Commonhold and Leasehold Reform Bill [HL]—
Amendments to be debated in the House of Lordscontinued

House of Lords

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Clause 77

 

THE LORD KINGSLAND

Page 37, line 19, after "person" insert "who has a right to manage the premises, or any part thereof,"
Page 37, line 21, after "his" insert "knowledge,"
Page 37, line 22, leave out paragraph (b) and insert—
"(b)  as to the matters required by section 79(3) and (4) to be stated in a claim notice."
Page 37, line 35, at end insert—
"(4)  A failure without reasonable excuse to comply with such a notice shall be an offence, punishable on summary conviction with a fine not exceeding level 3 on the standard scale."
 

Clause 78

 

THE LORD KINGSLAND

Page 37, line 42, leave out "14" insert "28"
 

Clause 79

 

THE LORD KINGSLAND

Page 38, line 35, at end insert—
"(   )  It must contain a statement that the members of the RTM company have been informed of the principal responsibilities and obligations which the company will assume as the manager of the premises on acquiring the right to manage, and that all members have understood and accepted the resulting duties and obligations which will fall to them as members of the RTM company."
Page 38, line 35, at end insert—
"(   )  It must include an offer of cover to provide for the RTM company directors' and officers' liability insurance, fidelity guarantee and professional indemnity insurance."
Page 38, line 39, leave out "one month" and insert "six months"
Page 38, line 41, at end insert ", or must state that the RTM company intends to apply to the leasehold valuation tribunal for it to acquire the right to manage at an earlier date"
Page 39, line 5, at end insert—
"(10)  Regulations may provide for the procedure for an RTM company to apply to a leasehold valuation tribunal for the acquisition of the right to manage earlier than six months after the relevant date."
 

Clause 80

 

THE LORD KINGSLAND

Page 39, line 15, at end insert—
"(   )  Nor shall a failure to serve any qualifying tenant or tenants with a notice of invitation to participate invalidate the claim notice, so long as a sufficient number of qualifying tenants were members of the company on the relevant date."
 

Clause 82

 

THE LORD KINGSLAND

Page 40, line 12, at end insert ", or
(c)  claiming that there are special reasons why the RTM company should not acquire the right to manage,"
Page 40, line 18, after "(2)(b)" insert "or (c)"
Page 40, line 32, at end insert—
"(5A)  An objector shall establish that there are special reasons why the RTM company should not acquire the right to manage, if he shows—
(a)  that he would suffer serious prejudice by allowing the RTM company to acquire the right to manage,
(b)  that the prejudice he would suffer is significantly greater than the prejudice ordinarily suffered by those against whom the right to manage exercised, and
(c)  that in all the circumstances it is just and convenient that the RTM company should not acquire the right to manage.
(5B)  In particular, special reasons shall be established if the acquisition of the right to manage is sought with a view to delaying or avoiding the carrying out of necessary repairs to, or at, the premises."
Page 40, line 44, at end insert—
"(9)  If, on an application under subsection (3), it is finally determined that the Company was on the relevant date entitled to acquire the right to manage the premises, the leasehold valuation tribunal, or any tribunal or court finally determining the application shall specify a date, not less than three months from the date of final determination, on which the RTM company shall acquire the right to manage."
 

After Clause 87

 

THE LORD KINGSLAND

Insert the following new Clause—
  "Application for order that RTM company cease to have right to manage
(1)  After an RTM company acquires the right to manage any premises, from time to time any person who is
(a)  a qualifying tenant;
(b)  a tenant of any part of the premises who is not a qualifying tenant; or
(c)  the landlord of the whole or any part of the premises (including mesne landlords) or a management company party to any lease of the premises, or any part thereof, who prior to the acquisition date had the right to manage the premises,
  may apply to the leasehold valuation tribunal for an order that the RTM company cease to have the right to manage.
(2)  The grounds on which such an application may be made are that on the date of the application—
(a)  that where there are only two flats in the premises the tenants of both flats are not both qualifying tenants and members of the RTM company;
(b)  if there be more than two flats in the premises the tenants of fewer than one half of all the flats in the premises are both qualifying tenants and members of the RTM company; or
(c)  that the RTM company has failed adequately to manage the premises or has failed to carry necessary works of repair to, or at, the premises and that it is just and convenient that it should cease to have the right to manage the premises.
(3)  The application must be served on—
(a)  the RTM company, and
(b)  on the landlord of the whole or any part of the premises (including mesne landlords) and any management company party to any lease of the premises, or any part thereof, who but for the RTM company's right to manage would have the right to manage the premises.
(4)  The appropriate national authority may make regulations for the procedure for such applications, including provisions as to costs."
 

