Leasehold and Freehold Reform Act 2024
Leasehold and Freehold Reform Act 2024 (2024 c. 22)
- Leasehold and Freehold Reform Act 2024 (2024 c. 22)
- Part 1 Leasehold houses
- Ban on grant or assignment of certain long residential leases of houses
- 1 Ban on grant or assignment of certain long residential leases of houses
- Key definitions
- 2 Long residential leases of houses
- 3 Leases which have a long term
- 4 Series of leases whose term would extend beyond 21 years
- 5 Houses
- 6 Residential leases
- 7 Permitted leases
- Regulation of permitted leases
- 8 Permitted leases: certification by the appropriate tribunal
- 9 Permitted leases: marketing restrictions
- 10 Permitted leases: transaction warning conditions
- Land registration
- 11 Prescribed statements in new long leases
- 12 Restriction on title
- Redress
- 13 Redress: right to acquire a freehold or superior leasehold estate
- 14 Redress: application of the right to acquire
- 15 Redress: general provision
- 16 Redress regulations: exercising and giving effect to the right to acquire
- Enforcement
- 17 Enforcement by trading standards authorities
- 18 Financial penalties
- 19 Financial penalties: cross-border enforcement
- 20 Lead enforcement authority
- 21 General duties of lead enforcement authority
- 22 Enforcement by lead enforcement authority
- 23 Further powers and duties of enforcement authorities
- General
- 24 Part 1: Crown application
- 25 Power to amend: permitted leases and definitions
- 26 Interpretation of Part 1
- Part 2 Leasehold enfranchisement and extension
- Eligibility for enfranchisement and extension
- 27 Removal of qualifying period before enfranchisement and extension claims
- 28 Removal of restrictions on repeated enfranchisement and extension claims
- 29 Change of non-residential limit on collective enfranchisement claims
- 30 Eligibility for enfranchisement and extension: specific cases
- Effects of enfranchisement
- 31 Acquisition of intermediate interests in collective enfranchisement
- 32 Right to require leaseback by freeholder after collective enfranchisement
- Effects of extension
- 33 Longer lease extensions
- 34 Lease extensions under the LRA 1967 on payment of premium at peppercorn rent
- Price payable on enfranchisement or extension
- 35 LRA 1967: determining price payable for freehold or lease extension
- 36 LRHUDA 1993: determining price payable for collective enfranchisement or new lease
- 37 Enfranchisement or extension: new method for calculating price payable
- Costs of enfranchisement or extension
- 38 Costs of enfranchisement and extension under the LRA 1967
- 39 Costs of enfranchisement and extension under the LRHUDA 1993
- Jurisdiction of the county court and tribunals
- 40 Replacement of sections 20 and 21 of the LRA 1967
- 41 References to “the court” in Part 1 of the LRA 1967
- 42 Amendment of Part 1 of the LRHUDA 1993
- 43 References to “the court” in Part 1 of the LRHUDA 1993
- Jurisdiction of the High Court
- 44 No first-instance applications to the High Court in tribunal matters
- Enfranchisement and extension: miscellaneous amendments
- 45 Miscellaneous amendments
- Preservation of existing law for certain purposes
- 46 LRA 1967: preservation of existing law for certain enfranchisements
- Consequential amendments to other legislation
- 47 Part 2: consequential amendments to other legislation
- Part 3 Other rights of long leaseholders
- New right to replace rent with peppercorn rent
- 48 Right to vary long lease to replace rent with peppercorn rent
- The right to manage
- 49 Change of non-residential limit on right to manage claims
- 50 Costs of right to manage claims
- 51 Compliance with obligations arising under Chapter 1 of Part 2 of the CLRA 2002
- 52 No first-instance applications to the High Court in tribunal matters
- Part 4 Regulation of leasehold
- Service charges
- 53 Extension of regulation to fixed service charges
- 54 Notice of future service charge demands
- 55 Service charge demands
- 56 Accounts and annual reports
- 57 Right to obtain information on request
- 58 Enforcement of duties relating to service charges
- Insurance
- 59 Limitation on ability of landlord to charge insurance costs
