LEASEHOLD REFORM AND ENFRANCHISEMENT vol 25

LEASEHOLD REFORM AND ENFRANCHISEMENT vol 25(4)

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About this title—authors, overview

Commentary

1 Review of the leasehold system

2 Terms of reference for the Law Commission

3 Reform process: key stages

4 Next stages in the reform process

5 Law Commission’s recommendations

6 Related law reform

7 Reform in Wales

8 Freehold, leasehold and commonhold

9 Enlargement of long terms into a fee simple

10 Enfranchisement and extended lease of leasehold houses

11 Right to buy in the public sector

12 Tenants’ rights of first refusal in the case of flats

13 Compulsory acquisition by tenants where landlord at fault

14 Collective enfranchisement in the case of tenants of flats

15 Individual right of tenant of flat to acquire new lease

16 Right to manage flats

17 Summary: opportunities for tenants

18 Rights conferred by the Leasehold Reform Act 1967

19 Application of the Leasehold Reform Act 1967 to certain houses

20 Meaning of ‘house’

21 House and premises

22 Meaning of ‘long tenancy’

23.1 Tenancies following on from long tenancies

23.2 Consecutive long tenancies

23.3 Business tenancies

23.4 Leases terminable after death, marriage or civil partnership

23.5 Other long tenancies

24 Meaning of ‘low rent’

25 Original test for a tenancy at a low rent

26 Alternative test for a tenancy at a low rent: freehold acquisition

27 Right to enfranchisement where tenancy not at low rent

28.1 General

28.2 Applicable limits

28.3 Effect of improvements

29 Rateable value and R limits (extension only): tenancy granted on or after 1 April 1990

30.1 General rule as to occupancy and length of ownership

30.2 Lettings conferring no rights

30.3 Charitable housing trusts

30.4 Trusts

30.5 Land inalienable by statute

30.6 Position of reversionary tenants

30.7 Tenancy of flat in house

30.8 Business tenancies

31 Rights of personal representatives

32 Right of family members on tenant’s death

33 Shared ownership leases

34 Abolition of limits on rights after lease extension

35 National Trust land and tenancies from the Crown

36 Notice of tenant’s claim

37 Contents of the notice of tenant’s claim

38 Time for service of a notice of tenant’s claim

39.1 General

39.2 Additional premises originally let with house

39.3 Part of premises lying above or below other property

40.1 Rights of sub-tenants

40.2 The reversioner

41.1 Service of notice

41.2 Duties of a person served

41.3 Notification of chargees

41.4 Service of notice where recipient deceased

42 Enfranchisement where the landlord cannot be found

43.1 General

43.2 Assignment where lease is registered

44 Rights arising under a notice of tenant’s claim

45 Registration of the notice

46 Effect of the notice of tenant’s claim

47.1 Refusal to admit tenant’s right

47.2 Premises required for landlord’s family

47.3 Redevelopment rights: claim for extension

48 Landlord’s notice in reply

49 Conditions

50 Deposit

51 Evidence of tenant’s right to enfranchise

52 Deduction of landlord’s title

53 Requisitions

54 Rights of way and restrictions

55 Preparation of the conveyance

56 Completion, apportionment and delay

57 Evidence of tenant’s right to extend

58 Notice as to terms of new tenancy

59 Preparation of the lease

60 Completion

61.1 General rule

61.2 Alternative rule in certain cases

61.3 Marriage value

61.4 Reduction for defects in title

62 Other considerations

63 New rent

64 Enfranchisement

65 Extension

66 Right to withdraw from enfranchisement

67 Liability for delay in transmitting notice of tenant’s claim

68 Restriction on enforcement of tenant’s rights

69 Rights and remedies

70.1 Enfranchisement

70.2 Extension

71 Rights granted by the conveyance

72 Reservations

73 Incumbrances

74 Restrictive covenants

75 Restriction on covenants and rights of way

76 Reservation of future right to develop

77 Right of pre-emption in new town or overspill areas

78.1 Discharge

78.2 Payment into court

79.1 Release where rentcharge exceeds rent

79.2 Payment into court

80.1 Introduction

80.2 Stamp duty land tax (England) or Land Transaction Tax (Wales)

80.3 Corporation tax (companies)

80.4 Capital gains tax (individuals)

80.5 Non-UK residents

80.6 Sanctions for non-payment

81.1 General

81.2 Covenants for title

81.3 Reservation of future right to develop

81.4 Right of pre-emption in certain areas

82 Disadvantages of claiming an extension

83 Land required for development

84 Heritage property

85 Management schemes

86 Considerations

87 Content of a scheme

88 Effect on notice of tenant’s claim

89 Effect of approval of estate management scheme

90 Effect of order for possession

91 Delay and bad faith

92 Compensation for postponement or termination of tenancies in connection with ineffective claims

93 Contracting out

94 Introduction

95 Statutory provisions

96 Meaning of ‘flat’ and ‘unit’

97 Meaning of ‘relevant premises’

98 Premises with a non-residential element

99 Premises with a resident landlord

100 Premises including railway track

101 Miscellaneous exceptions

102 Enfranchisement of other property

103 Minerals

104 Meaning of ‘qualifying tenant’

105 Meaning of ‘a long lease’

106 Lifting of requirements as to rent

107 Power of trustees in relation to rights

108 Tenants who cannot qualify

109.1 Present position

109.2 Potential future position

110 Notification of changes

111 Qualifying tenants who may not participate

112 Appointment and termination of appointment

113 Resignation or death

114 Nominee purchaser’s duty to disclose agreements and shareholdings

115 The reversioner and other relevant landlords

116 Mortgagee in possession of landlord’s interest

117 Custodian trustee

118 Landlord under a disability

119 Landlord’s interest held on trust

120 University or college landlords

121 Ecclesiastical landlords

122 Tenants’ rights to information about superior interests etc

123 Qualifying tenant’s notice to immediate landlord or agent requiring information as to superior interests

124 Qualifying tenant’s notice to freeholder requiring information about other tenants and licensees

125 Qualifying tenant’s notice to freeholder or other tenants or licensees requiring information about their interests or derivative interests

