Commonhold and Leasehold Reform Act 2002

1. Introductory Text

2. Part 1 Commonhold

   1. Nature of commonhold

      1. 1. Commonhold land

   2. Registration

      1. 2. Application

      2. 3. Consent

      3. 4. Land which may not be commonhold

      4. 5. Registered details

      5. 6. Registration in error

   3. Effect of registration

      1. 7. Registration without unit-holders

      2. 8. Transitional period

      3. 9. Registration with unit-holders

      4. 10. Extinguished lease: liability

   4. Commonhold unit

      1. 11. Definition

      2. 12. Unit-holder

      3. 13. Joint unit-holders

      4. 14. Use and maintenance

      5. 15. Transfer

      6. 16. Transfer: effect

      7. 17. Leasing: residential

      8. 18. Leasing: non-residential

      9. 19. Leasing: supplementary

      10. 20. Other transactions

      11. 21. Part-unit: interests

      12. 22. Part–unit: charging

      13. 23. Changing size

      14. 24. Changing size: charged unit

   5. Common parts

      1. 25. Definition

      2. 26. Use and maintenance

      3. 27. Transactions

      4. 28. Charges: general prohibition

      5. 29. New legal mortgages

      6. 30. Additions to common parts

   6. Commonhold community statement

      1. 31. Form and content: general

      2. 32. Regulations

      3. 33. Amendment

   7. Commonhold association

      1. 34. Constitution

      2. 35. Duty to manage

      3. 36. Voting

   8. Operation of commonhold

      1. 37. Enforcement and compensation

      2. 38. Commonhold assessment

      3. 39. Reserve fund

      4. 40. Rectification of documents

      5. 41. Enlargement

      6. 42. Ombudsman

   9. Termination: voluntary winding-up

      1. 43. Winding-up resolution

      2. 44. 100 per cent. agreement

      3. 45. 80 per cent. agreement

      4. 46. Termination application

      5. 47. Termination statement

      6. 48. The liquidator

      7. 49. Termination

   10. Termination: winding-up by court

       1. 50. Introduction

       2. 51. Succession order

       3. 52. Assets and liabilities

       4. 53. Transfer of responsibility

       5. 54. Termination of commonhold

   11. Termination: miscellaneous

       1. 55. Termination by court

       2. 56. Release of reserve fund

   12. Miscellaneous

       1. 57. Multiple site commonholds

       2. 58. Development rights

       3. 59. Development rights: succession

       4. 60. Compulsory purchase

       5. 61. Home rights

       6. 62. Advice etc.

