Legislation – Leasehold and Freehold Reform Act 2024

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Introduction

Part 1
Leasehold houses

1 Ban on grant or assignment of certain long residential leases of houses

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

8 Permitted leases: certification by the appropriate tribunal

9 Permitted leases: marketing restrictions

10 Permitted leases: transaction warning conditions

11 Prescribed statements in new long leases

12 Restriction on title

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

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

24 Part 1: Crown application

25 Power to amend: permitted leases and definitions

26 Interpretation of Part 1

Part 2
Leasehold 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

31 Acquisition of intermediate interests in collective enfranchisement

32 Right to require leaseback by freeholder after collective enfranchisement

33 Longer lease extensions

34 Lease extensions under the LRA 1967 on payment of premium at peppercorn rent

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

38 Costs of enfranchisement and extension under the LRA 1967

39 Costs of enfranchisement and extension under the LRHUDA 1993

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

44 No first-instance applications to the High Court in tribunal matters

45 Miscellaneous amendments

46 LRA 1967: preservation of existing law for certain enfranchisements

47 Part 2: consequential amendments to other legislation

Part 3
Other rights of long leaseholders

48 Right to vary long lease to replace rent with peppercorn rent

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

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

59 Limitation on ability of landlord to charge insurance costs

60 Duty to provide information about insurance to tenants

61 Duty of landlords to publish administration charge schedules

62 Limits on rights of landlords to claim litigation costs from tenants

63 Right of tenants to claim litigation costs from landlords

64 Restriction on recovery of non-litigation costs of enfranchisement, extension and right to manage

65 Appointment of manager: power to vary or discharge orders

66 Appointment of manager: breach of redress scheme requirements

67 Leasehold sales information requests

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

72 Meaning of “estate management” etc

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

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

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

88 Codes of management practice: extension to estate managers

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

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

98 Part 5: Crown application

99 Interpretation of Part 5

Part 6
Leasehold and estate management: redress schemes

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

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

109 Guidance for enforcement authorities and scheme administrators

110 Part 6: amendments to other Acts

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

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

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

Schedule 2 Leasehold houses: financial penalties

Schedule 3 Eligibility for enfranchisement and extension: specific cases

Schedule 4 Determining and sharing the market value

Schedule 5 Other compensation

Schedule 6 Schedules 4 and 5: interpretation

Schedule 7 Amendments consequential on sections 35 to 37 and Schedules 4 to 6

Schedule 8 Leasehold enfranchisement and extension: miscellaneous amendments

Schedule 9 Part 2: consequential amendments to other legislation

Schedule 10 Right to vary lease to replace rent with peppercorn rent

Schedule 11 Part 4: consequential amendments

Schedule 12 Redress schemes: financial penalties

Schedule 13 Part 6: amendments to other Acts

Changes to legislation:

There are currently no known outstanding effects for the Leasehold and Freehold Reform Act 2024, Section 64. Help about Changes to Legislation

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Part 4Regulation of leasehold

Non-litigation costs: enfranchisement, extension and right to manage

64Restriction on recovery of non-litigation costs of enfranchisement, extension and right to manage

After section 20I of the LTA 1985 (as inserted by section 59) insert—

“20JLimitation of variable service charges: non-litigation costs of enfranchisement etc

(1)

Non-litigation costs incurred, or to be incurred, by a landlord in connection with a relevant claim are not to be regarded as relevant costs to be taken into account in determining the amount of a variable service charge payable by a tenant who is a non-participating tenant in relation to that claim.

(2)

A lease, contract or other arrangement is of no effect to the extent it makes provision to the contrary.

(3)

In this section and section 20K—

“the 1967 Act” means the Leasehold Reform Act 1967;

“the 1993 Act” means the Leasehold Reform, Housing and Urban Development Act 1993;

“the 2002 Act” means the Commonhold and Leasehold Reform Act 2002;

“non-litigation costs” means costs incurred, or to be incurred, other than in connection with proceedings before a court or tribunal;

“non-participating tenant”, in relation to a relevant claim, means a tenant who is not a participating tenant;

“participating tenant”, in relation to a relevant claim, means a tenant who—

(a)

in the case of a claim under Part 1 of the 1967 Act or Chapter 1 or 2 of Part 1 of the 1993 Act, is making the claim;

(b)

in the case of a claim under Chapter 1 of Part 2 of the 2002 Act, is or has been a member of the RTM company making the claim;

“relevant claim” means—

(a)

a claim under Part 1 of the 1967 Act (enfranchisement and extension of leases of houses);

(b)

a claim under Chapter 1 or 2 of Part 1 of the 1993 Act (enfranchisement and extension of leases of flats);

(c)

a claim under Chapter 1 of Part 2 of the 2002 Act (right to manage);

“RTM company” has the same meaning as in Chapter 1 of Part 2 of the 2002 Act (see section 71 of that Act).

(4)

For provision about when a participating tenant is and is not liable in respect of non-litigation costs in relation to a relevant claim, see—

(a)

section 19A of the 1967 Act;

(b)

section 89A of the 1993 Act;

(c)

section 87A of the 2002 Act.

20KRight to claim where non-litigation costs charged contrary to section 20J

(1)

This section applies if, despite section 20J(1), a non-participating tenant in relation to a relevant claim pays a prohibited amount to any person.

(2)

For the purposes of this section, a “prohibited amount” is an amount that is—

(a)

demanded as a variable service charge, and

(b)

attributable to non-litigation costs incurred, or to be incurred, in connection with the claim.

(3)

The appropriate tribunal may, on the application of the tenant, order the person to which the prohibited amount was paid to return all or any part of the amount to the tenant.”