Housing Act 1996
1996 Chapter 52 - continued

 
 
Trusts
Satisfaction of residence condition: collective enfranchisement.     111. - (1) In section 6 of the Leasehold Reform, Housing and Urban Development Act 1993 (which provides when a qualifying tenant of a flat satisfies the residence condition) for subsection (4) there shall be substituted-
 
 
    "(4) Subsection (1) shall not apply where a lease is vested in trustees (other than a sole tenant for life within the meaning of the Settled Land Act 1925), 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 condition in subsection (5) is satisfied with respect to an individual having an interest under the trust (whether or not also a trustee).
 
      (5) That condition is that the individual has occupied the flat as his only or principal home-
 
 
    (a) for the last twelve months, or
 
    (b) for periods amounting to three years in the last ten years,
  whether or not he has used the flat also for other purposes.
      (6) For the purposes of subsection (5)-
 
 
    (a) any reference to the flat includes a reference to part of it; and
 
    (b) it is immaterial whether at any particular time the individual's occupation was in right of the lease by virtue of which the trustees are a qualifying tenant or in right of some other lease or otherwise.".
      (2) In section 13(3)(e)(iii) of that Act (particulars of satisfaction of residence condition to be included in the notice by which qualifying tenants exercise right to collective enfranchisement)-
 
 
    (a) after "which he" there shall be inserted ", or, where the tenant's lease is vested as mentioned in section 6(4), the individual concerned,", and
 
    (b) for "his", in the first place where it occurs, there shall be substituted "the".
Satisfaction of residence condition: new leases.     112. - (1) Section 39 of the Leasehold Reform, Housing and Urban Development Act 1993 (right of qualifying tenant of flat to acquire new lease) shall be amended as mentioned in subsections (2) to (4) below.
 
      (2) In subsection (2) (circumstances in which the right conferred) for paragraph (b) (residence condition) there shall be substituted-
 
 
    "(b) the condition specified in subsection (2A) or, as the case may be, (2B) is satisfied.
      (2A) Where the lease by virtue of which the tenant is a qualifying tenant is vested in trustees (other than a sole tenant for life within the meaning of the Settled Land Act 1925), the condition is that an individual having an interest under the trust (whether or not also a trustee) has occupied the flat as his only or principal home-
 
 
    (a) for the last three years, or
 
    (b) for periods amounting to three years in the last ten years,
  whether or not he has used it also for other purposes.
      (2B) Where the lease by virtue of which the tenant is a qualifying tenant is not vested as mentioned in subsection (2A), the condition is that the tenant has occupied the flat as his only or principal home-
 
 
    (a) for the last three years, or
 
    (b) for periods amounting to three years in the last ten years,
  whether or not he has used it also for other purposes.".
      (3) After subsection (4) there shall be inserted-
 
      "(4A) For the purposes of subsection (2A)-
       
 
      (a) any reference to the flat includes a reference to part of it; and
 
      (b) it is immaterial whether at any particular time the individual's occupation was in right of the lease by virtue of which the trustees are a qualifying tenant or in right of some other lease or otherwise.".
      (4) In subsection (5), for "(2)(b)" there shall be substituted "(2B)".
 
      (5) In section 42 of that Act (notice by qualifying tenant of claim to exercise right) for subsection (4) there shall be substituted-
 
 
    "(4) If the tenant's lease is vested as mentioned in section 39(2A), the reference to the tenant in subsection (3)(b)(iv) shall be read as a reference to any individual with respect to whom it is claimed the condition in section 39(2A) is satisfied.".
 
Powers of trustees.     113. After section 93 of the Leasehold Reform, Housing and Urban Development Act 1993 there shall be inserted-
 
 
"Powers of trustees in relation to rights under Chapters I and II.     93A. - (1) Where trustees are a qualifying tenant of a flat for the purposes of Chapter I or II, their powers under the instrument regulating the trusts shall include power to participate in the exercise of the right to collective enfranchisement under Chapter I or, as the case may be, to exercise the right to a new lease under Chapter II.
 
    (2) Subsection (1) shall not apply where the instrument regulating the trusts-
 
 
    (a) is made on or after the day on which section 113 of the Housing Act 1996 comes into force, and
 
    (b) contains an explicit direction to the contrary.
      (3) The powers conferred by subsection (1) shall be exercisable with the like consent or on the like direction (if any) as may be required for the exercise of the trustees' powers (or ordinary powers) of investment.
 
      (4) The following purposes, namely-
 
 
    (a) those authorised for the application of capital money by section 73 of the Settled Land Act 1925, or by that section as applied by section 28 of the Law of Property Act 1925 in relation to trusts for sale, and
 
    (b) those authorised by section 71 of the Settled Land Act 1925, or by that section as so applied, as purposes for which moneys may be raised by mortgage,
  shall include the payment of any expenses incurred by a tenant for life or statutory owners or by trustees for sale, as the case may be, in or in connection with participation in the exercise of the right to collective enfranchisement under Chapter I or in or in connection with the exercise of the right to a new lease under Chapter II.".
 
