Leasehold and Freehold Reform Act 2024

Prospective

Eligibility of leases of National Trust property for extensionE+W

8For section 95 of the LRHUDA 1993 (saving for National Trust) substitute—

“95National Trust property

(1)Property is “inalienable National Trust property” for the purposes of this section if an interest in the property is vested inalienably in the National Trust for Places of Historic Interest or Natural Beauty under section 21 of the National Trust Act 1907.

(2)Chapter 1 does not prejudice the operation of section 21 of the National Trust Act 1907, and accordingly there is no right under Chapter 1 to acquire an interest in inalienable National Trust property.

(3)The right to a new lease has effect subject to the following provisions of this section only if and to the extent that the existing lease demises inalienable National Trust property.

(4)In a case where the existing lease is a protected National Trust tenancy, the tenant does not have the right to a new lease.

(5)If—

(a)the existing lease is not a protected National Trust tenancy, and

(b)the tenant exercises the right to a new lease,

the new lease must contain the buy-back term which is prescribed in regulations made by the Secretary of State (the “prescribed buy-back term”).

(6)A “buy-back term” is a term which gives the National Trust the right to buy the whole or part of the new lease if—

(a)it is proposed to make a disposal of the new lease that is of a description specified in that term (which may be a disposal of the whole or a part of the property demised), or

(b)the National Trust exercises a prescribed buy-back term that is contained in a lease which is inferior to the extended lease.

(7)The prescribed buy-back term may, in particular, make provision about—

(a)the procedure where it is proposed to make a disposal that is of a description specified in the term;

(b)the procedure for exercising the right to buy;

(c)the price payable;

(d)the payment of costs incurred in connection with the operation of the term (including requirements for one person to pay costs incurred by another person);

(e)the operation of the term if the National Trust is not a party to the new lease.

(8)If the National Trust is not the landlord under the new lease, the National Trust may at any time apply to the appropriate tribunal for an order to secure that the new lease is varied to contain (if or to the extent that it does not already do so) the prescribed buy-back term; and an order made on such an application may appoint a person who is not party to the new lease to execute a variation of the lease.

95ASection 95: supplementary provision

(1)For the purposes of section 95, the existing lease is a “protected National Trust tenancy” if the lease is prescribed, or is of a description of leases prescribed, in regulations made by the Secretary of State.

(2)Regulations may not provide for a lease to be a protected National Trust tenancy unless the lease is within case A or case B.

(3)Case A: some or all of the property let under the lease is—

(a)property to which the general public has access, or

(b)part of property to which the general public has access (whether or not the general public has access to any property let under the lease),

whether the arrangements for public access are managed by the National Trust, the tenant or another person.

(4)Case B: the existing lease was granted to—

(a)a former owner,

(b)a relative of a former owner, or

(c)the trustees of a trust whose beneficiaries are or include—

(i)a former owner, or

(ii)a relative of a former owner.

(5)Regulations under section 95 or this section—

(a)may make different provision for different purposes;

(b)are to be made by statutory instrument.

(6)A statutory instrument containing regulations under section 95 or this section is subject to annulment in pursuance of a resolution of either House of Parliament.

(7)In section 95 and this section—

• “disposal”, in relation to a new lease, includes—

  (a)

  the grant of a sub-lease of property demised by the new lease;

  (b)

  a change in control of a body (whether or not incorporated) which owns the new lease;

  (c)

  the surrender of the new lease;

  (d)

  a disposal (of any kind) for no consideration;

• “former owner”, in relation to inalienable National Trust property let under a tenancy, means—

  (a)

  a person who transferred the freehold of the property to the National Trust,

  (b)

  a person who owned the freehold of the property immediately before its transfer to the National Trust by, or at the direction of—

  (i)

  the Commissioners for His Majesty’s Revenue and Customs,

  (ii)

  the Commissioners of Inland Revenue, or

  (iii)

  the Treasury,

  (c)

  a person whose executors transferred, or directed the transfer of, the freehold of the property to the National Trust, or

  (d)

  a person who was a beneficiary under a trust whose trustees transferred, or directed the transfer of, the freehold of the property to the National Trust;

• “relative” includes a person who is related by marriage or civil partnership;

• “right to a new lease” means the right under Chapter 2 to a new lease.”