       7. 63. The Crown

   13. General

       1. 64. Orders and regulations

       2. 65. Registration procedure

       3. 66. Jurisdiction

       4. 67. The register

       5. 68. Amendments

       6. 69. Interpretation

       7. 70. Index of defined expressions

3. Part 2 Leasehold reform

   1. Chapter 1 Right to manage

      1. Introductory

         1. 71. The right to manage

      2. Qualifying rules

         1. 72. Premises to which Chapter applies

         2. 73. RTM companies

         3. 74. RTM companies: membership and regulations

         4. 75. Qualifying tenants

         5. 76. Long leases

         6. 77. Long leases: further provisions

      3. Claim to acquire right

         1. 78. Notice inviting participation

         2. 79. Notice of claim to acquire right

         3. 80. Contents of claim notice

         4. 81. Claim notice: supplementary

         5. 82. Right to obtain information

         6. 83. Right of access

         7. 84. Counter-notices

         8. 85. Landlords etc. not traceable

         9. 86. Withdrawal of claim notice

         10. 87. Deemed withdrawal

         11. 88. Costs: general

         12. 89. Costs where claim ceases

      4. Acquisition of right

         1. 90. The acquisition date

         2. 91. Notices relating to management contracts

         3. 92. Duties to give notice of contracts

         4. 93. Duty to provide information

         5. 94. Duty to pay accrued uncommitted service charges

      5. Exercising right

         1. 95. Introductory

         2. 96. Management functions under leases

         3. 97. Management functions: supplementary

         4. 98. Functions relating to approvals

         5. 99. Approvals: supplementary

         6. 100. Enforcement of tenant covenants

         7. 101. Tenant covenants: monitoring and reporting

         8. 102. Statutory functions

         9. 103. Landlord contributions to service charges

      6. Supplementary

         1. 104. Registration

         2. 105. Cessation of management

         3. 106. Agreements excluding or modifying right

         4. 107. Enforcement of obligations

         5. 108. Application to Crown

         6. 109. Powers of trustees in relation to right

         7. 110. Power to prescribe procedure

         8. 111. Notices

      7. Interpretation

         1. 112. Definitions

         2. 113. Index of defined expressions

   2. Chapter 2 Collective enfranchisement by tenants of flats

      1. Introductory

         1. 114. Amendments of right to collective enfranchisement

      2. Qualifying rules

         1. 115. Non-residential premises

         2. 116. Premises including railway track

         3. 117. Qualifying leases

         4. 118. Premises with resident landlord

         5. 119. Proportion of tenants required to participate

         6. 120. Abolition of residence condition

      3. Exercise of right

         1. 121. Right exercisable only by RTE company

         2. 122. RTE companies

         3. 123. Invitation to participate

         4. 124. Consequential amendments

         5. 125. Right of access

      4. Purchase price

         1. 126. Valuation date

         2. 127. Freeholder’s share of marriage value

         3. 128. Disregard of marriage value in case of very long leases

   3. Chapter 3 New leases for tenants of flats

      1. Introductory

         1. 129. Amendments of right to acquire new lease

      2. Qualifying rules

         1. 130. Replacement of residence test

         2. 131. Qualifying leases

         3. 132. Personal representatives

         4. 133. Crown leases

      3. Purchase price

         1. 134. Valuation date

         2. 135. Landlord’s share of marriage value

         3. 136. Disregard of marriage value in case of very long leases

   4. Chapter 4 Leasehold houses

      1. Introductory

         1. 137. Amendments of 1967 Act

      2. Qualifying rules

         1. 138. Abolition of residence test

         2. 139. Reduction of qualifying period as tenant etc

         3. 140. Exclusion of certain business tenancies

         4. 141. Tenancies not at low rent

         5. 142. Personal representatives

         6. 143. Abolition of limits on rights after lease extension

         7. 144. Exclusion of shared ownership leases

      3. Purchase price

         1. 145. Tenant’s share of marriage value

         2. 146. Disregard of marriage value in case of very long leases

         3. 147. Purchase price for enfranchisement during lease extension

      4. Absent landlords

         1. 148. Applications to be to county court

         2. 149. Valuation by leasehold valuation tribunal

   5. Chapter 5 Other provisions about leases

      1. Service charges, administration charges etc.

         1. 150. Extending meaning of service charge and management etc

         2. 151. Consultation about service charges

         3. 152. Statements of account

         4. 153. Notice to accompany demands for service charges

         5. 154. Inspection etc. of documents

         6. 155. Liability to pay service charges: jurisdiction

         7. 156. Service charge contributions to be held in separate account

         8. 157. Service charges: minor and consequential amendments

