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

House of Lords

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Clause 103

 

THE LORD GOODHART
THE BARONESS HAMWEE

140A*Page 52, line 32, at end insert—
"(   )  The tribunal shall have the power to make an order that the right to manage the premises ceases to be exercisable by the RTM company if—
(a)  there are substantial breaches by the RTM company of the obligations regarding its management functions under either section 94 or 95 above; and
(b)  on the application by any interested party the tribunal considers it just and convenient to make the order."
 

Clause 113

 

THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS

141Page 57, line 21, at end insert—
"(   )  In any property where there is a non-residential element, the landlord may serve a counter-notice but shall be obliged to offer a 999 year lease of all the residential areas to the RTE company.
(   )  Notwithstanding this, the RTE company shall have full rights to manage the residential area.
(   )  The 999 year lease shall include suitable mutually enforceable covenants which may be specified in regulations."
 

THE LORD KINGSLAND

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

After Clause 114

 

THE LORD KINGSLAND

141AInsert the following new Clause—
  "Qualifying tenants satisfying residence condition
(1)  Section 6 of the 1993 Act (qualifying tenants satisfying residence condition) is amended as follows.
(2)  In subsections (2) and (5) for "his only or principal home" substitute "a residence".
(3)  In paragraph (b) of subsection (2) and in paragraph (b) of subsection (5), for "three years" substitute "twelve months".
(4)  After subsection (6) insert—
    "(7)  Subsection (1) shall not apply where the lease is vested in a company which does not carry on, and has not at any time since the lease became vested in it carried on, any or any substantial business (other than in relation to its ownership of the lease), and in that case a qualifying tenant of a flat shall for the purposes of this Chapter be treated as satisfying the residence condition at any time when the conditions in subsection (8) are satisfied with respect to an individual.
    (8)  Those conditions are that the individual is a person who has had control of the company and has occupied the flat as his residence for the last twelve months or for periods amounting to twelve months in the last ten years.
    (9)  For the purposes of subsection (8), a person is to be taken as having control of a company if—
    (a)  the directors of the company or of another company which has control of it (or any of them) are accustomed to act in accordance with his directions and instructions, and
    (b)  he is entitled to exercise or control the exercise of more than 50 per cent. of the voting power at any general meeting of the company or of another company which has control of it.
    (10)  For the purposes of subsections (7) to (9), "company" includes any body corporate (whether incorporated in Great Britain or elsewhere) and references to directors of a company and to voting power at any general meeting of a company have effect with any necessary modifications.""
 

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 GOODHART
THE BARONESS HAMWEE

142Page 58, line 38, at beginning insert "Subject to section 4AA,"
143Page 59, line 14, at end insert—
"(4)  A company which is a RTM company may not become a RTE company except by a resolution passed with the affirmative vote or written consent of all its members.
(5)  In this Part, "RTM company" has the same meaning as in Chapter 1 of Part 3 of the Commonhold and Leasehold Reform Act 2001."
144Page 59, line 14, at end insert—
  "4AA   RTE companies: limited liability partnerships
(1)  The Secretary of State may by order direct that, as an alternative to being a private company limited by guarantee, a body corporate may be a RTE company in relation to premises if it is a limited liability partnership and an agreement between its members states that its object, or one of its objects, is the exercise of the right to collective enfranchisement with respect to the premises.
(2)  Regulations may make modifications of this Act in relation to RTE companies which are limited liability partnerships."
145Page 59, line 19, leave out from "premises" to end of line 22
 

THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS

146Page 59, leave out lines 29 to 31
 

THE LORD KINGSLAND

147Page 59, line 42, leave out "28" and insert "56"
 

THE LORD GOODHART
THE BARONESS HAMWEE

148Page 60, line 17, at end insert—
  "4BA   Relevant conveyance to RTE companies
(1)  In this section—
(a)  "relevant tenancy" means the tenancy of a flat contained in premises which were the subject of a relevant conveyance (as defined in section 4B) to a RTE company; and
(b)  "relevant tenant" means a person who at the time of the relevant conveyance was a participating member by virtue of holding a relevant tenancy and includes any successor in title of that person.
(2)  After the executions of the relevant conveyance to the RTE company, on the assignment of a relevant tenancy by a relevant tenant—
(a)  the assignor (unless he is also a relevant tenant under a relevant tenancy of another flat in the same premises) ceases to be a member of the RTE company; and
(b)  the assignee (unless he is already a member of the RTE company) shall become a member of the RTE company."
 

