Commonhold and Leasehold Reform Bill -
Amendments to be debated in the House of Lords
- continued
House of Lords

back to previous amendments
 
  
Clause 91
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
282*     Page 42, line 48, at end insert--
 
    ("(  )  Costs contingently payable under existing contracts shall be treated for the purposes of subsection (2) as having been previously incurred; but where the amount of such costs when determined is less than the amount deducted in respect of them under subsection (2), the balance shall be paid to the company as soon as is reasonably practicable.")
 
  
Clause 93
 
  
BY THE LORD KINGSLAND
 
283     Page 43, line 18, leave out ("or tenant") and insert (", tenant or surety") 
284     Page 43, line 22, leave out ("and") and insert ("with") 
285     Page 43, line 23, leave out ("or tenant") and insert (", tenant or surety") 
286     Page 43, line 27, leave out ("and management") and insert (", health and safety, management and compliance with all relevant statutory provisions and guidance") 
287     Page 43, line 33, leave out ("or (6)") 
  
Clause 94
 
  
BY THE LORD KINGSLAND
 
288     Page 43, line 40, leave out ("or tenant") and insert (", tenant or surety") 
289     Page 44, line 10, leave out ("or tenant") and insert (", tenant or surety") 
  
After Clause 94
 
  
BY THE LORD KINGSLAND
 
290     Insert the following new Clause- 
     ("  .--(1)  Notwithstanding the specific terms of any lease of the whole or part of the building, any person responsible for management functions in relation to the premises shall ensure that the entire building is insured under a single insurance policy.
 
    (2)  Any person responsible for arranging an insurance policy under subsection (1) shall be under a duty to obtain best value for the service charge payers in procuring a suitable policy.
 
    (3)  If, in the opinion of any party to a lease, the insurance policy arranged in accordance with subsection (1) does not represent best value for the service charge payers, thay may refer the matter to the leasehold valuation tribunal for determination.
 
    (4)  Any reference of an insurance policy to a leasehold valuation tribunal under this section shall be supported by an alternative quotation for insurance cover from a recognised and reputable supplier to support the case; and the leasehold valuation tribunal shall not consider any such reference unless it is supported by such an alternative quotation.
 
    (5)  The duty to arrange insurance under subsection (1) applies notwithstanding the existence of a dispute which has been referred to the leasehold valuation tribunal.
 
    (6)  In determining any dispute referred to it under subsection (3), the leasehold valuation tribunal shall take into account--
    (a)  the extent of cover procured, and
    (b)  the level of premium payable by individual service charge payers.")
Management functions: insurance.
  
Clause 95
 
  
BY THE LORD KINGSLAND
 
291     Page 44, line 21, leave out ("or tenant") and insert (", tenant or surety") 
292     Page 44, leave out line 28 and insert (", tenant or surety") 
293     Page 44, line 29, at end insert--
 
    ("(  )  The RTM company must not grant an approval in relation to the making of alterations, improvements or change of use.")
 
294     Page 44, line 33, after ("possession,") insert ("sharing occupation or use,") 
295     Page 44, line 33, leave out ("the making of improvements or alterations of use,") 
296     Page 44, line 37, at end insert (", and any other person who would have been entitled to grant or withhold the relevant approval but for the provisions of subsection (2)") 
297     Page 45, line 2, leave out ("or tenant") and insert (", tenant or surety") 
  
Clause 96
 
  
BY THE LORD KINGSLAND
 
298     Page 45, line 33, at end insert (", or
    (e)  any person who would have been entitled to grant or withhold the relevant approval but for the provisions of section 95(2)")
 
299     Page 45, line 33, at end insert--
 
    ("(  )  In making its determination, the leasehold valuation tribunal shall act only in accordance with the provisions of the lease, and may not under any circumstances override any absolute prohibitions which may be contained in the lease.")
 
