Commonhold and Leasehold Reform Act 2002

JurisdictionUK Non-devolved
Citation2002 c. 15


Commonhold and Leasehold ReformAct 2002

2002 Chapter 15

An Act to make provision about commonhold land and to amend the law about leasehold property.

[1st May 2002]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows—

1 Commonhold

Part 1

Commonhold

Nature of commonhold

Nature of commonhold

S-1 Commonhold land

1 Commonhold land

(1) Land is commonhold land if—

(a) the freehold estate in the land is registered as a freehold estate in commonhold land,

(b) the land is specified in the memorandum of association of a commonhold association as the land in relation to which the association is to exercise functions, and

(c) a commonhold community statement makes provision for rights and duties of the commonhold association and unit-holders (whether or not the statement has come into force).

(2) In this Part a reference to a commonhold is a reference to land in relation to which a commonhold association exercises functions.

(3) In this Part—

‘commonhold association’ has the meaning given by section 34,

‘commonhold community statement’ has the meaning given by section 31,

‘commonhold unit’ has the meaning given by section 11,

‘common parts’ has the meaning given by section 25, and

‘unit-holder’ has the meaning given by sections 12 and 13.

(4) Sections 7 and 9 make provision for the vesting in the commonhold association of the fee simple in possession in the common parts of a commonhold.

Registration

Registration

S-2 Application

2 Application

(1) The Registrar shall register a freehold estate in land as a freehold estate in commonhold land if—

(a) the registered freeholder of the land makes an application under this section, and

(b) no part of the land is already commonhold land.

(2) An application under this section must be accompanied by the documents listed in Schedule 1.

(3) A person is the registered freeholder of land for the purposes of this Part if—

(a) he is registered as the proprietor of a freehold estate in the land with absolute title, or

(b) he has applied, and the Registrar is satisfied that he is entitled, to be registered as mentioned in paragraph (a).

S-3 Consent

3 Consent

(1) An application under section 2 may not be made in respect of a freehold estate in land without the consent of anyone who—

(a) is the registered proprietor of the freehold estate in the whole or part of the land,

(b) is the registered proprietor of a leasehold estate in the whole or part of the land granted for a term of more than than 21 years,

(c) is the registered proprietor of a charge over the whole or part of the land, or

(d) falls within any other class of person which may be prescribed.

(2) Regulations shall make provision about consent for the purposes of this section; in particular, the regulations may make provision—

(a) prescribing the form of consent;

(b) about the effect and duration of consent (including provision for consent to bind successors);

(c) about withdrawal of consent (including provision preventing withdrawal in specified circumstances);

(d) for consent given for the purpose of one application under section 2 to have effect for the purpose of another application;

(e) for consent to be deemed to have been given in specified circumstances;

(f) enabling a court to dispense with a requirement for consent in specified circumstances.

(3) An order under subsection (2)(f) dispensing with a requirement for consent—

(a) may be absolute or conditional, and

(b) may make such other provision as the court thinks appropriate.

S-4 Land which may not be commonhold

4 Land which may not be commonhold

Schedule 2 (which provides that an application under section 2 may not relate wholly or partly to land of certain kinds) shall have effect.

S-5 Registered details

5 Registered details

(1) The Registrar shall ensure that in respect of any commonhold land the following are kept in his custody and referred to in the register—

(a) the prescribed details of the commonhold association;

(b) the prescribed details of the registered freeholder of each commonhold unit;

(c) a copy of the commonhold community statement;

(d) a copy of the memorandum and articles of association of the commonhold association.

(2) The Registrar may arrange for a document or information to be kept in his custody and referred to in the register in respect of commonhold land if the document or information—

(a) is not mentioned in subsection (1), but

(b) is submitted to the Registrar in accordance with a provision made by or by virtue of this Part.

(3) Subsection (1)(b) shall not apply during a transitional period within the meaning of section 8.

S-6 Registration in error

6 Registration in error

(1) This section applies where a freehold estate in land is registered as a freehold estate in commonhold land and—

(a) the application for registration was not made in accordance with section 2,

(b) the certificate under paragraph 7 of Schedule 1 was inaccurate, or

(c) the registration contravened a provision made by or by virtue of this Part.

(2) The register may not be altered by the Registrar under Schedule 4 to the Land Registration Act 2002 (c. 9) (alteration of register).

(3) The court may grant a declaration that the freehold estate should not have been registered as a freehold estate in commonhold land.

(4) A declaration under subsection (3) may be granted only on the application of a person who claims to be adversely affected by the registration.

(5) On granting a declaration under subsection (3) the court may make any order which appears to it to be appropriate.

(6) An order under subsection (5) may, in particular—

(a) provide for the registration to be treated as valid for all purposes;

(b) provide for alteration of the register;

(c) provide for land to cease to be commonhold land;

(d) require a director or other specified officer of a commonhold association to take steps to alter or amend a document;

(e) require a director or other specified officer of a commonhold association to take specified steps;

(f) make an award of compensation (whether or not contingent upon the occurrence or non-occurrence of a specified event) to be paid by one specified person to another;

(g) apply, disapply or modify a provision of Schedule 8 to the Land Registration Act 2002 (c. 9) (indemnity).

Effect of registration

Effect of registration

S-7 Registration without unit-holders

7 Registration without unit-holders

(1) This section applies where—

(a) a freehold estate in land is registered as a freehold estate in commonhold land in pursuance of an application under section 2, and

(b) the application is not accompanied by a statement under section 9(1)(b).

(2) On registration—

(a) the applicant shall continue to be registered as the proprietor of the freehold estate in the commonhold land, and

(b) the rights and duties conferred and imposed by the commonhold community statement shall not come into force (subject to section 8(2)(b)).

(3) Where after registration a person other than the applicant becomes entitled to be registered as the proprietor of the freehold estate in one or more, but not all, of the commonhold units—

(a) the commonhold association shall be entitled to be registered as the proprietor of the freehold estate in the common parts,

(b) the Registrar shall register the commonhold association in accordance with paragraph (a) (without an application being made),

(c) the rights and duties conferred and imposed by the commonhold community statement shall come into force, and

(d) any lease of the whole or part of the commonhold land shall be extinguished by virtue of this section.

(4) For the purpose of subsection (3)(d) ‘lease’ means a lease which—

(a) is granted for any term, and

(b) is granted before the commonhold association becomes entitled to be registered as the proprietor of the freehold estate in the common parts.

S-8 Transitional period

8 Transitional period

(1) In this Part ‘transitional period’ means the period between registration of the freehold estate in land as a freehold estate in commonhold land and the event mentioned in section 7(3).

(2) Regulations may provide that during a transitional period a relevant provision—

(a) shall not have effect, or

(b) shall have effect with specified modifications.

(3) In subsection (2) ‘relevant provision’ means a provision made—

(a) by or by virtue of this Part,

(b) by a commonhold community statement, or

(c) by the memorandum or articles of the commonhold association.

(4) The Registrar shall arrange for the freehold estate in land to cease to be registered as a freehold estate in commonhold land if the registered proprietor makes an application to the Registrar under this subsection during the transitional period.

(5) The provisions about consent made by or under sections 2 and 3 and Schedule 1 shall apply in relation to an application under subsection (4) as they apply in relation to an application under section 2.

(6) A reference in this Part to a commonhold association exercising functions in relation to commonhold land includes a...

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