New Clause 42 - Ban on grant or assignment of certain long residential leases of houses

“Insolvency of certain persons with an interest in higher-risk and relevant buildings – in the House of Commons at 6:00 pm on 27 February 2024.

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“(1) A person may not grant or enter into an agreement to grant a long residential lease of a house on or after the day on which this section comes into force, unless it is a permitted lease (see section (Permitted leases)).

(2) A person may not assign or enter into an agreement to assign the whole or a part of a lease which was granted on or after the day on which this section comes into force if—

(a) at the time of the assignment the lease is a long residential lease of a house, but

(b) at the time of the grant the lease was not a long residential lease of a house.

(3) This section does not affect—

(a) the validity of a lease granted, or an assignment entered into, in breach of this section, and does not affect the powers of a person to grant or assign such a lease (whether under section 23(1) of the Land Registration Act 2002 or otherwise);

(b) any contractual rights of a party to an agreement entered into in breach of this section.”—(Lee Rowley.)

This new clause, to be inserted as the first clause of a new Part before Part 1, would ban the grant, and certain assignments, of long residential leases of houses, other than permitted leases.

Brought up, and added to the Bill.