Leasehold and Freehold Reform Act 2024

Regulation of permitted leases

8 Permitted leases: certification by the appropriate tribunal

(1) The appropriate tribunal must, on an application by a person, issue a certificate (a “permitted lease certificate”) in relation to a new long residential lease of a house, where the tribunal is satisfied that the lease is or will be a permitted lease falling within Part 1 of Schedule 1.

(2) An application under this section may be made and determined whether or not the application includes a draft of the instrument creating the new lease.

(3) The appropriate tribunal may issue a permitted lease certificate on such terms and conditions as it considers appropriate, but the certificate must—

(a) identify the house or the land on which the house will be built, and

(b) state the category or categories set out in Part 1 of Schedule 1 into which the lease will fall.

(4) If an application under this section relates to two or more leases, the appropriate tribunal may issue just one certificate relating to some or all of those leases.

9 Permitted leases: marketing restrictions

(1) This section applies in relation to the marketing of a house where—

(a) the house is to be comprised in a new lease, and

(b) the lease will be a long residential lease of the house.

(2) A person (“a promoter”) may not make any material marketing the house to be comprised in the lease available to any person, unless the permitted lease information relating to the lease is included in or provided with that material.

(3) The “permitted lease information”, in relation to a lease, means—

(a) if the lease falls or will fall into one or more of the categories set out in Part 1 of Schedule 1, a copy of the permitted lease certificate together with a statement identifying that category or those categories,

(b) if to the best of the knowledge and belief of the promoter at the time the material is made available the lease falls or will fall into one or more of the categories set out in Part 2 of Schedule 1, a statement identifying that category or those categories, or

(c) if both paragraphs (a) and (b) apply to the lease, the information required under both those paragraphs.

(4) “Marketing” includes any form of advertising or promotion.

10 Permitted leases: transaction warning conditions

(1) A person may not, on or after the day on which section 1 comes into force—

(a) enter into an agreement to grant a permitted lease unless the transaction warning conditions are met in relation to the agreement, or

(b) subject to subsection (5), grant a permitted lease unless the transaction warning conditions are met in relation to the lease.

(2) The “transaction warning conditions” are as follows—

(a) at least 7 days before the relevant date the grantor must give a warning notice relating to the permitted lease—

(i) to the proposed tenant, or

(ii) where there is more than one proposed tenant, to each of them;

(b) a notice of receipt of the warning notice must be given to the grantor—

(i) by the proposed tenant, or

(ii) where there is more than one proposed tenant, jointly by all of the proposed tenants;

(c) a reference to the warning notice and the notice of receipt must be included in or endorsed on the relevant instrument in the specified manner.

(3) A “warning notice” is a notice provided in a specified form and manner and containing—

(a) sufficient information to identify the house to be comprised in the lease,

(b) if the lease falls within Part 1 of Schedule 1, a copy of the permitted lease certificate,

(c) if the lease falls into one or more of the categories set out in Part 2 of Schedule 1, a statement identifying that category or those categories,

(d) if both paragraphs (b) and (c) apply to the lease, the information required under both those paragraphs, and

(e) such other information as may be specified.

(4) A “notice of receipt” is a notice provided in a specified form and manner and containing such information as may be specified.

(5) A person does not breach subsection (1) in relation to the grant of a lease if—

(a) the person previously entered into an agreement to grant that lease,

(b) the transaction warning conditions were met in relation to that agreement, and

(c) a reference to the warning notice and the notice of receipt relating to that agreement is included in or endorsed on the instrument creating the lease.

(6) This section does not apply to the grant of a permitted lease which falls within paragraph 6 of Schedule 1 (leases agreed before commencement).

(7) This section does not affect—

(a) the validity of a lease granted in breach of subsection (1), and does not affect the powers of a person to grant such a lease (whether under section 23(1) of the Land Registration Act 2002 or otherwise);

(b) any contractual rights of a party to an agreement entered into in breach of subsection (1).

(8) In this section—

• “grantor”, in relation to a lease, means the person proposing to grant the lease (whether or not that person holds the freehold or leasehold title out of which the lease will be granted);

• “proposed tenant”, in relation to a lease, means the proposed tenant of the house to be comprised in the lease;

• “relevant date” means—

  (a)

  in the case of an agreement to grant a lease, the day on which the agreement is entered into, and

  (b)

  in the case of a grant of a lease, the day on which the lease is granted;

• “relevant instrument” means—

  (a)

  in the case of an agreement to grant a lease, that agreement, and

  (b)

  in the case of a grant of a lease, the instrument creating that lease;

• “specified” means specified or described in regulations made—

  (a)

  in relation to a lease of a house in England, by the Secretary of State;

  (b)

  in relation to a lease of a house in Wales, by the Welsh Ministers.

(9) A statutory instrument containing regulations under this section is subject to the negative procedure.