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Commonhold and Leasehold Reform Act 2002

2002 c. 15 · Enacted 1 May 2002 · Extends to England and Wales

Not fully up to date. 51 changes made by later legislation have not yet been written into this text, which is revised to 3 March 2025.

See the changes not yet applied
ProvisionChangeMade by
s. 26(3)insertedBuilding Safety (Wales) Act 2026 s. 76(3)
s. 38A(1)words insertedBuilding Safety (Wales) Act 2026 s. 76(4)(a)
s. 38A(3)words insertedBuilding Safety (Wales) Act 2026 s. 76(4)(b)
s. 38A(4)insertedBuilding Safety (Wales) Act 2026 s. 76(4)(c)
s. 69(1)word omittedBuilding Safety (Wales) Act 2026 s. 76(5)(a)
s. 69(1)words insertedBuilding Safety (Wales) Act 2026 s. 76(5)(b)
s. 14(5)insertedBuilding Safety (Wales) Act 2026 s. 76(2)
s. 141repealedHousing and Regeneration Act 2008 Sch. 16
s. 156(2)repealedHousing and Regeneration Act 2008 Sch. 16
Sch. 10 para. 6 and cross-headingrepealedHousing and Regeneration Act 2008 Sch. 16
Sch. 10 para. 7repealedHousing and Regeneration Act 2008 Sch. 16
s. 172(3)omittedLeasehold and Freehold Reform Act 2024 s. 69(2)(b)
s. 121-124 and cross-headingomittedLeasehold and Freehold Reform Act 2024 Sch. 8 para. 24(a)
Sch. 8omittedLeasehold and Freehold Reform Act 2024 Sch. 8 para. 24(b)
s. 126omittedLeasehold and Freehold Reform Act 2024 Sch. 9 para. 11(a)
s. 127omittedLeasehold and Freehold Reform Act 2024 Sch. 9 para. 11(b)
s. 128omittedLeasehold and Freehold Reform Act 2024 Sch. 9 para. 11(c)
s. 130(2)omittedLeasehold and Freehold Reform Act 2024 Sch. 9 para. 11(d)
s. 132omittedLeasehold and Freehold Reform Act 2024 Sch. 9 para. 11(e)
s. 134omittedLeasehold and Freehold Reform Act 2024 Sch. 9 para. 11(f)
s. 135omittedLeasehold and Freehold Reform Act 2024 Sch. 9 para. 11(g)
s. 136omittedLeasehold and Freehold Reform Act 2024 Sch. 9 para. 11(h)
Sch. 13 para. 15omittedLeasehold and Freehold Reform Act 2024 Sch. 9 para. 11(i)
s. 152omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(a)
s. 153omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(b)
s. 154omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(c)
s. 160(4)(d)omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(d)
Sch. 7 para. 4(4)omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(e)(i)
Sch. 7 para. 5(4)omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(e)(ii)
Sch. 9 para. 7omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(f)
Sch. 10 para. 1omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(g)(i)
Sch. 10 para. 3omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(g)(ii)
Sch. 10 para. 4omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(g)(iii)
Sch. 10 para. 6omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(g)(iv)
Sch. 10 para. 8omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(g)(v)
Sch. 10 para. 9omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(g)(vi)
Sch. 10 para. 10omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(g)(vii)
s. 167(1)words substitutedLeasehold and Freehold Reform Act 2024 s. 53(11)(a)
Sch. 10 para. 12omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(g)(ix)
Sch. 10 para. 13omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(g)(x)
Sch. 10 para. 11omittedLeasehold and Freehold Reform Act 2024 Sch. 11 para. 23(g)(viii)
s. 167(5)words substitutedLeasehold and Freehold Reform Act 2024 s. 53(11)(b)
Sch. 11 para. 4omittedLeasehold and Freehold Reform Act 2024 s. 61(a)
s. 178(4)words insertedLeasehold and Freehold Reform Act 2024 s. 62(6)
Sch. 11 para. 4A 4B and cross-headinginsertedLeasehold and Freehold Reform Act 2024 s. 61(b)
s. 172(1)(g)word omittedLeasehold and Freehold Reform Act 2024 s. 62(5)(a)
s. 172(1)(i) and wordinsertedLeasehold and Freehold Reform Act 2024 s. 62(5)(b)
Sch. 11 para. 5AomittedLeasehold and Freehold Reform Act 2024 s. 62(7)(a)
Sch. 11 para. 5B 5C and cross-headinginsertedLeasehold and Freehold Reform Act 2024 s. 62(7)(b)
