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

House of Lords

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Clause 165

 

THE LORD KINGSLAND

188Page 84, line 27, at end insert—
"(   )  But every appeal will be limited to a review of the decision of the leasehold valuation tribunal unless the Lands Tribunal considers that in the case of an individual appeal it would be in the interests of justice to hold a re-hearing.
(   )  And the Lands Tribunal will not receive oral evidence or evidence which was not before the leasehold valuation tribunal unless it considers that it would be in the interests of justice to do so."
 

Clause 168

 

THE LORD KINGSLAND

189Page 85, line 20, after "under" insert "section 72(2) or "
190Page 85, line 25, at end insert—
"(6)  Prior to the Secretary of State or the National Assembly for Wales making any regulations under the powers given herein to the appropriate national authority, the Secretary of State and the National Assembly for Wales (as the case may be) shall consult with the other and, when making regulations, shall take in account the particular desirability of regulations being the same for both England and Wales."
 

Before Schedule 2

 

THE LORD GOODHART
THE BARONESS HAMWEE

191Insert the following new Schedule—
 

"SCHEDULE<QC<OL0>SECTION 3<QR<OL0>

 

NON-CONSENTING PROPRIETORS

 1      In this Schedule—
  "excluded flat" means a flat in which a non-consenting proprietor is the registered proprietor of a leasehold estate or of a change over such an estate;
  "excluded lease" means a leasehold estate of which a non-consenting proprietor is the registered proprietor or over which a non-consenting proprietor has a registered charge.
 2      Section 9 shall apply in relation to the freehold estate in the land, but notwithstanding anything in that section—
(a)  the commonhold association shall be entitled to be registered as the proprietor of the freehold estate in an excluded flat, and
(b)  an excluded lease shall not be extinguished.
 3      The leasee under an excluded lease may (with the consent of the registered proprietor of any charge over the lease and of any registered proprietor of another excluded lease of the same flat or of a charge over such a lease) at any time exchange the lease for the freehold estate in the flat.
 4      On an exchange under paragraph 3—
(a)  the excluded flat shall become a commonhold unit,
(b)  the former lessee shall be entitled to be registered as the proprietor of the freehold estate in the unit and to become a member of the commonhold association, and
(c)  any inferior lease of the excluded flat shall be extinguished and section 10(2) shall have effect.
 5      Regulations may provide for the computation of the price and other terms on which the lessee may exercise his rights under paragraph 3.
 6      The lessee under an excluded lease shall not be entitled to exercise the rights conferred by Chapter II of Part I of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28), but this paragraph shall be disregarded in calculating any price to be paid for exercise of rights under paragraph 3.
 7      On the expiring of an excluded lease which has not been exchanged for a freehold estate under paragraph 3 (unless there is another excluded lease of all or part of the same flat) the commonhold association shall sell the excluded flat as a commonhold unit and retain the proceeds of sale for its own benefit.
 8      Regulations (which may provide for the modification of Part I in relation to commonhold land which includes the reversion to an excluded lease) may make consequential provision for giving effect to this Schedule."
 

After Schedule 2

 

THE LORD KINGSLAND

192Insert the following new Schedule—
 

"SCHEDULE 2A<QC<OL0>SECTION 30<QR<OL0>

 

FORM OF COMMONHOLD COMMUNITY STATEMENT

      A Commonhold Community Statement produced under this Schedule shall take the following form—
 

"COMMONHOLD COMMUNITY STATEMENT<QC[NAME] COMMONHOLD ASSOCIATION LIMITED

       This Commonhold Community Statement (referred to as "this Statement") is to be read together with the Memorandum and Articles of Association of the company referred to above (referred to in this Statement as the "Memorandum", the "Articles" and the "Commonhold Association" respectively). In the event of any conflict between the provisions of this Statement and the Memorandum and Articles, the provisions of the Memorandum and Articles shall prevail.
       Capitalised terms have the same meaning as in Part I of the Commonhold and Leasehold Reform Act 2001 (referred to in this Statement as "the Act").
       Wherever permitted or required by regulations made under section 13(6) of the Act, references in this Statement to Unit-holders include joint Unit-holders.
       This Statement may only be amended in accordance with sections 22, 23, 29 and 32 of the Act and regulations made thereunder (as applicable).
       The Statement must be signed by or on behalf of the applicant for registration.
 

FURTHER INFORMATION ABOUT THE COMMONHOLD<QC[ENTER NAME OF COMMONHOLD] MAY BE FOUND IN THE<QCMEMORANDUM AND ARTICLES OF ASSOCIATION OF<QCTHE [<EM SP><EM SP><EM SP>] COMMONHOLD ASSOCIATION AND BY LOOKING<QCAT THE RELEVANT REGISTERS KEPT BY HM LAND REGISTRY.