         9. 158. Administration charges

         10. 159. Charges under estate management schemes

      2. Managers appointed by leasehold valuation tribunal

         1. 160. Third parties with management responsibilities

         2. 161. Restriction of resident landlord exception

      3. Variation of leases

         1. 162. Grounds for application by party to lease

         2. 163. Transfer of jurisdiction of court to tribunal

      4. Insurance

         1. 164. Insurance otherwise than with landlord’s insurer

         2. 165. Extension of right to challenge landlord’s choice of insurer

      5. Ground rent

         1. 166. Requirement to notify long leaseholders that rent is due

      6. Forfeiture of leases of dwellings

         1. 167. Failure to pay small amount for short period

         2. 168. No forfeiture notice before determination of breach

         3. 169. Section 168: supplementary

         4. 170. Forfeiture for failure to pay service charge etc

         5. 171. Power to prescribe additional or different requirements

      7. Crown application

         1. 172. Application to Crown

   6. Chapter 6 Leasehold valuation tribunals

      1. 173. Leasehold valuation tribunals

      2. 174. Procedure

      3. 175. Appeals

      4. 176. Consequential amendments

   7. Chapter 6A First-Tier Tribunal and Upper Tribunal

      1. 176A. Transfer from court to First-tier Tribunal

      2. 176B. Appeals from the First-tier Tribunal

      3. 176C. Enforcement

   8. Chapter 7 General

      1. 177. Wales

      2. 178. Orders and regulations

      3. 179. Interpretation

4. Part 3 Supplementary

   1. 180. Repeals

   2. 181. Commencement etc

   3. 182. Extent

   4. 183. Short title

5. SCHEDULES

   1. SCHEDULE 1

      Application for registration: documents

      1. 1. Introduction

      2. 2. Commonhold association documents

      3. 3. Any altered certificate of incorporation issued under section 80 of...

      4. 4. The articles of association of the commonhold association.

      5. 5. Commonhold community statement

      6. 6. Consent

      7. 7. Certificate

   2. SCHEDULE 2

      Land which may not be commonhold land

      1. 1. “Flying freehold”

      2. 2. Agricultural land

      3. 3. Contingent title

   3. SCHEDULE 3

      Commonhold association

      1. Part 1 Articles of Association

         1. 1. Introduction

         2. 2. Form and content

         3. 3. Alteration

         4. 4. Disapplication of Companies Act 1985

      2. Part 2 Membership

         1. 5. Pre-commonhold period

         2. 6. Transitional period

         3. 7. Unit-holders

         4. 8. Joint unit-holders

         5. 9. Self-membership

         6. 10. No other members

         7. 11. Effect of registration

         8. 12. Termination of membership

         9. 13. A member of a commonhold association may resign by notice...

         10. 14. Register of members

         11. 15. Supplementary provisions

      3. Part 3 Miscellaneous

         1. 16. Name

         2. 17. Statement of compliance

   4. SCHEDULE 4

      Development rights

      1. 1. Introductory

      2. 2. Works

      3. 3. Marketing

      4. 4. Variation

      5. 5. The removal of land from a commonhold.

      6. 6. Amendment of a commonhold community statement (including amendment to redefine...

      7. 7. Commonhold association

   5. SCHEDULE 5

      Commonhold: consequential amendments

      1. 1. Law of Property Act 1922 (c. 16)

      2. 2. Law of Property Act 1925 (c. 20)

      3. 3. At the end of section 149 of that Act (90-year...

      4. 4. Limitation Act 1980 (c. 58)

      5. 5. Housing Act 1985 (c. 68)

      6. 6. Insolvency Act 1986 (c. 45)

      7. 7. Law of Property (Miscellaneous Provisions) Act 1994 (c. 36)

      8. 8. Trusts of Land and Appointment of Trustees Act 1996 (c. 47)

   6. SCHEDULE 6

      Premises excluded from right to manage

      1. 1. Buildings with substantial non-residential parts

      2. 2. Buildings with self-contained parts in different ownership

      3. 3. Premises with resident landlord and no more than four units

      4. 4. Premises owned by local housing authority

      5. 5. Premises in relation to which rights previously exercised

   7. SCHEDULE 7

      Right to manage: statutory provisions

      1. 1. Covenants not to assign etc.

      2. 2. Defective premises

      3. 3. Repairing obligations

      4. 4. Service charges

      5. 5. Right to request information on insurance

      6. 6. Managing agents

      7. 7. Right of first refusal

      8. 8. Appointment of manager

      9. 9. Right to acquire landlord’s interest

      10. 10. Variation of leases

      11. 11. Service charges to be held in trust

      12. 12. Information to be furnished to tenants

      13. 13. Statutory duties relating to certain covenants

      14. 14. Tenants’ right to management audit

      15. 15. Right to appoint surveyor

      16. 16. Administration charges

   8. SCHEDULE 8

      Enfranchisement by company: amendments

      1. 1. Land Compensation Act 1973 (c. 26)

      2. 2. Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)

      3. 3. (1) Section 1 (right to collective enfranchisement) is amended as...

