Legislation – Leasehold and Freehold Reform Act 2024
Schedule 3Eligibility for enfranchisement and extension: specific cases
Removal of redevelopment restrictions on enfranchisement and extension
1
(1)
In section 17 of the LRA 1967 (redevelopment rights)—
(a)
omit subsections (4) and (5);
(b)
in subsection (6)(a), omit the words from “, or” to “application”.
(2)
Omit sections 23 and 47 of the LRHUDA 1993 (tenants’ claim liable to be defeated where landlord intends to redevelop).
Removal of residential restriction on enfranchisement and extension under the LRA 1967
2
Omit section 18 of the LRA 1967 (residential restriction on enfranchisement and extension rights).
Removal of public purposes restriction on enfranchisement and extension under the LRA 1967
3
Omit section 28 of the LRA 1967 (restrictions on enfranchisement and extension where land required for public purposes).
Exception to enfranchisement for certified community housing providers
4
(1)
The LRA 1967 is amended as follows.
(2)
“(1C)
This Part of this Act does not confer on a tenant a right to acquire the freehold of a house and premises if the landlord under the existing tenancy is a certified community housing provider (see section 4B).”
(3)
“4BMeaning of “certified community housing provider”
(1)
For the purposes of this Part of this Act, a person is a “certified community housing provider” if the appropriate tribunal has issued a community housing certificate in respect of the person.
(2)
A community housing certificate is a certificate that the tribunal has determined that the person—
(a)
is a community land trust within the meaning of section 2(7A) of the Leasehold Reform (Ground Rent) Act 2022, or
(b)
is of a description, or satisfies conditions, specified for this purpose in regulations made by the Secretary of State.
(3)
The tribunal may issue a community housing certificate only in respect of a person that has made an application to the tribunal for the certificate.
(4)
The tribunal may cancel a community housing certificate—
(a)
on the application of the person in respect of which the certificate is issued, or
(b)
on the application of a tenant affected by the certificate, if the tribunal considers that—
(i)
(ii)
the certificate was obtained by deception or fraud.
For this purpose a tenant is “affected by” a certificate if, by virtue of section 1(1C), the tenant does not have the right to acquire the freehold because the certificate is issued in respect of their landlord.
(5)
The effect of the tribunal cancelling the certificate is that the person is not a certified community housing provider unless the tribunal issues a new community housing certificate.
(6)
The Secretary of State may by regulations provide for—
(a)
the procedure to be followed in connection with an application for a community housing certificate;
(b)
the procedure to be followed for the cancellation of a community housing certificate (including in connection with an application for the cancellation);
(c)
any matters to which the tribunal must have regard in deciding whether to issue or cancel a community housing certificate.
(7)
The Secretary of State may by regulations make provision about the application of this Part in circumstances where—
(a)
a landlord’s application for a community housing certificate has not been concluded when a tenant gives notice of their desire to have the freehold of a house and premises under this Part, or
(b)
a tenant’s claim to have the freehold of a house and premises under this Part has not been concluded when a landlord’s application for a community housing certificate is made.
(8)
Regulations under subsection (7) may in particular provide for—
(a)
the claim for the freehold to be paused or to have no effect;
(b)
a time period for the purposes of this Part to be extended in connection with the application;
(c)
the landlord to compensate a tenant or reversioner in respect of reasonable costs incurred in connection with a claim to acquire the freehold—
(i)
if the tenant ceases to have the right to acquire the freehold because of the issue of a certificate under this section, or
(ii)
if the costs are incurred as a result of the claim being suspended because of an application for a certificate under this section;
(d)
enforcement by the appropriate tribunal of any of the requirements of the regulations;
(e)
the appropriate tribunal to make orders that are supplementary to the issue of a community housing certificate.
(9)
Regulations under this section are to be made by statutory instrument.
(10)
A statutory instrument containing regulations under this section (whether alone or with other provision) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”
5
(1)
The LRHUDA 1993 is amended as follows.