 

PART I: THE COMMONHOLD LAND, THE COMMONHOLD ASSOCIATION AND THE APPLICANT FOR REGISTRATION

 

The Land

 1.      Address(es) of the Commonhold:
 

The Commonhold Association

 2.      Name of the company:
 3.      Registered number of the company at the Companies Registry:
 4.      Date of incorporation:
 5.      Registered office:
 

The Applicant for Registration (the Developer)

 6.      Name
 7.      Address
 8.      Company registration number (if applicable)
 

PART II: THE COMMONHOLD

       In the event of any inconsistency between any of the descriptions given below and the plan or plans of the Commonhold attached hereto, the plans will prevail.
 

The Commonhold

 1.      Description of the type of Commonhold (residential only, commercial only, or mixed use):
 

The Commonhold Units

 2.      The total number of Commonhold Units in the Commonhold:
 3.      Identification of the Commonhold Units (in words) by reference to the plans attached hereto, including in each case:
(a)  a description and the distinctive address(es) of the unit;
(b)  a description of any excluded structures, fittings, apparatus or appurtenances;
(c)  whether the unit is a residential unit as provided for in Section C of the Rules in Part IV below:
(d)  the relevant percentage or percentages allocated to the unit for the purposes of the payment of the Commonhold Assessment and any levies under sections 37 and 38 of the Act.
 

Limited Use Areas

 4.      Identification of the Limited Use Areas, if any, including in the case of each area:
(a)  a description of the area; and
(b)  a statement of the classes of person who may use it and the kind of use to which the area may be put.
 

The Plans

 5.      A plan or plans of the Commonhold showing each Commonhold Unit, the Common Parts and any Limited Use Areas is/are attached to this Statement.
 

PART III: DEVELOPMENT RIGHTS

       This Part of the Statement is subject to section 57 of the Act and regulations made thereunder.
       If no development rights of the types mentioned below are to be conferred on the Developer, the relevant paragraph should be deleted.
 

The Developer's rights to carry out Development Business on the Commonhold

 1.      The Developer has the right to add the following land to the Commonhold:
 2.      The right conferred by 1. above will expire on: [date]
 3.      The Developer has the right to remove the following land from the Commonhold:
 4.      The right conferred by 3. above will expire on: [date]
 5.      The Developer has the right to redefine the Commonhold Units in the following respects:
 6.      The right conferred by 5. above will expire on: [date]
 7.      The Developer has the right to complete the following works on the Commonhold and on any added or removed land:
 8.      The works specified in 7. above will be completed by: [date]
 

The extent and effect of the Development Business

 9.      A plan or plans of the Commonhold showing the effect and extent of the Development Business is/are attached to this Statement.
 

The Developer's rights to market the Commonhold Units

 10.      The Developer has the right to carry out the following transactions in Commonhold Units which he owns:
 11.      The Developer has the right to conduct the following advertising and other activities designed to promote transactions in the Commonhold Units:
 

The Developer's rights to appoint and remove directors of the Commonhold Association

 12.      The Developer has the right to appoint and remove directors in accordance with the articles of association of the Commonhold Association.
 

PART IV: THE RULES OF THE COMMONHOLD ASSOCIATION

       References to the "Rules" are to these rules of the Commonhold Association.
       Rules or parts of Rules shown in italics are optional and are provided by way of illustration only.
 

INDEX TO THE RULES

 

Section

A:GeneralRules 1-4
B:Dealings with Commonhold Units and the Common PartsRules 5-12
C:Use of the CommonholdRules 13-18
D:Insurance, repair and maintenanceRules 19-26
E:The Commonhold Assessment and other financial mattersRules 27-33
F:Complaints, default procedures and enforcementRules 34-48
G:Meetings, access to documents and committeesRules 49-52
H:Miscellaneous RulesRules 53-66
 

SECTION A: GENERAL

 

Effect of the Memorandum and Articles and the Rules

 1.      The Memorandum and Articles shall be binding on the members of the Commonhold Association and upon the Commonhold Association in accordance with the provisions thereof and of section 14 of the Companies Act 1985.
 2.      These Rules shall be binding on the Commonhold Association and upon all Unit-holders holding Commonhold Units in the Commonhold ("Unit-holders"). The Commonhold Association and all Unit-holders undertake to do, or to refrain from doing, all such things as are necessary to give effect to these Rules.
 

Amendment of the Rules

 3.      These Rules may only be amended in accordance with sections 22, 23, 29 and 32 of the Act and regulations made thereunder (as applicable).
 

Non-discrimination

 4.      Subject to any applicable law, and except as specifically permitted or required by these Rules, the Commonhold Association shall not discriminate in its application of these Rules or in its treatment of any Unit-holder on the grounds of sex, race or physical or mental capacity.
 

SECTION B: DEALINGS WITH COMMONHOLD UNITS<QCAND THE COMMON PARTS

 

Transfer of Commonhold Units

 5.      The Commonhold Association shall not prevent or restrict the transfer of a Commonhold Unit.
 6.      On transfer of a Commonhold Unit the new Unit-holder shall notify the Commonhold Association of the transfer in the form and manner, and within the time prescribed by regulations made under section 15(4) of the Act.
 7.      Subject to and in accordance with section 16 of the Act, upon transfer of a Commonhold Unit, the new Unit-holder shall become subject to the Rules.

 
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©Parliamentary copyright 2001
15 October 2001