Leasehold Reform, Housing and Urban Development Act 1993

93 Agreements excluding or modifying rights of tenant under Chapter I or II. E+W

(1) Except as provided by this section, any agreement relating to a lease (whether contained in the instrument creating the lease or not and whether made before the creation of the lease or not) shall be void in so far as it—

(a) purports to exclude or modify—

(i) any entitlement to participate in the making of a claim to exercise the right to collective enfranchisement under Chapter I,

(ii) any right to acquire a new lease under Chapter II, or

(iii) any right to compensation under section 61; or

(b) provides for the termination or surrender of the lease in the event of the tenant becoming a participating tenant for the purposes of Chapter I or giving a notice under section 42; or

(c) provides for the imposition of any penalty or disability on the tenant in that event.

(2) Subsection (1) shall not be taken to preclude a tenant from surrendering his lease, and shall not—

(a) invalidate any agreement for the acquisition on behalf of a tenant of an interest superior to his lease, or for the acquisition by a tenant of a new lease, on terms different from those provided by Chapters I and II; or

(b) where a tenant has become a participating tenant for the purposes of Chapter I or has given a notice under section 42, invalidate—

(i) any agreement that the notice given under section 13 or (as the case may be) section 42 shall cease to have effect, or

(ii) any provision of such an agreement excluding or restricting for a period not exceeding three years any such entitlement or right as is mentioned in subsection (1)(a)(i) or (ii); or

(c) where a tenant’s right to compensation under section 61 has accrued, invalidate any agreement as to the amount of the compensation.

(3) Where—

(a) a tenant having the right to acquire a new lease under Chapter II—

(i) has entered into an agreement for the surrender of his lease without the prior approval of the court, or

(ii) has entered into an agreement for the grant of a new lease without any of the terms of acquisition (within the meaning of that Chapter) having been determined by a leasehold valuation tribunal under that Chapter, or

(b) a tenant has been granted a new lease under Chapter II or by virtue of subsection (4) below and, on his landlord claiming possession for the purposes of redevelopment, enters into an agreement without the prior approval of the court for the surrender of the lease,

then on the application of the tenant a county court, or any court in which proceedings are brought on the agreement, may, if in its opinion the tenant is not adequately recompensed under the agreement for his rights under Chapter II, set aside or vary the agreement and give such other relief as appears to it to be just having regard to the situation and conduct of the parties.

(4) Where a tenant has the right to acquire a new lease under Chapter II, there may with the approval of the court be granted to him in satisfaction of that right a new lease on such terms as may be approved by the court, which may include terms excluding or modifying—

(a) any entitlement to participate in the making of a claim to exercise the right to collective enfranchisement under Chapter I, or

(b) any right to acquire a further lease under Chapter II.

(5) Subject to the provisions specified in subsection (6) and to subsection (7), a lease may be granted by virtue of subsection (4), and shall if so granted be binding on persons entitled to any interest in or charge on the landlord’s estate—

(a) despite the fact that, apart from this subsection, it would not be authorised against any such persons, and

(b) despite any statutory or other restrictions on the landlord’s powers of leasing.

(6) The provisions referred to in subsection (5) are—

(a) section 36 of the M1 Charities Act 1993 (restrictions on disposition of charity land); and

(b) paragraph 8(2)(c) of Schedule 2 to this Act.

(7) Where the existing lease of the tenant is granted after the commencement of Chapter II and, the grant being subsequent to the creation of a charge on the landlord’s estate, the existing lease is not binding on the persons interested in the charge, a lease granted by virtue of subsection (4) shall not be binding on those persons.

(8) Where a lease is granted by virtue of subsection (4), then except in so far as provision is made to the contrary by the terms of the lease, the following provisions shall apply in relation to the lease as they apply in relation to a lease granted under section 56, namely—

(a) section 58(3), (5) and (6);

(b) section 59(2) to (5); and

(c) section 61 and Schedule 14;

and subsections (5) to (7) of section 56 shall apply in relation to the lease as they apply in relation to a lease granted under that section.

Annotations:

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Marginal Citations

M1 1993 c. 10.