Commonhold and Leasehold Reform Act 2002
2002 c. 15 · Enacted 1 May 2002 · Extends to England and Wales
An Act to make provision about commonhold land and to amend the law about leasehold property.
[1st May 2002]
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Contents
- Part 1: Commonhold
- Nature of commonhold
- 1Commonhold land
- Registration
- 2Application
- 3Consent
- 4Land which may not be commonhold
- 5Registered details
- 6Registration in error
- Effect of registration
- 7Registration without unit-holders
- 8Transitional period
- 9Registration with unit-holders
- 10Extinguished lease: liability
- Commonhold unit
- 11Definition
- 12Unit-holder
- 13Joint unit-holders
- 14Use , maintenance and building safety
- 15Transfer
- 16Transfer: effect
- 17Leasing: residential
- 18Leasing: non-residential
- 19Leasing: supplementary
- 20Other transactions
- 21Part-unit: interests
- 22Part–unit: charging
- 23Changing size
- 24Changing size: charged unit
- Common parts
- 25Definition
- 26Use , maintenance and building safety
- 27Transactions
- 28Charges: general prohibition
- 29New legal mortgages
- 30Additions to common parts
- Commonhold community statement
- 31Form and content: general
- 32Regulations
- 33Amendment
- Commonhold association
- 34Constitution
- 35Duty to manage
- 36Voting
- Operation of commonhold
- 37Enforcement and compensation
- 38Commonhold assessment
- 38ABuilding safety assessment
- 39Reserve fund
- 40Rectification of documents
- 41Enlargement
- 42Ombudsman
- Termination: voluntary winding-up
- 43Winding-up resolution
- 44100 per cent. agreement
- 4580 per cent. agreement
- 46Termination application
- 47Termination statement
- 48The liquidator
- 49Termination
- Termination: winding-up by court
- 50Introduction
- 51Succession order
- 52Assets and liabilities
- 53Transfer of responsibility
- 54Termination of commonhold
- Termination: miscellaneous
- 55Termination by court
- 56Release of reserve fund
- Miscellaneous
- 57Multiple site commonholds
- 58Development rights
- 59Development rights: succession
- 60Compulsory purchase
- 61Home rights
- 62Advice etc.
- 63The Crown
- General
- 64Orders and regulations
- 65Registration procedure
- 66Jurisdiction
- 67The register
- 68Amendments
- 69Interpretation
- 70Index of defined expressions
- Part 2: Leasehold reform
- Chapter 1: Right to manage
- Introductory
- 71The right to manage
- Qualifying rules
- 72Premises to which Chapter applies
- 73RTM companies
- 74RTM companies: membership and regulations
- 75Qualifying tenants
- 76Long leases
- 77Long leases: further provisions
- Claim to acquire right
- 78Notice inviting participation
- 79Notice of claim to acquire right
- 80Contents of claim notice
- 81Claim notice: supplementary
- 82Right to obtain information
- 83Right of access
- 84Counter-notices
- 85Landlords etc. not traceable
- 86Withdrawal of claim notice
- 87Deemed withdrawal
- 87ACosts: general
- 87BPower of tribunal to order costs where claim ceases
- 88Costs: general Repealed
- 89Costs where claim ceases Repealed
- Acquisition of right
- 90The acquisition date
- 91Notices relating to management contracts
- 92Duties to give notice of contracts
- 93Duty to provide information
- 94Duty to pay accrued uncommitted service charges
- Exercising right
- 95Introductory
- 96Management functions under leases
- 97Management functions: supplementary
- 98Functions relating to approvals
- 99Approvals: supplementary
- 100Enforcement of tenant covenants
- 101Tenant covenants: monitoring and reporting
- 102Statutory functions
- 103Landlord contributions to service charges
- Supplementary
- 104Registration Repealed
- 105Cessation of management
- 106Agreements excluding or modifying right
- 107Power of tribunal to order compliance
- 108Application to Crown
- 109Powers of trustees in relation to right
- 110Power to prescribe procedure
- 111Notices
- Interpretation
- 112Definitions
- 113Index of defined expressions
- Chapter 2: Collective enfranchisement by tenants of flats
- Introductory
- 114Amendments of right to collective enfranchisement
- Qualifying rules
- 115Non-residential premises
- 116Premises including railway track
- 117Qualifying leases
- 118Premises with resident landlord
- 119Proportion of tenants required to participate
- 120Abolition of residence condition
- Exercise of right
- 121Right exercisable only by RTE company Not yet in force
- 122RTE companies
- 123Invitation to participate Not yet in force
- 124Consequential amendments Not yet in force
- 125Right of access
- Purchase price
- 126Valuation date
- 127Freeholder’s share of marriage value
- 128Disregard of marriage value in case of very long leases
- Chapter 3: New leases for tenants of flats
- Introductory
- 129Amendments of right to acquire new lease
- Qualifying rules
- 130Replacement of residence test
- 131Qualifying leases
- 132Personal representatives
- 133Crown leases
- Purchase price
- 134Valuation date
- 135Landlord’s share of marriage value
- 136Disregard of marriage value in case of very long leases
- Chapter 4: Leasehold houses
- Introductory
- 137Amendments of 1967 Act
- Qualifying rules
- 138Abolition of residence test
- 139Reduction of qualifying period as tenant etc
- 140Exclusion of certain business tenancies
- 141Tenancies not at low rent
- 142Personal representatives
- 143Abolition of limits on rights after lease extension
- 144Exclusion of shared ownership leases
- Purchase price
- 145Tenant’s share of marriage value
- 146Disregard of marriage value in case of very long leases
- 147Purchase price for enfranchisement during lease extension
- Absent landlords
- 148Applications to be to county court
- 149Valuation by leasehold valuation tribunal
- Chapter 5: Other provisions about leases
- Service charges, administration charges etc.