Sch. 11 para. 5Bapplied by 1985 c. 70, s. 30J(4) (as inserted)Leasehold and Freehold Reform Act 2024 s. 63
s. 172(1)(a)omittedLeasehold and Freehold Reform Act 2024 s. 69(2)(a)

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

  1. Part 1: Commonhold
  2. Nature of commonhold
  3. 1Commonhold land
  4. Registration
  5. 2Application
  6. 3Consent
  7. 4Land which may not be commonhold
  8. 5Registered details
  9. 6Registration in error
  10. Effect of registration
  11. 7Registration without unit-holders
  12. 8Transitional period
  13. 9Registration with unit-holders
  14. 10Extinguished lease: liability
  15. Commonhold unit
  16. 11Definition
  17. 12Unit-holder
  18. 13Joint unit-holders
  19. 14Use , maintenance and building safety
  20. 15Transfer
  21. 16Transfer: effect
  22. 17Leasing: residential
  23. 18Leasing: non-residential
  24. 19Leasing: supplementary
  25. 20Other transactions
  26. 21Part-unit: interests
  27. 22Part–unit: charging
  28. 23Changing size
  29. 24Changing size: charged unit
  30. Common parts
  31. 25Definition
  32. 26Use , maintenance and building safety
  33. 27Transactions
  34. 28Charges: general prohibition
  35. 29New legal mortgages
  36. 30Additions to common parts
  37. Commonhold community statement
  38. 31Form and content: general
  39. 32Regulations
  40. 33Amendment
  41. Commonhold association
  42. 34Constitution
  43. 35Duty to manage
  44. 36Voting
  45. Operation of commonhold
  46. 37Enforcement and compensation
  47. 38Commonhold assessment
  48. 38ABuilding safety assessment
  49. 39Reserve fund
  50. 40Rectification of documents
  51. 41Enlargement
  52. 42Ombudsman
  53. Termination: voluntary winding-up
  54. 43Winding-up resolution
  55. 44100 per cent. agreement
  56. 4580 per cent. agreement
  57. 46Termination application
  58. 47Termination statement
  59. 48The liquidator
  60. 49Termination
  61. Termination: winding-up by court
  62. 50Introduction
  63. 51Succession order
  64. 52Assets and liabilities
  65. 53Transfer of responsibility
  66. 54Termination of commonhold
  67. Termination: miscellaneous
  68. 55Termination by court
  69. 56Release of reserve fund
  70. Miscellaneous
  71. 57Multiple site commonholds
  72. 58Development rights
  73. 59Development rights: succession
  74. 60Compulsory purchase
  75. 61Home rights
  76. 62Advice etc.
  77. 63The Crown
  78. General
  79. 64Orders and regulations
  80. 65Registration procedure
  81. 66Jurisdiction
  82. 67The register
  83. 68Amendments
  84. 69Interpretation
  85. 70Index of defined expressions
  86. Part 2: Leasehold reform
  87. Chapter 1: Right to manage
  88. Introductory
  89. 71The right to manage
  90. Qualifying rules
  91. 72Premises to which Chapter applies
  92. 73RTM companies
  93. 74RTM companies: membership and regulations
  94. 75Qualifying tenants
  95. 76Long leases
  96. 77Long leases: further provisions
  97. Claim to acquire right
  98. 78Notice inviting participation
  99. 79Notice of claim to acquire right
  100. 80Contents of claim notice
  101. 81Claim notice: supplementary
  102. 82Right to obtain information
  103. 83Right of access
  104. 84Counter-notices
  105. 85Landlords etc. not traceable
  106. 86Withdrawal of claim notice
  107. 87Deemed withdrawal
  108. 87ACosts: general
  109. 87BPower of tribunal to order costs where claim ceases
  110. 88Costs: general Repealed
  111. 89Costs where claim ceases Repealed
  112. Acquisition of right
  113. 90The acquisition date
  114. 91Notices relating to management contracts
  115. 92Duties to give notice of contracts
  116. 93Duty to provide information
  117. 94Duty to pay accrued uncommitted service charges
  118. Exercising right
  119. 95Introductory
  120. 96Management functions under leases
  121. 97Management functions: supplementary
  122. 98Functions relating to approvals
  123. 99Approvals: supplementary