(2)
“(aa)
the immediate landlord under the lease is a certified community housing provider (see section 8B); or”.
(3)
“8BMeaning of “certified community housing provider”
(1)
For the purposes of this Chapter, a person is a “certified community housing provider” if the appropriate tribunal has issued a community housing certificate in respect of the person.
(2)
A community housing certificate is a certificate that the tribunal has determined that the person—
(a)
is a community land trust within the meaning of section 2(7A) of the Leasehold Reform (Ground Rent) Act 2022, or
(b)
is of a description, or satisfies conditions, specified for this purpose in regulations made by the Secretary of State.
(3)
The tribunal may issue a community housing certificate only in respect of a person that has made an application to the tribunal for the certificate.
(4)
The tribunal may cancel a community housing certificate—
(a)
on the application of the person in respect of which the certificate is issued, or
(b)
on the application of a leaseholder affected by the certificate, if the tribunal considers that—
(i)
(ii)
the certificate was obtained by deception or fraud.
For this purpose a leaseholder is “affected by” a certificate if, by virtue of section 5(2)(aa), the leaseholder is not a qualifying tenant because the certificate is issued in respect of their immediate landlord.
(5)
The effect of the tribunal cancelling the certificate is that the person is not a certified community housing provider unless the tribunal issues a new community housing certificate.
(6)
The Secretary of State may by regulations provide for—
(a)
the procedure to be followed in connection with an application for a community housing certificate;
(b)
the procedure to be followed for the cancellation of a community housing certificate (including in connection with an application for the cancellation);
(c)
any matters to which the tribunal must have regard in deciding whether to issue or cancel a community housing certificate.
(7)
The Secretary of State may by regulations make provision about the application of this Chapter in circumstances where—
(a)
a landlord’s application for a community housing certificate has not been concluded when a nominee purchaser gives notice under section 13 of a claim to exercise the right to collective enfranchisement, or
(b)
a claim to exercise the right to collective enfranchisement has not been concluded when a landlord’s application for a community housing certificate is made.
(8)
Regulations under subsection (7) may in particular provide for—
(a)
the claim for the freehold to be paused or to have no effect;
(b)
a time period for the purposes of this Chapter to be extended in connection with the application;
(c)
the landlord to compensate the nominee purchaser, a tenant or a reversioner in respect of reasonable costs incurred in connection with a claim to exercise the right to collective enfranchisement—
(i)
if a person ceases to be a participating tenant because of the issue of a certificate under this section (and in this case the compensation may relate to reasonable costs for which the person is liable that are incurred after the person ceases to be a participating tenant),
(ii)
if the participating tenants cease to have the right to collective enfranchisement because of the issue of a certificate under this section, or
(iii)
if the costs are incurred as a result of the claim being suspended because of an application for a certificate under this section;
(d)
enforcement by the appropriate tribunal of any of the requirements of the regulations;
(e)
the appropriate tribunal to make orders that are supplementary to the issue of a community housing certificate.”
(4)
In section 39(3)(a) (qualifying tenants for extension), before “(5)” insert “(2)(aa), ”
.
(5)
“(2A)
But a statutory instrument containing regulations under section 8B (whether alone or with other provision) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”
Removal of restriction on extension claims by sub-lessees
6
(1)
In the LRA 1967—
(a)
in section 15(8) (terms of new tenancy), omit the words from “shall make” to “, and”;
(b)
in section 16 (exclusion of further rights after extension)—
(i)
omit subsection (4);
(ii)
in subsection (5), omit the words from “and the instrument” to the end.
(2)
In the LRHUDA 1993—
(a)
in section 57(7) (terms of new lease), omit paragraph (a);
(b)
in section 59 (further renewal after grant of new lease), omit subsection (3).
Eligibility of leases of National Trust property for extension
7
“32National Trust property
(1)
Property is “inalienable National Trust property” for the purposes of this section if an interest in the property is vested inalienably in the National Trust for Places of Historic Interest or Natural Beauty under section 21 of the National Trust Act 1907.