126 Procedure following receipt of notice requesting information

127 Service of the qualifying tenants’ initial notice of claim

128 Contents of the initial notice

129 Initial notice: no statutory requirement for a surveyor’s valuation

130 Validity and effect of an initial notice

131 Dispensing with service of an initial notice

132 Service of notice where the intended recipient is deceased

133 Right of reversioner to require evidence of tenant’s right to participate

134 Rights of access

135 Effect of registration of initial notice

136 Counter-notice

137 Contents of the counter-notice

138 Further requirements where reversioner admits the claim

139 Service of default notice prior to an application to the court

140 Notice of withdrawal

141 Deemed withdrawal

142 Notice terminating the lease

143 Claims for lease extension

144 Applications for approval of estate management schemes

145 Compulsory acquisition

146 Heritage property

147 Proceedings regarding validity of initial notice

148 Landlord’s intention to redevelop

149 Applications where the terms of acquisition are in dispute or there is failure to contract

150 Applications where reversioner fails to give a counter-notice

151 Applications where the relevant landlord cannot be found

152 Payment into court following a vesting order

153 Trap for the unwary

154 Price

155 Costs

156 Method of determination

157 Basic composition of price for freehold of the specified premises

158 Assumptions

159 Defects in title

160 Artificial transactions increasing freehold value

161 Meaning of ‘marriage value’

162 ‘Sharing’ the marriage value

163 Compensation for freeholder’s loss on enfranchisement

164 Intermediate leasehold interests

165 Other interests acquired

166 Right to a leaseback

167 Mandatory leaseback

168 Notice requiring a leaseback

169 Terms of a leaseback

170 Easements

171 Covenants by landlord

172 Covenants by tenant and other terms

173 Binding contract and title

174 Conveyance to the nominee purchaser

175 Effect of the conveyance

176 Payment

177 Discharge of mortgages

178 Seller’s lien

179.1 Introduction

179.2 Stamp duty land tax (England) or Land Transaction Tax (Wales)

179.3 Corporation tax (companies)

179.4 Capital gains tax (individuals)

179.5 Non-UK residents

179.6 Sanctions for non-payment

180 Compensation for postponement in connection with ineffective claims

181 Exclusion and modification of the statutory rights of tenants

182 RTE company and qualifying tenant rights to be consulted

183 Right to be exercised only by RTE company

184 Constitution of an RTE company

185 Membership of RTE companies

186 Notice of invitation to participate

187 Consequential amendments

188 Introduction

189 Right to acquire a new lease

190 Time when conditions are to be satisfied

191 Meaning of a ‘flat’

192 Qualifying tenant

193 Personal representatives

194 Trustees

195 Competent and other landlords

196 Statutory requirements

197 Notices requiring information

198 Reply to a request for information

199 Recipient of a tenant’s notice of claim

200 Contents of tenant’s notice of claim

201 Validity of tenant’s notice of claim

202 Service of further notices of claim

203 Service of notice of claim where recipient deceased

204 Effect of giving a valid notice of claim

205 Landlord’s rights following the giving of the tenant’s notice of claim

206 Service of the landlord’s counter-notice

207 Contents of the landlord’s counter-notice

208 Service of default notice before an application to the court

209 Notice of withdrawal

210 Deemed withdrawal by the tenant

211 Compensation for landlord on termination of claim

212 Ineffective notices of claim

213 Prior notice by tenant or landlord terminating the lease

214 Order for possession and proceedings to enforce right of re-entry or forfeiture

215 Effect of a claim to collective enfranchisement

216 Compulsory acquisition

217 Leave of the court to serve tenant’s notice of claim

218 Disputes as to the validity of the tenant’s claim

219 Defeat of tenant’s claim where landlord intends to redevelop

220 Applications where terms are in dispute or there is a failure to enter into a new lease

221 Failure to serve counter-notice

222 Applications where the relevant landlord cannot be found

223 Obligation to grant a new lease

