296: Schedule 6, page 238, line 9, at end insert—
“Part 2Existing instruments which permit or require letting etcKey definitions
17 (1) “Residential premises” are premises that consist of or include one or more dwelling-houses in England.(2) A lease of residential premises (whether or not in writing) is a “relevant pre-application instrument” if it was entered into—(a) before the commencement date, or(b) on or after that date under a contract entered into before that date.(3) A mortgage arrangement which relates to residential premises is a “relevant pre-application instrument” if it was entered into—(a) before the commencement date, or(b) on or after that date by the acceptance of an offer made before that date.(4) A contract of insurance which relates to residential premises is a “relevant pre-application instrument” if it was entered into—(a) before the commencement date, or(b) on or after that date by the acceptance of an offer made before that date.(5) A section 106 obligation is a “relevant pre-application instrument” if it was entered into before the commencement date.(6) In relation to a relevant pre-application instrument, “affected dwelling-house” means—(a) if the relevant pre-application instrument is a lease, the dwelling-house, or each dwelling-house, let by the lease;(b) if the relevant pre-application instrument is a mortgage arrangement, the dwelling-house, or each dwelling-house, to which the mortgage arrangement relates; (c) if the relevant pre-application instrument is a contract of insurance, the dwelling-house, or each dwelling-house, to which the contract of insurance relates;(d) if the relevant pre-application instrument is a section 106 obligation, the dwelling-house, or each dwelling-house, to which the section 106 obligation relates.(7) In relation to times before the commencement date, an assured tenancy is a “relevant” assured tenancy if—(a) it is not an assured shorthold tenancy,(b) it is a periodic tenancy, and(c) each period of the tenancy is—(i) a period of 28 days or shorter, or(ii) a monthly period,including where there are different periods at different times, each of which falls within sub-paragraph (i) or (ii).(8) In relation to times on or after the commencement date, an assured tenancy is a “relevant” assured tenancy if—(a) it is a periodic tenancy, and(b) each period of the tenancy is—(i) a period of 28 days or shorter, or(ii) a monthly period,including where there are different periods at different times, each of which falls within sub-paragraph (i) or (ii).Saving for existing powers to vary
18 Nothing in this Part of this Schedule prevents a relevant pre-application instrument from being varied or modified by the parties to it (and accordingly paragraphs 19 to 24 and paragraph 26 are subject to any such variation or modification).Relevant pre-application instruments that permit letting on tenancies that are no longer possible
19 (1) This paragraph applies to a relevant pre-application instrument if either or both of conditions A and B are met in relation to the affected dwelling-house.(2) Condition A: immediately before the commencement date, the relevant pre-application instrument—(a) permitted the affected dwelling-house to be let under an assured shorthold tenancy, but(b) did not permit the affected dwelling-house to be let under a relevant assured tenancy.(3) Condition B: immediately before the commencement date, the relevant pre-application instrument—(a) permitted the affected dwelling-house to be let under an assured tenancy (other than an assured shorthold tenancy), but(b) did not permit the affected dwelling-house to be let under a relevant assured tenancy.(4) The relevant pre-application instrument has effect on and after the commencement date as if it permits the affected dwelling-house to be let under a relevant assured tenancy.(5) That power to let under a relevant assured tenancy is exercisable in the same circumstances, and on the same terms, as the pre-commencement power to let was exercisable immediately before the commencement date, except so far as that would be inconsistent with any provision made by or under this Act.(6) In this paragraph “pre-commencement power to let” means—(a) if only condition A is met, the power to let mentioned in sub-paragraph (2)(a); (b) if only condition B is met, the power to let mentioned in sub-paragraph (3)(a);(c) if conditions A and B are both met, the power to let mentioned in sub-paragraph (3)(a).Relevant pre-application instruments that permit letting on tenancies that continue to be possible
20 (1) This paragraph applies to a relevant pre-application instrument if, immediately before the commencement date, the relevant pre-application instrument permitted the affected dwelling-house to be let under a relevant assured tenancy.(2) That power to let under a relevant assured tenancy continues to be exercisable in the same circumstances, and on the same terms, as it was exercisable immediately before the commencement date, except so far as that would be inconsistent with any provision made by or under this Act.Relevant pre-application instruments that require letting on tenancies that are no longer possible
