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PART 2 continued CHAPTER 5 continued
(1) A landlord under a long lease of a dwelling may not serve a notice under section 146(1) of the Law of Property Act 1925 (c. 20) (restriction on forfeiture) in respect of a breach by a tenant of a covenant or condition in the lease unless subsection (2) is satisfied.
(2) This subsection is satisfied if—
(a) it has been finally determined on an application under subsection (4) that the breach has occurred,
(b) the tenant has admitted the breach, or
(c) a court in any proceedings, or an arbitral tribunal in proceedings pursuant to a post-dispute arbitration agreement, has finally determined that the breach has occurred.
(3) But a notice may not be served by virtue of subsection (2)(a) or (c) until after the end of the period of 14 days beginning with the day after that on which the final determination is made.
(4) A landlord under a long lease of a dwelling may make an application to a leasehold valuation tribunal for a determination that a breach of a covenant or condition in the lease has occurred.
(5) But a landlord may not make an application under subsection (4) in respect of a matter which—
(a) has been, or is to be, referred to arbitration pursuant to a post-dispute arbitration agreement to which the tenant is a party,
(b) has been the subject of determination by a court, or
(c) has been the subject of determination by an arbitral tribunal pursuant to a post-dispute arbitration agreement.
(1) An agreement by a tenant under a long lease of a dwelling (other than a post-dispute arbitration agreement) is void in so far as it purports to provide for a determination—
(a) in a particular manner, or
(b) on particular evidence,
of any question which may be the subject of an application under section 168(4).
(2) For the purposes of section 168 it is finally determined that a breach of a covenant or condition in a lease has occurred—
(a) if a decision that it has occurred is not appealed against or otherwise challenged, at the end of the period for bringing an appeal or other challenge, or
(b) if such a decision is appealed against or otherwise challenged and not set aside in consequence of the appeal or other challenge, at the time specified in subsection (3).
(3) The time referred to in subsection (2)(b) is the time when the appeal or other challenge is disposed of—
(a) by the determination of the appeal or other challenge and the expiry of the time for bringing a subsequent appeal (if any), or
(b) by its being abandoned or otherwise ceasing to have effect.
(4) In section 168 and this section “long lease of a dwelling” does not include—
(a) a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies,
(b) a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or
(c) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8).
(5) In section 168 and this section—
“arbitration agreement” and “arbitral tribunal” have the same meaning as in Part 1 of the Arbitration Act 1996 (c. 23) and “post-dispute arbitration agreement”, in relation to any breach (or alleged breach), means an arbitration agreement made after the breach has occurred (or is alleged to have occurred),
“dwelling” has the same meaning as in the 1985 Act,
“landlord” and “tenant” have the same meaning as in Chapter 1 of this Part, and
“long lease” has the meaning given by sections 76 and 77 of this Act, except that a shared ownership lease is a long lease whatever the tenant’s total share.
(6) Section 146(7) of the Law of Property Act 1925 (c. 20) applies for the purposes of section 168 and this section.
(7) Nothing in section 168 affects the service of a notice under section 146(1) of the Law of Property Act 1925 in respect of a failure to pay—
(a) a service charge (within the meaning of section 18(1) of the 1985 Act), or
(b) an administration charge (within the meaning of Part 1 of Schedule 11 to this Act).
(1) Section 81 of the Housing Act 1996 (c. 52) (restriction on forfeiture for failure to pay service charge) is amended as follows.
(2) In subsection (1), for the words from “to pay” to the end substitute “by a tenant to pay a service charge or administration charge unless—
(a) it is finally determined by (or on appeal from) a leasehold valuation tribunal or by a court, or by an arbitral tribunal in proceedings pursuant to a post-dispute arbitration agreement, that the amount of the service charge or administration charge is payable by him, or
(b) the tenant has admitted that it is so payable.”
(3) For subsection (2) substitute—
“(2) The landlord may not exercise a right of re-entry or forfeiture by virtue of subsection (1)(a) until after the end of the period of 14 days beginning with the day after that on which the final determination is made.”
