http://www.legislation.gov.uk/ukpga/1993/28/section/35Leasehold Reform, Housing and Urban Development Act 1993An Act to confer rights to collective enfranchisement and lease renewal on tenants of flats; to make further provision with respect to enfranchisement by tenants of houses; to make provision for auditing the management, by landlords or other persons, of residential property and for the approval of codes of practice relating thereto; to amend Parts III and IV of the Landlord and Tenant Act 1987; to confer jurisdiction on leasehold valuation tribunals as respects Crown land; to make provision for rendering void agreements preventing the occupation of leasehold property by persons with mental disorders; to amend Parts II, IV and V of the Housing Act 1985, Schedule 2 to the Housing Associations Act 1985, Parts I and III and sections 248 and 299 of the Housing (Scotland) Act 1987, Part III of the Housing Act 1988, and Part VI of the Local Government and Housing Act 1989; to make provision with respect to certain disposals requiring consent under Part II of the Housing Act 1985, including provision for the payment of a levy; to alter the basis of certain contributions by the Secretary of State under section 569 of that Act; to establish and confer functions on a body to replace the English Industrial Estates Corporation and to be known as the Urban Regeneration Agency; to provide for the designation of certain urban and other areas and to make provision as to the effect of such designation; to amend section 23 of the Land Compensation Act 1961, section 98 of the Local Government, Planning and Land Act 1980 and section 27 of the Housing and Planning Act 1986; to make further provision with respect to urban development corporations and urban development areas; and for connected purposes.1993-07-20texttext/xmlenStatute Law Database2025-05-23Expert Participation2025-05-19 Part I LANDLORD AND TENANTChapter I COLLECTIVE ENFRANCHISEMENT IN CASE OF TENANTS OF FLATS Completion of acquisition Discharge of existing mortgages on transfer to nominee purchaser.351Subject to the provisions of Schedule 8, where any interest is acquired by the nominee purchaser in pursuance of this Chapter, the conveyance by virtue of which it is so acquired shall, as regards any mortgage to which this section applies, be effective by virtue of this section—ato discharge the interest from the mortgage, and from the operation of any order made by a court for the enforcement of the mortgage, andbto extinguish any term of years created for the purposes of the mortgage,and shall do so without the persons entitled to or interested in the mortgage or in any such order or term of years becoming parties to or executing the conveyance.2Subject to subsections (3) and (4), this section applies to any mortgage of the interest so acquired (however created or arising) which—ais a mortgage to secure the payment of money or the performance of any other obligation by the person from whom the interest is so acquired or any other person; andbis not a mortgage which would be overreached apart from this section.3This section shall not apply to any such mortgage if it has been agreed between the nominee purchaser and the reversioner or (as the case may be) any other relevant landlord that the interest in question should be acquired subject to the mortgage.4In this section and Schedule 8 “mortgage” includes a charge or lien; but neither this section nor that Schedule applies to a rentcharge.Pt. 1 Ch. 1: power to amend conferred (20.1.2007) by Companies Act 2006 (c. 46), ss. 1181(1)(a), 1300(2); S.I. 2006/3428, art. 3(3) (with arts. 6, 8(2))