Part 2Leasehold reform

Chapter 5Other provisions about leases

Variation of leases

I1162 Grounds for application by party to lease

1

Section 35 of the 1987 Act (application by party to lease for variation of lease) is amended as follows.

2

In subsection (2) (grounds for application), for paragraph (b) substitute—

b

the insurance of the building containing the flat or of any such land or building as is mentioned in paragraph (a)(iii);

3

After paragraph (f) of that subsection insert—

g

such other matters as may be prescribed by regulations made by the Secretary of State.

4

After subsection (3) insert—

3A

For the purposes of subsection (2)(e) the factors for determining, in relation to a service charge payable under a lease, whether the lease makes satisfactory provision include whether it makes provision for an amount to be payable (by way of interest or otherwise) in respect of a failure to pay the service charge by the due date.

5

In section 53(2)(b) of the 1987 Act (regulations subject to negative Parliamentary procedure), after “section 20(4)” insert “ or 35(2)(g) ”.

I2163 Transfer of jurisdiction of court to tribunal

1

Part 4 of the 1987 Act (variation of leases) is amended as follows.

2

In section 35 (application by party to lease for variation of lease)—

a

in subsection (1), for “the court” substitute “ a leasehold valuation tribunal ”, and

b

in subsection (5), for “Rules of court” substitute “ Procedure regulations under Schedule 12 to the Commonhold and Leasehold Reform Act 2002 ”.

3

In section 36(1) (application by respondent for variation of other leases), for “court” substitute “ tribunal ”.

4

In section 37(1) (application by majority of parties for variation of leases), for “the court” substitute “ a leasehold valuation tribunal ”.

5

In section 38 (orders varying leases)—

a

in subsections (1) to (5), for “court” (in each place) substitute “ tribunal ”,

b

in subsection (6)—

i

for “The court” substitute “ A tribunal ”, and

ii

for “the court” substitute “ the tribunal ”,

c

in subsections (7) to (9), for “The court” substitute “ A tribunal ”, and

d

in subsection (10)—

i

for “the court”, in the first place, substitute “ a tribunal ”, and

ii

for “the court”, in the other two places, substitute “ the tribunal ”.

6

In section 39 (applications by third parties for orders varying leases)—

a

in subsection (3)(b), for “the court” substitute “ a leasehold valuation tribunal ”,

b

in subsection (4), for “The court” substitute “ A tribunal ”, and

c

in subsection (5)(b), for “court” substitute “ tribunal ”.

7

In section 40(1) (variation of insurance provisions of dwelling other than flat), for “the court” substitute “ a leasehold valuation tribunal ”.

8

In consequence of the preceding provisions, in section 52(2)(a) of the 1987 Act (jurisdiction of county courts), for “, 3 and 4” substitute “ and 3 ”.