S.C.D.
Amendment Paper as at
Tuesday 15th January 2002
STANDING COMMITTEE D
New Amendments handed in are marked thus *
COMMONHOLD AND LEASEHOLD REFORM BILL [LORDS]
NOTE
The Amendments have been arranged in accordance with the Resolution of the Programming Sub-Committee (14th January).
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
22
Clause 3, page 2, line 18, at beginning insert 'Subject to subsection (2A)'.
Mr Adrian Sanders
Sue Doughty
1
Clause 3, page 2, leave out lines 22 and 23.
Mr Adrian Sanders
Sue Doughty
2
Clause 3, page 2, line 27, at end insert—
'(2A) An application under section 2 may not be made in respect of a freehold estate without the consent of a simple majority of the registered proprietors of the leasehold estates in the whole or part of the land granted for a term or more than 21 years.'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
23
Clause 3, page 2, line 39, at end insert—
'(2A) Where the conditions set out in sections 1 to 10 of the Leasehold Reform, Housing and Urban Development Act 1993 (right to collective enfranchisement) as herein amended are satisfied in respect of any premises to which those sections apply, regulations made undersubsection (2) above shall make provision in respect of such premises dispensing with the consent of the persons:
| (a) | mentioned in subsection (1)(a) hereof; |
| (b) | mentioned in subsection (1)(b) hereof where no more than 25 per cent. of qualifying tenants within the meaning of the said 1993 Act as amended herein refuse to consent; |
| (c) | mentioned in subsections (1)(c) and (d) hereof: |
(i) insofar as the charge or the caution (as the case may be) is over the whole or part of the freehold estate in the land; and
(ii) insofar as the charge or the caution (as the case may be) is over flats held by qualifying tenants who constitute no more than 25 per cent. of the qualifying tenants of the premises.
(2B) Regulations under subsections (2) and (2A) hereof shall make provision:
| (a) | where consent has been dispensed with under subsection (2A)(a) hereof for the compensation of persons mentioned in subsection (1)(a) hereof, including provisions determining who shall be obliged to pay the compensation and how and by whom the compensation is to be determined; |
| (b) | where consent has been dispensed with under subsection (2A)(b) hereof for the continuation of the leases of qualifying tenants who refuse to become unit-holders of a commonhold unit; and |
| (c) | where consent has been dispensed with under subsection (2A)(c) and (d) hereof for the substitution of the charge or caution of persons mentioned under subsection (1)(c) and (d) for a charge or caution over the commonhold unit of the person. |
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
43
Schedule 2, page 89, leave out lines 5 to 13.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
32
Clause 8, page 4, line 36, after 'Part', insert '"first'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
33
Clause 8, page 4, line 38, at end insert—
'( ) "Second transitional period" means the period between the event mentioned in section 7(3) and the date upon which all units in the building have been sold.'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
34
Clause 8, page 4, line 39, leave out first 'a' and insert 'both'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
35
Clause 8, page 4, line 39, leave out 'period' and insert 'periods'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
36
Clause 8, page 5, line 3, at end insert—
'( ) Regulations shall provide that during the second transitional period, where units are still under construction or awaiting sale, special provisions shall apply to ensure maintenance, repair, services and insurance are maintained by the commonhold association and contributions from unit-holders and the developer are on an equitable basis.'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
37
Clause 11, page 6, line 25, leave out 'may' and insert 'must'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
38
Clause 11, page 6, line 26, at end insert ', and must have regard to section 24(2)'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
39
Clause 11, page 6, line 27, leave out 'may' and insert 'must'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
40
Clause 11, page 6, line 28, leave out 'may' and insert 'must'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
25
Page 8, line 30, leave out Clause 17.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
44
Clause 18, page 9, line 11, leave out 'which is not residential (within the meaning of section 17)'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
45
Clause 20, page 10, line 2, leave out '17 to' and insert '18 and '.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
46
Clause 20, page 10, leave out lines 4 to 17.
Mr Michael Wills
15
Clause 20, page 10, line 5, leave out 'the whole or part of'.
Mr Michael Wills
16
Page 10, line 18, leave out Clause 21.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
41
Clause 24, page 11, line 36, leave out from 'means' to end of line 38 and insert 'all structural parts of the commonhold and those areas used in common".'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
42
Clause 24, page 11, line 38, at end insert—
'( ) The structure shall include—
| (a) | main walls (but not the internal plaster surfaces thereof), |
| (b) | floors (but not the timber or other surfaces therof or plaster or other surfaces to any ceiling below), |
| (d) | roads, paths and pavements, and |
| (e) | such other areas not forming part of the commonhold unit.'. |
Mr Adrian Sanders
Sue Doughty
3
Clause 30, page 14, line 14, at end insert—
'(6A) Provision in a commonhold community statement imposing a duty to pay money (whether in pursuance of subsection (5)(a) or any other provision made by or by virtue of this part) may include provision as to the payment of outstanding service charges on the sale or transfer of any commonhold unit.'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
47
Clause 30, page 14, line 17, leave out 'not'.
Mr Michael Wills
17
Clause 31, page 15, line 3, after '20,' insert '[Part-unit: interests],'.
Mr Adrian Sanders
Sue Doughty
4
Clause 33, page 15, line 34, after '(1)', insert 'Subject to subsection (3) below,'.
Mr Adrian Sanders
Sue Doughty
5
Clause 33, page 15, line 42, at end insert—
'(3) Regulations may make provision for the establishment of a commonhold partnership with limited liability in respect of any commonhold association with ten members or fewer.'.
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
24
Clause 36, page 17, line 23, at end insert—
'and (c) provision for monies payable by a unit-holder to the commonhold association under sub-sections (1) and (2) hereof and under provisions made under section 37(1) hereof to be a charge over that unit-holder's unit and enforceable as a first legal charge in priority to all other charges or encumbrances over that unit-holder's unit.'
Mr William Cash
Mr John Taylor
Dr Julian Lewis
Mr Bill Wiggin
Andrew Selous
49
Clause 38, page 18, line 27, at end insert—
'(3A) The assets of a fund established and maintained by virtue of this section shall be treated as monies reserved for future expenditure.
(3B) Any sums paid into a fund established and maintained by virtue of this section by a unit-holder, and any investments representing those sums, shall (together with any income accruing thereon) be held by the commonhold association on trust either as a single fund, or, if the commonhold association deems appropriate, as two or more separate funds.
(3C) The commonhold association shall hold any trust fund—
| (a) | on trust to defray costs incurred in connection with the matters for which the relevant contributions were payable (whether incurred by the commonhold association itself or by another person), and |
| (b) | subject to that, on trust for the persons who are the contributing unit-holders for the time-being. |
(3D) Subject to subsections (3F) and (3G), the contributing unit-holders shall be treated as entitled by virtue of subsection (3C)(b) to such shares in the residue of any such fund as are proportionate to their respective liabilities to pay a proportion of the levy set under subsection (2).
(3E) If the Secretary of State by order so provides, any sums standing to the credit of any trust fund may, instead of being invested in any other manner authorised by law, be invested in such manner as may be specified in the order; and any such order may contain such incidental, supplemental or transitional provisions as the Secretary of State considers appropriate in connection with the order.
(3F) On the transfer of a commonhold unit, the unit-holder shall not be entitled to any part of any trust fund, and any part of such trust fund which is attributable to relevant contributions paid in accordance with this section shall accordingly continue to be held on the trusts referred to in subsection (3C).
(3G) Any trust fund established under this section shall be exempt from any tax in respect of contributions made to it by the unit holders, whether (apart from this provision) a liability to tax may be imposed on the commonhold association or the contributing unit-holder.'.
