Commonhold and Leasehold Reform Bill [HL]
REVISED
MARSHALLED
LIST OF AMENDMENTS
TO BE MOVED
ON REPORT
The amendments have been marshalled in accordance with the Order of 7th November 2001, as follows—
Clauses 1 and 2
Schedule 1
Clauses 3 and 4
Schedule 2
Clauses 5 to 33
Schedule 3
Clauses 34 to 57
Schedule 4
Clauses 58 to 66
Schedule 5
Clauses 67 to 70
Schedule 6
Clauses 71 to 100
Schedule 7
Clauses 101 to 121 | Schedule 8
Clauses 122 to 146
Schedule 9
Clauses 147 to 152
Schedule 10
Clause 153
Schedule 11
Clauses 154 to 164
Schedule 12
Clauses 165 and 166
Schedule 13
Clauses 167 to 170
Schedule 14
Clauses 171 to 173 |
[Amendments marked * are new or have been altered]
Amendment
No.
| | THE LORD GOODHART
THE BARONESS HAMWEE
THE LORD KINGSLAND |
| 1 | Page 2, line 18, at beginning insert "Subject to subsection (1A)," |
| | THE LORD GOODHART
THE BARONESS HAMWEE |
| 2 | Page 2, line 24, at end insert— |
| "(1A) | Subsection (1) shall apply if— |
| (a) | the persons who have not consented to the application (in this Part referred to as "non-consenting proprietors") are registered proprietors solely of leasehold estates in flats forming part of a self-contained building which is the subject of the application or of changes over such estates, and |
| (b) | the number of flats to which paragraph (a) applies is not more than 20 per cent. of the number of flats in the building. |
| (1B) | Schedule "Non-consenting proprietors" shall have effect where a freehold estate in land is registered as a freehold estate in land and is registered as a freehold estate in commonhold land in pursuance of an application under section 2 and that application could not have been made but for subsection (1A)." |
| | THE LORD GOODHART
THE BARONESS HAMWEE
THE LORD KINGSLAND |
| 3 | Insert the following new Schedule— |
| | NON-CONSENTING PROPRIETORS |
| | "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 2 of Part 1 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 the 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 1 in relation to commonhold land which includes the reversion of an excluded lease) may make consequential provision for giving effect to this Schedule." |
| | THE EARL OF CAITHNESS
THE LORD WILLIAMS OF ELVEL |
| 4 | Insert the following new Clause— |
| | "Conversion of existing buildings |
| (1) | Notwithstanding the provisions of sections 2 and 3, in order to facilitate the creation of commonhold from an existing freehold building, the following provisions shall apply— |
| (a) | existing long leases may continue and comprise part of a commonhold; |
| (b) | where leaseholders do not wish to become unit-owners and have signified this accordingly, existing long leases will continue and the commonhold association shall be regarded as the unit-holder, with the obligation to the leaseholder as the freeholder of the unit; |
| (c) | existing rights applicable to long leases shall continue to be maintained; and |
| (d) | existing rights applicable to mortgages shall be maintained. |
| (2) | Conversion may take place where no less than 50 per cent. of the long leaseholders consent to convert to commonhold. |
| (3) | Where more than 10 per cent. of leaseholders object to this conversion, they may apply to a tribunal court indicating the grounds for their objections; and the tribunal may then confirm or prevent the conversion having regard to the circumstances." |
| 5 | Page 88, line 5, leave out paragraph 1 |
| | THE EARL OF CAITHNESS
THE LORD WILLIAMS OF ELVEL |
| 6 | Page 4, line 31, after "Part" insert ""first" |
| 7 | Page 4, line 33, 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." |
| 8 | Page 4, line 34, leave out first "a" and insert "both" |
| 9 | Page 4, line 34, leave out "period" and insert "periods" |
| 10 | Page 4, line 41, 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." |
| | THE EARL OF CAITHNESS
THE LORD WILLIAMS OF ELVEL |
| 11 | Page 6, line 12, leave out "may" and insert "must" |
| 12 | Page 6, line 13, at end insert ", and must have regard to section 24(2)" |
| 13 | Page 6, line 14, leave out "may" and insert "must" |
| 14 | Page 6, line 15, leave out "may" and insert "must" |
| | THE LORD GOODHART
THE BARONESS HAMWEE |
| 15 | Page 8, line 18, leave out subsections (1) and (2) and insert— |
| "( ) | No term of years absolute may be created in a residential commonhold unit— |
| (a) | for a term exceeding 7 years; |
| (b) | in consideration of the payment of a premium or other lump sum; |
| (c) | which does not comply with such other considerations as may be prescribed." |
| | THE EARL OF CAITHNESS
THE LORD WILLIAMS OF ELVEL |
| 17 | Page 11, line 24, leave out from "means" to end of line 26 and insert "all structural parts of the commonhold and those areas used in common" |
| 18 | Page 11, line 26, 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 thereof 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." |
| 19 | Page 18, line 18, 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." |
| 20 | Page 19, line 20, leave out paragraph (b) and insert— |
| "(b) | by a majority of 75 per cent. of the members of the commonhold community association who cast a vote on resolution." |
| 21 | Page 32, line 27, leave out from first "company" to end of line and insert "which, in accordance with this Chapter, may acquire and exercise those rights (referred to in this Chapter as a RTM company)" |
| 22 | Page 33, line 8, at end insert ", and |
| (d) | no part of the premises are let on a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies, provided always that planning consent has been granted for such business use or that deemed planning consent for such use exists." |
| 23 | Page 33, line 8, at end insert— |
| "( ) | But this Chapter does not apply to any part of a building which is not occupied, nor intended to be occupied, for residential use." |
| 24 | Page 95, line 35, leave out paragraph 1 |
| 25 | Page 33, line 26, leave out "for the purposes of this Chapter" |
| 26 | Page 33, line 31, at end insert— |
| "(2A) | The sum to which each member of an RTM company undertakes to contribute to the company's assets if it should be wound up whilst he is a member, or within one year after he ceases to be a member, for payment of the company's debts and liabilities contracted before he ceased to be a member, and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributories among themselves shall be the minimum sum, as defined in subsection (2B) below. |
| (2B) | The minimum sum mentioned in subsection (2)(c) above shall be the following amount, namely the greater of— |
| (a) | the total service charge and rent payable by tenants in respect of the premises in the two years prior to the acquisition date, or |
| (b) | twice the average service charge and rent payable in respect of the premises in the five years prior to the acquisition date, |
| | in each case divided by the number of members of the RTM company." |
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