(2)
This Part does not prejudice the operation of section 21 of the National Trust Act 1907, and accordingly a tenant does not have the right under this Part to acquire the freehold of inalienable National Trust property.
(3)
The right to an extended lease has effect subject to the following provisions of this section only if and to the extent that the existing tenancy demises inalienable National Trust property.
(4)
In a case where the existing tenancy is a post-commencement protected National Trust tenancy, the tenant does not have the right to an extended lease.
(5)
In a case where the existing tenancy is a pre-commencement protected National Trust tenancy, this Act is to have effect in relation to the right to an extended lease without the amendments made by the Leasehold and Freehold Reform Act 2024 (but without altering the effect of this subsection).
(6)
(7)
In determining whether the tenant has the right to an extended lease, the following requirements in section 1 do not apply—
(a)
any requirement for the tenancy to be at a low rent;
(b)
any requirement in section 1(1)(a)(i) or (ii) for the house and premises or the tenancy to be above a certain value.
(8)
If the tenant exercises the right to an extended lease, the new tenancy must contain the buy-back term which is prescribed for this purpose in regulations made by the Secretary of State (the “prescribed buy-back term”).
(9)
A “buy-back term” is a term which gives the National Trust the right to buy the whole or part of the extended lease if—
(a)
it is proposed to make a disposal of the extended lease that is of a description specified in that term (which may be a disposal of the whole or a part of the property demised), or
(b)
the National Trust exercises a prescribed buy-back term that is contained in a lease which is inferior to the extended lease.
(10)
The prescribed buy-back term may, in particular, make provision about—
(a)
the procedure where it is proposed to make a disposal that is of a description specified in the term;
(b)
the procedure for exercising the right to buy;
(c)
the price payable;
(d)
the payment of costs incurred in connection with the operation of the term (including requirements for one person to pay costs incurred by another person);
(e)
the operation of the term if the National Trust is not a party to the extended lease.
(11)
If the National Trust is not the landlord under the extended lease, the National Trust may at any time apply to the appropriate tribunal for an order to secure that the extended lease is varied to contain (if or to the extent that it does not already do so) the prescribed buy-back term; and an order made on such an application may appoint a person who is not party to the extended lease to execute a variation of the lease.
32ZASection 32: supplementary provision
(1)
For the purposes of section 32, the existing tenancy is a “protected National Trust tenancy” if the tenancy is prescribed, or is of a description of tenancies prescribed, in regulations made by the Secretary of State.
(2)
Regulations may not provide for a tenancy to be a protected National Trust tenancy unless the tenancy is within case A or case B.
(3)
Case A: some or all of the property let under the tenancy is—
(a)
property to which the general public has access, or
(b)
part of property to which the general public has access (whether or not the general public has access to any property let under the tenancy),
whether the arrangements for public access are managed by the National Trust, the tenant or another person.
(4)
Case B: the existing tenancy was granted to—
(a)
a former owner,
(b)
a relative of a former owner, or
(c)
the trustees of a trust whose beneficiaries are or include—
(i)
a former owner, or
(ii)
a relative of a former owner.
(5)
Regulations under section 32 or this section are to be made by statutory instrument.
(6)
A statutory instrument containing regulations under section 32 or this section is subject to annulment in pursuance of a resolution of either House of Parliament.