      4. 4. For section 2(1) (acquisition of leasehold interests) substitute—

      5. 5. In section 11(4) (right of qualifying tenant to obtain information...

      6. 6. (1) Section 13 (initial notice) is amended as follows.

      7. 7. (1) Section 17 (access for valuation purposes) is amended as...

      8. 8. (1) Section 18 (duty to disclose existence of agreements affecting...

      9. 9. (1) Section 20 (right of reversioner to require evidence of...

      10. 10. (1) Section 21 (reversioner’s counter notice) is amended as follows....

      11. 11. (1) Section 22 (proceedings relating to validity of initial notice)...

      12. 12. In section 23 (claim liable to be defeated where landlord...

      13. 13. (1) Section 24 (applications where terms in dispute or failure...

      14. 14. (1) Section 25 (application where reversioner fails to give counter-notice...

      15. 15. (1) Section 26 (applications where relevant landlord cannot be found)...

      16. 16. (1) Section 27 (supplementary provisions about vesting orders under section...

      17. 17. (1) Section 28 (withdrawal from acquisition) is amended as follows....

      18. 18. (1) Section 29 (deemed withdrawal of initial notice) is amended...

      19. 19. In section 30(5) (service of notice to treat before completion...

      20. 20. (1) Section 31 (effect on initial notice of designation or...

      21. 21. (1) Section 32 (determination of price) is amended as follows....

      22. 22. (1) Section 33 (costs of enfranchisement) is amended as follows....

      23. 23. In section 34 (conveyance), for “nominee purchaser” (in each place,...

      24. 24. In section 35 (discharge of existing mortgages on transfer), for...

      25. 25. (1) Section 36 (requirement to grant leases back to former...

      26. 26. (1) Section 37A (compensation for postponement of termination in connection...

      27. 27. (1) Section 38 (interpretation) is amended as follows.

      28. 28. (1) Section 41 (right of qualifying tenant to obtain information...

      29. 29. (1) Section 54 (suspension of tenant’s notice during currency of...

      30. 30. (1) Section 74 (effect of scheme application on claim to...

      31. 31. (1) Section 91 (jurisdiction of leasehold valuation tribunals) is amended...

      32. 32. (1) In section 93 (agreements excluding or modifying rights of...

      33. 33. (1) Section 93A (powers of trustees in relation to rights)...

      34. 34. In section 97(1) (registration)— (a) for “the tenant” substitute “...

      35. 35. In section 98(2) (power to prescribe procedure), for “nominee purchaser”...

      36. 36. (1) Schedule 1 (conduct of proceedings by reversioner on behalf...

      37. 37. (1) Schedule 3 (restrictions on participation, effect of claim on...

      38. 38. In Schedule 4 (information to be furnished by reversioner about...

      39. 39. (1) Schedule 5 (vesting orders under sections 24 and 25)...

      40. 40. (1) Schedule 6 (purchase price) is amended as follows.

      41. 41. (1) Schedule 7 (conveyance to nominee purchaser on enfranchisement) is...

      42. 42. (1) Schedule 8 (discharge of mortgages etc: supplementary provisions) is...

      43. 43. In Schedule 9 (grants of lease back to former purchaser),...

   9. SCHEDULE 9

      Meaning of service charge and management

      1. 1. Loans in respect of service charges

      2. 2. (1) Section 450A (right to a loan in respect of...

      3. 3. In section 450B(1)(b) (power to make loan in respect of...

      4. 4. In section 458(1) (minor definitions for purposes of Part 14...

      5. 5. In section 459 (index of defined expressions for Part 14...