21 (1) This paragraph applies to a relevant pre-application instrument if either or both of conditions A and B are met.(2) Condition A: immediately before the commencement date—(a) the relevant pre-application instrument required the affected dwelling-house to be let, and(b) that requirement—(i) would have been complied with by letting the affected dwelling-house under an assured shorthold tenancy, but(ii) would not have been complied with by letting the affected dwelling-house under a relevant assured tenancy.(3) Condition B: immediately before the commencement date—(a) the relevant pre-application instrument required the affected dwelling-house to be let, and(b) that requirement—(i) would have been complied with by letting the affected dwelling-house under an assured tenancy (other than an assured shorthold tenancy), but(ii) would not have been complied with by letting the affected dwelling-house under a relevant assured tenancy.(4) The relevant pre-application instrument has effect on and after the commencement date as if it requires the affected dwelling-house to be let under a relevant assured tenancy.(5) That requirement to let under a relevant assured tenancy must be complied with in the same circumstances, and on the same terms, as the pre-commencement requirement had to be complied with immediately before the commencement date, except so far as that would be inconsistent with any provision made by or under this Act.(6) In this paragraph “pre-commencement requirement” means—(a) if only condition A is met, the requirement to let mentioned in sub-paragraph (2)(b)(i);(b) if only condition B is met, the requirement to let mentioned in sub-paragraph (3)(b)(i);(c) if conditions A and B are both met, the requirement to let mentioned in sub-paragraph (3)(b)(i).Relevant pre-application instruments that require letting on tenancies that continue to be possible
22 (1) This paragraph applies to a relevant pre-application instrument if, immediately before the commencement date— (a) the relevant pre-application instrument required the affected dwelling-house to be let, and(b) that requirement would have been complied with by letting the affected dwelling-house under a relevant assured tenancy.(2) That requirement to let under a relevant assured tenancy must still be complied with in the same circumstances, and on the same terms, as it had to be complied with immediately before the commencement date, except so far as that would be inconsistent with any provision made by or under this Act.Pre-commencement s.106 obligations with provision relating to letting on terms that are no longer possible
23 (1) This paragraph applies to a pre-application section 106 obligation if, immediately before the commencement date, it prevented or restricted the taking of particular action unless or until the affected dwelling-house was let under a superseded tenancy.(2) On and after the commencement date, the pre-application section 106 obligation has effect as if it prevents or restricts the taking of the particular action unless or until the affected dwelling-house is let under a relevant assured tenancy.(3) Any such letting under a relevant assured tenancy is to be made in the same circumstances, and on the same terms, as a letting under a superseded tenancy immediately before the commencement date, except so far as that would be inconsistent with any provision made by or under this Act.Pre-commencement s.106 obligations with provision relating to letting on terms that continue to be possible
24 (1) This paragraph applies to a pre-application section 106 obligation if, immediately before the commencement date—(a) provision of the pre-application section 106 obligation prevented or restricted the taking of particular action unless or until the affected dwelling-house was let, and(b) that provision would have ceased to prevent or restrict that action if the affected dwelling-house was let under a relevant assured tenancy.(2) Such a letting under a relevant assured tenancy must still be made in the same circumstances, and on the same terms, as a letting under a relevant assured tenancy immediately before the commencement date, except so far as that would be inconsistent with any provision made by or under this Act.Requirements under the Community Infrastructure Regulations 2010
25 (1) This paragraph applies where—(a) a planning permission is granted before the commencement date on a relevant determination,(b) the planning permission was granted on the basis of a pre-application section 106 obligation, and(c) at the time the planning permission was granted, the pre-application section 106 obligation met the requirements under regulation 122(2) of the Community Infrastructure Regulations 2010.(2) On and after the commencement date any effect of this Part is to be disregarded when considering whether the pre-application section 106 obligation continues to meet those requirements.(3) In this paragraph “relevant determination” has the meaning given by regulation 122(3) of the Community Infrastructure Regulations 2010.Leases which cannot be returned at end of term free of sub-lease
26 (1) This paragraph applies to a lease if— (a) the lease was entered into before the commencement date or under a contract entered into before that date,(b) the lease is—(i) periodic, or(ii) a fixed term lease of a term certain not exceeding 21 years,(c) the lease is modified by paragraph 19 or 21,(d) a dwelling-house is sub-let under the lease on a tenancy (entered into before or after the commencement date) which is (or becomes on or after that date, by virtue of this Act or otherwise) a relevant assured tenancy, and(e) the tenancy was entered into in accordance with the terms of the lease as they stood when the tenancy was entered into (or, if it was not, the breach has been waived by the landlord).(2) The lease has effect as if it provided that a failure by the lessee at the end of the lease to return the premises to the landlord free from the relevant assured tenancy does not constitute a breach of the lease.Application to agreements etc relating to leases, mortgage arrangements or contracts of insurance