- 60 Duty to provide information about insurance to tenants
- Administration charges
- 61 Duty of landlords to publish administration charge schedules
- Litigation costs
- 62 Limits on rights of landlords to claim litigation costs from tenants
- 63 Right of tenants to claim litigation costs from landlords
- Non-litigation costs: enfranchisement, extension and right to manage
- 64 Restriction on recovery of non-litigation costs of enfranchisement, extension and right to manage
- Appointment of manager by Tribunal
- 65 Appointment of manager: power to vary or discharge orders
- 66 Appointment of manager: breach of redress scheme requirements
- Sales information requests
- 67 Leasehold sales information requests
- General
- 68 Regulations under the LTA 1985: procedure and appropriate authority
- 69 LTA 1985: Crown application
- 70 Part 4: consequential amendments
- 71 Application of Part 4 to existing leases
- Part 5 Regulation of estate management
- Key definitions
- 72 Meaning of “estate management” etc
- Limitation of estate management charges
- 73 Estate management charges: general limitations
- 74 Limitation of estate management charges: reasonableness
- 75 Limitation of estate management charges: consultation requirements
- 76 Limitation of estate management charges: time limits
- 77 Determination of tribunal as to estate management charges
- Rights relating to estate management charges
- 78 Demands for payment
- 79 Annual reports
- 80 Right to request information
- 81 Requests under section 80: further provision
- 82 Enforcement of sections 78 to 81
- Administration charges
- 83 Meaning of “administration charge”
- 84 Duty of estate managers to publish administration charge schedules
- 85 Enforcement of section 84
- 86 Limitation of administration charges
- 87 Determination of tribunal as to administration charges
- Codes of management practice
- 88 Codes of management practice: extension to estate managers
- Appointment of substitute manager by Tribunal
- 89 Notices of complaint
- 90 Appointment of substitute manager
- 91 Conditions for applying for appointment order
- 92 Criteria for determining whether to make appointment order
- 93 Appointment orders: further provision
- Sales information requests
- 94 Estate management: sales information requests
- 95 Effect of sales information request
- 96 Charges for provision of information
- 97 Enforcement of sections 95 and 96
- General
- 98 Part 5: Crown application
- 99 Interpretation of Part 5
- Part 6 Leasehold and estate management: redress schemes
- Redress schemes: general
- 100 Leasehold and estate management: redress schemes
- 101 Redress schemes: voluntary jurisdiction
- 102 Financial assistance for establishment or maintenance of redress schemes
- 103 Approval and designation of redress schemes
- 104 Redress schemes: no Crown status
- Enforcement
- 105 Financial penalties
- 106 Financial penalties: maximum amounts
- 107 Decision under a redress scheme may be made enforceable as if it were a court order
- 108 Lead enforcement authority: further provision
- Guidance
- 109 Guidance for enforcement authorities and scheme administrators
- Amendments to other Acts
- 110 Part 6: amendments to other Acts
- Interpretation
- 111 Interpretation of Part 6
- Part 7 Rentcharges
- 112 Meaning of “estate rentcharge”
- 113 Regulation of remedies for arrears of rentcharges
- Part 8 Amendments of Part 5 of the Building Safety Act 2022
- Remediation of building defects
- 114 Steps relating to remediation of defects
- 115 Remediation orders
- 116 Remediation contribution orders
- 117 Recovery of legal costs etc through service charge
- 118 Repeal of section 125 of the BSA 2022
- Insolvency of responsible persons
- 119 Higher-risk and relevant buildings: notifications in connection with insolvency
- Part 9 General
- 120 Interpretation of references to other Acts
- 121 Power to make consequential provision
- 122 Regulations
- 123 Extent
- 124 Commencement
- 125 Short title
- Schedules
- Schedule 1 Categories of permitted lease
- Part 1 Categories of permitted lease for Tribunal certification
- Leases granted out of historic leasehold estates
- Community housing leases
