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New Clause 19
Leases exceeding 21 years
'.—(1) This section shall apply to any lease granted for a term of years certain exceeding 21 years, whether or not it is terminable
(2) In this section a right of forfeiture shall mean a provision in a lease whereby the landlord under a lease has a right to re-enter the premises demised (or part thereof) upon the happening of specified events, whether the right to re-enter is expressed as a condition or as a proviso on breach of covenant or otherwise howsoever.
(3) No landlord may re-enter the premises demised (nor any part thereof) pursuant to a right of forfeiture, insofar as the exercise of the right of forfeiture is based on the non-payment of money.
(4) Where a tenant fails to pay monies payable under the terms of the lease, the person entitled to payment of the said monies shall be entitled to a first legal charge (herein referred to as a "landlord's charge") over the lease for the monies payable and for his reasonable costs and expenses of and in connection with the landlord's charge and the enforcement thereof, such costs and expenses to be payable on the indemnity basis.
(5) Subject to the next subsection, a landlord's charge shall have priority to all charges, underleases and other encumbrances estates easements estoppels and rights of whatever description created by or deriving title from or through the tenant, whether at law or in equity and whether created or existing before or after the coming into force of this Act (hereinafter referred to as "subsidiary interests").
(6) Notwithstanding the previous subsection, no local land charge within the meaning of the Local Land Charges Act 1975 shall be a subsidiary interest.
(7) Subject to the next subsection, a landlord's charge may be enforced in any manner in which a first legal charge may be enforced.
(8) The landlord's charge may only be enforced by sale with leave of the High Court or the County Court.
(9) On such a sale, the purchaser shall purchase free from all subsidiary interests.
(10) Where a landlord's charge has no reasonably realisable commercial value, the landlord may apply to the High Court or the County Court for an order terminating the lease, but such an order shall not release the tenant from any pre-existing obligation under the lease.
(11) Any person holding any subsidiary interest shall be entitled to have subrogated to him the landlord's charge on payment of the sums secured by the landlord's charge and shall be entitled to add his reasonable costs and expenses of and in connection the said exercise of the right of subrogation to the landlord's charge, such costs and expenses to be assessed on the indemnity basis.
(12) Where more than one person holding a subsidiary interest wishes to have subrogated to him the landlord's charge, the priority as between such persons shall be determined in accordance with the rules of equity.
(13) Where on a sale of the lease pursuant to subsection (8) hereof, there is a surplus after payment of all the monies secured by the landlord's charge, the distribution of the said surplus shall be made in accordance with the rules of equity.
(14) Rules of Court shall provide for service on the tenant and on persons holding subsidiary interests of any application made pursuant to subsection (8) hereof for leave to enforce the landlord's charge by sale and for the circumstances in which such service may be dispensed with.
(15) Notwithstanding the provisions in subsections (4) and (11) hereof permitting the adding of costs and expenses to the landlord's charge, the High Court and the County Court shall have the power to make in substitution for the said provisions some different order as to incidence, basis and amount of the costs and expenses of the holder of the landlord's charge and of the lessee and of any other person where such different order would be just.
(16) The figure for the annual rental specified in subsection (1) hereof may be varied from time to time by regulations made by the Secretary of State.
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(17) Nothing herein shall affect the validity or effect of a forfeiture of a lease, whether by re-entry on or service of originating process seeking to re-enter the premises demised (or part thereof) or otherwise, effected before the coming into effect of this section.
(18) "Lease" in this section shall include underleases and "landlord" and "tenant" shall be construed accordingly.
(19) The existence or potential existence of a landlord's charge shall not prevent any person who is restricted or prohibited whether by statute or otherwise from lending money save on the security of a first legal charge from lending money on the security of a charge which, but for the existence or potential existence of the landlord's charge, would have been a first legal charge.'.—[Mr. Cash.]
Brought up, and read the First and Second time.
Motion made, and Question put, That the clause be added to the Bill:—
The House divided: Ayes 151, Noes 286.
