manage any premises, that right ceases to be exercisable by it.
 
      (2) Provision may be made by an agreement made between-
 
 
    (a) the RTM company, and
 
    (b) each person who is landlord under a lease of the whole or any part of the premises,
  for the right to manage the premises to cease to be exercisable by the RTM company.
 
      (3) The right to manage the premises ceases to be exercisable by the RTM company if-
 
 
    (a) a winding-up order or an administration order is made, or a resolution for voluntary winding-up is passed, with respect to the RTM company,
 
    (b) a receiver or a manager of the RTM company's undertaking is duly appointed, or possession is taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the RTM company comprised in or subject to the charge,
 
    (c) a voluntary arrangement proposed in the case of the RTM company for the purposes of Part I of the Insolvency Act 1986 is approved under that Part of that Act, or
 
    (d) the RTM company's name is struck off the register under section 652 or 652A of the Companies Act 1985.
      (4) The right to manage the premises ceases to be exercisable by the RTM company if a manager is appointed under Part II of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises.
 
      (5) The right to manage the premises ceases to be exercisable by the RTM company if it ceases to be a RTM company in relation to the premises.
 
Enforcement of obligations.     103. - (1) The court may, on the application of any person interested, make an order requiring a person who has failed to comply with a requirement imposed on him by, under or by virtue of any provision of this Chapter to make good the default within such time as is specified in the order.
 
      (2) An application shall not be made under subsection (1) unless-
 
 
    (a) a notice has been previously given to the person in question requiring him to make good the default, and
 
    (b) more than 14 days have elapsed since the date of the giving of that notice without his having done so.
Agreements excluding or modifying right.     104. Any agreement relating to a lease (whether contained in the instrument creating the lease or not and whether made before the creation of the lease or not) is void in so far as it-
 
 
    (a) purports to exclude or modify the right of any person to be, or do any thing as, a member of a RTM company,
 
    (b) provides for the termination or surrender of the lease if the tenant becomes, or does any thing as, a member of a RTM company or if a RTM company does any thing, or
 
    (c) provides for the imposition of any penalty or disability if the tenant becomes, or does any thing as, a member of a RTM company or if a RTM company does any thing.
Application to Crown.     105. - (1) This Chapter applies in relation to premises in which there is a Crown interest.
 
      (2) There is a Crown interest in premises if there is in the premises an interest or estate-
 
 
    (a) which is comprised in the Crown Estate,
 
    (b) which belongs to Her Majesty in right of the Duchy of Lancaster,
 
    (c) which belongs to the Duchy of Cornwall, or
 
    (d) which belongs to a government department or is held on behalf of Her Majesty for the purposes of a government department.
      (3) Any sum payable under this Chapter to a RTM company by the Chancellor of the Duchy of Lancaster may be raised and paid under section 25 of the Duchy of Lancaster Act 1817 as an expense incurred in improvement of land belonging to Her Majesty in right of the Duchy.
 
      (4) Any sum payable under this Chapter to a RTM company by the Duke of Cornwall (or any other possessor for the time being of the Duchy of Cornwall) may be raised and paid under section 8 of the Duchy of Cornwall Management Act 1863 as an expense incurred in permanently improving the possessions of the Duchy.
 
 
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Prepared 23 March 2001