- Retirement housing leases
- Leases of certain National Trust property
- Leases granted by the Crown
- Part 2 Categories of permitted lease for self-certification
- Leases agreed before commencement
- Shared ownership leases
- Home finance plan leases
- Extended leases
- Agricultural leases
- Schedule 2 Leasehold houses: financial penalties
- Notice of intent
- Time limits for notice of intent
- Right to make written representations
- Final notice
- Withdrawal or amendment of notice
- Appeals
- Recovery of penalty
- Proceeds of penalties
- Manner of giving notices
- Interpretation
- Schedule 3 Eligibility for enfranchisement and extension: specific cases
- Removal of redevelopment restrictions on enfranchisement and extension
- Removal of residential restriction on enfranchisement and extension under the LRA 1967
- Removal of public purposes restriction on enfranchisement and extension under the LRA 1967
- Exception to enfranchisement for certified community housing providers
- Removal of restriction on extension claims by sub-lessees
- Eligibility of leases of National Trust property for extension
- Consequential amendments to the LRA 1967
- Consequential amendments to the LRHUDA 1993
- Schedule 4 Determining and sharing the market value
- Part 1 Introduction
- Determination and sharing of market value for purposes of section 37
- Part 2 The market value
- Freehold enfranchisements: the basis of the market value
- Lease extensions: the basis of the market value
- How the market value is determined
- Part 3 Determining the market value
- Compulsory use of the standard valuation method
- Tenant holding over or unexpired term of 5 years or less
- Home finance plan leases
- Market rack rent leases
- Property included in the acquisition of a freehold house under section 2(4) of the LRA 1967
- Leases already extended under the old law in the LRA 1967
- Business tenancies
- Acquisition of a freehold house under the LRA 1967: shared ownership leases
- Collective enfranchisement: property other than relevant flats etc and appurtenant property
- Voluntary use of the standard valuation method
- Property that is “subject to the standard valuation method”
- Part 4 Assumptions and other matters affecting determination of market value
- Application of this Part of this Schedule
- Assumptions in all cases: intermediate leases merged and no marriage or hope value
- Additional assumption on transfer of freehold house or lease extension: repairing obligations and improvements
- Additional assumptions on collective enfranchisements: repairing obligations, improvements & leasebacks
- Any determination of market value: specified matters to be taken into consideration
- Any determination of market value: current lease gives rise to a right to hold over
- Standard valuation method: other matters
- Enfranchisement of house or lease extension: tenant with superior lease
- Part 5 The standard valuation method
- Introduction
- Step 1: determine the value of right to receive rent (the “term value”)
- Rent (including a notional capped rent) that is to be used for determining the term value
- Step 2 (freehold enfranchisement): determine the value of the freehold reversion (the “reversion value”)
- Step 2 (lease extensions): determine the value of a 990 year lease (the “reversion value”)
- Step 3: calculate the market value of the newly owned premises subject to the standard valuation method
- Part 6 Entitlement of eligible persons to shares of the market value
- Entitlement and calculation of share
- Freehold enfranchisements: the “eligible persons” and “qualifying transactions”
- Lease extensions: the “eligible persons” and “qualifying transactions”
- The loss suffered
- Interpretation
- Part 7 Determining the term value
- Introduction
- Lease not subject to a rent review
- Lease subject to a rent review with fixed changes
- Lease subject to any other rent review
- Interpretation
- Schedule 5 Other compensation
- Application of this Schedule
- Compensation payable
- Schedule 6 Schedules 4 and 5: interpretation
- Provision to be construed as one with existing enfranchisement legislation
- Meaning of specific expressions