AYES
Ainsworth, Peter (E Surrey)
Allan, Richard
Amess, David
Ancram, Rt Hon Michael
Arbuthnot, Rt Hon James
Atkinson, David (Bour'mth E)
Bacon, Richard
Barker, Gregory
Baron, John
Barrett, John
Beith, Rt Hon A J
Bercow, John
Blunt, Crispin
Boswell, Tim
Brooke, Mrs Annette L
Browning, Mrs Angela
Burnett, John
Burns, Simon
Burstow, Paul
Burt, Alistair
Calton, Mrs Patsy
Cameron, David
Carmichael, Alistair
Cash, William
Chope, Christopher
Clappison, James
Clifton–Brown, Geoffrey
Collins, Tim
Cotter, Brian
Cran, James
Davies, Quentin (Grantham)
Davis, Rt Hon David (Haltemprice)
Djanogly, Jonathan
Dorrell, Rt Hon Stephen
Doughty, Sue
Evans, Nigel
Fabricant, Michael
Fallon, Michael
Field, Mark (Cities of London)
Flook, Adrian
Forth, Rt Hon Eric
Foster, Don (Bath)
Fox, Dr Liam
Francois, Mark
Gale, Roger
Garnier, Edward
George, Andrew (St Ives)
Gibb, Nick
Goodman, Paul
Gray, James
Green, Damian (Ashford)
Grieve, Dominic
Gummer, Rt Hon John
Hague, Rt Hon William
Hammond, Philip
Hancock, Mike
Harris, Dr Evan (Oxford W)
Hawkins, Nick
Hayes, John
Heald, Oliver
Heath, David
Heathcoat–Amory, Rt Hon David
Hendry, Charles
Hoban, Mark
Holmes, Paul
Howard, Rt Hon Michael
Howarth, Gerald (Aldershot)
Jackson, Robert (Wantage)
Jenkin, Bernard
Johnson, Boris (Henley)
Keetch, Paul
Key, Robert
Kirkbride, Miss Julie
Kirkwood, Archy
Knight, Rt Hon Greg (E Yorkshire)
Lait, Mrs Jacqui
Lamb, Norman
Lansley, Andrew
Laws, David
Leigh, Edward
Letwin, Oliver
Lewis, Dr Julian (New Forest E)
Liddell–Grainger, Ian
Lidington, David
Lilley, Rt Hon Peter
Llwyd, Elfyn
Loughton, Tim
McIntosh, Miss Anne
MacKay, Rt Hon Andrew
Maclean, Rt Hon David
Malins, Humfrey
Marsden, Paul (Shrewsbury)
Maude, Rt Hon Francis
May, Mrs Theresa
Mercer, Patrick
Mitchell, Andrew (Sutton Coldfield)
Moore, Michael
Moss, Malcolm
Murrison, Dr Andrew
Norman, Archie
O'Brien, Stephen (Eddisbury)
Osborne, George (Tatton)
Paterson, Owen
Price, Adam
Prisk, Mark
Pugh, Dr John
Randall, John
Reid, Alan (Argyll & Bute)
Rendel, David
Rosindell, Andrew
Ruffley, David
Russell, Bob (Colchester)
Sanders, Adrian
Sayeed, Jonathan
Selous, Andrew
Shephard, Rt Hon Mrs Gillian
Shepherd, Richard
Simmonds, Mark
Smith, Sir Robert (W Ab'd'ns)
Spelman, Mrs Caroline
Spicer, Sir Michael
Spink, Bob
Stanley, Rt Hon Sir John
Steen, Anthony
Streeter, Gary
Stunell, Andrew
Swayne, Desmond
Swire, Hugo
Syms, Robert
Tapsell, Sir Peter
Taylor, John (Solihull)
Taylor, Matthew (Truro)
Taylor, Sir Teddy
Thomas, Simon (Ceredigion)
Thurso, John
Tonge, Dr Jenny
Tredinnick, David
Trend, Michael
Turner, Andrew (Isle of Wight)
Tyler, Paul
Walter, Robert
Waterson, Nigel
Watkinson, Angela
Whittingdale, John
Wiggin, Bill
Wilkinson, John
Willetts, David
Williams, Roger (Brecon)
Willis, Phil
Winterton, Mrs Ann (Congleton)
Younger–Ross, Richard
Tellers for the Ayes:
Mr. Julian Brazier and
Mr. David Wilshire.