(4) For subsection (3) substitute—
“(3) For the purposes of this section it is finally determined that the amount of a service charge or administration charge is payable—
(a) if a decision that it is payable is not appealed against or otherwise challenged, at the end of the time for bringing an appeal or other challenge, or
(b) if such a decision is appealed against or otherwise challenged and not set aside in consequence of the appeal or other challenge, at the time specified in subsection (3A).
(3A) The time referred to in subsection (3)(b) is the time when the appeal or other challenge is disposed of—
(a) by the determination of the appeal or other challenge and the expiry of the time for bringing a subsequent appeal (if any), or
(b) by its being abandoned or otherwise ceasing to have effect.”
(5) After subsection (4) insert—
“(4A) References in this section to the exercise of a right of re-entry or forfeiture include the service of a notice under section 146(1) of the Law of Property Act 1925 (restriction on re-entry or forfeiture).”
(6) In subsection (5), after “this section” insert—
“(a) “administration charge” has the meaning given by Part 1 of Schedule 11 to the Commonhold and Leasehold Reform Act 2002,
(b) “arbitration agreement” and “arbitral tribunal” have the same meaning as in Part 1 of the Arbitration Act 1996 (c. 23) and “post-dispute arbitration agreement”, in relation to any matter, means an arbitration agreement made after a dispute about the matter has arisen,
(c) “dwelling” has the same meaning as in the Landlord and Tenant Act 1985 (c. 70), and
(d)”.
(1) The appropriate national authority may by regulations prescribe requirements which must be met before a right of re-entry or forfeiture may be exercised in relation to a breach of a covenant or condition in a long lease of an unmortgaged dwelling.
(2) The regulations may specify that the requirements are to be in addition to, or instead of, requirements imposed otherwise than by the regulations.
(3) In this section “long lease of a dwelling” does not include—
(a) a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies,
(b) a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or
(c) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8).
(4) For the purposes of this section a dwelling is unmortgaged if it is not subject to a mortgage, charge or lien.
(5) In this section—
“dwelling” has the same meaning as in the 1985 Act, and
“long lease” has the meaning given by sections 76 and 77 of this Act, except that a shared ownership lease is a long lease whatever the tenant’s total share.
(1) The following provisions apply in relation to Crown land (as in relation to other land)—
(a) sections 18 to 30B of (and the Schedule to) the 1985 Act (service charges, insurance and managing agents),
(b) Part 2 of the 1987 Act (appointment of manager by leasehold valuation tribunal),
(c) Part 4 of the 1987 Act (variation of leases),
(d) sections 46 to 49 of the 1987 Act (information to be furnished to tenants),
(e) Chapter 5 of Part 1 of the 1993 Act (management audit),
(f) section 81 of the Housing Act 1996 (c. 52) (restriction on termination of tenancy for failure to pay service charge etc.),
(g) section 84 of (and Schedule 4 to) that Act (right to appoint surveyor), and
(h) in this Chapter, the provisions relating to any of the provisions within paragraphs (a) to (g), Part 1 of Schedule 11 and sections 164 to 171.
(2) Land is Crown land if there is or has at any time been an interest or estate in the land—
(a) comprised in the Crown Estate,
(b) belonging to Her Majesty in right of the Duchy of Lancaster,
(c) belonging to the Duchy of Cornwall, or
(d) belonging to a government department or held on behalf of Her Majesty for the purposes of a government department.
(3) No failure by the Crown to perform a duty imposed by or by virtue of any of sections 21 to 23A of, or any of paragraphs 2 to 4A of the Schedule to, the 1985 Act makes the Crown criminally liable; but the High Court may declare any such failure without reasonable excuse to be unlawful.
(4) Any sum payable under any of the provisions mentioned in subsection (1) by the Chancellor of the Duchy of Lancaster may be raised and paid under section 25 of the Duchy of Lancaster Act 1817 (c. 97) as an expense incurred in improvement of land belonging to Her Majesty in right of the Duchy.
