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Commonhold and Leasehold Reform Act 2002

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Commonhold and Leasehold Reform Act 2002. For other versions of these Explanatory Notes, see More Resources.

  1. Introduction

  2. Summary

    1. Background

      Part 1 - Commonhold

      1. Problem

      2. Brief outline of the proposed solution

        1. The nature and creation of a commonhold development

        2. Conversion

        3. Management of a commonhold development

        4. Winding up of a commonhold association

    2. Summary

      Part 2 - Leasehold Reform

      1. Background

        1. Chapter 1: Right to manage

        2. Chapter 2: Collective enfranchisement by tenants of flats

        3. Chapter 3: New leases for tenants of flats

        4. Chapter 4: Leasehold houses

        5. Chapter 5: Other provisions about leases

        6. Chapter 6: Leasehold valuation tribunals

        7. Chapter 7: General

  3. Commentary on the Sections: Part 1

    1. Nature of commonhold

      1. Section 1: Commonhold land

    2. Registration

      1. Section 2: Application

      2. Section 3: Consent

      3. Section 4: Land which may not be commonhold

      4. Section 5: Registered details

      5. Section 6: Registration in error

    3. Effect of registration

      1. Section 7: Registration without unit-holders

      2. Section 8: Transitional period

      3. Section 9: Registration with unit-holders

      4. Section 10: Extinguished lease: liability

    4. Commonhold unit

      1. Section 11: Definition

      2. Section 12: Unit-holder

      3. Section 13: Joint unit holders

      4. Section 14: Use and maintenance

      5. Section 15: Transfer

      6. Section 16: Transfer: effect

      7. Section 17: Leasing: residential

      8. Section 18: Leasing: non-residential

      9. Section 19: Leasing: supplementary

      10. Section 20: Other transactions

      11. Section 21: Part-unit: interests.

      12. Section 22: Part-units: charging

      13. Section 23: Changing size

      14. Section 24: Changing size: charged unit

    5. Common parts

      1. Section 25: Definition

      2. Section 26: Use and maintenance

      3. Section 27: Transactions

      4. Section 28: Charges: general prohibition

      5. Section 29: New legal mortgages

      6. Section 30: Additions to common parts

    6. Commonhold community statement ()

      1. Section 31: Form and content: general

      2. Section 32: Regulations

      3. Section 33: Amendment

    7. Commonhold association

      1. Section 34: Constitution

      2. Section 35: Duty to manage

      3. Section 36: Voting

    8. Operation of commonhold

      1. Section 37: Enforcement and compensation

      2. Section 38: Commonhold assessment

      3. Section 39: Reserve fund

      4. Section 40: Rectification of documents

      5. Section 41: Enlargement

      6. Section 42: Ombudsman

    9. Termination: voluntary winding-up

      1. Section 43: Winding-up resolution

      2. Section 44: 100 per cent agreement

      3. Section 45: 80 per cent agreement

      4. Section 46: Termination application

      5. Section 47: Termination statement

      6. Section 48: The liquidator

      7. Section 49: Termination

    10. Termination: winding-up by the court

      1. Section 50: Introduction

      2. Section 51: Succession order

      3. Section 52: Assets and liabilities

      4. Section 53: Transfer of responsibility

      5. Section 54: Termination of commonhold

    11. Termination: miscellaneous

      1. Section 55: Termination by court

      2. Section 56: Release of reserve fund

    12. Miscellaneous

      1. Section 57: Multiple site commonholds

      2. Section 58: Development rights

      3. Section 59: Development rights: succession

      4. Section 60: Compulsory Purchase

      5. Section 61: Matrimonial rights

      6. Section 62: Advice

    13. General

      1. Section 64: Orders and regulations

      2. Section 65: Registration procedure [Amended at Report stage]

      3. Section 66: Jurisdiction

      4. Section 67: The register

      5. Section 68: Amendments

      6. Section 69: Interpretation

      7. Part 2: Leasehold Reform

        1. Chapter 1: Right to manage

          1. Section 71: Introductory

    14. Qualifying rules

      1. Section 72: premises to which Chapter applies

