Termination of Tenancies for Tenant Default - Law Commission

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38 (2) After that subsection, insert— 214 Landlord and Tenant (Termination of Tenancies) Bill Schedule 6 — Miscellaneous amendments “(3A) Where on a termination claim made under the Landlord and Tenant (Termination of Tenancies) Act 2006 on the ground of a tenant default in respect of a lease or tenancy within subsection (3), the court is satisfied that the default has occurred— (a) it must make a termination order, and (b) sections 9 to 17 of that Act are to be read accordingly. (3B) Section 24 of that Act (post-termination orders) does not apply to a lease or tenancy within subsection (3).”. Postal Services Act 2000 (c. 26) 100 In paragraph 6(2) of Schedule 3 to the Postal Services Act 2000 (rights affecting land on property transfers), after paragraph (b) insert— “(ba) the right to take termination action under the Landlord and Tenant (Termination of Tenancies) Act 2006,”. Transport Act 2000 (c. 38) 101 In section 61(1) of the Transport Act 2000 (rights affecting land under transfer schemes), after paragraph (b) insert— “(ba) the right to take termination action under the Landlord and Tenant (Termination of Tenancies) Act 2006;”. Commonhold and Leasehold Reform Act 2002 (c. 15) 102 Part 2 of the Commonhold and Leasehold Reform Act 2002 (leasehold reform) is amended as follows. 103 In section 76(2) (definition of “long lease”), in paragraph (a), for “, by reentry or forfeiture” substitute “or under the 2006 Act”. 104 In section 96(6) (matters which are not management functions), in paragraph (b), for “re-entry or forfeiture” substitute “the taking of termination action under the 2006 Act”. 105 In section 100(3) (enforcement of tenant covenants by RTM company), for “exercise any function of re-entry or forfeiture” substitute “take termination action under the 2006 Act”. 106 In section 171 (power to prescribe additional or different requirements), for “a right of re-entry or forfeiture may be exercised” substitute “termination action may be taken under the 2006 Act”. 107 In section 179 (interpretation), in subsection (2)— (a) omit the word “and” immediately before the definition of “the 1993 Act”, and (b) after that definition, insert “, and “the 2006 Act” means the Landlord and Tenant (Termination of Tenancies) Act 2006”. Proceeds of Crime Act 2002 (c. 29) 108 The Proceeds of Crime Act 2002 is amended as follows. 5 10 15 20 25 30 35 40
Landlord and Tenant (Termination of Tenancies) Bill Schedule 6 — Miscellaneous amendments 109 (1) In subsection (3) of each of sections 58, 59 and 60 (restraint order, appointment of enforcement receiver or director’s receiver), for “exercise a right within subsection (4)” substitute “give or deliver a summary termination notice under the Landlord and Tenant (Termination of Tenancies) Act 2006 in relation to the tenancy”. (2) Omit subsection (4) of each of those sections. 110 In sections 245D and 253 (property freezing order, interim receiving order), in subsection (3), after “payable may” insert “give or deliver a summary termination notice under the Landlord and Tenant (Termination of Tenancies) Act 2006 or”. Finance Act 2003 (c. 14) 111 In paragraph 9 of Schedule 17A to the Finance Act 2003 (rent for overlap period on grant of further lease), in paragraph (c)(i), after “court” insert “under section 24 of the Landlord and Tenant (Termination of Tenancies) Act 2006 (post-termination orders) or”. Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27) 112 In section 48(5) of the Companies (Audit, Investigations and Community Enterprise) Act 2004 (rights not exercisable following transfer of property to Official Property Holder), for paragraphs (c) and (d) substitute— “(c) the right to take termination action under the Landlord and Tenant (Termination of Tenancies) Act 2006,”. Housing Act 2004 (c. 34) 113 In section 177(1) of the Housing Act 2004 (interpretation), in paragraph (a) of the definition of “long lease”, for “by re-entry or forfeiture” substitute “under the Landlord and Tenant (Termination of Tenancies) Act 2006”. London Olympic Games and Paralympic Games Act 2006 (c. 12) 114 In paragraph 8(2) of Schedule 2 to the London Olympic Games and Paralympic Games Act 2006 (rights not exercisable as a result of a transfer scheme), after paragraph (c) substitute— “(ca) the right to take termination action under the Landlord and Tenant (Termination of Tenancies) Act 2006,”. SCHEDULE 7 Section 34(2) 215 REPEALS Short title and chapter Extent of repeal Common Law Procedure Act Sections 210 to 212, 214 and 218. 1852 (c. 76) Allotments Act 1922 (c. 51) In section 1(1)(e), the words from “for nonpayment” to “tenancy or”. Settled Land Act 1925 (c. 18) In section 20(1)(viii), “forfeiture,”. 39 5 10 15 20 25 30 35
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The Law Commission (LAW COM No 303)
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THE LAW COMMISSION TERMINATION OF T
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Consultation 40 Reform recommendati
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Consultation 68 Reform recommendati
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(7) Any other matter 102 THE LEASEH
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Restrictions on using the summary t
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where appropriate using the various
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etains an equitable jurisdiction to
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of the law”. A number of leading
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procedure, the tenancy will not ter
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Part 6 examines the position of tho
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2.7 When a tenancy is terminated un
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unless valid notices have been give
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Transfer order 2.30 Only a qualifyi
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2.41 Where a landlord serves a summ
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PART 3 TENANT DEFAULT INTRODUCTION
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scheme by characterising the obliga
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to include such clauses and to allo
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perform their obligations under the
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SPECIAL CASES OF TENANT DEFAULT Den
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Assignment 3.51 Most tenancies cont
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the incoming tenant of the assigned
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often stipulate that a right to for
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insolvency process having the same
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3.93 In addition, section 81 of the
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1996 and Chapter 5 of the Commonhol
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covenant is non-payment of rent, a
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Reform recommendations 3.132 We rec
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The CP’s provisional proposals 4.