Miscellaneous
Minor amendment of section 1(1)(a) of Leasehold Reform Act 1967.     114. In section 1 of the Leasehold Reform Act 1967 (tenants entitled to enfranchisement or extension), in subsection (1)(a)-
 
 
    (a) in sub-paragraph (i), for the words from "or (where" to "that date," there shall be substituted ", or on or after 1st April 1990 in pursuance of a contract made before that date, and the house and premises had a rateable value at the date of commencement of the tenancy or else at any time before 1st April 1990,", and
 
    (b) in sub-paragraph (ii), for the words from "is entered" to "1990)," there shall be substituted "does not fall within sub-paragraph (i) above,".
Power for leasehold valuation tribunal to determine amount of costs payable under Leasehold Reform Act 1967.     115. In section 21(1) of the Leasehold Reform Act 1967 (matters to be determined by leasehold valuation tribunal), after paragraph (b) there shall be inserted-
 
 
    "(ba) the amount of any costs payable under section 9(4) or 14(2);".
Compensation for postponement of termination in connection with ineffective claims.     116. Schedule 11 (which makes, in relation to claims to enfranchisement or an extended lease under Part I of the Leasehold Reform Act 1967 and claims to collective enfranchisement or a new lease under Chapter I or II of Part I of the Leasehold Reform, Housing and Urban Development Act 1993, provision for compensation of the landlord where the claim has prolonged an existing tenancy, but is ineffective) shall have effect.
 
Priority of interests on grant of new lease.     117. After section 58 of the Leasehold Reform, Housing and Urban Development Act 1993 there shall be inserted-
 
 
"Priority of interests on grant of new lease.     58A. - (1) Where a lease granted under section 56 takes effect subject to two or more interests to which the existing lease was subject immediately before its surrender, the interests shall have the same priority in relation to one another on the grant of the new lease as they had immediately before the surrender of the existing lease.
 
    (2) Subsection (1) is subject to agreement to the contrary.
 
      (3) Where a person who is entitled on the grant of a lease under section 56 to rights of occupation in relation to the flat comprised in that lease was entitled immediately before the surrender of the existing lease to rights of occupation in relation to the flat comprised in that lease, the rights to which he is entitled on the grant of the new lease shall be treated as a continuation of the rights to which he was entitled immediately before the surrender of the existing lease.
 
      (4) In this section-
 
 
    "the existing lease", in relation to a lease granted under section 56, means the lease surrendered on the grant of the new lease, and
 
    "rights of occupation" has the same meaning as in the Matrimonial Homes Act 1983.".
Estate management schemes in connection with enfranchisement by virtue of s. 106.     118. - (1) Chapter IV of Part I of the 1993 Act, except section 75(1), (estate management schemes in connection with enfranchisement by virtue of that Act) shall also have effect subject to the modifications mentioned in subsections (2) to (4) below.
 
      (2) In section 69(1) (definition of estate management schemes), for paragraphs (a) and (b) there shall be substituted-
 
 
    "(a) acquiring the landlord's interest in their house and premises ("the house") under Part I of the Leasehold Reform Act 1967 by virtue of the provisions of section 1AA of that Act (as inserted by paragraph 1 of Schedule 9 to the Housing Act 1996), or
 
    (b) acquiring the landlord's interest in any premises ("the premises") in accordance with Chapter I of this Part of this Act by virtue of the amendments of that Chapter made by paragraph 3 of Schedule 9 to the Housing Act 1996,".
      (3) In section 70 (time limit for applications for approval), for "two years beginning with the date of the coming into force of this section" there shall be substituted "two years beginning with the coming into force of section 118 of the Housing Act 1996".
 
      (4) In section 74 (effect of application for approval on claim to acquire freehold), in subsection (1)-
 
 
    (a) in paragraph (b), in sub-paragraph (i), the words from "being" to the end shall be omitted, and
 
    (b) after that paragraph there shall be inserted"and
 
    (c) in the case of an application for the approval of a scheme as an estate management scheme, the scheme would extend to the house or premises if acquired in pursuance of the notice.".
      (5) Section 94(6) to (8) of the 1993 Act (estate management schemes relating to Crown land) shall also have effect with the substitution for any reference to a provision of Chapter IV of Part I of that Act of a reference to that provision as it has effect by virtue of subsection (1) above.
 
      (6) In section 33 of the National Heritage Act 1983 (general functions of the Historic Buildings and Monuments Commission for England), after subsection (2B) there shall be inserted-
 
 
    "(2C) In subsection (2B), references to provisions of the Leasehold Reform, Housing and Urban Development Act 1993 include references to those provisions as they have effect by virtue of section 118(1) of the Housing Act 1996.".
 
      (7) In section 72 of the Planning (Listed Buildings and Conservation Areas) Act 1990 (general duty as respects conservation area in exercise of planning functions), at the end there shall be inserted-
 
 
    "(3) In subsection (2), references to provisions of the Leasehold Reform, Housing and Urban Development Act 1993 include references to those provisions as they have effect by virtue of section 118(1) of the Housing Act 1996.".
 
      (8) In this section, "the 1993 Act" means the Leasehold Reform, Housing and Urban Development Act 1993.
 
Leasehold valuation tribunals: pre-trial review.     119. - (1) Procedure regulations may make provision in relation to proceedings before a leasehold valuation tribunal-
 
 
    (a) for the holding of a pre-trial review, on the application of a party to the proceedings or of the tribunal's own motion; and
 
    (b) for the exercise of the functions of the tribunal in relation to, or at, a pre-trial review by a single member who is qualified to exercise them.
      (2) In subsection (1) "procedure regulations" means regulations under section 74(1)(b) of the Rent Act 1977, as that section applies in relation to leasehold valuation tribunals.
 
      (3) For the purposes of subsection (1)(b)-
 
 
    (a) a"member" means a member of the panel provided for in Schedule 10 to that Act, and
 
    (b) a member is qualified to exercise the functions referred to if he was appointed to that panel by the Lord Chancellor.
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Prepared 22 December 1996