(5) Any sum payable under any such provision by the Duke of Cornwall (or any other possessor for the time being of the Duchy of Cornwall) may be raised and paid under section 8 of the Duchy of Cornwall Management Act 1863 (c. 49) as an expense incurred in permanently improving the possessions of the Duchy.
(6) In section 56 of the 1987 Act (Crown land)—
(a) in subsection (1), for “This Act” substitute “Parts 1 and 3 and sections 42 to 42B (and so much of this Part as relates to those provisions)”, and
(b) in subsection (3), for “this Act” substitute “the provisions mentioned in subsection (1)”.
(1) Any jurisdiction conferred on a leasehold valuation tribunal by or under any enactment is exercisable by a rent assessment committee constituted in accordance with Schedule 10 to the Rent Act 1977 (c. 42).
(2) When so constituted for exercising any such jurisdiction a rent assessment committee is known as a leasehold valuation tribunal.
Schedule 12 (leasehold valuation tribunals: procedure) has effect.
(1) A party to proceedings before a leasehold valuation tribunal may appeal to the Lands Tribunal from a decision of the leasehold valuation tribunal.
(2) But the appeal may be made only with the permission of—
(a) the leasehold valuation tribunal, or
(b) the Lands Tribunal.
(3) And it must be made within the time specified by rules under section 3(6) of the Lands Tribunal Act 1949 (c. 42).
(4) On the appeal the Lands Tribunal may exercise any power which was available to the leasehold valuation tribunal.
(5) And a decision of the Lands Tribunal on the appeal may be enforced in the same way as a decision of the leasehold valuation tribunal.
(6) The Lands Tribunal may not order a party to the appeal to pay costs incurred by another party in connection with the appeal unless he has, in the opinion of the Lands Tribunal, acted frivolously, vexatiously, abusively, disruptively or otherwise unreasonably in connection with the appeal.
(7) In such a case the amount he may be ordered to pay shall not exceed the maximum amount which a party to proceedings before a leasehold valuation tribunal may be ordered to pay in the proceedings under or by virtue of paragraph 10(3) of Schedule 12.
(8) No appeal lies from a decision of a leasehold valuation tribunal to the High Court by virtue of section 11(1) of the Tribunals and Inquiries Act 1992 (c. 53).
(9) And no case may be stated for the opinion of the High Court in respect of such a decision by virtue of that provision.
(10) For the purposes of section 3(4) of the Lands Tribunal Act 1949 (which enables a person aggrieved by a decision of the Lands Tribunal to appeal to the Court of Appeal) a leasehold valuation tribunal is not a person aggrieved.
Schedule 13 (minor and consequential amendments about leasehold valuation tribunals) has effect.
The references to the 1985 Act, the 1987 Act and the 1993 Act in Schedule 1 to the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I.1999/672) are to be treated as referring to those Acts as amended by this Part.
(1) An order or regulations under any provision of this Part—
(a) may include incidental, supplementary, consequential and transitional provision,
(b) may make provision generally or only in relation to specified cases, and
(c) may make different provision for different purposes.
(2) Regulations under Schedule 12 may make different provision for different areas.
(3) Any power to make an order or regulations under this Part is exercisable by statutory instrument.
(4) Regulations shall not be made by the Secretary of State under section 167 or 171 or paragraph 9(3)(b) or 10(3)(b) of Schedule 12 unless a draft of the instrument containing them has been laid before and approved by a resolution of each House of Parliament.
(5) A statutory instrument containing an order or regulations made by the Secretary of State under this Part shall, if not so approved, be subject to annulment in pursuance of a resolution of either House of Parliament.
(1) In this Part “the appropriate national authority” means—
(a) the Secretary of State (as respects England), and
(b) the National Assembly for Wales (as respects Wales).
(2) In this Part—
“the 1967 Act” means the Leasehold Reform Act 1967 (c. 88),
“the 1985 Act” means the Landlord and Tenant Act 1985 (c. 70),
“the 1987 Act” means the Landlord and Tenant Act 1987 (c. 31), and
“the 1993 Act” means the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28).
Commonhold and Leasehold Reform Act 2002