- 150Extending meaning of service charge and management etc
- 151Consultation about service charges
- 152Statements of account
- 153Notice to accompany demands for service charges
- 154Inspection etc. of documents Not yet in force
- 155Liability to pay service charges: jurisdiction
- 156Service charge contributions to be held in separate account
- 157Service charges: minor and consequential amendments
- 158Administration charges
- 159Charges under estate management schemes
- Managers appointed by ... tribunal
- 160Third parties with management responsibilities
- 161Restriction of resident landlord exception
- Variation of leases
- 162Grounds for application by party to lease
- 163Transfer of jurisdiction of court to tribunal
- Insurance
- 164Insurance otherwise than with landlord’s insurer
- 165Extension of right to challenge landlord’s choice of insurer
- Ground rent
- 166Requirement to notify long leaseholders that rent is due
- Forfeiture of leases of dwellings
- 167Failure to pay small amount for short period
- 168No forfeiture notice before determination of breach
- 169Section 168: supplementary
- 170Forfeiture for failure to pay service charge etc
- 171Power to prescribe additional or different requirements
- Crown application
- 172Application to Crown
- Chapter 6: Leasehold valuation tribunals
- 173Leasehold valuation tribunals
- 174Procedure
- 175Appeals
- 176Consequential amendments
- Chapter 6A: First-Tier Tribunal and Upper Tribunal
- 176ATransfer from court to First-tier Tribunal
- 176BAppeals from the First-tier Tribunal
- 176CEnforcement
- Chapter 7: General
- 177Wales
- 178Orders and regulations
- 179Interpretation
- Part 3: Supplementary
- 180Repeals
- 181Commencement etc
- 182Extent
- 183Short title
- Schedule 1: Application for registration: documents
- 1Introduction
- 2Commonhold association documents
- 3Paragraph 3
- 4Paragraph 4
- 5Commonhold community statement
- 6Consent
- 7Certificate
- Schedule 2: Land which may not be commonhold land
- 1“Flying freehold”
- 2Agricultural land
- 3Contingent title
- Schedule 3: Commonhold association
- Part 1: Articles of Association
- 1Introduction
- 2Form and content
- 3Alteration
- 4Disapplication of Companies Act 1985 Repealed
- Part 2: Membership
- 5Pre-commonhold period
- 6Transitional period
- 7Unit-holders
- 8Joint unit-holders
- 9Self-membership
- 10No other members
- 11Effect of registration
- 12Termination of membership
- 13Paragraph 13
- 14Register of members
- 15Supplementary provisions
- Part 3: Miscellaneous
- 16Name
- 17Statement of compliance
- Schedule 4: Development rights
- 1Introductory
- 2Works
- 3Marketing
- 4Variation
- 5Paragraph 5
- 6Paragraph 6
- 7Commonhold association
- Schedule 5: Commonhold: consequential amendments
- 1Law of Property Act 1922 (c. 16)
- 2Law of Property Act 1925 (c. 20)
- 3Paragraph 3
- 4Limitation Act 1980 (c. 58)
- 5Housing Act 1985 (c. 68)
- 6Insolvency Act 1986 (c. 45)
- 7Law of Property (Miscellaneous Provisions) Act 1994 (c. 36)
- 8Trusts of Land and Appointment of Trustees Act 1996 (c. 47)
- Schedule 6: Premises excluded from right to manage
- 1Buildings with substantial non-residential parts
- 2Buildings with self-contained parts in different ownership
- 3Premises with resident landlord and no more than four units
- 4Premises owned by local housing authority
- 5Premises in relation to which rights previously exercised
- Schedule 7: Right to manage: statutory provisions
- 1Covenants not to assign etc.
