New Clause 45 - Series of leases whose term would extend beyond 21 years

“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 (“the original lease”) is “capable of forming part of a series of leases whose terms would extend beyond 21 years” if conditions A to C are met at the time when the original lease is granted.

(2) Condition A: the original lease does not have a long term under section (Leases which have a long term)(2), (3) or (4).

(3) Condition B: provision for the grant of another lease of the same house (the “new lease”) is included in—

(a) the original lease, or

(b) any related arrangements.

(4) Condition C: the total duration of—

(a) the term of the original lease,

(b) the term of the new lease (if granted), and

(c) the term or terms of any subsequent leases (if granted),

would exceed 21 years.

(5) In a case where the provision for the grant of the new lease, or for the grant of any subsequent lease, allows for the possibility of the term of the lease being one of a number of differing durations, the reference in condition C to the term of the lease is to the longest of those possible durations.

(6) A lease is a “lease of the same house” if the lease demises one house, being the house comprised in the original lease, with or without any appurtenant property, and nothing else.

(7) Arrangements are “related arrangements” if they are entered into in connection with the grant of the original lease (whether or not they are entered into in writing).

(8) A lease is a “subsequent lease” if—

(a) it is not the new lease,

(b) it is a lease of the same house, and

(c) provision for the grant of the lease—

(i) is included in the original lease or any related arrangements,

(ii) would be included in the new lease (if granted), or

(iii) would be included in any other lease that (if granted) would itself be a subsequent lease.”—(Lee Rowley.)

This new clause, to be inserted after NC44, would define when a lease is “capable of forming part of a series of leases whose terms would extend beyond 21 years” for the purposes of subsection (5) of NC44.

Brought up, and added to the Bill.