224 The property

225 Modifications to the terms of the existing lease

226 Collateral agreements

227 Terms not included

228 Other terms

229 Third parties

230 Deduction of title

231 Valuation date

232 Price payable to the competent landlord

233 Diminution in value of the landlord’s interest

234 Landlord’s share of marriage value

235 Disregard of marriage value in long leases

236 Compensation for loss arising from the grant of the new lease

237 Valuation of intermediate leasehold interests

238 Costs of landlord, intermediate leaseholders and third parties

239 Arrears of rent and service charge

240 Tax: introduction

241.1 Stamp duty land tax (England) or Land Transaction Tax (Wales)

241.2 Corporation tax (company)

241.3 Capital gains tax (individual)

242.1 Corporation tax (company)

242.2 Capital gains tax (individual)

243.1 Non-UK residents

243.2 Sanctions for non-payment

244 Further renewals and effect on security of tenure of the grant of a new lease

245 Landlord’s right to terminate the new lease on the grounds of redevelopment

246 Effect of grant of new lease

247 Exclusion and modification of the statutory rights of tenants

248 Tenants’ rights of first refusal

249 Failure to comply with the requirements

250 The landlord

251 Exempt and resident landlords

252 Disposal

253 Relevant disposals

254 Disposals that are not relevant disposals

255 Premises to which the Landlord and Tenant Act 1987 Part I applies

256 Premises to which the Landlord and Tenant Act 1987 Part I does not apply following notice by prospective purchaser

257 Qualifying tenants

258 Requisite majority of qualifying tenants of the constituent flats

259 Offer notice

260.1 Contract to be completed by a conveyance etc (other than an option or right of pre-emption)

260.2 Sale by public auction in England and Wales

260.3 Grant of an option or right of pre-emption

260.4 Conveyance not preceded by a prior contract, option or right of pre-emption

260.5 Disposal which is not for money or not wholly for money

260.6 Election under Section 8C

261 Acceptance and nomination

262 Nominated person

263 Failure to accept landlord’s offer or to make a nomination

264.1 General

264.2 Offer notices other than those relating to an auction sale

264.3 Offer notice relating to a proposed auction sale

264.4 Disposal under option or right of pre-emption

264.5 Consents etc for disposal

265 Withdrawal by nominated person or landlord

266 Lapse of landlord’s offer

267.1 Tenants’ rights against a purchaser

267.2 Rights to information

267.3 Right of qualifying tenants to take benefit of contract

267.4 Right to compel sale etc by purchaser

267.5 Rights where the landlord surrenders the landlord’s tenancy

267.6 Formalities for notices under Sections 12A–12C

267.7 Withdrawal by nominated person

268 Position where there has been further disposal

269 Termination of rights against purchaser

270 Jurisdictions; enforcement of obligations

271 Right to an acquisition order

272 Preliminary notice

273 Application for acquisition order

274 Nominated person

275 Acquisition order

276 Terms of the order

277 Discharge and withdrawal

278 Summary of provisions

279 Application to mortgages

280 Mortgages of leaseholds

281 Meaning of ‘money value’

282 Rent ‘barred by lapse of time’

283 Persons who may effect enlargement

284.1 Long terms created by lease

284.2 Enlargement by mortgagee or chargee

284.3 To preserve positive covenants

285 Assignment and enlargement

286 Mines and minerals

287 Acquisition of easements

288 Enlargement of registered land—tenant

289 Enfranchisement of places of worship

290 Bona vacantia

291 Voluntary transactions

292 Circumstances when a voluntary transaction may be preferable

293 Anomaly with collective enfranchisement

294 Process for voluntary transactions

295 Terms of voluntary agreements

296 Legal effect

297 Registration

298 Mortgages

299 Tax: introduction

300.1 Stamp duty land tax (England) or Land Transaction Tax (Wales)

300.2 Corporation tax (company)

300.3 Capital gains tax (individual)

301.1 Corporation tax (company)

301.2 Capital gains tax (individual)

302.1 Post-enfranchisement lease extensions

302.2 Non-UK residents

302.3 Sanctions for non-payment

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