Clause 89

 

THE LORD KINGSLAND

 The Lord Kingsland gives notice of his intention to oppose the Question that Clause 89 stand part of the Bill.
 

Clause 90

 

THE LORD KINGSLAND

Page 46, line 7, at end insert—
"(8)  Unless the contractor party and the RTM otherwise agree in writing within a period of 28 days after service of a contract notice, the management contract shall continue in full force and effect from the acquisition date as if it had been made between the contractor party and the RTM and not with the manager party, save that the RTM shall have no liability under it for breaches on the part of the manager party occurring prior to the acquisition date."
 The Lord Kingsland gives notice of his intention to oppose the Question that Clause 90 stand part of the Bill.
 

After Clause 95

 

THE LORD KINGSLAND

Insert the following new Clause—
  "Management functions: insurance
(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, they 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 support 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."
 

Clause 96

 

THE LORD KINGSLAND

Page 48, line 39, at end insert—
"(   )  The RTM company must not grant an approval in relation to the making of alterations, improvements or change of use."
Page 48, line 43, leave out "the making of improvements or alterations of use".
 

Clause 97

 

THE LORD KINGSLAND

Page 49, line 42, 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 113

 

THE LORD KINGSLAND

 The Lord Kingsland gives notice of his intention to oppose the Question that Clause 113 stand part of the Bill.
 

Clause 117

 

THE LORD KINGSLAND

 The Lord Kingsland gives notice of his intention to oppose the Question that Clause 117 stand part of the Bill.
 

Clause 119

 

THE LORD KINGSLAND

Page 59, line 42, leave out "28" and insert "56"
 

Clause 123

 

THE LORD KINGSLAND

Page 62, line 9, leave out from "payable)," to end of line 10 and insert "in paragraph 1(1), for the definition of "the valuation date" substitute—
  ""the valuation date" means the date of service of the reversioner's counter-notice.""
 The Lord Kingsland gives notice of his intention to oppose the Question that Clause 123 stand part of the Bill.
 

After Clause 123

 

THE LORD KINGSLAND

Insert the following new Clause—
  "Price payable by nominee purchaser
  In paragraph 2(1) of Schedule 6 to the 1993 Act, at end insert—
"(d)  a sum equivalent to the interest accruing at the base rate applied by the London clearing banks at the time to a principal sum which is equivalent to the aggregate sum of the values derived from paragraphs (a) to (c) above during the period between the valuation date and the date of the completion of the transaction"."
 

Clause 124

 

THE LORD KINGSLAND

 The Lord Kingsland gives notice of his intention to oppose the Question that Clause 124 stand part of the Bill.
 

Clause 125

 

THE LORD KINGSLAND

Page 62, line 21, leave out "eighty" and insert "ninety"
 The Lord Kingsland gives notice of his intention to oppose the Question that Clause 125 stand part of the Bill.
 

Clause 127

 

THE LORD KINGSLAND

Page 62, line 33, at end insert—
(   )  For subsection (2)(b), substitute—
"(b)  the tenant or, if the lease by virtue of which the tenant is a qualifying tenant is vested in trustees, an individual having an interest in the trust has occupied the flat as his only or principal residence for at least twelve months at any time, whether or not he has used it also for other purposes.""
Page 63, line 1, leave out subsection (3)
Page 63, line 1, leave out "(2)(b)"
 The Lord Kingsland gives notice of his intention to oppose the Question that Clause 127 stand part of the Bill.
 

Clause 129

 

THE LORD KINGSLAND

Page 63, line 11, after "flat" insert "and who has occupied the flat as his only or principal home for three years before his death, or for periods amounting to three years in the ten years before his death"
 

Clause 131

 

THE LORD KINGSLAND

Page 63, line 35, leave out from "lease)," to end of line 36 and insert "in paragraph 1, for the definition of "the valuation date" substitute—
  ""the valuation date" means the date of service of the reversioner's counter-notice.""

 
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©Parliamentary copyright 2001
12 October 2001