  124. 100Enforcement of tenant covenants
  125. 101Tenant covenants: monitoring and reporting
  126. 102Statutory functions
  127. 103Landlord contributions to service charges
  128. Supplementary
  129. 104Registration Repealed
  130. 105Cessation of management
  131. 106Agreements excluding or modifying right
  132. 107Power of tribunal to order compliance
  133. 108Application to Crown
  134. 109Powers of trustees in relation to right
  135. 110Power to prescribe procedure
  136. 111Notices
  137. Interpretation
  138. 112Definitions
  139. 113Index of defined expressions
  140. Chapter 2: Collective enfranchisement by tenants of flats
  141. Introductory
  142. 114Amendments of right to collective enfranchisement
  143. Qualifying rules
  144. 115Non-residential premises
  145. 116Premises including railway track
  146. 117Qualifying leases
  147. 118Premises with resident landlord
  148. 119Proportion of tenants required to participate
  149. 120Abolition of residence condition
  150. Exercise of right
  151. 121Right exercisable only by RTE company Not yet in force
  152. 122RTE companies
  153. 123Invitation to participate Not yet in force
  154. 124Consequential amendments Not yet in force
  155. 125Right of access
  156. Purchase price
  157. 126Valuation date
  158. 127Freeholder’s share of marriage value
  159. 128Disregard of marriage value in case of very long leases
  160. Chapter 3: New leases for tenants of flats
  161. Introductory
  162. 129Amendments of right to acquire new lease
  163. Qualifying rules
  164. 130Replacement of residence test
  165. 131Qualifying leases
  166. 132Personal representatives
  167. 133Crown leases
  168. Purchase price
  169. 134Valuation date
  170. 135Landlord’s share of marriage value
  171. 136Disregard of marriage value in case of very long leases
  172. Chapter 4: Leasehold houses
  173. Introductory
  174. 137Amendments of 1967 Act
  175. Qualifying rules
  176. 138Abolition of residence test
  177. 139Reduction of qualifying period as tenant etc
  178. 140Exclusion of certain business tenancies
  179. 141Tenancies not at low rent
  180. 142Personal representatives
  181. 143Abolition of limits on rights after lease extension
  182. 144Exclusion of shared ownership leases
  183. Purchase price
  184. 145Tenant’s share of marriage value
  185. 146Disregard of marriage value in case of very long leases
  186. 147Purchase price for enfranchisement during lease extension
  187. Absent landlords
  188. 148Applications to be to county court
  189. 149Valuation by leasehold valuation tribunal
  190. Chapter 5: Other provisions about leases
  191. Service charges, administration charges etc.
  192. 150Extending meaning of service charge and management etc
  193. 151Consultation about service charges
  194. 152Statements of account
  195. 153Notice to accompany demands for service charges
  196. 154Inspection etc. of documents Not yet in force
  197. 155Liability to pay service charges: jurisdiction
  198. 156Service charge contributions to be held in separate account
  199. 157Service charges: minor and consequential amendments
  200. 158Administration charges
  201. 159Charges under estate management schemes
  202. Managers appointed by ... tribunal
  203. 160Third parties with management responsibilities
  204. 161Restriction of resident landlord exception
  205. Variation of leases
  206. 162Grounds for application by party to lease
  207. 163Transfer of jurisdiction of court to tribunal
  208. Insurance
  209. 164Insurance otherwise than with landlord’s insurer
  210. 165Extension of right to challenge landlord’s choice of insurer
  211. Ground rent
  212. 166Requirement to notify long leaseholders that rent is due
  213. Forfeiture of leases of dwellings
  214. 167Failure to pay small amount for short period
  215. 168No forfeiture notice before determination of breach
  216. 169Section 168: supplementary