      6. 6. In section 621A (meaning of service charge for purposes of...

      7. 7. Service charges

      8. 8. Appointment of manager

      9. 9. Right to acquire landlord’s interest

      10. 10. Tenants’ right to management audit

      11. 11. Codes of management practice

      12. 12. Right to appoint surveyor

      13. 13. Power to amend certain provisions

   10. SCHEDULE 10

       Service charges: minor and consequential amendments

       1. 1. Information held by superior landlord

       2. 2. Change of landlord

       3. 3. Assignment

       4. 4. Offences

       5. 5. Exceptions

       6. 6. Accountants

       7. 7. In section 39 of the 1985 Act (defined expressions), in...

       8. 8. Insurance

       9. 9. For paragraph 3 of that Schedule (request to inspect insurance...

       10. 10. (1) Paragraph 4 of that Schedule (insurance effected by superior...

       11. 11. After that paragraph insert— Effect of change of landlord (1) This paragraph applies where, at a time when a...

       12. 12. In paragraph 5 of that Schedule, for the words from...

       13. 13. In paragraph 6 of that Schedule, for “paragraph 2, 3...

       14. 14. Service charge contributions: appointment of manager

       15. 15. Trust of service charges paid by only one tenant

       16. 16. Management audit

       17. 17. In section 80(3) of the 1993 Act (matters to be...

       18. 18. (1) Section 81 of the 1993 Act (procedure following giving...

       19. 19. In section 82 of the 1993 Act (information held by...

   11. SCHEDULE 11

       Administration charges

       1. Part 1 Reasonableness of administration charges

          1. 1. Meaning of “administration charge”

          2. 2. Reasonableness of administration charges

          3. 3. (1) Any party to a lease of a dwelling may...

          4. 4. Notice in connection with demands for administration charges

          5. 5. Liability to pay administration charges

          6. 6. Interpretation

       2. Part 2 Amendments of Landlord and Tenant Act 1987

          1. 7. The 1987 Act has effect subject to the following amendments....

          2. 8. (1) Section 24 (appointment of manager by leasehold valuation tribunal)...

          3. 9. In section 46 (interpretation of provisions concerning information to be...

          4. 10. (1) Section 47 (landlord’s name and address to be contained...

          5. 11. (1) Section 48 (notification by landlord of address for service...

   12. SCHEDULE 12

       Leasehold valuation tribunals: procedure

       1. 1. Procedure regulations

       2. 2. Applications

       3. 3. Transfers

       4. 4. Information

       5. 5. Pre-trial reviews

       6. 6. Parties

       7. 7. Dismissal

       8. 8. Determination without hearing

       9. 9. Fees

       10. 10. Costs

       11. 11. Enforcement

   13. SCHEDULE 13

       Leasehold valuation tribunals: amendments

       1. 1. Leasehold Reform Act 1967 (c. 88)

       2. 2. In section 9 (costs of enfranchisement), after subsection (4) insert—...

       3. 3. In section 14 (costs of lease extension), after subsection (2)...

       4. 4. In section 20 (county court), after subsection (4) insert—

       5. 5. In section 21 (leasehold valuation tribunals), after subsection (2) insert—...

       6. 6. In paragraph 8 of Schedule 2 (county court), after sub-paragraph...

       7. 7. Housing Act 1980 (c. 51)

       8. 8. Landlord and Tenant Act 1987 (c. 31)

       9. 9. In section 24(9A) (appointment of manager), for “court” substitute “...

       10. 10. In section 47(3) (landlord’s name and address to be contained...

       11. 11. In section 48(3) (notification by landlord of address for service...

       12. 12. Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)

       13. 13. (1) Section 70 (approval by leasehold valuation tribunal of estate...

       14. 14. In section 88(2) (jurisdiction of leasehold valuation tribunals in cases...

       15. 15. In section 91(1) (jurisdiction of leasehold valuation tribunals), for “such...

       16. 16. Housing Act 1996 (c. 52)

   14. SCHEDULE 14

       Repeals