The Leasehold Reform (Collective Enfranchisement and Lease Renewal) Regulations 1993

Statutory Instruments

1993 No. 2407

LANDLORD AND TENANT, ENGLAND AND WALES

The Leasehold Reform (Collective Enfranchisement and Lease Renewal) Regulations 1993

Made

30th September 1993

Laid before Parliament

11th October 1993

Coming into force

1st November 1993

The Secretary of State, as respects England, and the Secretary of State for Wales, as respectsWales, in exercise of the powers conferred on them by sections 98 and 100(1) of the LeaseholdReform, Housing and Urban Development Act 1993(1) and all other powers enabling them inthat behalf, hereby make the following Regulations—

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Leasehold Reform (Collective Enfranchisement and Lease Renewal) Regulations 1993 and shall come into force on 1st November 1993.

(2) In these Regulations references to sections and Schedules without more are references to sections of and Schedules to the Leasehold Reform, Housing and Urban Development Act 1993.

Procedure for collective enfranchisement

2.  In a transaction undertaken to give effect to an initial notice the nominee purchaser, the reversioner and any relevant landlord shall, unless they otherwise agree, be bound by Schedule 1 to these Regulations.

Procedure for lease renewal

3.  In a transaction undertaken to give effect to a tenant’s notice, the landlord and the tenant shall, unless they otherwise agree, be bound by Schedule 2 to these Regulations.

Notices

4.  Any notice, statement, answer or document required or authorised to be given under these Regulations —

(a) shall be in writing, and

(b) may be sent by post.

Signed by authority of the Secretary of State

G. S. K. Young

Minister of State,

Department of the Environment

30th September 1993

John Redwood

Secretary of State for Wales

30th September 1993

Regulation 2

SCHEDULE 1 COLLECTIVE ENFRANCHISEMENT

Interpretation

1.  In this Schedule—

“counter-notice” means a notice given under section 21, and “further counter-notice” means a notice required by or by virtue of section 22(3) or section 23(5) or (6);

“qualifying tenant” shall be construed in accordance with section 5;

“the relevant date” has the meaning given by section 1(8);

“terms of acquisition” has the meaning given by section 24(8).

Evidence that residence condition satisfied

2.—(1) The reversioner may require the nominee purchaser to give him evidence of the occupation on which a qualifying tenant who is claimed in the initial notice to satisfy the residence condition relies, by giving him notice within the period of twenty-one days beginning with the relevant date.

(2) The nominee purchaser shall comply with any such requirement by giving a statutory declaration made by that qualifying tenant to the reversioner within the period of twenty-one days beginning with the date the notice is given.

Delivery of proof of title

3.—(1) Sub-paragraph (2) applies where the reversioner has given a counter-notice complying with section 21(2)(a) (admitting the right to collective enfranchisement) or a further counter-notice, or, if no such counter-notice or further counter-notice is given, the nominee purchaser has applied to the court for an order under section 25(1) (applications where reversioner fails to give counter-notice or further counter-notice).

(2) Subject to paragraph 5, the nominee purchaser may require the reversioner to deduce title to the interests proposed to be acquired in accordance with section 13(3)(a) and (c)(i) (matters specified in the initial notice) and to any interest in relation to which the reversioner has made proposals in accordance with section 21(3)(b) and (c) (matters specified in counter-notice), or to any less extensive interest which it has been agreed or determined by a leasehold valuation tribunal will be acquired, by giving him notice.

(3) The reversioner shall comply with any such requirement by giving the nominee purchaser —

(a) in the case of an interest registered in the register of title kept at Her Majesty’s Land Registry, all particulars and information which have to be given or may be required to be given on a sale of registered land pursuant to section 110 of the Land Registration Act 1925(2) (provisions as between vendor and purchaser), and

(b) in the case of any other interest, an epitome of title,

within the period of twenty-eight days beginning with the date the notice is given.

