Leasehold Reform, Housing and Urban Development Act 1993

Cited as:1993 c. 28
Jurisdiction:UK Non-devolved


Leasehold Reform, Housingand Urban DevelopmentAct 1993

1993 CHAPTER 28

An Act to confer rights to collective enfranchisement and lease renewal on tenants of flats; to make further provision with respect to enfranchisement by tenants of houses; to make provision for auditing the management, by landlords or other persons, of residential property and for the approval of codes of practice relating thereto; to amend Parts III and IV of the Landlord and Tenant Act 1987; to confer jurisdiction on leasehold valuation tribunals as respects Crown land; to make provision for rendering void agreements preventing the occupation of leasehold property by persons with mental disorders; to amend Parts II, IV and V of the Housing Act 1985, Schedule 2 to the Housing Associations Act 1985, Parts I and III and sections 248 and 299 of the Housing (Scotland) Act 1987, Part III of the Housing Act 1988, and Part VI of the Local Government and Housing Act 1989; to make provision with respect to certain disposals requiring consent under Part II of the Housing Act 1985, including provision for the payment of a levy; to alter the basis of certain contributions by the Secretary of State under section 569 of that Act; to establish and confer functions on a body to replace the English Industrial Estates Corporation and to be known as the Urban Regeneration Agency; to provide for thedesignation of certain urban and other areas and to make provision as to the effect of such designation; to amend section 23 of the Land Compensation Act 1961, section 98 of the Local Government, Planning and Land Act 1980 and section 27 of the Housing and Planning Act 1986; to make further provision with respect to urban development corporations and urban development areas; and for connected purposes.

[20th July 1993]

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:—

I Landlord and Tenant

Part I

Landlord and Tenant

Chapter I

Collective enfranchisement in case of tenants of flats

Preliminary

Preliminary

S-1 The right to collective enfranchisement.

1 The right to collective enfranchisement.

(1) This Chapter has effect for the purpose of conferring on qualifying tenants of flats contained in premises to which this Chapter applies on the relevant date the right, exercisable subject to and in accordance with this Chapter, to have the freehold of those premises acquired on their behalf—

(a) by a person or persons appointed by them for the purpose, and

(b) at a price determined in accordance with this Chapter

and that right is referred to in this Chapter as ‘the right to collective enfranchisement’.

(2) Where the right to collective enfranchisement is exercised in relation to any such premises (‘the relevant premises’)—

(a) the qualifying tenants by whom the right is exercised shall be entitled, subject to and in accordance with this Chapter, to have acquired, in like manner, the freehold of any property which is not comprised in the relevant premises but to which this paragraph applies by virtue of subsection (3); and

(b) section 2 has effect with respect to the acquisition of leasehold interests to which paragraph (a) or (b) of subsection (1) of that section applies.

(3) Subsection (2)(a) applies to any property if the freehold of it is owned by the person who owns the freehold of the relevant premises and at the relevant date either—

(a) it is appurtenant property which is demised by the lease held by a qualifying tenant of a flat contained in the relevant premises; or

(b) it is property which any such tenant is entitled under the terms of the lease of his flat to use in common with the occupiers of other premises (whether those premises are contained in the relevant premises or not).

(4) The right of acquisition in respect of the freehold of any such property as is mentioned in subsection (3)(b) shall however, be taken to be satisfied with respect to that property if, on the acquisition of the relevant premises in pursuance of this Chapter, either—

(a) there are granted by the freeholder—

(i) over that property, or

(ii) over any other property

such permanent rights as will ensure that thereafter the occupier of the flat referred to in that provision has as nearly as may be the same rights as those enjoyed in relation to that property on the relevant date by the qualifying tenant under the terms of his lease; or

(b) there is acquired from the freeholder the freehold of any other property over which any such permanent rights may be granted.

(5) A claim by qualifying tenants to exercise the right to collective enfranchisement may be made in relation to any premises to which this Chapter applies despite the fact that those premises are less extensive than the entirety of the premises in relation to which those tenants are entitled to exercise that right.

