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(1)A tenancy to which subsection (2) or (3) below applies (“a qualifying tenancy”) shall be treated as an owner’s interest as defined in section 2(4) above whether or not the unexpired term on the date of service of the notice of claim is of the length there specified.
(2)This subsection applies to a tenancy if the tenant, on the relevant date—
(a)is in respect of the tenancy a qualifying tenant for the purposes of Chapter I of Part I of the 1993 Act (collective enfranchisement); and
(b)by virtue of the tenancy, either—
(i)is a participating tenant in relation to a claim to exercise the right to collective enfranchisement under that Chapter; or
(ii)is one of the participating tenants on whose behalf the acquisition by the nominee purchaser has been made in pursuance of such a claim.
(3)This subsection applies to a tenancy if the tenant, on the relevant date and in respect of the tenancy, is a qualifying tenant for the purposes of Chapter II of Part I of the 1993 Act (individual right to acquire new lease) who—
(a)has on or before that date given notice under section 42 of that Act (notice by qualifying tenant of claim to exercise right); and
(b)has not acquired a new lease before that date.
(4)If no claim is made in respect of a qualifying tenancy before the claimant has ceased to be entitled to it in consequence of a lease being granted to him by the nominee purchaser or, as the case may be, under Chapter II of Part I of the 1993 Act, the claimant may make a claim in respect of the qualifying tenancy as if he were still entitled to it.
(5)No claim shall be made by virtue of subsection (4) above after the claimant has ceased to be entitled to the lease referred to in that subsection, but such a claim may be made before the first claim day if it is made before the claimant has disposed of that lease and after he has made a contract for disposing of it.
(6)Compensation shall not be payable before the first claim day on any claim made by virtue of subsection (5) above.
(7)Any notice of a claim made by virtue of this section shall contain, in addition to the matters mentioned in section 3 above, a statement that it is made in respect of a qualifying tenancy as defined in this section and, if made by virtue of subsection (4) or (5) above, sufficient particulars to show that it falls within that subsection.
(8)In relation to a claim made by virtue of subsection (4) above, section 4(4)(a) above shall have effect as if the reference to the date of service of notice of the claim were a reference to the relevant date.
(9)In this section—
(a)“the 1993 Act” means the Leasehold Reform, Housing and Urban Development Act 1993; and
(b)“participating tenant”, “nominee purchaser” and “the acquisition by the nominee purchaser” shall be construed in accordance with sections 14, 15 and 38(2) of that Act respectively.]
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