Clause 120

 

THE LORD GOODHART
THE BARONESS HAMWEE

148A*Page 61, line 43, after "given" insert ", and if given will be of no effect, until and"
 

After Clause 122

 

THE LORD GOODHART
THE BARONESS HAMWEE

149Insert the following new Clause—
  "Covenants on conveyance of part of building
  After section 34 of the 1993 Act insert—
    "34A  Covenants on conveyance of part of building
    (1)  This section applies to a conveyance executed for the purposes of this Chapter of a self-contained part of a building if it does not constitute a vertical division of the building or if the structure of the building is such that it could not be redeveloped independently of the remainders of the building.
    (2)  A conveyance to which this section applies shall include such covenants (including positive covenants) enforceable by and against the parties to the conveyance and their successors in title as may be prescribed."."
 

Clause 123

 

THE LORD KINGSLAND

150Page 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 GOODHART
THE BARONESS HAMWEE

151Insert the following new Clause—
  "Abolition of marriage values
  In Schedule 6 to the 1993 Act, omit—
(a)  paragraph 2(1)(b);
(b)  paragraph 4;
(c)  paragraph 5A(2)(b);
(d)  paragraph 5C;
(e)  paragraphs 9 and 9A;
(f)  paragraph 10(1)(b);
(g)  paragraph 12;
(h)  paragraphs 15 and 16; and
(i)  paragraphs 19 and 20."
 

THE LORD KINGSLAND

152Insert 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 GOODHART
THE BARONESS HAMWEE
THE LORD KINGSLAND

 The above-named Lords give notice of their intention to oppose the Question that Clause 124 stand part of the Bill.
 

Clause 125

 

THE LORD KINGSLAND

153Page 62, line 21, leave out "eighty" and insert "ninety"
 

THE LORD GOODHART
THE BARONESS HAMWEE
THE LORD KINGSLAND

 The above-named Lords give notice of their intention to oppose the Question that Clause 125 stand part of the Bill.
 

Clause 127

 

THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS

154Page 62, line 32, leave out subsection (2)
 

THE LORD KINGSLAND

155Page 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.""
156Page 63, line 1, leave out subsection (3)
 

THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS

157Page 63, line 1, leave out subsection (3) and insert—
"(   )  In subsections (2)(b), (2A) and (2B) (requirement that tenant has occupied flat as only principal home for three years), for "three years" substitute "6 months"."
 

THE LORD KINGSLAND

157APage 63, line 1, leave out subsection (3) and insert—
"(   )  In subsections (2A) and (2B), for "his only or principal home" substitute "a residence".
(   )  In—
(a)  paragraph (a) of subsection (2A),
(b)  paragraph (b) of subsection (2A),
(c)  paragraph (a) of subsection (2B), and
(d)  paragraph (b) of subsection (2B),
  for "three years" substitute "twelve months".
(   )  After subsection (2B) insert—
    "(2C)  Where the lease by virtue of which the tenant is a qualifying tenant is vested in a company which does not carry on, and has not at any time since the lease became vested in it carried on, any or any substantial business (other than in relation to its ownership of the lease) and an individual being a person having control of the company occupies the flat as a residence, the company shall have the like rights under this Chapter in respect of his occupation as he would have if he were the qualifying tenant.
    (2D)  For the purposes of subsection (2C), a person is to be taken as having control of a company if—
    (a)  the directors of the company or of another company which has control of it (or any of them) are accustomed to act in accordance with his directions and instructions, and
    (b)  he is entitled to exercise or control the exercise of more than 50 per cent. of the voting power at any general meeting of the company or of another company which has control of it.
    (2E)  For the purposes of subsections (2C) and (2D), "company" includes any body corporate (whether incorporated in Great Britain or elsewhere) and references to directors of a company and to voting power at any general meeting of a company have effect with any necessary modifications.""
158Page 63, line 1, leave out "(2)(b)"
 

THE LORD GOODHART
THE BARONESS HAMWEE

158A*Page 63, line 2, after "only" insert "or"
 

THE LORD KINGSLAND

 The Lord Kingsland gives notice of his intention to oppose the Question that Clause 127 stand part of the Bill.

 
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©Parliamentary copyright 2001
19 October 2001