93A Powers of trustees in relation to rights under Chapters I and II.

1

Where trustees are a qualifying tenant of a flat for the purposes of Chapter I or II, their powers under the instrument regulating the trusts shall include power to participate in the exercise of the right to collective enfranchisement under Chapter I or, as the case may be, to exercise the right to a new lease under Chapter II.

2

Subsection (1) shall not apply where the instrument regulating the trusts—

a

is made on or after the day on which section 113 of the Housing Act 1996 comes into force, and

b

contains an explicit direction to the contrary.

3

The powers conferred by subsection (1) shall be exercisable with the like consent or on the like direction (if any) as may be required for the exercise of the trustees’ powers (or ordinary powers) of investment.

4

The following purposes, namely—

a

those authorised for the application of capital money by section 73 of the M1Settled Land Act 1925, or by that section as applied by section 28 of the M2Law of Property Act 1925 in relation to trusts for sale, and

b

those authorised by section 71 of the Settled Land Act 1925, or by that section as so applied, as purposes for which moneys may be raised by mortgage,

shall include the payment of any expenses incurred by a tenant for life or statutory owners or by trustees for sale, as the case may be, in or in connection with participation in the exercise of the right to collective enfranchisement under Chapter I or in or in connection with the exercise of the right to a new lease under Chapter II.