Q&As

Does non payment of a deposit invalidate a notice under the Leasehold Reform Act 1967? And is a tenant in breach of the terms of the lease entitled to enfranchise?

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Published on LexisPSL on 13/10/2015

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Does non payment of a deposit invalidate a notice under the Leasehold Reform Act 1967? And is a tenant in breach of the terms of the lease entitled to enfranchise?
  • Does non payment of a deposit invalidate the notice?
  • Is a tenant who is in breach of a lease entitled to enfranchise?

Does non payment of a deposit invalidate a notice under the Leasehold Reform Act 1967? And is a tenant in breach of the terms of the lease entitled to enfranchise?

Does non payment of a deposit invalidate the notice?

Our Practice Note: Exercising the right to enfranchise—houses discusses the service of a valid notice of tenant's claim to acquire the freehold or an extended lease under Part I of the Leasehold Reform Act 1967 (LRA 1967) (tenant’s notice). Once a valid tenant’s notice has been served, the landlord is entitled to request the payment of the deposit from the tenant, which must be paid within 14 days (Leasehold Reform (Enfranchisement and Extension) Regulations 1967, SI 1967/1879, Sch, Pt 1, condition 1).

Section 22 of the LRA 1967 outlines the conditions that affect the validity of the tenant's notice. Non payment of a deposit is not specifically mentioned as a factor that will invalidate the notice.

Sch, Pt 1, condition 10 of the Leasehold Reform (Enfranchisement and Extension) Regulations 1967 deals with failure to comply with any of the party’s obligations arising from the tenant's notice or arising out of any of the conditions contained in the schedule to the regulations—including payment of the deposit. Condition 10 provides:

'Failure to completion with obligations

10

(1) If either the landlord or the tenant shall neglect or fail to perform any of his

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