Leasehold and Freehold Reform Act 2024

Prospective

Redress E+W

13 Redress: right to acquire a freehold or superior leasehold estate E+W

(1) This section applies where a long residential lease of a house is granted or assigned in breach of section 1.

(2) The rights holder in relation to the lease has the right to acquire (for no consideration)—

(a) the freehold estate in the land comprised in the lease, and

(b) any superior leasehold estate or estates in that land.

(3) References in the rest of this section, and in sections 14 to 16, to the right to acquire are to be construed in accordance with subsection (2).

(4) The right to acquire the freehold or leasehold estate is exercisable against the person holding that estate for the time being (the “landlord”).

(5) The “rights holder”, in relation to a lease, means—

(a) in a case where a mortgagee or chargee has for the time being the right to deal with the house comprised in the lease, that person, or

(b) in any other case the tenant for the time being under the lease.

(6) In this section, “superior leasehold estate”, in relation to a long residential lease of a house, means a leasehold estate that is superior to the long residential lease.

Commencement Information

I1 S. 13 not in force at Royal Assent, see s. 124(3)

14 Redress: application of the right to acquire E+W

(1) Section 13 ceases to apply in relation to a long residential lease of a house if—

(a) the term of the lease expires (but see subsection (2)), or

(b) the lease otherwise ceases to exist.

(2) Where the term of the lease expires, section 13 continues to apply for as long as the lease is continued under a relevant enactment.

(3) Section 13 ceases to apply in relation to a long residential lease of a house if the tenant for the time being under the lease acquires the freehold estate and any superior leasehold estate or estates in the land comprised in the lease (whether or not by exercising the right to acquire).

(4) In subsection (2) “relevant enactment” means—

(a) Part 1 of the Landlord and Tenant Act 1954, or

(b) Schedule 10 to the Local Government and Housing Act 1989.

Commencement Information

I2 S. 14 not in force at Royal Assent, see s. 124(3)

15 Redress: general provision E+W

(1) A lease to which section 13 applies is not as a result of any right to acquire—

(a) registrable under the Land Charges Act 1972, or

(b) to be taken to be an estate contract within the meaning of that Act.

(2) An agreement relating to a long residential lease of a house (whether or not contained in the instrument creating the lease or made before the grant of the lease) is of no effect to the extent that it makes provision—

(a) excluding or modifying the right to acquire, or

(b) providing for the surrender or termination of the lease, or for the imposition of any penalty, in the event of the rights holder taking steps to exercise the right to acquire.

(3) Subsection (2) does not prevent a tenant under a long residential lease of a house from—

(a) surrendering the lease,

(b) terminating the lease, or

(c) entering into an agreement to acquire the freehold estate in the land comprised in the lease, or any superior leasehold estate or estates in that land, other than by way of exercising the right to acquire.

(4) The right to acquire in relation to a long residential lease of a house is not capable of subsisting apart from the lease.

(5) In this section, “rights holder” has the meaning given by section 13.

Commencement Information

I3 S. 15 not in force at Royal Assent, see s. 124(3)

16 Redress regulations: exercising and giving effect to the right to acquire E+W

(1) The Secretary of State may by regulations (“redress regulations”) make provision for and in connection with the exercise of the rights holder’s right to acquire in relation to a long residential lease of a house.

(2) Redress regulations may, in particular, include provision for or in connection with—

(a) the period within which the right to acquire must be exercised;

(b) the giving of notice by the rights holder to the landlord or any other specified person for the purpose of exercising the right to acquire (including the form and manner in which, and the period within which, any such notice must be given);

(c) registration under the Land Charges Act 1972 or the Land Registration Act 2002 of any notice given by virtue of paragraph (b);

(d) the giving of notice by the landlord to the rights holder or any other specified person for the purpose of accepting or rejecting the rights holder’s right to acquire (including the form and manner in which, and the period within which, any such notice must be given);

(e) the making by the appropriate tribunal or a court of an order on an application by a specified person determining whether or not, in the absence of agreement between the rights holder and the landlord, the rights holder has the right to acquire (including provision for the order to be made subject to such terms and conditions as the tribunal or court considers appropriate, including terms about costs);

(f) further steps that must be taken by the rights holder (including the provision of specified information or specified documents), and any conditions that must be met in relation to the taking of those further steps (including conditions about timing), in order to exercise the right to acquire;

(g) requirements that must be met in relation to a conveyance executed to give effect to the right to acquire (a “relevant conveyance”), including requirements for the conveyance to include specified provisions in respect of specified easements or rights over property, rights of way or covenants (positive or restrictive);