- Expressions with different meanings in relation to different statutory grants or leases
- Schedule 7 Amendments consequential on sections 35 to 37 and Schedules 4 to 6
- Involvement of other landlords: the LRA 1967
- Involvement of other landlords: collective enfranchisement under the LRHUDA 1993
- Involvement of other landlords: new lease under the LRHUDA 1993
- Other consequential amendments to the LRA 1967
- Other consequential amendments to the LRHUDA 1993
- Schedule 8 Leasehold enfranchisement and extension: miscellaneous amendments
- Part 1 LRA 1967 and LRHUDA 1993: general
- Repeal of section 18 of the LRHUDA 1993
- Application of security of tenure provisions to extended leases
- Required statements in extended leases
- Redevelopment break rights in extended leases
- Consequential amendments to the LRA 1967
- Repeal of obsolete provision in section 19 of the LRA 1967
- Orders and regulations under the LRA 1967
- Reduction of rent under intermediate leases
- Part 2 Shared ownership leases and the LRA 1967
- Amendment of the LRA 1967
- Repeal of exclusions of shared ownership leases from Part 1 of the LRA 1967
- Rateable value limits and low rent tests not to apply to shared ownership leases
- No right of enfranchisement for certain shared ownership leases
- Inclusion of terms for sharing staircasing payments
- Meaning of “shared ownership lease”
- Part 3 Shared ownership leases and the LRHUDA 1993
- Amendment of the LRHUDA 1993
- Repeal of special provision for shared ownership leases in definition of “long lease”
- No right to collective enfranchisement for certain shared ownership leases
- Tenant under shared ownership lease to have right to new lease
- Consequential amendment
- Collective enfranchisement: mandatory leaseback
- Inclusion of terms for sharing staircasing payments
- Meaning of “shared ownership lease”
- Part 4 Other legislation
- Provision about “RTE companies”
- Schedule 9 Part 2: consequential amendments to other legislation
- Parliamentary Commissioner Act 1967
- Leasehold Reform Act 1979
- Local Government Act 1985
- Housing Act 1985
- Landlord and Tenant Act 1985
- Housing and Planning Act 1986
- Housing Act 1988
- Local Government and Housing Act 1989
- Local Government (Wales) Act 1994
- Housing Act 1996
- Commonhold and Leasehold Reform Act 2002
- Finance Act 2003
- Companies Act 2006
- Enterprise and Regulatory Reform Act 2013
- Immigration Act 2014
- Consumer Rights Act 2015
- Housing and Planning Act 2016
- Tenant Fees Act 2019
- Building Safety Act 2022
- Schedule 10 Right to vary lease to replace rent with peppercorn rent
- Right to vary lease to replace rent with peppercorn rent
- Meaning of “qualifying lease” and exclusion of certain rent from the right to vary
- Claiming the right to a peppercorn rent
- Suspension of rent variation notices
- Counter-notice
- Application to appropriate tribunal where claim or terms not agreed
- Variation of the lease
- Reduction of rent under intermediate leases
- Jurisdiction of the appropriate tribunal in relation to paragraph 8
- Failure to vary lease
- Missing landlord or third party
- Circumstances in which notice ceases to have effect etc
- Tenant’s liability for costs
- Liability for costs: failed claims
- Liability for costs: successful claims
- Duty of landlord to give copies of the rent variation notice to superior landlords
- Duty of superior landlord to give copies of the rent variation notice to other superior landlords
- Actions of immediate landlord binding on other landlords
- Duty of immediate landlord to conduct commutation claim on behalf of affected other landlords
- Provisions of the LRHUDA 1993 that apply for the purposes of this Schedule
- Regulations
- Interpretation
- Schedule 11 Part 4: consequential amendments
- Part 1 Amendments consequential on section 68
- Part 2 Other consequential amendments
- Schedule 12 Redress schemes: financial penalties
- Notice of intent
- Right to make representations
- Final notice
- Withdrawal or amendment of notice
- Appeals
- Recovery of financial penalty
- Proceeds of financial penalties
- Schedule 13 Part 6: amendments to other Acts
- Local Government Act 1974
- Housing Act 1996
- Building Safety Act 2022
Feedback