Requisitions

4.—(1) Subject to paragraph 5, the nominee purchaser shall give to the reversioner a statement of any objections to or requisitions on the proof of title within the period of fourteen days beginning with the date the proof is given (whether or not within the time required).

(2) The reversioner shall give to the nominee purchaser an answer to any statement of objections or requisitions within the period of fourteen days beginning with the date the statement is given.

(3) The nominee purchaser shall give to the reversioner a further statement of any objections to or comments on the answer within the period of seven days beginning with the date the answer is given.

(4) Any objection or requisition not included in any statement given within the period referred to in sub-paragraph (1) shall be deemed waived, and any matter which could have been raised in a statement so given shall be deemed not to be a defect in title for the purposes of paragraph 3(3) of Schedule 6 and as it is applied by paragraph 7(1) and by paragraph 11(1) of that Schedule (effect of defect in title on valuation of interest to be acquired).

(5) Any objection not included in any further statement given within the period specified in subparagraph (3) shall be deemed waived and any matter which could have been raised in a further statement so given shall be deemed not to be a defect in title for the purposes of paragraph 3(3) of Schedule 6 and as it is applied as described in sub-paragraph (4).

(6) If no further statement is given within the time specified in sub-paragraph (3), the reversioner’s answer shall be considered satisfactory.

Relevant landlords acting independently

5.—(1) Sub-paragraph (2) applies where—

(a) a relevant landlord has given notice in accordance with paragraph 7(1)(a) of Schedule 1 (relevant landlord’s entitlement to act independently of the reversioner) of his intention to deal directly with the nominee purchaser in connection with deducing, evidencing or verifying his title, or

(b) the nominee purchaser has given notice in accordance with paragraph 7(2) of Schedule 1 (nominee purchaser’s entitlement to require a relevant landlord to deal directly with him) to a relevant landlord.

(2) Any notice, statement or further statement given—

(a) under paragraph 3 requiring proof of that relevant landlord’s title, or

(b) under paragraph 4 raising requisitions, or making objections to or comments on that relevant landlord’s title,

shall be given to him and not to the reversioner, and he will be under a duty to comply with any such notice or respond to any such statement instead of the reversioner.

Preparation of contract

6.—(1) The reversioner shall prepare the draft contract and give it to the nominee purchaser within the period of twenty-one days beginning with the date the terms of acquisition are agreed or determined by a leasehold valuation tribunal.

(2) The nominee purchaser shall give to the reversioner a statement of any proposals for amending the draft contract within the period of fourteen days beginning with the date the draft contract is given.

(3) If no statement is given by the nominee purchaser within the time specified in sub-paragraph (2) he shall be deemed to have approved the draft.

(4) The reversioner shall give to the nominee purchaser an answer, giving any objections to or comments on the proposals in the statement, within the period of fourteen days beginning with the date the statement is given.

(5) If no answer is given by the reversioner within the time specified in sub-paragraph (4), he shall be deemed to have agreed to the nominee purchaser’s proposals for amendments to the draft contract.

Payment of deposit

7.—(1) The reversioner may require the nominee purchaser to pay a deposit on exchange of contracts in pursuance of the initial notice.

(2) The amount of the deposit required shall be #500, or 10 per cent.of the purchase price agreed or determined by a leasehold valuation tribunal to be payable for the interests to be acquired, whichever is the greater.

(3) The nominee purchaser shall pay the deposit so required to the reversioner’s solicitor or licensed conveyancer as stakeholder.

Cancellation of land charges etc.

8.  Where the initial notice has been registered as a land charge or a notice or caution has been registered in respect of it under section 97(1), and either it is withdrawn, deemed to have been withdrawn or otherwise ceases to have effect, the nominee purchaser shall at the request of the reversioner without delay take all steps necessary to procure cancellation of the registration.