      2. Section 73: RTM companies

      3. Section 74: RTM companies: membership and regulations

      4. Section 75: Qualifying tenants

      5. Sections 76 and 77: Long leases

    15. Claim to acquire right

      1. Section 78: Notice inviting participation

      2. Section 79: Notice of claim to acquire right

      3. Section 80: Contents of claim notice

      4. Section 81: Claim notice: supplementary

      5. Section 82: Right to obtain information

      6. Section 83: Right of access

      7. Section 84: Counter-notices

      8. Section 85: Landlords not traceable

      9. Section 86: Withdrawal of claim notice

      10. Section 87: Deemed withdrawal

      11. Section 88: Costs: general

      12. Section 89: Costs where claim ceases

    16. Acquisition of right

      1. Section 90: The acquisition date

      2. Sections 91 and 92: Notices relating to management contracts

      3. Section 93: Duty to provide information

      4. Section 94: Duty to pay accrued uncommitted service charges

    17. Exercising the right

      1. Section 95: Introductory

      2. Section 96: Management functions under leases

      3. Section 97: Management functions: supplementary

      4. Section 98: Functions relating to approvals

      5. Section 99: Approvals: supplementary

      6. Section 100: Enforcement of tenant covenants

      7. Section 101: Tenant covenants: monitoring and reporting

      8. Section 102: Statutory functions

      9. Section 103: Landlord contributions to service charges

    18. Supplementary

      1. Section 104: Registration

      2. Section 105: Cessation of management

      3. Section 106: Agreements excluding or modifying right

      4. Section 107: Enforcement of obligations

      5. Section 108: Application to Crown

      6. Section 109: Powers of trustees in relation to right

      7. Section 110: Power to prescribe procedure

      8. Section 111: Notices

      9. Chapter 2: Collective enfranchisement by tenants of flats

        1. Section 114: Amendments of right to collective enfranchisement

    19. Qualifying rules

      1. Section 115: Non-residential premises

      2. Section 116: Premises including railway track

      3. Section 117: Qualifying leases

      4. Section 118: Premises with resident landlord

      5. Section 119: Proportion of tenants required to participate

      6. Section 120: Abolition of residence condition

    20. Exercise of right

      1. Section 121: Right exercisable only by RTE company

      2. Section 122: RTE companies

      3. Section 123: Invitation to participate

      4. Section 124: Consequential amendments

      5. Section 125: Right of access

    21. Purchase price

      1. Section 126: Valuation date

      2. Section 127: Freeholder’s share of marriage value

      3. Section 128: Disregard of marriage value in case of very long leases

      4. Chapter 3: New leases for tenants of flats

        1. Section 129: Introductory

    22. Qualifying rules

      1. Section 130: Replacement of residence test

      2. Section 131: Qualifying leases

      3. Section 132: Personal representatives

      4. Section 133: Crown leases

    23. Purchase price

      1. Section 134: Valuation date

      2. Section 135: Landlord’s share of marriage value

      3. Section 136: Disregard of marriage value in case of very long leases

      4. Chapter 4: Leasehold houses

        1. Section 137: Introductory

    24. Qualifying rules

      1. Section 138: Abolition of residence test

      2. Section 139: Reduction of qualifying period as tenant

      3. Section 140: Exclusion of certain business tenancies

      4. Section 141: Tenancies not at a low rent

      5. Section 142: Personal Representatives

      6. Section 143: Abolition of limits on rights after lease extension

      7. Section 144: Exclusion of shared ownership leases

    25. Purchase price

      1. Section 145: Tenant's share of marriage value

      2. Section 146: Disregard of marriage value in case of very long leases

      3. Section 147: Purchase price for enfranchisement during lease extension

    26. Absent Landlords

      1. Section 148: Applications to be to county court

      2. Section 149: Valuation by leasehold valuation tribunal

      3. Service charges, administration charges

        Chapter 5: Other provisions about leases

        1. Section 150: Extending meaning of service charge and management