27 In this Part of this Schedule references to a lease, mortgage arrangement or contract of insurance, and references to the terms of a lease, mortgage arrangement or contract of insurance, include references to—(a) the terms of any agreement relating to the lease, mortgage arrangement, or contract of insurance, and(b) any document or communication from a party to the lease, mortgage arrangement, or contract of insurance, which gives or refuses consent for letting in relation to a category or description of tenancy.Application to sub-letting
28 (1) In a case where the relevant pre-application instrument is a lease, a reference in this Part of this Schedule to a letting of the affected dwelling-house is a reference to a sub-letting of those premises under that lease or any inferior lease.(2) In the case of any other relevant pre-application instrument, a reference in this Part of this Schedule to a letting of the affected dwelling-house includes a reference to a sub-letting of those premises under any lease or inferior lease of those premises.Application in certain circumstances
29 (1) In a case where a relevant pre-application instrument—(a) gave, or gives, a discretion whether to let an affected dwelling-house, but(b) required, or requires, the affected dwelling-house to be let under a tenancy of a particular description if it is let,the instrument is to be regarded as permitting (and not as requiring) the dwelling-house to be let under that description of tenancy (and this Part of this Schedule applies accordingly).(2) The following provisions of this paragraph apply if there are two or more affected dwelling-houses in relation to the relevant pre-application instrument.(3) This Part of this Schedule applies separately in relation to each of those dwelling-houses.(4) But, if any term of the instrument is such that it gave, or gives, a discretion as to which particular dwelling-house or dwelling-houses the term applies to, this Schedule does not affect that discretion (but the term otherwise has effect subject to this Part of this Schedule).Power to disapply or modify this Part
30 (1) The Secretary of State may by regulations disapply or modify the effect of this Part of this Schedule in relation to relevant pre-application instruments of a specified description.(2) Where the Secretary of State makes regulations under this paragraph disapplying the effect of this Part, the fact that this Schedule has previously applied in relation to a relevant pre-application instrument does not prevent the exercise of the powers in section 148(6)(b) in relation to the relevant pre-application instrument.Meaning of “permitting” letting
31 A relevant pre-application instrument permitted, or permits, the affected dwelling-house to be let under a tenancy of a particular description if letting the affected dwelling-house under a tenancy of that description would not have breached the terms of the relevant pre-application instrument.Interpretation
32 In this Part of this Schedule—“affected dwelling-house” has the meaning given in paragraph 17(6);“assured shorthold tenancy” is to be read in accordance with Part 1 of the 1988 Act as it had effect immediately before the commencement date;“assured tenancy” , in relation to a time before the commencement date, is to be read in accordance with Part 1 of the 1988 Act as it had effect at that time;“the commencement date” has the meaning given by section 146(3);“contract of insurance” has the meaning given by article 3(1) of the Financial Services (Regulated Activities) Order 2001;“dwelling-house” has the same meaning as in Part 1 of the 1988 Act — see section 45 of that Act);“mortgage arrangement which relates to residential premises” or “mortgage arrangement” means an arrangement under which—(a) credit is or continues to be provided to a person, and(b) the obligation of the person to repay is secured by a legal or equitable mortgage or other charge on the residential premises;“pre-application section 106 obligation” means a section 106 obligation that was entered into before the commencement date;“relevant assured tenancy” has the meaning given in paragraph 17(7) and (8);“relevant pre-application instrument” has the meaning given in paragraph 17(2) to (5);“residential premises” has the meaning given in paragraph 17(1);“section 106 obligation” means a planning obligation under section 106 of the Town and Country Planning Act 1990;“superseded tenancy” means—(a) an assured shorthold tenancy, and(b) an assured tenancy (other than an assured shorthold tenancy) that is not a relevant assured tenancy.” Member's explanatory statement
This makes transitional provision about existing “relevant pre-application instruments” whose terms permit letting or sub-letting under leases of kinds which are abolished by the Bill. It replaces clause 3 (about leases) and then also deals with mortgages, insurance contracts and obligations under section 106 of Town and Country Planning Act 1990.