Citation and application

1.  This Order may be cited as the Commonhold and Leasehold Reform Act 2002 (Commencement No.5 and Saving and Transitional Provision) (Amendment) (England) Order 2005 and applies in relation to England only.

Saving and transitional provision

2.  In article 4 of the Commonhold and Leasehold Reform Act 2002 (Commencement No.5 and Saving and Transitional Provision) Order 2004 (saving and transitional provision)(2), after paragraph (1), there shall be inserted—

“(1A) Section 126 (valuation date) shall not have effect as regards—

(a)notices given before 28th February 2005 under section 13 of the Leasehold Reform, Housing and Urban Development Act 1993 (notice by qualifying tenants of claim to exercise right)(3); or

(b)applications made before 28th February 2005 under section 26 of that Act (applications where relevant landlord cannot be found).”.

Explanatory Note

(This note is not part of the Order)

This Order amends article 4 of the Commonhold and Leasehold Reform Act 2002 (Commencement No.5 and Saving and Transitional Provision) Order 2004. That Order brings into force on 28th February 2005, in relation to England, provisions of Part 2 (leasehold reform) of the Commonhold and Leasehold Reform Act 2002 (“the 2002 Act”) relating to the collective enfranchisement by tenants of flats.

Among those provisions is section 126 of the 2002 Act which changes the date at which the price payable on enfranchisement is calculated under the Leasehold Reform, Housing and Urban Development Act 1993 (“the 1993 Act”). Currently that date is the date on which it is agreed or decided what interests are to be acquired on behalf of the qualifying tenants. When section 126 comes into force, the calculation date will be the date on which the notice under section 13 of the 1993 Act claiming to exercise the right of enfranchisement is given by the tenant.

The new saving provision inserted by this Order means that the changes made by section 126 of the 2002 Act will not have effect where notice is given under section 13 of the 1993 Act, or application for a vesting order is made under section 26 of the 1993 Act, before 28th February 2005.