§ Lords amendment: No. 127, after clause 105, to insert the following new clause—Priority of interests on grant of new lease—
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". After section 58 of the Leasehold Reform, Housing and Urban Development Act 1993 there shall be inserted—
Priority of interests on grant of new lease.
§ 58A.—(1) Where a lease granted under section 56 takes effect subject to two or more interests to which the existing lease was subject immediately before its surrender, the interests shall have the same priority in relation to one another on the grant of the new lease as they had immediately before the surrender of the existing lease.
§ (2) Subsection (1) is subject to agreement to the contrary.
§ (3) Where a person who is entitled on the grant of a lease under section 56 to rights of occupation in relation to the flat comprised in that lease was entitled immediately before the surrender of the existing lease to rights of occupation in relation to the flat comprised in that lease, the rights to which he is entitled on the grant of the new lease shall be treated as a continuation of the rights to which he was entitled immediately before the surrender of the existing lease.
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(4) In this section—
the existing lease", in relation to a lease granted under section 56, means the lease surrendered on the grant of the new lease, and
rights of occupation" has the same meaning as in the Matrimonial Homes Act 1983.
§ Mr. ClappisonI beg to move, That this House doth agree with the Lords in the said amendment.
The amendment clarifies the position when a leaseholder is granted a renewed lease under the provisions of part I of the Leasehold Reform, Housing and Urban Development Act 1993; the charges that applied to the old lease will apply equally to the new one, and with the same priority of interest.
§ Lords amendment agreed to.
§ Lords amendments Nos. 128 and 129 agreed to.