- 2Defective premises
- 3Repairing obligations : England
- 3ARepairing obligations: Wales
- 4Service charges
- 5Right to request information on insurance
- 6Managing agents
- 7Right of first refusal
- 8Appointment of manager
- 9Right to acquire landlord’s interest
- 10Variation of leases
- 11Service charges to be held in trust
- 12Information to be furnished to tenants
- 13Statutory duties relating to certain covenants
- 14Tenants’ right to management audit
- 15Right to appoint surveyor
- 16Administration charges
- Schedule 8: Enfranchisement by company: amendments Not yet in force
- 1Land Compensation Act 1973 (c. 26) Not yet in force
- 2Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) Not yet in force
- 3Paragraph 3 Not yet in force
- 4Paragraph 4 Not yet in force
- 5Paragraph 5 Not yet in force
- 6Paragraph 6 Not yet in force
- 7Paragraph 7 Not yet in force
- 8Paragraph 8 Not yet in force
- 9Paragraph 9 Not yet in force
- 10Paragraph 10 Not yet in force
- 11Paragraph 11 Not yet in force
- 12Paragraph 12 Not yet in force
- 13Paragraph 13 Not yet in force
- 14Paragraph 14 Not yet in force
- 15Paragraph 15 Not yet in force
- 16Paragraph 16 Not yet in force
- 17Paragraph 17 Not yet in force
- 18Paragraph 18 Not yet in force
- 19Paragraph 19 Not yet in force
- 20Paragraph 20 Not yet in force
- 21Paragraph 21 Not yet in force
- 22Paragraph 22 Not yet in force
- 23Paragraph 23 Not yet in force
- 24Paragraph 24 Not yet in force
- 25Paragraph 25 Not yet in force
- 26Paragraph 26 Not yet in force
- 27Paragraph 27 Not yet in force
- 28Paragraph 28 Not yet in force
- 29Paragraph 29 Not yet in force
- 30Paragraph 30 Not yet in force
- 31Paragraph 31 Not yet in force
- 32Paragraph 32 Not yet in force
- 33Paragraph 33 Not yet in force
- 34Paragraph 34 Not yet in force
- 35Paragraph 35 Not yet in force
- 36Paragraph 36 Not yet in force
- 37Paragraph 37 Not yet in force
- 38Paragraph 38 Not yet in force
- 39Paragraph 39 Not yet in force
- 40Paragraph 40 Not yet in force
- 41Paragraph 41 Not yet in force
- 42Paragraph 42 Not yet in force
- 43Paragraph 43 Not yet in force
- Schedule 9: Meaning of service charge and management
- 1Loans in respect of service charges
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Service charges
- 8Appointment of manager
- 9Right to acquire landlord’s interest
- 10Tenants’ right to management audit
- 11Codes of management practice
- 12Right to appoint surveyor
- 13Power to amend certain provisions
- Schedule 10: Service charges: minor and consequential amendments
- 1Information held by superior landlord Not yet in force
- 2Change of landlord Not yet in force
- 3Assignment Not yet in force
- 4Offences Not yet in force
- 5Exceptions Not yet in force
- 6Accountants Not yet in force
- 7Paragraph 7 Not yet in force
- 8Insurance
- 9Paragraph 9
- 10Paragraph 10
- 11Paragraph 11
- 12Paragraph 12
- 13Paragraph 13
- 14Service charge contributions: appointment of manager Not yet in force
- 15Trust of service charges paid by only one tenant
- 16Management audit Not yet in force
- 17Paragraph 17 Not yet in force
- 18Paragraph 18 Not yet in force
- 19Paragraph 19 Not yet in force
- Schedule 11: Administration charges
- Part 1: Administration charges
- 1Meaning of “administration charge”
- 2Reasonableness of administration charges
- 2ANo administration charge payable for certain rents
- 3Application for order varying lease
- 4Notice in connection with demands for administration charges
- 5Liability to pay administration charges
- 5ALimitation of administration charges: costs of proceedings
- 6Interpretation
- Part 2: Amendments of Landlord and Tenant Act 1987
- 7Paragraph 7
- 8Paragraph 8
- 9Paragraph 9
- 10Paragraph 10
- 11Paragraph 11
- Schedule 12: Leasehold valuation tribunals: procedure
- 1Procedure regulations
- 2Applications
- 3Transfers
- 4Information
- 5Pre-trial reviews
- 6Parties
- 7Dismissal
- 8Determination without hearing
- 9Fees
- 10Costs
- 11Enforcement
- Schedule 13: Leasehold valuation tribunals: amendments
- 1Leasehold Reform Act 1967 (c. 88)
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Housing Act 1980 (c. 51)
- 8Landlord and Tenant Act 1987 (c. 31)
- 9Paragraph 9
- 10Paragraph 10
- 11Paragraph 11
- 12Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)
- 13Paragraph 13
- 14Paragraph 14
- 15Paragraph 15
- 16Housing Act 1996 (c. 52)
- Schedule 14Repeals