NOES
Ainsworth, Bob (Cov'try NE)
Allen, Graham
Anderson, Janet (Rossendale)
Armstrong, Rt Hon Ms Hilary
Atherton, Ms Candy
Atkins, Charlotte
Barron, Kevin
Beard, Nigel
Begg, Miss Anne
Benton, Joe
Berry, Roger
Betts, Clive
Blackman, Liz
Blears, Ms Hazel
Blizzard, Bob
Bradley, Rt Hon Keith (Withington)
Bradley, Peter (The Wrekin)
Bradshaw, Ben
Brennan, Kevin
Brown, Rt Hon Nicholas
(Newcastle E & Wallsend)
Brown, Russell (Dumfries)
Bryant, Chris
Burgon, Colin
Burnham, Andy
Campbell, Alan (Tynemouth)
Campbell, Mrs Anne (C'bridge)
Campbell, Ronnie (Blyth V)
Caplin, Ivor
Casale, Roger
Cawsey, Ian
Challen, Colin
Chapman, Ben (Wirral S)
Chaytor, David
Clapham, Michael
Clark, Mrs Helen (Peterborough)
Clark, Paul (Gillingham)
Clarke, Rt Hon Tom (Coatbridge)
Clelland, David
Coffey, Ms Ann
Cohen, Harry
Corbyn, Jeremy
Cousins, Jim
Cranston, Ross
Crausby, David
Cryer, Mrs Ann (Keighley)
Cummings, John
Cunningham, Jim (Cov'try S)
Cunningham, Tony (Workington)
Curtis–Thomas, Mrs Claire
Darling, Rt Hon Alistair
Davey, Valerie (Bristol W)
David, Wayne
Davidson, Ian
Davies, Rt Hon Denzil (Llanelli)
Davis, Rt Hon Terry
(B'ham Hodge H)
Dawson, Hilton
Dean, Mrs Janet
Denham, Rt Hon John
Dobbin, Jim
Dobson, Rt Hon Frank
Doran, Frank
Dowd, Jim
Eagle, Angela (Wallasey)
Eagle, Maria (L'pool Garston)
Edwards, Huw
Efford, Clive
Ellman, Mrs Louise
Ennis, Jeff
Etherington, Bill
Fisher, Mark
Fitzpatrick, Jim
Fitzsimons, Mrs Lorna
Flint, Caroline
Flynn, Paul
Foster, Michael (Worcester)
Foster, Michael Jabez (Hastings)
Foulkes, George
Francis, Dr Hywel
Galloway, George
Gapes, Mike
George, Rt Hon Bruce (Walsall S)
Gerrard, Neil
Gibson, Dr Ian
Gilroy, Linda
Godsiff, Roger
Goggins, Paul
Griffiths, Jane (Reading E)
Grogan, John
Hain, Rt Hon Peter
Hall, Patrick (Bedford)
Hamilton, David (Midlothian)
Hanson, David
Harris, Tom (Glasgow Cathcart)
Havard, Dai
Healey, John
Hendrick, Mark
Heppell, John
Hermon, Lady
Heyes, David
Hill, Keith
Hinchliffe, David
Hodge, Margaret
Hoey, Kate
Hood, Jimmy
Hope, Phil
Hopkins, Kelvin
Howarth, Rt Hon Alan (Newport E)
Howells, Dr Kim
Hoyle, Lindsay
Hughes, Beverley (Stretford)
Hughes, Kevin (Doncaster N)
Humble, Mrs Joan
Hutton, Rt Hon John
Iddon, Dr Brian
Ingram, Rt Hon Adam
Irranca–Davies, Huw
Jackson, Helen (Hillsborough)
Jenkins, Brian
Johnson, Alan (Hull W & Hessle)
Jones, Helen (Warrington N)
Jones, Jon Owen (Cardiff C)
Jones, Kevan (N Durham)
Jones, Lynne (Selly Oak)
Jowell, Rt Hon Tessa
Joyce, Eric
Kaufman, Rt Hon Gerald
Keeble, Ms Sally
Keen, Alan (Feltham & Heston)
Keen, Ann (Brentford & Isleworth)
Kemp, Fraser
Kennedy, Jane (Wavertree)
Khabra, Piara S
Kidney, David
Kilfoyle, Peter
King, Andy (Rugby & Kenilworth)
King, Ms Oona (Bethnal Green)
Knight, Jim (S Dorset)
Kumar, Dr Ashok
Ladyman, Dr Stephen
Lammy, David
Lawrence, Mrs Jackie
Lazarowicz, Mark
Lepper, David
Levitt, Tom
