Town and City Management Services
Legislation update

 

The Commonhold and Leasehold Reform Act 2002 received Royal Assent on 1st May 2002 but is being commenced on a gradual basis; there have been five Commencement Orders published so far -

Commencement Order No. 1 (17th July 2002) this commenced the following provisions, with effect from 26th July 2002:

1. all of the amendments to collective enfranchisement but excluding the RTE Company, the Invitation to Participate and the Valuation Date.

2. all of the amendments to lease extensions for flats and acquisition of freeholds of houses.

Commencement Order No. 2 (4th August 2003) this commenced the following provisions with effect from 30th September 2003:

1. the Right to Manage.

2. Improvements to be included in the statutory definition of a service charge.

3. Administration charges.

4. the new Leasehold Valuation Tribunal jurisdiction. and, with effect from 31st October 2003

5. the revised S20 consultation procedures.

Commencement Order No. 3 (8th September 2003) this commenced some initial provisions toward commonhold, primarily the ability for the Department of Constitutional Affairs to provide a grant for advice on commonhold (LEASE will be providing this), the ombudsman and certain registration procedures.

 

Commencement Order No. 4 (14th July 2004) this commenced the provisions relating to commonhold, with effect from 27th September 2004. The order was accompanied by the Commonhold Regulations (2004 No 1829) which includes, in separate schedules, the prescribed Memorandoum and Articles of Association of the Commonhold Association and the Commonhold Community Statement. Statutory Instrument 2004 No 1830 relates to the Land Registration rules.

Commencement Order No.5 (16th November 2004) this repealed s104 (registration of the right to manage) with immediate effect, and commenced the following provisions with effect from 28th February 2005:

o    The valuation date; in respect of collective enfranchisement.

o    Ground rent not recoverable unless demanded

o    Right for a tenant of a house to insure other than with the landlord’s nominated insurer.

o    The new rules in respect of forfeiture.

ODPM  announced in 2007 that further consultation on other sections of the Act will be required before further commencement orders will be issued.

 

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