  
Clause 97
 
  
BY THE LORD KINGSLAND
 
300     Page 46, line 5, leave out ("or tenant") and insert (",  tenant or surety") 
301     Page 46, line 8, at end insert--
 
    ("(  )  The RTM company shall assist and co-operate with the landlord, or any other person by whom tenant covenants are enforceable, in the enforcement of any covenant which has not been complied with.")
 
  
Clause 98
 
  
BY THE LORD KINGSLAND
 
302     Page 46, line 18, at end insert--
 
    ("(  )  The RTM company shall be liable to the landlord for any loss which results from a failure to report a breach of tenant covenants of which the RTM company was or ought to have been aware.")
 
303     Page 46, line 22, after ("paid") insert ("to the landlord") 
304     Page 46, line 24, at end insert--
 
    ("(  )  The RTM company will reimburse the landlord for any costs incurred as a result of any proceedings arising as a result of enforcing tenant covenants under the lease.")
 
  
Schedule 7
 
  
BY THE LORD CHANCELLOR
 
305     Page 79, line 41, leave out ("Sections 21(3) and 22(3) apply") and insert ("Section 22(5) applies") 
306     Page 80, line 8, leave out ("Paragraph 2(3) of the Schedule applies") and insert ("Paragraphs 2(3) and 3(3) of the Schedule apply") 
307     Page 80, line 42, leave out from beginning to ("effect") in line 43 and insert ("Sections 42 to 42B (service charge contributions to be held in trust and in designated account) have") 
308     Page 81, line 2, leave out ("subsection (1)") and insert ("section 42(1)") 
309     Page 81, line 5, leave out ("subsection (2)") and insert ("section 42(2)") 
310     Page 81, line 6, leave out (", and any investments representing those sums,") 
311     Page 81, line 7, at end insert--
 
    ("(6)  Section 42A(5) applies as if paragraph (a) were omitted and the person referred to in paragraph (b) were a person who receives service charges on behalf of the RTM company.")
 
312     Page 81, line 25, leave out from ("I") to ("has") in line 26 and insert ("(tenants' right to management audit by landlord) of the Leasehold Reform, Housing and Urban Development Act 1993 (referred to in this Part as "the 1993 Act)")1993 c. 28.
313     Page 81, line 26, leave out ("(but as if section 83(1) to (4) were omitted)") 
314     Page 81, line 43, after ("landlord") insert ("(or a party to a lease)") 
  
Clause 100
 
  
BY THE LORD KINGSLAND
 
315     Page 46, line 40, after ("company") insert ("a sum being that part of") 
316     Page 46, line 44, at end insert-- 
 ("as shall represent the proportion which the internal floor area of all the excluded units bear to the internal floor area of the premises; and 
 the remainder of the difference shall be paid to the RTM by the qualifying tenants in each case in the proportion which the internal floor area of their respective flat or unit bears to the aggregate internal floor areas of all such flats or units") 
317     Page 47, line 11, leave out ("inferior") and insert ("superior") 
  
Clause 103
 
  
BY THE LORD CHANCELLOR
 
318     Page 48, line 16, leave out ("The") and insert ("A county") 
  
Clause 104
 
  
BY THE LORD KINGSLAND
 
319     Page 48, line 26, after ("agreement") insert (", other than an instrument regulating a trust,") 
  
Clause 109
 
  
BY THE LORD CHANCELLOR
 
320     Page 50, leave out line 31 
  
Clause 110
 
  
BY THE LORD CHANCELLOR
 
321     Page 51, leave out line 43 
  
After Clause 111
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
322*     Insert the following new Clause-- 
     ("  .--(1)  Section 3 of the 1993 Act (premises to which Chapter I applies) is amended as follows.
 
    (2)  For paragraphs (a) and (b) of subsection (2), substitute "the access and relevant services provided for occupiers of that part either--
    (a)  are provided independently of the access and relevant services provided for occupiers of the remainder of the building; or
    (b)  could be so provided without involving the carrying out of any works likely to result in a significant interruption in the provision of access on relevant services for occupiers of the building;".")
Premises to which Chapter I of Part I of the 1993 Act applies.
  