(7)
In section 32 and this section—
“disposal”, in relation to an extended lease, includes—
(a)
the grant of a sub-lease of property demised by the extended lease;
(b)
a change in control of a body (whether or not incorporated) which owns the extended lease;
(c)
the surrender of the extended lease;
(d)
a disposal (of any kind) for no consideration;
“former owner”, in relation to inalienable National Trust property let under a tenancy, means—
(a)
a person who transferred the freehold of the property to the National Trust,
(b)
a person who owned the freehold of the property immediately before its transfer to the National Trust by, or at the direction of—
- (i)
the Commissioners for His Majesty’s Revenue and Customs,
- (ii)
the Commissioners of Inland Revenue, or
- (iii)
the Treasury,
(c)
a person whose executors transferred, or directed the transfer of, the freehold of the property to the National Trust, or
(d)
a person who was a beneficiary under a trust whose trustees transferred, or directed the transfer of, the freehold of the property to the National Trust;
“post-commencement protected National Trust tenancy” means a tenancy which—
(a)
was granted on or after commencement, unless it was granted under an agreement made before commencement, and
(b)
is a protected National Trust tenancy;
“pre-commencement protected National Trust tenancy” means a tenancy which—
(a)
was granted—
- (i)
before commencement, or
- (ii)
on or after commencement under an agreement made before commencement, and
(b)
is a protected National Trust tenancy;
“relative” includes a person who is related by marriage or civil partnership;
“right to an extended lease” means the right under this Part to acquire an extended lease.”
8
“95National Trust property
(1)
Property is “inalienable National Trust property” for the purposes of this section if an interest in the property is vested inalienably in the National Trust for Places of Historic Interest or Natural Beauty under section 21 of the National Trust Act 1907.
(2)
Chapter 1 does not prejudice the operation of section 21 of the National Trust Act 1907, and accordingly there is no right under Chapter 1 to acquire an interest in inalienable National Trust property.
(3)
The right to a new lease has effect subject to the following provisions of this section only if and to the extent that the existing lease demises inalienable National Trust property.
(4)
In a case where the existing lease is a protected National Trust tenancy, the tenant does not have the right to a new lease.
(5)
If—
(a)
the existing lease is not a protected National Trust tenancy, and
(b)
the tenant exercises the right to a new lease,
the new lease must contain the buy-back term which is prescribed in regulations made by the Secretary of State (the “prescribed buy-back term”).
(6)
A “buy-back term” is a term which gives the National Trust the right to buy the whole or part of the new lease if—
(a)
it is proposed to make a disposal of the new lease that is of a description specified in that term (which may be a disposal of the whole or a part of the property demised), or
(b)
the National Trust exercises a prescribed buy-back term that is contained in a lease which is inferior to the extended lease.
(7)
The prescribed buy-back term may, in particular, make provision about—
(a)
the procedure where it is proposed to make a disposal that is of a description specified in the term;
(b)
the procedure for exercising the right to buy;
(c)
the price payable;
(d)
the payment of costs incurred in connection with the operation of the term (including requirements for one person to pay costs incurred by another person);
(e)
the operation of the term if the National Trust is not a party to the new lease.
(8)
If the National Trust is not the landlord under the new lease, the National Trust may at any time apply to the appropriate tribunal for an order to secure that the new lease is varied to contain (if or to the extent that it does not already do so) the prescribed buy-back term; and an order made on such an application may appoint a person who is not party to the new lease to execute a variation of the lease.
95ASection 95: supplementary provision
(1)
For the purposes of section 95, the existing lease is a “protected National Trust tenancy” if the lease is prescribed, or is of a description of leases prescribed, in regulations made by the Secretary of State.
(2)
Regulations may not provide for a lease to be a protected National Trust tenancy unless the lease is within case A or case B.
(3)
Case A: some or all of the property let under the lease is—
(a)
property to which the general public has access, or
(b)
part of property to which the general public has access (whether or not the general public has access to any property let under the lease),
whether the arrangements for public access are managed by the National Trust, the tenant or another person.
(4)
Case B: the existing lease was granted to—
(a)
a former owner,
(b)
a relative of a former owner, or
(c)
the trustees of a trust whose beneficiaries are or include—
(i)
a former owner, or
(ii)
a relative of a former owner.
(5)
Regulations under section 95 or this section—
(a)
may make different provision for different purposes;
(b)
are to be made by statutory instrument.
(6)
A statutory instrument containing regulations under section 95 or this section is subject to annulment in pursuance of a resolution of either House of Parliament.