(6) Any right or obligation under this Chapter to acquire any interest in property shall not extend to underlying minerals in which that interest subsists if—

(a) the owner of the interest requires the minerals to be excepted, and

(b) proper provision is made for the support of the property as it is enjoyed on the relevant date.

(7) In this section—

‘appurtenant property’, in relation to a flat, means any garage, outhouse, garden, yard or appurtenances belonging to, or usually enjoyed with, the flat

‘the freeholder’ means the person who owns the freehold of the relevant premises;

‘the relevant premises’ means any such premises as are referred to in subsection (2).

(8) In this Chapter ‘the relevant date’, in relation to any claim to exercise the right to collective enfranchisement, means the date on which notice of the claim is given under section 13.

S-2 Acquisition of leasehold interests.

2 Acquisition of leasehold interests.

(1) Where the right to collective enfranchisement is exercised in relation to any premises to which this Chapter applies (‘the relevant premises’), then, subject to and in accordance with this Chapter—

(a) there shall be acquired on behalf of the qualifying tenants by whom the right is exercised every interest to which this paragraph applies by virtue of subsection (2); and

(b) those tenants shall be entitled to have acquired on their behalf any interest to which this paragraph applies by virtue of subsection (3);

and any interest so acquired on behalf of those tenants shall be acquired in the manner mentioned in paragraphs (a) and (b) of section 1(1).

(2) Paragraph (a) of subsection (1) above applies to the interest of the tenant under any lease which is superior to the lease held by a qualifying tenant of a flat contained in the relevant premises.

(3) Paragraph (b) of subsection (1) above applies to the interest of the tenant under any lease (not falling within subsection (2) above) under which the demised premises consist of or include—

(a) any common parts of the relevant premises, or

(b) any property falling within section 1(2)(a) which is to be acquired by virtue of that provision,

where the acquisition of that interest is reasonably necessary for the proper management or maintenance of those common parts, or (as the case may be) that property, on behalf of the tenants by whom the right to collective enfranchisement is exercised.

(4) Where the demised premises under any lease falling within subsection (2) or (3) include any premises other than—

(a) a flat contained in the relevant premises which is held by a qualifying tenant,

(b) any common parts of those premises, or

(c) any such property as is mentioned in subsection (3)(b),

the obligation or (as the case may be) right under subsection (1) above to acquire the interest of the tenant under the lease shall not extend to his interest under the lease in any such other premises.

(5) Where the qualifying tenant of a flat is a public sector landlord and the flat is let under a secure tenancy, then if—

(a) the condition specified in subsection (6) is satisfied, and

(b) the lease of the qualifying tenant is directly derived out of a lease under which the tenant is a public sector landlord,

the interest of that public sector landlord as tenant under that lease shall not be liable to be acquired by virtue of subsection (1) to the extent that it is an interest in the flat or in any appurtenant property; and the interest of a public sector landlord as tenant under any lease out of which the qualifying tenant's lease is indirectly derived shall, to the like extent, not be liable to be so acquired (so long as the tenant under every lease intermediate between that lease and the qualifying tenant's lease is a public sector landlord).

(6) The condition referred to in subsection (5)(a) is that either—

(a) the qualifying tenant is the immediate landlord under the secure tenancy, or

(b) he is the landlord under a lease which is superior to the secure tenancy and the tenant under that lease, and the tenant under every lease (if any) intermediate between it and the secure tenancy, is also a public sector landlord;

and in subsection (5) ‘appurtenant property’ has the same meaning as in section 1.

(7) In this section ‘the relevant premises’ means any such premises as are referred to in subsection (1).

S-3 Premises to which this Chapter applies.

3 Premises to which this Chapter applies.

(1) Subject to section 4, this Chapter applies to any premises if—

(a) they consist of a self-contained building or part of a building and the freehold of the whole of the building or of that part of the building is owned by the same person

(b) they contain two or more flats held by qualifying tenants; and

(c) the...

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