Regulation 3

SCHEDULE 2 LEASE RENEWAL

Interpretation

1.  In this Schedule—

“counter-notice” means a notice given under section 45, and “further counter-notice” means a notice required by or by virtue of section 46(4) or section 47(4) or (5);

“flat” shall be construed in accordance with section 62(2);

“the landlord” has the meaning given by section 40(1);

“lease” means a lease granted to give effect to a tenant’s notice;

“the relevant date” has the meaning given by section 39(8);

“tenant” means a tenant who has given a tenant’s notice;

“terms of acquisition” has the meaning given by section 48(7).

Payment of deposit

2.—(1) The landlord may give to the tenant a notice requiring him to pay a deposit on account of the premium payable for the lease at any time when the tenant’s notice continues in force under section 42(8).

(2) The amount of the deposit shall be £250, or 10 per cent.of the amount proposed in the tenant’s notice as payable on the grant of the lease in accordance with Schedule 13 (premium and other amounts payable by tenant on grant of new lease), whichever is the greater.

(3) The tenant shall pay the deposit so required to the landlord’s solicitor or licensed conveyancer as stakeholder within the period of fourteen days beginning with the date the notice is given.

Return of deposit

3.—(1) Subject to sub-paragraph (3), the tenant may give to the landlord a notice requiring him to procure the return of the deposit to the tenant at any time after the tenant’s notice is withdrawn, deemed to have been withdrawn or otherwise ceases to have effect.

(2) The landlord shall comply with any such requirement within the period of fourteen days beginning with the date the notice is given.

(3) The landlord shall be entitled to have deducted from the deposit any amount due to him from the tenant in accordance with section 60 (tenant’s liability for landlord’s costs).

Evidence of tenant’s right to a lease

4.—(1) The landlord may require the tenant to—

(a) deduce title to his tenancy, and

(b) give evidence by statutory declaration of the occupation on which he relies in the tenant’s notice

by giving him notice within the period of twenty-one days beginning with the relevant date.

(2) The tenant shall comply with any such requirement within the period of twenty-one daysbeginning with the date the notice is given.

Delivery of proof of title

5.—(1) Sub-paragraph (2) applies where the landlord has given a counter-notice complying with section 45(2)(a) (admitting the right to a new lease) or a further counter-notice, or, if no such counter-notice or further counter-notice is given, the tenant has applied to the court for an order under section 49(1) (applications where landlord fails to give counter-notice or further counter-notice).

(2) The tenant may require the landlord to deduce title to his interest in the flat to which the tenant’s notice relates by giving him notice.

(3) The landlord shall comply with any such requirement by giving the tenant: —

(a) in the case of an interest registered in the register of title kept at Her Majesty’s Land Registry, all particulars and information which have to be given or may be required to be given on a sale of registered land pursuant to section 110 of the Land Registration Act 1925(3) (provisions as between vendor and purchaser), and

(b) subject to sub-paragraph (4), in the case of any other interest, an epitome of title,

within the period of twenty-eight days beginning with the date the notice is given.

(4) In a case where the landlord is not the freeholder, and the title to the freehold or any leasehold reversion to the landlord’s title (if any) is not registered at Her Majesty’s Land Registry, the landlord shall use his best endeavours to obtain an epitome of that title and shall also give it to the tenant.

Requisitions

6.—(1) The tenant shall give to the landlord a statement of any objections to or requisitions on the proof of title within the period of fourteen days beginning with the date the proof is given (whether or not within the time required).

(2) The landlord shall give to the tenant an answer to any statement of objections or requisitions within the period of fourteen days beginning with the date the statement is given.

(3) The tenant shall give to the landlord a further statement of any objections to or comments on the answer within the period of seven days beginning with the date the answer is given.

(4) Any objection or requisition not included in any statement given within the period referred to in sub-paragraph (1) shall be deemed waived, and any matter which could have been raised in a statement so given shall be deemed not to be a defect in title for the purposes of paragraph 3(5) of Schedule 13 and as it is applied by paragraph 8(1) of that Schedule (effect of defect in title on calculation of diminution in value of landlord’s interest or any intermediate leasehold interest).

