PART 5Housing, estate agents and rentcharges: other changes

Rentcharges

138Procedure for redeeming English rentcharges

1

The Rentcharges Act 1977 is amended in accordance with subsections (2) to (5).

2

Before section 8 (but after the italic heading before section 8) insert—

7APower to make procedure for redeeming English rentcharges

1

The Secretary of State may by regulations make provision allowing the owner of land in England affected by a rentcharge to redeem it.

2

Regulations under subsection (1) may not make provision in relation to—

a

a rentcharge that could be redeemed by making an application under section 8(1A),

b

a rentcharge of a kind mentioned in section 2(3) or section 3(3)(a),

c

a rentcharge in respect of which the period for which it is payable cannot be ascertained, or

d

a variable rentcharge.

3

For the purposes of subsection (2)(d) a rentcharge is variable if the amount of the rentcharge will, or may, vary in the future in accordance with the provisions of the instrument under which it is payable.

4

Regulations under subsection (1) may, in particular—

a

provide for the owner of land affected by a rentcharge to be able to redeem a rentcharge by taking specified steps, including making payments determined in accordance with the regulations;

b

require a rent owner or other person to take specified steps to facilitate the redemption of a rentcharge, such as providing information or executing a deed of release;

c

where the documents of title of the owner of land affected by a rentcharge are in the custody of a mortgagee, require the mortgagee to make those documents or copies of those documents available in accordance with the regulations;

d

permit or require a person specified in the regulations to design the form of any document to be used in connection with the redemption of rentcharges under the regulations;

e

provide for a court or tribunal to—

i

determine disputes about or in relation to the redemption of a rentcharge;

ii

make orders about the redemption of a rentcharge;

iii

issue a redemption certificate;

f

make provision corresponding to any of the provisions of section 10(2) to (4).

5

Nothing in this section prevents the redemption of a rentcharge otherwise than in accordance with regulations under subsection (1).

3

In section 8—

a

in subsection (1)—

i

after “land” insert “ in Wales ”;

ii

for the words from “a certificate” to the end substitute “ a redemption certificate ”;

b

after subsection (1) insert—

1A

The owner of any land in England affected by a rentcharge which has been apportioned to that land by an apportionment order with a condition under—

a

section 7(2) above, or

b

section 20(1) of the Landlord and Tenant Act 1927,

may apply to the Secretary of State, in accordance with this section, for a redemption certificate.

4

In section 12—

a

in subsection (1), after “this Act” insert “ , apart from regulations under section 7A, ”;

b

after subsection (1) insert—

1A

Regulations under section 7A are to be made by statutory instrument.

1B

A statutory instrument containing regulations under section 7A may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

5

In section 13(1), in the definition of “redemption certificate”, for the words from “has” to the end substitute “ means a certificate certifying that a rentcharge has been redeemed ”.

6

The Leasehold Reform Act 1967 is amended in accordance with subsections (7) and (8).

7

In section 8(4)(b), for “8” substitute “ 7A ”.

8

In section 11—

a

in subsection (6), after “1977” insert “ or the amount that would have to be paid to secure the redemption of that rentcharge in accordance with regulations made under section 7A of that Act ”;

b

in subsection (7)(a), after “specified” insert “ or required ”;

c

in subsection (8), for “8” substitute “ 7A ”.