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Commonhold and Leasehold Reform Act 2002

Qualifying rules

Section 130: Replacement of residence test

223.Section 130 removes the previous requirement that tenants must satisfy a residence test to qualify for this right.  Instead, it introduces a new requirement that the tenant must have been a qualifying tenant (i.e. a long leaseholder) for at least two years before they can exercise this right.

Section 131: Qualifying leases

224.Section 131 amends the definition of qualifying tenant.  Previously, a qualifying tenant had to either have a lease of more than 35 years (a lease for a particularly long term) or a lease of more than 21 years at a low rent.  The amendments remove the ‘low rent’ and lease for a ‘particularly long term’ tests.  Following these changes, a qualifying tenant is, for the purposes of the right to acquire a new lease, a long leaseholder of a flat.

Section 132: Personal representatives

225.Section 132 makes special provision for the benefit of those who inherit leases.  Provided that the deceased had been a qualifying tenant for at least two years (see section 130), their personal representatives will have the right to a new lease notwithstanding the fact that they have not, themselves, held the lease for at least two years.  This right can only be exercised during a period of two years starting from the date of grant of probate or of letters of administration.

Section 133: Crown leases

226.Section 133 inserts a new version of section 94(2) of the 1993 Act.  It ensures that any long leaseholder of a flat in a Crown property can obtain a new lease under that Act where their immediate landlord is not the Crown.  Where the Crown is the immediate landlord, the long leaseholder can obtain a new lease outside the 1993 Act under the voluntary undertaking given by the Crown to that effect.

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