Lewis, Ivan (Bury S)
Lewis, Terry (Worsley)
Liddell, Rt Hon Mrs Helen
Lloyd, Tony
Love, Andrew
Lucas, Ian
Lyons, John
McAvoy, Thomas
McCafferty, Chris
McDonagh, Siobhain
MacDonald, Calum
McDonnell, John
MacDougall, John
McGuire, Mrs Anne
McIsaac, Shona
McKechin, Ann
McKenna, Rosemary
Mackinlay, Andrew
McNamara, Kevin
McNulty, Tony
MacShane, Denis
Mactaggart, Fiona
McWalter, Tony
McWilliam, John
Mahmood, Khalid
Mahon, Mrs Alice
Mallaber, Judy
Mann, John
Marris, Rob
Marsden, Gordon (Blackpool S)
Marshall, David (Shettleston)
Marshall, Jim (Leicester S)
Martlew, Eric
Meacher, Rt Hon Michael
Meale, Alan
Merron, Gillian
Michael, Rt Hon Alun
Milburn, Rt Hon Alan
Miliband, David
Miller, Andrew
Moffatt, Laura
Mole, Chris
Moran, Margaret
Morgan, Julie
Mudie, George
Mullin, Chris
Munn, Ms Meg
Murphy, Jim (Eastwood)
Murphy, Rt Hon Paul (Torfaen)
Naysmith, Dr Doug
O'Brien, Mike (N Warks)
O'Hara, Edward
Olner, Bill
O'Neill, Martin
Osborne, Sandra (Ayr)
Owen, Albert
Palmer, Dr Nick
Pearson, Ian
Perham, Linda
Picking, Anne
Pickthall, Colin
Pike, Peter
Plaskitt, James
Pollard, Kerry
Pond, Chris
Prentice, Gordon (Pendle)
Primarolo, Dawn
Prosser, Gwyn
Purchase, Ken
Purnell, James
Quin, Rt Hon Joyce
Rammell, Bill
Rapson, Syd
Reed, Andy (Loughborough)
Robertson, John
(Glasgow Anniesland)
Robinson, Geoffrey (Cov'try NW)
Roche, Mrs Barbara
Rooney, Terry
Roy, Frank
Ruane, Chris
Salter, Martin
Sarwar, Mohammad
Savidge, Malcolm
Sawford, Phil
Sedgemore, Brian
Shaw, Jonathan
Sheridan, Jim
Simpson, Alan (Nottingham S)
Singh, Marsha
Skinner, Dennis
Smith, Rt Hon Andrew (Oxford E)
Smith, Angela (Basildon)
Smith, Geraldine (Morecambe)
Smith, Jacqui (Redditch)
Smith, John (Glamorgan)
Smith, Llew (Blaenau Gwent)
Soley, Clive
Southworth, Helen
Spellar, Rt Hon John
Squire, Rachel
Starkey, Dr Phyllis
Steinberg, Gerry
Stewart, Ian (Eccles)
Stinchcombe, Paul
Stoate, Dr Howard
Strang, Rt Hon Dr Gavin
Stringer, Graham
Sutcliffe, Gerry
Taylor, Rt Hon Ann (Dewsbury)
Taylor, Ms Dari (Stockton S)
Taylor, David (NW Leics)
Taylor, Dr Richard (Wyre F)
Thomas, Gareth (Clwyd W)
Thomas, Gareth R (Harrow W)
Timms, Stephen
Trickett, Jon
Turner, Dennis (Wolverh'ton SE)
Turner, Dr Desmond (Kemptown)
Turner, Neil (Wigan)
Twigg, Derek (Halton)
Twigg, Stephen (Enfield)
Vis, Dr Rudi
Walley, Ms Joan
Ward, Ms Claire
Wareing, Robert N
Watson, Tom
Watts, David
White, Brian
Whitehead, Dr Alan
Wicks, Malcolm
Williams, Rt Hon Alan
(Swansea W)
Williams, Mrs Betty (Conwy)
Wills, Michael
Winnick, David
Winterton, Ms Rosie (Doncaster C)
Wood, Mike
Woolas, Phil
Wray, James
Wright, Anthony D (Gt Yarmouth)
Wright, David (Telford)
Wright, Tony (Cannock)
Wyatt, Derek
Tellers for the Noes:
Mr. Nick Ainger and
Dan Norris.
Question accordingly negatived.
Remaining Government amendments agreed to.
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