  217. 170Forfeiture for failure to pay service charge etc
  218. 171Power to prescribe additional or different requirements
  219. Crown application
  220. 172Application to Crown
  221. Chapter 6: Leasehold valuation tribunals
  222. 173Leasehold valuation tribunals
  223. 174Procedure
  224. 175Appeals
  225. 176Consequential amendments
  226. Chapter 6A: First-Tier Tribunal and Upper Tribunal
  227. 176ATransfer from court to First-tier Tribunal
  228. 176BAppeals from the First-tier Tribunal
  229. 176CEnforcement
  230. Chapter 7: General
  231. 177Wales
  232. 178Orders and regulations
  233. 179Interpretation
  234. Part 3: Supplementary
  235. 180Repeals
  236. 181Commencement etc
  237. 182Extent
  238. 183Short title
  239. Schedule 1: Application for registration: documents
  240. 1Introduction
  241. 2Commonhold association documents
  242. 3Paragraph 3
  243. 4Paragraph 4
  244. 5Commonhold community statement
  245. 6Consent
  246. 7Certificate
  247. Schedule 2: Land which may not be commonhold land
  248. 1“Flying freehold”
  249. 2Agricultural land
  250. 3Contingent title
  251. Schedule 3: Commonhold association
  252. Part 1: Articles of Association
  253. 1Introduction
  254. 2Form and content
  255. 3Alteration
  256. 4Disapplication of Companies Act 1985 Repealed
  257. Part 2: Membership
  258. 5Pre-commonhold period
  259. 6Transitional period
  260. 7Unit-holders
  261. 8Joint unit-holders
  262. 9Self-membership
  263. 10No other members
  264. 11Effect of registration
  265. 12Termination of membership
  266. 13Paragraph 13
  267. 14Register of members
  268. 15Supplementary provisions
  269. Part 3: Miscellaneous
  270. 16Name
  271. 17Statement of compliance
  272. Schedule 4: Development rights
  273. 1Introductory
  274. 2Works
  275. 3Marketing
  276. 4Variation
  277. 5Paragraph 5
  278. 6Paragraph 6
  279. 7Commonhold association
  280. Schedule 5: Commonhold: consequential amendments
  281. 1Law of Property Act 1922 (c. 16)
  282. 2Law of Property Act 1925 (c. 20)
  283. 3Paragraph 3
  284. 4Limitation Act 1980 (c. 58)
  285. 5Housing Act 1985 (c. 68)
  286. 6Insolvency Act 1986 (c. 45)
  287. 7Law of Property (Miscellaneous Provisions) Act 1994 (c. 36)
  288. 8Trusts of Land and Appointment of Trustees Act 1996 (c. 47)
  289. Schedule 6: Premises excluded from right to manage
  290. 1Buildings with substantial non-residential parts
  291. 2Buildings with self-contained parts in different ownership
  292. 3Premises with resident landlord and no more than four units
  293. 4Premises owned by local housing authority
  294. 5Premises in relation to which rights previously exercised
  295. Schedule 7: Right to manage: statutory provisions
  296. 1Covenants not to assign etc.
  297. 2Defective premises
  298. 3Repairing obligations : England
  299. 3ARepairing obligations: Wales
  300. 4Service charges
  301. 5Right to request information on insurance
  302. 6Managing agents
  303. 7Right of first refusal
  304. 8Appointment of manager
  305. 9Right to acquire landlord’s interest
  306. 10Variation of leases
  307. 11Service charges to be held in trust
  308. 12Information to be furnished to tenants
  309. 13Statutory duties relating to certain covenants
  310. 14Tenants’ right to management audit
  311. 15Right to appoint surveyor
  312. 16Administration charges
  313. Schedule 8: Enfranchisement by company: amendments Not yet in force
  314. 1Land Compensation Act 1973 (c. 26) Not yet in force
  315. 2Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) Not yet in force
  316. 3Paragraph 3 Not yet in force
  317. 4Paragraph 4 Not yet in force
  318. 5Paragraph 5 Not yet in force
  319. 6Paragraph 6 Not yet in force
  320. 7Paragraph 7 Not yet in force
  321. 8Paragraph 8 Not yet in force
  322. 9Paragraph 9 Not yet in force
  323. 10Paragraph 10 Not yet in force
  324. 11Paragraph 11 Not yet in force
  325. 12Paragraph 12 Not yet in force
