C1C2C3Part I Enfranchisement and Extension of Long Leaseholds

Annotations:
Modifications etc. (not altering text)
C1

Pt. I (ss. 1–37) excluded by Housing Act 1985 (c. 68, SIF 61), ss. 172, 173

C2

Pt. I (ss. 1–37) extended by Housing Act 1985 (c. 68, SIF 61), s. 174

Pt. I (ss. 1-37) modified (1.4.1997) by 1985 c. 68, s. 174 (as inserted (1.4.1997) by S.I. 1997/619, reg. 2(1), Sch. 1 para. 29)

Right to enfranchisement or extension

1 Tenants entitled to enfranchisement or extension.

1

This Part of this Act shall have effect to confer on a tenant of a leasehold house F1. . . a right to acquire on fair terms the freehold or an extended lease of the house and premises where—

F2a

his tenancy is a long tenancy F20at a low rent and,—

i

if the tenancy was entered into before 1st April 1990 F3, or on or after 1st April 1990 in pursuance of a contract made before that date, and the house and premises had a rateable value at the date of commencement of the tenancy or else at any time before 1st April 1990, subject to subsections (5) and (6) below, the rateable value of the house and premises on the appropriate day was not more than £200 or, if it is in Greater London, than £400; and

ii

if the tenancy F3does not fall within sub-paragraph (i) above, on the date the contract for the grant of the tenancy was made or, if there was no such contract, on the date the tenancy was entered into R did not exceed £25,000 under the formula—

Image_r00001

where—

P is the premium payable as a condition of the grant of the tenancy (and includes a payment of money’s worth) or, where no premium is so payable, zero,

I is 0.06, and

T is the term, expressed in years, granted by the tenancy (disregarding any right to terminate the tenancy before the end of the term or to extend the tenancy);

F21aa

in the case of a right to acquire an extended lease, his long tenancy is a tenancy at a low rent; and

b

at the relevant time (that is to say, at the time when he gives notice in accordance with this Act of his desire to have the freehold or to have an extended lease, as the case may be) he has F19—

i

in the case of a right to acquire the freehold, been tenant of the house under a long tenancy for the last two years; and

ii

in the case of a right to acquire an extended lease, been tenant of the house under a long tenancy at a low rent F1. . . for the last F4two years;

and to confer the like right in the other cases for which provision is made in this Part of this Act.

F51ZA

Where a house is for the time being let under two or more tenancies, a tenant under any of those tenancies which is superior to that held by any tenant on whom this Part of this Act confers a right does not have any right under this Part of this Act.

1ZB

Where a flat forming part of a house is let to a person who is a qualifying tenant of the flat for the purposes of Chapter 1 or 2 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28), a tenant of the house does not have any right under this Part of this Act unless, at the relevant time, he has been occupying the house, or any part of it, as his only or main residence (whether or not he has been using it for other purposes)—

a

for the last two years; or

b

for periods amounting to two years in the last ten years.

F61ZC

The references in subsection (1)(a) and (b) to a long tenancy do not include a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (business tenancies) applies unless—

a

it is granted for a term of years certain exceeding thirty-five years, whether or not it is (or may become) terminable before the end of that term by notice given by or to the tenant or by re-entry, forfeiture or otherwise,

b

it is for a term fixed by law under a grant with a covenant or obligation for perpetual renewal, unless it is a tenancy by sub-demise from one which is not a tenancy which falls within any of the paragraphs in this subsection,

c

it is a tenancy taking effect under section 149(6) of the Law of Property Act 1925 (c. 20) (leases terminable after a death or marriage F18or the formation of a civil partnership), or

d

it is a tenancy which—

i

is or has been granted for a term of years certain not exceeding thirty-five years, but with a covenant or obligation for renewal without payment of a premium (but not for perpetual renewal), and

ii

is or has been once or more renewed so as to bring to more than thirty-five years the total of the terms granted (including any interval between the end of a tenancy and the grant of a renewal).

1ZD

Where this Part of this Act applies as if there were a single tenancy of property comprised in two or more separate tenancies, then, if each of the separate tenancies falls within any of the paragraphs of subsection (1ZC) above, that subsection shall apply as if the single tenancy did so.

F71A

The references in F22subsection (1)(a) and (b)F22subsection (1) to a long tenancy F23at a low rent do not include a tenancy excluded from the operation of this Part by section 33A of and Schedule 4A to this Act.

F81B

This Part of this Act shall not have effect to confer any right on the tenant of a house under a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies unless, at the relevant time, the tenant has been occupying the house, or any part of it, as his only or main residence (whether or not he has been using it for other purposes)—

a

for the last two years; or

b

for periods amounting to two years in the last ten years.

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

This Part of this Act shall not confer on the tenant of a house any right by reference to his F9being a tenant of it at any time when—

a

it is let to F10. . . him with other land or premises to which it is ancillary; or

F11b

it is comprised in—

i

an agricultural holding within the meaning of the Agricultural Holdings Act 1986 held under a tenancy in relation to which that Act applies, or

ii

the holding held under a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995

F26or, in the case of any right to which subsection (3A) below applies, at any time when the tenant’s immediate landlord is a charitable housing trust and the house forms part of the housing accommodation provided by the trust in the pursuit of its charitable purposes.

F123A

For the purposes of subsection (3) above this subsection applies as follows—

a

where the tenancy was created after the commencement of Chapter III of Part I of the Leasehold Reform, Housing and Urban Development Act 1993, this subsection applies to any right to acquire the freehold of the house and premises; but

b

where the tenancy was created before that commencement, this subsection applies only to any such right exercisable by virtue of any one or more of the provisions of sections 1A F13F24, 1AA and 1B below;

and in that subsection “charitable housing trust” means a housing trust within the meaning of the Housing Act 1985 which is a charity F25... .

4

In subsection (1)(a) above, “the appropriate day”, in relation to any house and premises, means the 23rd March 1965 or such later day as by virtue of F14section 25(3) of the M1Rent Act 1977 would be the appropriate day for purposes of that Act in relation to a dwelling house consisting of that house.

F154A

Schedule 8 to the M2Housing Act 1974 shall have effect to enable a tenant to have the rateable value of the house and premises reduced for purposes of this section in consequence of tenant’s improvements.

F165

If, in relation to any house and premises, the appropriate day for the purposes of subsection (1)(a) above falls on or after 1st April 1973 that subsection shall have effect in relation to the house and premises,—

a

in a case where the tenancy was created on or before 18th February 1966, as if for the sums of £200 and £400 specified in that subsection there were substituted respectively the sums of £750 and £1,500; and

b

in a case where the tenancy was created after 18th February 1966, as if for those sums of £200 and £400 there were substituted respectively the sums of £500 and £1,000.

6

If, in relation to any house and premises,—

a

the appropriate day for the purposes of subsection (1)(a) above falls before 1st April 1973, and

b

the rateable value of the house and premises on the appropriate day was more than £200 or, if it was then in Greater London, £400, and

c

the tenancy was created on or before 18th February 1966,

subsection (1)(a) above shall have effect in relation to the house and premises as if for the reference to the appropriate day there were substituted a reference to 1st April 1973 and as if for the sums of £200 and £400 specified in that subsection there were substituted respectively the sums of £750 and £1,500.

F177

The Secretary of State may by order replace the amount referred to in subsection (1)(a)(ii) above and the number in the definition of “I” in that subsection by such amount or number as is specified in the order; and such an order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.