        2. Section 151: Consultation about service charges

        3. Section 152: Statements of account

        4. Section 153: Notice to accompany demands for service charges

        5. Section 154: Inspection of documents

        6. Section 155: Liability to pay service charges: jurisdiction

        7. Section 156: Service charge contributions to be held in separate account

        8. Section 157: Service charges: minor and consequential amendments

        9. Section 158: Administration charges

        10. Section 159: Charges under estate management schemes

        11. Manager appointed by leasehold valuation tribunal

          1. Section 160: Third parties with management responsibilities

          2. Section 161: Restriction of resident landlord exception

    27. Variation of leases

      1. Section 162: Grounds for application by party to lease

      2. Section 163: Transfer of jurisdiction of court to tribunal

      3. Insurance

        1. Section 164: Insurance otherwise than with landlord’s insurer

        2. Section 165: Extension of right to challenge landlord’s choice of insurer

    28. Ground rent

      1. Section 166: Requirement to notify long leaseholders that rent is due

      2. Forfeiture of leases of dwellings

        1. Section 167: Failure to pay small amount for short period

        2. Section 168: No forfeiture notice before determination of breach

        3. Section 169: Section 168: supplementary

        4. Section 170: Forfeiture for failure to pay service charge

        5. Section 171: Power to prescribe additional or different requirements

        6. Section 172: Application to Crown

      3. Chapter 6: Leasehold Valuation Tribunals

        1. Section 173: Leasehold Valuation Tribunals

        2. Section 174: Procedure

        3. Section 175: Appeals

        4. Section 176: Consequential amendments

      4. Chapter 7: General

        1. Section 177: Wales

        2. Section 178: Orders and regulations

  4. Schedules

    1. Schedule 1: Application for registration: Documents (section 2)

    2. Schedule 2: Land which may not be commonhold land (section 4)

    3. Schedule 3: Commonhold association (section 34)

      1. Memorandum and articles of association

    4. Schedule 4: Development rights (section 58)

    5. Schedule 6: Premises excluded from right to manage (Section 72)

    6. Schedule 7: Right to Manage: Statutory Provisions (Section 102)

    7. Schedule 8: Enfranchisement by company: Amendments (Section 124)

    8. Schedule 9: Meaning of service charge and management (Section 150)

      1. Loans in respect of service charges

      2. Service charges

      3. Appointment of manager

      4. Right to acquire landlord’s interest

      5. Tenants’ right to management audit

      6. Codes of management practice

      7. Right to appoint surveyor

      8. Power to amend certain provisions

    9. Schedule 10: Service charges: Minor and Consequential Amendments (Section 157)

      1. Information held by superior landlord

      2. Assignment

      3. Offences

      4. Accountants

      5. Insurance

      6. Service Charge Contributions: appointment of a manager

      7. Trust of service charges paid only by one tenant

      8. Management Audit

    10. Schedule 11: Administration charges (Section 158)

      1. Part 1: Reasonableness of administration charges

        1. Meaning of ‘administration charge’

        2. Reasonableness of administration charges

        3. Notice in connection with demands for administration charges

        4. Liability to pay administration charges

      2. Part 2: Amendments of

    11. Schedule 12: Leasehold Valuation Tribunals: Procedure (Section 174)

      1. Procedure regulations

      2. Applications

      3. Transfers

      4. Information

      5. Pre-trial reviews

      6. Parties

      7. Dismissal

      8. Determination without hearing

      9. Fees

      10. Costs

      11. Enforcement

    12. Schedule 13: Leasehold valuation tribunals: amendments (Section 176)

      1. The

      2. Housing Act 1980 (c.51)

      3. The

      4. The

      5. Housing Act 1996 (c.52)

  5. Commencement

    1. Part 1: Commonhold

    2. Part 2: Leasehold Reform

  6. Hansard References

  • Explanatory Notes Table of contents

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Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

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