HC Deb 20 June 1967 vol 748 cc1620-1
Mr. Skeffington

I beg to move Amendment No. 87, in page 70, line 48, after 'subject' to insert: 'to any statutory requirements as to payment of capital money arising under a settlement or a disposition on trust for sale and'. Under paragraph 7(1) of Schedule 2 the written receipt of the leaseholder is, unless the compensation is ordered to be paid into court, to be a complete discharge to the freeholder for the compensation payable to him when the freeholder succeeds in terminating his extended tenancy under Clause 17 or Clause 18.

This Amendment slightly modifies the above rule by providing that if the leasehold interest is subject to a strict settlement or trust for sale the normal rule is to apply when on a disposition of land capital money is payable to the trustees. That is to say, a good discharge will not be obtained if there are fewer than two trustees—except where one of them is a trust corporation, for example, the Public Trustee or a bank.

Amendment agreed to.

Mr. Skeffington

I beg to move Amendment No. 88, in page 71, line 8, at the end to insert: (3) Where the tenancy is held on trust for sale, any sum received in respect of it by way of compensation under an order for possession shall be dealt with as if it were proceeds of sale arising under the trust. This Amendment, which is complementary to Amendment No. 87, provides that where the leasehold interest is settled on trust for sale the compensation payable under Clause 17 or Clause 18 in respect of the leasehold interest is to be dealt with as if it were proceeds of sale arising under the trust. In other words, it is to be invested or distributed among the beneficiaries according to the terms of the settlement. This brings the matter into conformity with legislation relating to trusts.

Amendment agreed to.