(5) Any objection not included in any further statement given within the period specified in sub-paragraph (3) shall be deemed waived and any matter which could have been raised in a further statement so given shall be deemed not to form a defect in the title for the purposes of paragraph 3(5) of Schedule 13 and as it is applied as described in sub-paragraph (4).

(6) If no further statement is given within the time specified in sub-paragraph (3), the landlord’s answer shall be considered satisfactory.

Preparation of lease

7.—(1) The landlord shall prepare a draft lease and give it to the tenant within the period of fourteen days beginning with the date the terms of acquisition are agreed or determined by a leasehold valuation tribunal.

(2) The tenant shall give to the landlord a statement of any proposals for amending the draft lease within the period of fourteen days beginning with the date the draft lease is given.

(3) If no statement is given by the tenant within the time specified in sub-paragraph (2), he shall be deemed to have approved the draft lease.

(4) The landlord shall give to the tenant an answer giving any objections to or comments on the proposals in the statement within the period of fourteen days beginning with the date the statement is given.

(5) If no answer is given by the landlord within the time specified in sub-paragraph (4), he shall be deemed to have approved the amendments to the draft lease proposed by the tenant.

(6) The landlord shall prepare the lease and as many counterparts as he may reasonably require and shall give the counterpart or counterparts to the tenant for execution a reasonable time before the completion date.

(7) The tenant shall give the counterpart or counterparts of the lease, duly executed, to the landlord and the landlord shall give the lease, duly executed, to the tenant, on the completion date or as soon as possible afterwards.

Completion

8.—(1) Subject to sub-paragraph (2), after the draft lease is approved or deemed to have been approved, either the landlord or the tenant may give the other notice requiring him to complete the grant of the lease on the first working day after the expiration of twenty-one days beginning with the date the notice is given.

(2) Sub-paragraph (1) shall not apply if the date for completion would fall after the expiry of the appropriate period specified for the purposes of section 48 or 49 (applications where terms in dispute or failure to enter into new lease, and applications where landlord fails to give counter-notice or further counter-notice), and in that event the date for completion shall be such day as the landlord and tenant agree in writing or the court orders under section 48(3) or 49(4) (order of the court on failure to enter into new lease).

(3) The landlord shall by notice inform any other landlord who has given notice in accordance with paragraph 7(2) of Schedule 11 (other landlords acting independently) of the date for completion as soon as possible after notice has been given in accordance with sub-paragraph (1) or the date for completion agreed or ordered by the court in accordance with sub-paragraph (2).

(4) Completion shall take place at the office of the landlord’s solicitor or licensed conveyancer.

Cancellation of land charges etc.

9.  Where a tenant’s notice has been registered under section 97(1) as a land charge or a notice or caution has been registered in respect of it, and it is withdrawn, deemed to have been withdrawn or otherwise ceases to have effect, the tenant shall at the request of the landlord without delay take all steps necessary to procure cancellation of the registration.

Explanatory Note

(This note is not part of the Regulations.)

These Regulations prescribe the procedure to be followed, unless it is agreed otherwise, in giving effect to a claim to exercise the right to collective enfranchisement or a claim to exercise the right to lease renewal under Part I of the Leasehold Reform, Housing and Urban Development Act 1993.

Schedule 1 specifies the procedure to be followed by a nominee purchaser and reversioner and, where appropriate, a relevant landlord, in giving effect to an initial notice claiming to exercise the right to collective enfranchisement given under Chapter I of Part I of the Act; and makes provision for payment of a deposit by the nominee purchaser on exchange of contracts.

Schedule 2 specifies the procedure to be followed by a landlord and tenant in giving effect to a tenant’s notice claiming the right to lease renewal under Chapter II of Part I of the Act; and makes provision for payment of a deposit by the tenant at any time when the tenant’s notice is in force.

(1)

1993 c. 28.

(2)

1925 c. 21.

(3)

1925 c. 21.