Search Legislation

Leasehold and Freehold Reform Act 2024

 Help about what version

What Version

 Help about advanced features

Advanced Features

 Help about opening options

Opening OptionsExpand opening options

Changes over time for: Paragraph 14

 Help about opening options

Alternative versions:

Status:

This version of this provision is prospective. Help about Status

Changes to legislation:

There are currently no known outstanding effects for the Leasehold and Freehold Reform Act 2024, Paragraph 14. Help about Changes to Legislation

Prospective

Inclusion of terms for sharing staircasing paymentsE+W

This section has no associated Explanatory Notes

14In Schedule 1 (enfranchisement and extension by sub-tenants), after paragraph 12A insert—

12B(1)This paragraph applies if—

(a)at the relevant time—

(i)the tenancy in possession is a shared ownership lease (the “original shared ownership lease”), and

(ii)the tenant’s share of the dwelling is less than 100%, and

(b)the landlord who grants the new tenancy (the “new shared ownership lease”) is not the immediate landlord under the original shared ownership lease.

(2)At any time after the grant of the new shared ownership lease—

(a)the immediate landlord under the new shared ownership lease, or

(b)the landlord under any relevant intermediate lease,

may apply to the appropriate tribunal for an order making provision to secure that each relevant intermediate lease is varied to include (if or to the extent that it does not already do so) a payment sharing term.

(3)A “payment sharing term” is a term under which staircasing payments are to be shared between—

(a)the immediate landlord under the new shared ownership lease, and

(b)each landlord under a relevant intermediate lease,

in a way which fairly and reasonably reflects staircasing losses that are incurred after the variation of the lease to include this term.

(4)An order under this paragraph may include—

(a)an order relating to a relevant intermediate lease not specified in the application;

(b)an order appointing a person who is not party to a relevant intermediate lease to execute a variation of the lease.

(5)A lease is a “relevant intermediate lease” if—

(a)the lease demises some or all of the shared ownership premises, and

(b)the lease is intermediate between—

(i)the new shared ownership lease, and

(ii)the interest of the landlord who granted the new shared ownership lease.

(6)In this paragraph—

  • shared ownership premises” means the premises demised by the new shared ownership lease;

  • staircasing loss”, in relation to a staircasing payment, means the loss that a landlord incurs because of the increase in the tenant’s share in the shared ownership premises to which the staircasing payment relates;

  • staircasing payment” means a payment made by the tenant under the new shared ownership lease to their immediate landlord in consideration of an increase in the tenant’s share in the shared ownership premises.

Commencement Information

I1Sch. 8 para. 14 not in force at Royal Assent, see s. 124(3)

Back to top

Options/Help

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?