  326. 13Paragraph 13 Not yet in force
  327. 14Paragraph 14 Not yet in force
  328. 15Paragraph 15 Not yet in force
  329. 16Paragraph 16 Not yet in force
  330. 17Paragraph 17 Not yet in force
  331. 18Paragraph 18 Not yet in force
  332. 19Paragraph 19 Not yet in force
  333. 20Paragraph 20 Not yet in force
  334. 21Paragraph 21 Not yet in force
  335. 22Paragraph 22 Not yet in force
  336. 23Paragraph 23 Not yet in force
  337. 24Paragraph 24 Not yet in force
  338. 25Paragraph 25 Not yet in force
  339. 26Paragraph 26 Not yet in force
  340. 27Paragraph 27 Not yet in force
  341. 28Paragraph 28 Not yet in force
  342. 29Paragraph 29 Not yet in force
  343. 30Paragraph 30 Not yet in force
  344. 31Paragraph 31 Not yet in force
  345. 32Paragraph 32 Not yet in force
  346. 33Paragraph 33 Not yet in force
  347. 34Paragraph 34 Not yet in force
  348. 35Paragraph 35 Not yet in force
  349. 36Paragraph 36 Not yet in force
  350. 37Paragraph 37 Not yet in force
  351. 38Paragraph 38 Not yet in force
  352. 39Paragraph 39 Not yet in force
  353. 40Paragraph 40 Not yet in force
  354. 41Paragraph 41 Not yet in force
  355. 42Paragraph 42 Not yet in force
  356. 43Paragraph 43 Not yet in force
  357. Schedule 9: Meaning of service charge and management
  358. 1Loans in respect of service charges
  359. 2Paragraph 2
  360. 3Paragraph 3
  361. 4Paragraph 4
  362. 5Paragraph 5
  363. 6Paragraph 6
  364. 7Service charges
  365. 8Appointment of manager
  366. 9Right to acquire landlord’s interest
  367. 10Tenants’ right to management audit
  368. 11Codes of management practice
  369. 12Right to appoint surveyor
  370. 13Power to amend certain provisions
  371. Schedule 10: Service charges: minor and consequential amendments
  372. 1Information held by superior landlord Not yet in force
  373. 2Change of landlord Not yet in force
  374. 3Assignment Not yet in force
  375. 4Offences Not yet in force
  376. 5Exceptions Not yet in force
  377. 6Accountants Not yet in force
  378. 7Paragraph 7 Not yet in force
  379. 8Insurance
  380. 9Paragraph 9
  381. 10Paragraph 10
  382. 11Paragraph 11
  383. 12Paragraph 12
  384. 13Paragraph 13
  385. 14Service charge contributions: appointment of manager Not yet in force
  386. 15Trust of service charges paid by only one tenant
  387. 16Management audit Not yet in force
  388. 17Paragraph 17 Not yet in force
  389. 18Paragraph 18 Not yet in force
  390. 19Paragraph 19 Not yet in force
  391. Schedule 11: Administration charges
  392. Part 1: Administration charges
  393. 1Meaning of “administration charge”
  394. 2Reasonableness of administration charges
  395. 2ANo administration charge payable for certain rents
  396. 3Application for order varying lease
  397. 4Notice in connection with demands for administration charges
  398. 5Liability to pay administration charges
  399. 5ALimitation of administration charges: costs of proceedings
  400. 6Interpretation
  401. Part 2: Amendments of Landlord and Tenant Act 1987
  402. 7Paragraph 7
  403. 8Paragraph 8
  404. 9Paragraph 9
  405. 10Paragraph 10
  406. 11Paragraph 11
  407. Schedule 12: Leasehold valuation tribunals: procedure
  408. 1Procedure regulations
  409. 2Applications
  410. 3Transfers
  411. 4Information
  412. 5Pre-trial reviews
  413. 6Parties
  414. 7Dismissal
  415. 8Determination without hearing
  416. 9Fees
  417. 10Costs
  418. 11Enforcement
  419. Schedule 13: Leasehold valuation tribunals: amendments
  420. 1Leasehold Reform Act 1967 (c. 88)
  421. 2Paragraph 2
  422. 3Paragraph 3
  423. 4Paragraph 4
  424. 5Paragraph 5
  425. 6Paragraph 6
  426. 7Housing Act 1980 (c. 51)
  427. 8Landlord and Tenant Act 1987 (c. 31)
  428. 9Paragraph 9
  429. 10Paragraph 10
  430. 11Paragraph 11
  431. 12Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)
  432. 13Paragraph 13
  433. 14Paragraph 14
  434. 15Paragraph 15
  435. 16Housing Act 1996 (c. 52)
  436. Schedule 14Repeals