(7)
In section 95 and this section—
“disposal”, in relation to a new lease, includes—
(a)
the grant of a sub-lease of property demised by the new lease;
(b)
a change in control of a body (whether or not incorporated) which owns the new lease;
(c)
the surrender of the new lease;
(d)
a disposal (of any kind) for no consideration;
“former owner”, in relation to inalienable National Trust property let under a tenancy, means—
(a)
a person who transferred the freehold of the property to the National Trust,
(b)
a person who owned the freehold of the property immediately before its transfer to the National Trust by, or at the direction of—
- (i)
the Commissioners for His Majesty’s Revenue and Customs,
- (ii)
the Commissioners of Inland Revenue, or
- (iii)
the Treasury,
(c)
a person whose executors transferred, or directed the transfer of, the freehold of the property to the National Trust, or
(d)
a person who was a beneficiary under a trust whose trustees transferred, or directed the transfer of, the freehold of the property to the National Trust;
“relative” includes a person who is related by marriage or civil partnership;
“right to a new lease” means the right under Chapter 2 to a new lease.”
Consequential amendments to the LRA 1967
9
10
In section 20(2)(d) (jurisdiction and special powers of county court), omit “or 18”.
11
In section 21(1)(c) (jurisdiction of tribunals), omit “or 18”.
12
In section 25(5)(a) (mortgagee in possession of landlord’s interest), omit “or 18”.
13
In section 29 (reservation of future right to develop)—
(a)
“(5)
For the purposes of this section “local authority” means—
(a)
the Common Council of the City of London;
(b)
any county council, county borough council, borough council or district council;
(c)
any joint authority established by Part IV of the Local Government Act 1985;
(d)
any economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009;
(e)
any combined authority established under section 103 of that Act;
(f)
any combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023;
(g)
any fire and rescue authority created by an order under section 4A of the Fire and Rescue Services Act 2004;
(h)
the London Fire Commissioner;
(i)
any police and crime commissioner;
(j)
the Mayor’s Office for Policing and Crime;
(k)
any joint board in which all the constituent authorities are local authorities within this subsection.”;
(b)
in subsection (6)(b), omit “as defined in section 28(5)(c) above”;
(c)
“(6ZA)
In this section—
(a)
“university body” means any university, university college or college of a university;
(b)
“college of a university” includes—
(i)
in the case of a university organised on a collegiate basis, a constituent college or other society recognised by the university, and
(ii)
in the case of London University, a college incorporated in the university or a school of the university;
(c)
a university and the colleges of that university are, in relation to each other, “related university bodies”.”;
(d)
in subsection (6B)(a), omit “(within the meaning of section 28(6)(b) above)”;
(e)
“(9)
The Secretary of State may by regulations made by statutory instrument make provision (including provision amending this Act) so as to add bodies to those within the meaning of “local authority”.
(10)
A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.”
14
In section 38 (modification of right to possession under Landlord and Tenant Act 1954)—
(a)
in subsection (1), omit the words from “, except” to “so required”;
(b)
“(2)
In section 57 of the Landlord and Tenant Act 1954, references to a local authority include—
(a)
a local authority within the meaning given in section 29(5);
(b)
the Broads Authority;
(c)
any National Park authority;
(d)
the new towns residuary body;
(e)
any development corporation within the meaning of the New Towns Act 1981;
(f)
a university body within the meaning given in section 29(6ZA);
(g)
NHS England;
(h)
any integrated care board;
(i)
any Local Health Board;
(j)
any Special Health Authority;
(k)
any National Health Service trust;
(l)
any NHS foundation trust;
(m)
any clinical commissioning group;
(n)
any Strategic Health Authority;
(o)
any Primary Care Trust;
(p)
any body corporate established by or under any enactment for the purpose of carrying on under national ownership any industry or part of an industry or undertaking;
(q)
the Environment Agency;
(r)
(s)
a housing action trust established under Part 3 of the Housing Act 1988.”;
(c)
omit subsection (3).
15
In Schedule 1 (enfranchisement and extension by sub-tenants), omit paragraph 6(1).