(h) any other requirements that must be met in relation to a relevant conveyance, including a requirement that the conveyance is granted free of specified incumbrances, and subject to such burdens as may be specified;

(i) the effect of the execution of a relevant conveyance, including provision for the conveyance to have the effect of discharging the house comprised in the lease from any specified incumbrance (including a charge);

(j) any statement which must be included in a relevant conveyance, including a statement identifying the conveyance as executed for the purposes of this Part, and any requirements that must be met in relation to such a statement (including any requirements prescribed by land registration rules under the Land Registration Act 2002);

(k) the making by the appropriate tribunal or a court of an order (a “relevant order”) on an application by a specified person for the purpose of giving effect to the right to acquire (whether or not in connection with an application to the appropriate tribunal or a court for a determination as described in paragraph (e));

(l) the modification of the right to acquire in relation to any appurtenant property comprised in the lease (including for the rights holder to continue to hold a lease of such property, or conferring on them a right to use the property);

(m) the circumstances in which the rights holder exercising the right to acquire is to be treated as a purchaser for value of the legal estate of the land comprised in the lease;

(n) the circumstances in which a mortgagee or chargee is to be treated for the purposes of section 13(5)(a) as having the right to deal with the house comprised in the lease;

(o) in a case where the rights holder is a tenant for the time being under the lease—

(i) the circumstances in which a representative of the rights holder has the right to acquire instead of that tenant, and

(ii) the exercise by such a representative of any powers or duties of a rights holder conferred or imposed by this Part or under redress regulations;

(p) the liability for specified costs in connection with the exercise of the right to acquire (including provision as to how to calculate such costs or for the amount of any costs payable to be determined, in the absence of agreement, by the appropriate tribunal or a court);

(q) proceedings for the recovery by specified persons from the landlord who granted the lease of compensation for any loss or damage resulting from the breach of section 1, including provision as to how to calculate the value of such loss or damage, and conferring powers on the appropriate tribunal or a court in connection with the recovery of such compensation (including provision as to costs).

(3) Provision under subsection (2)(k) may, in particular, include provision—

(a) for the making of a relevant order where the landlord cannot be found or identified, including where the rights holder has been unable to give notice for the purpose of exercising the right to acquire;

(b) for a relevant order to determine the content of a relevant conveyance and who may execute it, and to be made subject to such further terms and conditions as the appropriate tribunal or court considers appropriate, including terms about costs.

(4) Redress regulations may include provision about cases where the rights holder’s right to acquire in relation to a lease is exercisable in relation to more than one landlord, including (but not limited to) provision—

(a) for or in connection with functions to be carried out by one landlord (the “reversioner”) on behalf of the other landlords;

(b) for the landlord holding the freehold estate to be the reversioner;

(c) for another landlord to be the reversioner in specified circumstances;

(d) for or in connection with the appointment or removal of a reversioner by order of the appropriate tribunal or a court, on an application by a specified person;

(e) for things done by the reversioner to be binding on the other landlords and on their interests in the land comprised in the lease;

(f) for or in connection with the provision of information, documents or other assistance by other landlords to the reversioner for the purpose of enabling the reversioner to carry out functions under redress regulations;

(g) for the indemnification of the reversioner against any liability incurred by the reversioner in consequence of failure by other landlords to comply with any requirement imposed on them by redress regulations;

(h) excluding the reversioner from liability to any of the other landlords in specified circumstances;

(i) for or in connection with the making of an order by the appropriate tribunal or a court, on an application by the reversioner, directing how the right to acquire may be given effect if any of the other landlords cannot be found or identified, or in case of a dispute between the reversioner and any other landlord.

(5) Redress regulations may—

(a) apply or incorporate (with or without modifications) any provision made by or under any relevant enactment;

(b) amend or repeal any provision made by an Act.

(6) A statutory instrument containing redress regulations is subject to the negative procedure.

(7) In this section—

• “incumbrances” has the same meaning as in section 9 of the LRA 1967;

• “landlord” has the meaning given by section 13;

• “relevant enactment” means—

  (a)

  the LRA 1967;

  (b)

  the LRHUDA 1993;

  (c)

  the Tribunals, Courts and Enforcement Act 2007;

• “representative”, in relation to a rights holder, means the personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to that person;

• “rights holder” has the meaning given by section 13;

• “specified” means specified or described in redress regulations.

Commencement Information

I4 S. 16 not in force at Royal Assent, see s. 124(3)