Clause 112
 
  
BY THE LORD KINGSLAND
 
323     Leave out Clause 112 
  
Clause 116
 
  
BY THE LORD KINGSLAND
 
324     Leave out Clause 116 
  
Clause 117
 
  
BY THE LORD CHANCELLOR
 
325     Page 53, line 33, leave out ("whose membership includes") and insert ("which has among its participating members") 
326     Page 53, line 37, after ("are") insert ("participating") 
  
Clause 118
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
327*     Page 54, line 4, at end insert--
        ("(1A)  A limited liability partnership incorporated under the Limited Liability Partnerships Act 2000 is a RTE company in relation to premises if--
      (a)  there are not more than ten qualifying tenants of flats comprised in the premises, and
      (b)  an agreement between the members of the limited liability partnership states that its object, or one of its objects, is the exercise of the right to collective enfranchisement with respect to the premises.
        (1B)  In this section and section 4B, references to a company include a limited liability partnership which is a RTE company."")
 
  
BY THE LORD CHANCELLOR
 
328     Page 54, line 5, after ("But") insert ("a company is not a RTE company if it is a commonhold association.
 
    (  )  And")
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
329*     Page 54, line 14, at end insert--
        ("(3)  A company which is a RTM company may not become a RTE company except by a resolution passed with the affirmative vote or written consent of all its members.
        (4)  In this Part, "RTM company" has the same meaning as in Chapter I of Part III of the Commonhold and Leasehold Reform Act 2001.")
 
  
BY THE LORD CHANCELLOR
 
330     Page 54, line 15, leave out from beginning to (""RTM") in line 24 and insert--
 
    ("(1)  Before the execution of a relevant conveyance to a company which is a RTE company in relation to any premises the following persons are entitled to be members of the company--
    (a)  qualifying tenants of flats contained in the premises, and
    (b)  if the company is also a RTM company which has acquired the right to manage the premises, landlords under leases of the whole or any part of the premises.
    (2)  Relevant conveyance" means a conveyance of the freehold of the premises or of any premises containing or contained in the premises and")
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
331*     Page 54, line 18, at end insert--
        ("(  )  Upon the assignment by a member of a RTE company of a lease by virtue of which he is a qualifying tenant, the assignee shall become a member of the RTE company.")
 
332*     Page 54, leave out lines 19 to 26 
  
BY THE LORD CHANCELLOR
 
333     Page 54, line 27, leave out from beginning to ("any") in line 28 and insert--
 
    ("(3)  On the execution of a relevant conveyance to the RTE company,")
 
334     Page 54, line 32, leave out from ("company") to ("means") in line 33 
335     Page 54, line 34, leave out ("(1)") and insert ("(1)(a)") 
336     Page 54, line 37, leave out ("notice was given") and insert ("company gives a notice under section 13") 
  
BY THE LORD CHANCELLOR
THE LORD KINGSLAND
 
337     Page 54, line 43, leave out ("14") and insert ("28") 
  
BY THE LORD KINGSLAND
 
338     Page 54, line 43, leave out ("14") and insert ("56") 
  
BY THE LORD CHANCELLOR
 
339     Page 55, line 6, leave out ("notice under section 13 was given") and insert ("company gives a notice under section 13") 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
340*     Page 55, line 18, at beginning insert--
 
    ("(  )  This section applies to a company which is a RTE company.")
 
341*     Page 55, line 38, at end insert-- 
 <~et>("RTE companies: limited liability partnerships.     4D.--(1)  This section applies to a limited liability partnership which is a RTE company.
 
    (2)  The Secretary of State shall by regulations make provisions about the form and content of any such agreement as is mentioned in section 4A(1A)(c).
 
    (3)  The regulations may include provision which is to have effect for a RTE company whether or not it is adopted by the company.
 
    (4)  A provision of an agreement between the members of a RTE company has no effect to the extent that it is inconsistent with the regulations."")
 
 
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