Leasehold Reform, Housing and Urban Development Act 1993

Part III Right of freeholder to require leaseback of certain units

Flats without qualifying tenants and other units

5 (1) Subject to sub-paragraph (3), this paragraph applies to any unit contained in the specified premises which is not immediately before the appropriate time a flat let to a person who is a qualifying tenant of it.

(2) Where this paragraph applies, the nominee purchaser shall, if the freeholder by notice requires him to do so, grant to the freeholder a lease of the unit in accordance with section 36 and paragraph 7 below.

(3) This paragraph does not apply to a flat or other unit to which paragraph 2 or 3 applies.

Flat etc. occupied by resident landlord

6 (1) This paragraph applies where immediately before the appropriate time—

(a) the specified premises are premises with a resident landlord; and

(b) the freeholder is the person by virtue of whose occupation of a flat or other unit contained in those premises they are premises with a resident landlord; and

(c) the freeholder is a qualifying tenant of that flat or other unit (“the relevant unit”).

(2) Where this paragraph applies—

(a) the nominee purchaser shall, if the freeholder by notice requires him to do so, grant to him a lease of the relevant unit in accordance with section 36 and paragraph 7 below; and

(b) any lease of that unit held by the freeholder immediately before the appropriate time shall be deemed to have been surrendered by him on the grant of the lease referred to in paragraph (a).

(3) Sections 5, 7 and 8 shall apply for the purpose of determining whether, for the purposes of sub-paragraph (1)(c) above, the freeholder is a qualifying tenant of a unit other than a flat as they apply for the purpose of determining whether a person is a qualifying tenant of a flat.

Provisions as to terms of lease

7 (1) Any lease granted to the freeholder in pursuance of paragraph 5 or 6, and any agreement collateral to it, shall conform with the provisions of Part IV of this Schedule except to the extent that any departure from those provisions—

(a) is agreed to by the nominee purchaser and the freeholder; or

(b) is directed by a leasehold valuation tribunal on an application made by either of those persons.

(2) A leasehold valuation tribunal shall not direct any such departure from those provisions unless it appears to the tribunal that it is reasonable in the circumstances.

(3) In determining whether any such departure is reasonable in the circumstances, the tribunal shall have particular regard to the interests of any person who will be the tenant of the flat or other unit in question under a lease inferior to the lease to be granted to the freeholder.

(4) Subject to the preceding provisions of this paragraph, any such lease or agreement as is mentioned in sub-paragraph (1) may include such terms as are reasonable in the circumstances.