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do so by delaying until the default
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it is unlikely that a tenant would
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(4) give the date by which action m
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Specify the time for remedial actio
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(3) must specify in respect of the
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agreement (subject to a maximum ext
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underlying principle that qualifyin
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all tenancies granted for seven or
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4.92 As we intend to retain the sam
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PART 5 MAKING A TERMINATION CLAIM (
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e set off against the cost of carry
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future liabilities under the terms
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(6) where a tenancy comes to an end
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5.43 During the period of the stay,
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described. During the consultation
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termination of a tenancy under the
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5.69 We recommend that the proceeds
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5.75 The First Report therefore rec
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making any order under the scheme t
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5.93 The CP provisionally proposed
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of the parties. 78 Proportionality
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past conduct of the parties. This m
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(7) Any other matter 5.127 It would
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PART 6 QUALIFYING INTERESTS INTRODU
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1925 extends to lessees, under-less
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according to the lease without any
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interchangeably by the courts, by s
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entitled to use the scheme to prote
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(2) if not in occupation, a right w
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property. The simplest means of ens
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(1) What should the landlord be exp
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claim with the court for service on
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have to apply for relief, which, if
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qualified covenant not to assign th
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that it is both appropriate and pro
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order unless the person who holds t
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CP suggested, close down any potent
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PART 7 SUMMARY TERMINATION PROCEDUR
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action rather than by physical re-e
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Paper was published. 22 It proposed
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7.28 It was hoped that this recomme
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equirement for service of a notice
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7.51 The final restriction was: It
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in the sub-tenant being removed fro
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termination claim, the summary term
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7.71 The summary termination proced
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Repairing covenants 7.79 The repair
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7.88 We do not wish to discourage t
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dispensation power will only be exe
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to costs under the summary terminat
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7.112 We recommend that: specifying
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PART 8 LIST OF RECOMMENDATIONS PART
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8.13 We recommend that the Insolven
Page 166 and 167: (a) the day after the deadline spec
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Page 176 and 177: APPENDIX A DRAFT LANDLORD AND TENAN
Page 178 and 179: ii Interpretation, etc. 28 Meaning
Page 180 and 181: 2 178 Landlord and Tenant (Terminat
Page 182 and 183: 4 180 Landlord and Tenant (Terminat
Page 184 and 185: 6 (8) This section is subject to se
Page 186 and 187: 8 13 Remedial order 184 Landlord an
Page 188 and 189: 10 186 Landlord and Tenant (Termina
Page 194 and 195: 16 30 Meaning of “qualifying inte
Page 198 and 199: 20 Preliminary 196 Landlord and Ten
Page 200 and 201: 22 Proper address 198 Landlord and
Page 204 and 205: 26 Settled Land Act 1925 (c. 18) 4
Page 210 and 211: 32 Protection from Eviction Act 197
Page 212 and 213: 34 Landlord and Tenant Act 1985 (c.
Page 218 and 219: 40 Settled Land Act 1925 (c. 18)—
Page 220 and 221: APPENDIX B EXPLANATORY NOTES TO THE
Page 222 and 223: landlord assigns the reversion, he
Page 224 and 225: 33. For example, if a tenant defaul
Page 226 and 227: 53. Subsection (5), although broadl
Page 228 and 229: If the court is satisfied of this,
Page 230 and 231: 91. Subsection (4) mitigates the ef
Page 232 and 233: 108. Under the current law, forfeit
Page 234 and 235: 126. Subsection (2) applies where t
Page 236 and 237: 145. Subsection (1)(d) includes wit
Page 238 and 239: unless he or she obtains a court or
Page 240 and 241: person who is the tenant as a resul
Page 242 and 243: termination notice (except where th
Page 244: Robin Sinclair, Solicitor Slaughter
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Termination of Tenancies for Tenant Default - Law Commission

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