Part 2Leasehold reform

Chapter 5Other provisions about leases

Variation of leases

162Grounds 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)”.