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Housing and Planning Act 2016

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This is the original version (as it was originally enacted).

138Procedure for redeeming English rentcharges

This section has no associated Explanatory Notes

(1)The Rentcharges Act 1977 is amended in accordance with subsections (2) to (5).

(2)Before section 8 (but after the italic heading before section 8) insert—

7APower to make procedure for redeeming English rentcharges

(1)The Secretary of State may by regulations make provision allowing the owner of land in England affected by a rentcharge to redeem it.

(2)Regulations under subsection (1) may not make provision in relation to—

(a)a rentcharge that could be redeemed by making an application under section 8(1A),

(b)a rentcharge of a kind mentioned in section 2(3) or section 3(3)(a),

(c)a rentcharge in respect of which the period for which it is payable cannot be ascertained, or

(d)a variable rentcharge.

(3)For the purposes of subsection (2)(d) a rentcharge is variable if the amount of the rentcharge will, or may, vary in the future in accordance with the provisions of the instrument under which it is payable.

(4)Regulations under subsection (1) may, in particular—

(a)provide for the owner of land affected by a rentcharge to be able to redeem a rentcharge by taking specified steps, including making payments determined in accordance with the regulations;

(b)require a rent owner or other person to take specified steps to facilitate the redemption of a rentcharge, such as providing information or executing a deed of release;

(c)where the documents of title of the owner of land affected by a rentcharge are in the custody of a mortgagee, require the mortgagee to make those documents or copies of those documents available in accordance with the regulations;

(d)permit or require a person specified in the regulations to design the form of any document to be used in connection with the redemption of rentcharges under the regulations;

(e)provide for a court or tribunal to—

(i)determine disputes about or in relation to the redemption of a rentcharge;

(ii)make orders about the redemption of a rentcharge;

(iii)issue a redemption certificate;

(f)make provision corresponding to any of the provisions of section 10(2) to (4).

(5)Nothing in this section prevents the redemption of a rentcharge otherwise than in accordance with regulations under subsection (1).

(3)In section 8—

(a)in subsection (1)—

(i)after “land” insert “in Wales”;

(ii)for the words from “a certificate” to the end substitute “a redemption certificate”;

(b)after subsection (1) insert—

(1A)The owner of any land in England affected by a rentcharge which has been apportioned to that land by an apportionment order with a condition under—

(a)section 7(2) above, or

(b)section 20(1) of the Landlord and Tenant Act 1927,

may apply to the Secretary of State, in accordance with this section, for a redemption certificate.

(4)In section 12—

(a)in subsection (1), after “this Act” insert “, apart from regulations under section 7A,”;

(b)after subsection (1) insert—

(1A)Regulations under section 7A are to be made by statutory instrument.

(1B)A statutory instrument containing regulations under section 7A may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(5)In section 13(1), in the definition of “redemption certificate”, for the words from “has” to the end substitute “means a certificate certifying that a rentcharge has been redeemed”.

(6)The Leasehold Reform Act 1967 is amended in accordance with subsections (7) and (8).

(7)In section 8(4)(b), for “8” substitute “7A”.

(8)In section 11—

(a)in subsection (6), after “1977” insert “or the amount that would have to be paid to secure the redemption of that rentcharge in accordance with regulations made under section 7A of that Act”;

(b)in subsection (7)(a), after “specified” insert “or required”;

(c)in subsection (8), for “8” substitute “7A”.

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