Commonhold and Leasehold Reform Act 2002

Variation of leases

162 Grounds for application by party to lease

(1) Section 35 of the 1987 Act (application by party to lease for variation of lease) is amended as follows.

(2) In subsection (2) (grounds for application), for paragraph (b) substitute—

“(b) the insurance of the building containing the flat or of any such land or building as is mentioned in paragraph (a)(iii);”.

(3) After paragraph (f) of that subsection insert—

“(g) such other matters as may be prescribed by regulations made by the Secretary of State.”

(4) After subsection (3) insert—

“(3A) For the purposes of subsection (2)(e) the factors for determining, in relation to a service charge payable under a lease, whether the lease makes satisfactory provision include whether it makes provision for an amount to be payable (by way of interest or otherwise) in respect of a failure to pay the service charge by the due date.”

(5) In section 53(2)(b) of the 1987 Act (regulations subject to negative Parliamentary procedure), after “section 20(4)” insert “or 35(2)(g)”.

163 Transfer of jurisdiction of court to tribunal

(1) Part 4 of the 1987 Act (variation of leases) is amended as follows.

(2) In section 35 (application by party to lease for variation of lease)—

(a) in subsection (1), for “the court” substitute “a leasehold valuation tribunal”, and

(b) in subsection (5), for “Rules of court” substitute “Procedure regulations under Schedule 12 to the Commonhold and Leasehold Reform Act 2002”.

(3) In section 36(1) (application by respondent for variation of other leases), for “court” substitute “tribunal”.

(4) In section 37(1) (application by majority of parties for variation of leases), for “the court” substitute “a leasehold valuation tribunal”.

(5) In section 38 (orders varying leases)—

(a) in subsections (1) to (5), for “court” (in each place) substitute “tribunal”,

(b) in subsection (6)—

(i) for “The court” substitute “A tribunal”, and

(ii) for “the court” substitute “the tribunal”,

(c) in subsections (7) to (9), for “The court” substitute “A tribunal”, and

(d) in subsection (10)—

(i) for “the court”, in the first place, substitute “a tribunal”, and

(ii) for “the court”, in the other two places, substitute “the tribunal”.

(6) In section 39 (applications by third parties for orders varying leases)—

(a) in subsection (3)(b), for “the court” substitute “a leasehold valuation tribunal”,

(b) in subsection (4), for “The court” substitute “A tribunal”, and

(c) in subsection (5)(b), for “court” substitute “tribunal”.

(7) In section 40(1) (variation of insurance provisions of dwelling other than flat), for “the court” substitute “a leasehold valuation tribunal”.

(8) In consequence of the preceding provisions, in section 52(2)(a) of the 1987 Act (jurisdiction of county courts), for “, 3 and 4” substitute “and 3”.