Part 2 of Schedule 6 ensures that landlords will not be prevented from letting their residential dwellings where they were able to do so prior to commencement of Chapter 1 of Part 1 of the Act and that the terms of pre-commencement superior leases, mortgages, insurance contracts and section 106 planning obligations will not be breached by letting on a relevant assured tenancy.
	It will ensure that mortgage borrowers will not be in breach of their mortgage terms if they let their property on a relevant assured tenancy where they were able to let on other types of assured tenancy prior to commencement of Chapter 1 of Part 1 of the Act.
	It will ensure that landlords, who have purchased an insurance policy prior to commencement of Chapter 1 of Part 1 of the Act that requires the use of any other type of assured tenancy agreement other than a relevant assured tenancy, will not be deemed to have breached their policy terms if they let using a relevant assured tenancy.
	It will ensure that where existing section 106 planning obligations require the letting of residential premises on a type of assured tenancy abolished by Chapter 1 of Part 1 of the Act, developers/landowners will not be found in breach of their obligations if they let on a relevant assured tenancy. Additionally, it will ensure that the CIL regulation 122(2) requirement will continue to be met by a section 106 planning obligation after Chapter 1 of Part 1 of the Act comes into force regardless of the effect of Part 2 of Schedule 6.
	It will also ensure that where a landlord has an existing sub-lease that becomes a relevant assured tenancy by virtue of Part 2 of Schedule 2, they will not be found in breach of their own lease if they do not return the property to their landlord free of the relevant assured tenancy.
	Finally, the Secretary of State has power to make regulations disapplying or modifying the effect of Part 2 of Schedule 6 to account for the varied nature and wording of the instruments to which it applies, for example, if there are unforeseen consequences of its effects on such instruments.
Schedules Schedule 6: Part 2 – Existing instruments which permit or require letting etc Background