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

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  CHAPTER II
  COLLECTIVE ENFRANCHISEMENT BY TENANTS OF FLATS
 
Introductory
Amendments of right to collective enfranchisement.     111. This Chapter amends the right to collective enfranchisement which is conferred by Chapter I of Part I of the 1993 Act.
 
 
Qualifying rules
Non-residential premises.     112. In section 4(1) of the 1993 Act (right not to apply in case of premises having non-residential parts with floor area exceeding 10 per cent. of total), for "10 per cent." substitute "25 per cent.".
 
Qualifying leases.     113. In section 5(1) of the 1993 Act (which provides that a qualifying tenant is a tenant under a long lease which is at a low rent or for a particularly long term), omit "which is at a low rent or for a particularly long term".
 
Premises with resident landlord.     114. - (1) Section 10 of the 1993 Act (premises with a resident landlord) is amended as follows.
 
      (2) For subsection (1) (requirements that premises not be or form part of purpose-built block of flats and that they have been occupied for at least twelve months as only or principal home of owner of freehold or a family member), substitute-
 
 
    "(1) For the purposes of this Chapter any premises falling within section 3(1) are premises with a resident landlord at any time if-
 
 
    (a) the premises are not, and do not form part of, a purpose-built block of flats;
 
    (b) the same person has owned the freehold of the premises since before the conversion of the premises into two or more flats or other units; and
 
    (c) he, or an adult member of his family, has occupied a flat or other unit contained in the premises as his only or principal home throughout the period of twelve months ending with that time."
      (3) For subsection (4) (premises held on trust) substitute-
 
 
    "(4) Where the freehold of any premises is held on trust, subsection (1) applies as if-
 
 
    (a) the requirement in paragraph (b) were that the same person has had an interest under the trust (whether or not also a trustee) since before the conversion of the premises, and
 
    (b) paragraph (c) referred to him or an adult member of his family."
Proportion of tenants required to participate.     115. In section 13(2)(b) of the 1993 Act (persons by whom initial notice must be given), omit sub-paragraph (i) (initial notice to be given by at least two-thirds of qualifying tenants of flats contained in premises).
 
Abolition of residence condition.     116. In section 13(2) of the 1993 Act, omit the words following paragraph (b) (which require at least one-half of the qualifying tenants by whom the initial notice is given to satisfy the residence condition).
 
 
Exercise of right
Right exercisable only by RTE company.     117. - (1) Section 13 of the 1993 Act is amended as follows.
 
      (2) In paragraph (b) of subsection (2), after "given by" insert "a RTE company whose membership includes".
 
      (3) After that subsection insert-
 
 
    "(2ZA) But in a case where, at the relevant date, there are only two qualifying tenants of flats contained in the premises, subsection (2)(b) is not satisfied unless both are members of the RTE company."
 
 
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