Summary
3.The Act sets out to achieve the following ends:
	Part 1 - Commonholdto define the nature of commonhold;to specify the registration process;to define the commonhold unit and the transactions which may take place, such as transfer, leasing etc.;to define the common parts of a development and to regulate their use, maintenance, transactions, such as charging etc.;to define the form and content of a commonhold community statement;to define the constitution and operation of the commonhold association;to deal with winding up of a commonhold association, both voluntarily and by the court;to make other miscellaneous and general provisions.
	Part 2 - Leasehold Reformto give leaseholders a new no-fault right to manage their block of flats;to define the body corporate which will take over management, which will also be a private company limited by guarantee;to define the eligibility criteria (similar to the revised criteria for collective enfranchisement);to set out the procedures for exercising the right;to set out the functions and responsibilities of the managing body when the right is exercised;to provide safeguards for the landlord’s continuing interest;to provide for what happens to pre-existing management contracts when the right is exercised;to provide dispute resolution procedures;to provide for the termination of the right where the body fails to manage the building properly, or no longer wishes to exercise the right, or becomes insolvent;to make such other provisions as are necessary for the purposes of the right to manage;to amend the rules for collective enfranchisement under the Leasehold Reform, Housing and Urban Development Act 1993 ("the 1993 Act");to require that a body corporate (a company limited by guarantee with a prescribed constitution) be used to own the building;to simplify the eligibility criteria, e.g. abolishing the residence test and the requirement for at least two thirds of the leaseholders to participate;to amend the procedures for exercising the right;to give every qualifying leaseholder the right to join the company and thus participate in the enfranchisement;to clarify and simplify details of the valuation arrangements;to make consequential changes to the rules for the right to a new lease of a flat under the 1993 Act reflecting the changes to the rules for collective enfranchisement;to make consequential changes to the rules for the right of leaseholders of houses to buy the freehold or extend their lease under the Leasehold Reform Act 1967 ("the 1967 Act") reflecting the changes to the rules for flats;to give leaseholders who have extended their leases under the 1967 Act, the right to buy their freehold and to security of tenure at the end of the lease; and to change the procedures for buying the freehold of houses where the landlord cannot be found in line with the law in relation to flats;to strengthen the protection of leaseholders against the demanding of unfair charges;to extend the definition of service charge to include the cost of improvements;to simplify and strengthen the existing consultation requirements relating to service charges;to simplify and strengthen the existing requirements covering accounting for and safeguarding service charge monies;to introduce the right to challenge the reasonableness of one-off charges not recovered as service charges (‘administration charges’);to give leasehold valuation tribunals (“LVTs”) jurisdiction to hear any dispute over liability to pay service charges and the reasonableness of the charge or the works or services involved;to extend the scope of the right to apply to a LVT for the appointment of a manager under Part 2 of the Landlord and Tenant Act 1987 ("the 1987 Act");to extend and clarify the grounds for applying for lease variations under Part 4 of the 1987 Act and to transfer jurisdiction to LVTs;to provide that action cannot be taken to forfeit a long lease for non-payment of ground rent unless that sum has first been demanded for the landlord; and that forfeiture action cannot be taken on any other ground unless the validity of that ground has first been established;to provide that forfeiture action cannot be taken for amounts which are less than a prescribed sum unless the amount or any part of it has been outstanding for a prescribed period; and a power to prescribe additional or different requirements to those already in existing legislation before forfeiture can be exercised in relation to breach of contract or condition in a long lease of an unmortgaged dwelling;to apply existing and new rights in respect of service charges, administration charges and protection against forfeiture to tenants of the Crown.to provide new rights for leaseholders of houses who are required by the terms of their lease to insure with an insurer nominated or approved by the landlord;to provide that charges levied by landlords under estate management schemes are to be subject to a test of reasonableness to be determined by the LVT;to consolidate and rationalise existing provisions governing the constitution and procedures of LVTs, and to amend them;to require permission for appeals against LVT determinations to the Lands Tribunal;to implement the recommendations of the Financial Management and Policy Review covering the work of the LVTs.