New Clause 44 - Leases which have a long term

“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 lease has a “long term” in any of cases A to D.

(2) Case A: the lease is granted for a term certain exceeding 21 years.

(3) Case B: section 149(6) of the Law of Property Act 1925 applies to the lease (lease granted for life or until marriage or civil partnership) and the lease accordingly takes effect with a term fixed by law.

(4) Case C: the lease is granted with a covenant or obligation for perpetual renewal and accordingly takes effect with a term fixed by law - unless it is a sub-lease with a term fixed by law of 21 years or shorter.

(5) Case D: the lease is capable of forming part of a series of leases whose terms would extend beyond 21 years (see section (Series of leases whose term would extend beyond 21 years)).

(6) In determining whether a lease has a long term, it is irrelevant if the lease is, or may become, terminable by notice, re-entry or forfeiture.”—(Lee Rowley.)

This new clause, to be inserted after NC43, would define when a lease has a “long term” for the purposes of the new Part before Part 1.

Brought up, and added to the Bill.