Housing Act 1996

Forfeiture U.K.

81 Restriction on termination of tenancy for failure to pay service charge. E+W

(1) A landlord may not, in relation to premises let as a dwelling, exercise a right of re-entry or forfeiture for failure [F1 by a tenant to pay a service charge or administration charge unless— ]

[F1 (a) it is finally determined by (or on appeal from) a leasehold valuation tribunal or by a court, or by an arbitral tribunal in proceedings pursuant to a post-dispute arbitration agreement, that the amount of the service charge or administration charge is payable by him, or]

[F1 (b) the tenant has admitted that it is so payable.]

[F2 (2) The landlord may not exercise a right of re-entry or forfeiture by virtue of subsection (1)(a) until after the end of the period of 14 days beginning with the day after that on which the final determination is made.]

[F3 (3) For the purposes of this section it is finally determined that the amount of a service charge or administration charge is payable—

(a) if a decision that it is payable is not appealed against or otherwise challenged, at the end of the time for bringing an appeal or other challenge, or

(b) if such a decision is appealed against or otherwise challenged and not set aside in consequence of the appeal or other challenge, at the time specified in subsection (3A).

(3A) The time referred to in subsection (3)(b) is the time when the appeal or other challenge is disposed of—

(a) by the determination of the appeal or other challenge and the expiry of the time for bringing a subsequent appeal (if any), or

(b) by its being abandoned or otherwise ceasing to have effect.]

(4) The reference in subsection (1) to premises let as a dwelling does not include premises let on—

(a) a tenancy to which Part II of the M1 Landlord and Tenant Act 1954 applies (business tenancies),

(b) a tenancy of an agricultural holding within the meaning of the M2 Agricultural Holdings Act 1986 in relation to which that Act applies, or

(c) a farm business tenancy within the meaning of the M3 Agricultural Tenancies Act 1995.

[F4 (4A) References in this section to the exercise of a right of re-entry or forfeiture include the service of a notice under section 146(1) of the Law of Property Act 1925 (restriction on re-entry or forfeiture).]

(5) In this section

[F5 (a) “administration charge” has the meaning given by Part 1 of Schedule 11 to the Commonhold and Leasehold Reform Act 2002,

(b) “arbitration agreement” and “arbitral tribunal” have the same meaning as in Part 1 of the Arbitration Act 1996 (c. 23) and “post-dispute arbitration agreement”, in relation to any matter, means an arbitration agreement made after a dispute about the matter has arisen,

(c) “dwelling” has the same meaning as in the Landlord and Tenant Act 1985 (c. 70), and

(d)]

“service charge” means a service charge within the meaning of section 18(1) of the M4 Landlord and Tenant Act 1985, other than one excluded from that section by section 27 of that Act (rent of dwelling registered and not entered as variable).

[F6 (5A) Any order of a court to give effect to a determination of a leasehold valuation tribunal shall be treated as a determination by the court for the purposes of this section.]

(6) Nothing in this section affects the exercise of a right of re-entry or forfeiture on other grounds.

Textual Amendments

F1 Words in s. 81(1) substituted (28.2.2005 for E., 31.5.2005 for W.) by Commonhold and Leasehold Reform Act 2002 (c. 15), ss. 170(2), 181(1); S.I. 2004/3056, art. 3(f) (with art. 4(3)); S.I. 2005/1353, art. 2(f) (with art. 3(4))

F2 S. 81(2) substituted (28.2.2005 for E., 31.5.2005 for W.) by Commonhold and Leasehold Reform Act 2002 (c. 15), ss. 170(3), 181(1); S.I. 2004/3056, art. 3(f) (with art. 4(3)); S.I. 2005/1353, art. 2(f) (with art. 3(4))

F3 S. 81(3)(3A) substituted for s. 81(3) (28.2.2005 for E., 31.5.2005 for W.) by Commonhold and Leasehold Reform Act 2002 (c. 15), ss. 170(4), 181(1); S.I. 2004/3056, art. 3(f) (with art. 4(3)); S.I. 2005/1353, art. 2(f) (with art. 3(4))

F4 S. 81(4A) inserted (28.2.2005 for E., 31.5.2005 for W.) by Commonhold and Leasehold Reform Act 2002 (c. 15), ss. 170(5), 181(1); S.I. 2004/3056, art. 3(f) (with art. 4(3)); S.I. 2005/1353, art. 2(f) (with art. 3(4))

F5 Words in s. 81(5) inserted (28.2.2005 for E., 31.5.2005 for W.) by Commonhold and Leasehold Reform Act 2002 (c. 15), ss. 170(6), 181(1); S.I. 2004/3056, art. 3(f) (with art. 4(3)); S.I. 2005/1353, art. 2(f) (with art. 3(4))

F6 S. 81(5A) inserted (28.2.2005 for E., 31.5.2005 for W.) by Commonhold and Leasehold Reform Act 2002 (c. 15), s. 181(1), Sch. 13 para. 16; S.I. 2004/3056, art. 3(i); S.I. 2005/1353, art. 2(i)

Modifications etc. (not altering text)

C1 S. 81 extended to Crown Land (30.9.2003 for E. for specified purposes, 30.3.2004 for W. for specified purposes, 28.2.2005 for E. for specified purposes, 31.5.2005 for W. for specified purposes) by Commonhold and Leasehold Reform Act 2002 (c. 15), ss. 172, 181(1); S.I. 2003/1986, art. 2(c)(ii) (with Sch. 2); S.I. 2004/669, art. 2(c)(ii) (with Sch. 2); S.I. 2004/3056, art. 3(h) (with art. 4); S.I. 2005/1353, art. 2(h)

Marginal Citations

M1 1954 c. 56.

M2 1986 c. 5.

M3 1995 c. 8.

M4 1985 c. 70.

F7 82 Notice under s.146 of the Law of Property Act 1925. E+W

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Textual Amendments

F7 S. 82 repealed (28.2.2005 for E., 31.5.2005 for W.) by Commonhold and Leasehold Reform Act 2002 (c. 15), s. 181(1), Sch. 14; S.I. 2004/3056, art. 3(j); S.I. 2005/1353, art. 2(j)