16
In Schedule 2 (provisions supplementary to sections 17 and 18)—
(a)
in the heading of the Schedule, for “Sections 17 and 18” substitute “section 17”
;
(b)
in paragraph 1(1), in the words before paragraph (a), omit “or 18”;
(c)
in paragraph 1(1)(a), omit “or 18(1)”;
(d)
in paragraph 1(1)(b), omit “or 18(4)”;
(e)
omit paragraph 1(2);
(f)
in paragraph 2(2), omit the words from “; and in a case” to “original term date”;
(g)
in paragraph 3(2), omit the words from “(or any earlier date” to “on the tenant)”;
(h)
in paragraph 3(3), omit “or 18”;
(i)
in paragraph 5(1), for “sections 17 and 18” substitute “section 17”
;
(j)
omit paragraph 5(2);
(k)
in paragraph 7(3), omit “or 18”;
(l)
in paragraph 9(1), omit “or 18”.
17
In Schedule 3 (procedure)—
(a)
omit paragraph 7(3);
(b)
in paragraph 10, omit sub-paragraphs (2)(c) (and the “and” preceding it) and (4).
18
In Schedule 4 (covenants with local authorities etc), in paragraph 5(3), for “section 28(5)(c)” substitute “29(6ZA)”
.
Consequential amendments to the LRHUDA 1993
19
20
In section 13(9) (initial notice for enfranchisement)—
(a)
omit paragraph (b) and the “or” preceding it;
(b)
omit the words from “or with the time” to “case may be)”.
21
Omit section 21(2)(c) (counter-notice for enfranchisement).
22
In section 22 (proceedings relating to validity of initial notice for enfranchisement)—
(a)
in subsection (1)(a), omit the words from “(whether” to “or (c) of that section)”;
(b)
in subsection (3), omit “(subject to subsection (4))”;
(c)
omit subsection (4).
23
In section 24(1)(b) (applications in enfranchisement where terms in dispute etc), omit “or section 23(5) or (6)”.
24
In section 25(1)(b) (applications in enfranchisement on failure to give counter-notice), omit “or section 23(5) or (6)”.
25
In section 33(4) (costs of enfranchisement), omit “23(4) or”.
26
In section 37A(8)(c)(i) (compensation for ineffective enfranchisement claim), omit “23(4),”.
27
In section 42(7) (notice of extension)—
(a)
omit paragraph (b) (and the “or” preceding it);
(b)
omit the words from “or with the time” to “case may be”).
28
Omit section 45(2)(c) (counter-notice for extension).
29
In section 46 (proceedings relating to validity of notice for extension)—
(a)
in subsection (1)(a), omit the words from “(whether” to “or (c) of that section)”;
(b)
in subsection (4), omit “(subject to subsection (5))”;
(c)
omit subsection (5).
30
In section 48(1)(b) (applications in extension where terms in dispute etc), omit “or section 47(4) or (5)”.
31
In section 49(1)(b) (applications in extension on failure to give counter-notice), omit “or section 47(4) or (5)”.
32
In section 54(6) (suspension of extension during enfranchisement)—
(a)
in paragraph (b)—
(i)
omit “or (c)”;
(ii)
omit “or 47(1)”;
(b)
in paragraph (c), omit “or 47(4)”.
33
In section 60(4) (costs incurred in connection with new lease), omit “47(1) or”.
34
In section 61A(6)(a) (compensation for ineffective extension claim), omit “47(1) or”.
35
In section 62(3)(a) (definitions), omit “47 or”.
36
In section 74 (effect of scheme applications on claims)—
(a)
in subsection (3)(c)—
(i)
omit “or 23”;
(ii)
for “either of those sections” substitute “that section”
.
(b)
omit subsection (8)(b) and the “or” preceding it.
37
In Schedule 1 (conduct of proceedings by reversioner), omit paragraph 9 and the italic heading preceding it.
38
In Schedule 2 (special categories of landlord), in paragraph 2, omit sub-paragraphs (2) and (3).
39
In Schedule 11 (procedure where competent landlord is not tenant’s immediate landlord), omit paragraph 9 and the italic heading preceding it.