Part IE+W LANDLORD AND TENANT

Chapter IE+W COLLECTIVE ENFRANCHISEMENT IN CASE OF TENANTS OF FLATS

Modifications etc. (not altering text)

C1Pt. 1 Ch. 1: power to amend conferred (20.1.2007) by Companies Act 2006 (c. 46), ss. 1181(1)(a), 1300(2); S.I. 2006/3428, art. 3(3) (with arts. 6, 8(2))

Procedure following giving of initial noticeE+W

21 Reversioner’s counter-notice.E+W

(1)The reversioner in respect of the specified premises shall give a counter-notice under this section to the nominee purchaser by the date specified in the initial notice in pursuance of section 13(3)(g).

(2)The counter-notice must comply with one of the following requirements, namely—

(a)state that the reversioner admits that the participating tenants were on the relevant date entitled to exercise the right to collective enfranchisement in relation to the specified premises;

(b)state that, for such reasons as are specified in the counter-notice, the reversioner does not admit that the participating tenants were so entitled;

(c)contain such a statement as is mentioned in paragraph (a) or (b) above but state that an application for an order under subsection (1) of section 23 is to be made by such appropriate landlord (within the meaning of that section) as is specified in the counter-notice, on the grounds that he intends to redevelop the whole or a substantial part of the specified premises.

(3)If the counter-notice complies with the requirement set out in subsection (2)(a), it must in addition—

(a)state which (if any) of the proposals contained in the initial notice are accepted by the reversioner and which (if any) of those proposals are not so accepted, and specify—

(i)in relation to any proposal which is not so accepted, the reversioner’s counter-proposal, and

(ii)any additional leaseback proposals by the reversioner;

(b)if (in a case where any property specified in the initial notice under section 13(3)(a)(ii) is property falling within section 1(3)(b)) any such counter-proposal relates to the grant of rights or the disposal of any freehold interest in pursuance of section 1(4), specify—

(i)the nature of those rights and the property over which it is proposed to grant them, or

(ii)the property in respect of which it is proposed to dispose of any such interest,

as the case may be;

(c)state which interests (if any) the nominee purchaser is to be required to acquire in accordance with subsection (4) below;

(d)state which rights (if any) [F1any] relevant landlord, desires to retain—

(i)over any property in which he has any interest which is included in the proposed acquisition by the nominee purchaser, or

(ii)over any property in which he has any interest which the nominee purchaser is to be required to acquire in accordance with subsection (4) below,

on the grounds that the rights are necessary for the proper management or maintenance of property in which he is to retain a freehold or leasehold interest; and

(e)include a description of any provisions which the reversioner or any other relevant landlord considers should be included in any conveyance to the nominee purchaser in accordance with section 34 and Schedule 7.

(4)The nominee purchaser may be required to acquire on behalf of the participating tenants the interest in any property of [F2any] relevant landlord, if the property—

(a)would for all practical purposes cease to be of use and benefit to him, or

(b)would cease to be capable of being reasonably managed or maintained by him,

in the event of his interest in the specified premises or (as the case may be) in any other property being acquired by the nominee purchaser under this Chapter.

(5)Where a counter-notice specifies any interest in pursuance of subsection (3)(c), the nominee purchaser or any person authorised to act on his behalf shall, in the case of any part of the property in which that interest subsists, have a right of access thereto for the purpose of enabling the nominee purchaser to obtain, in connection with the proposed acquisition by him, a valuation of that interest; and subsection (3) of section 17 shall apply in relation to the exercise of that right as it applies in relation to the exercise of a right of access conferred by that section.

(6)Every counter-notice must specify an address in England and Wales at which notices may be given to the reversioner under this Chapter.

(7)The reference in subsection (3)(a)(ii) to additional leaseback proposals is a reference to proposals which relate to the leasing back, in accordance with section 36 and Schedule 9, of flats or other units contained in the specified premises and which are made either—

(a)in respect of flats or other units in relation to which Part II of that Schedule is applicable but which were not specified in the initial notice under section 13(3)(c)(ii), or

(b)in respect of flats or other units in relation to which Part III of that Schedule is applicable.

(8)Schedule 4 (which imposes requirements as to the furnishing of information by the reversioner about the exercise of rights under Chapter II with respect to flats contained in the specified premises) shall have effect.

Textual Amendments

F1Words in s. 21(3)(d) substituted (1.10.1996) by 1996 c. 52, s. 107, Sch. 10 para. 8(2); S.I. 1996/2212, art. 2(2) (with savings in Sch.)

F2Words in s. 21(4) substituted (1.10.1996) by 1996 c. 52, s. 107, Sch. 10 para. 8(3); S.I. 1996/2212, art. 2(2) (with savings in Sch.)

Modifications etc. (not altering text)