275.Section 162 extends and clarifies the grounds for applying for a variation of a lease under section 35 of the 1987 Act.  New subsection (2)(b) of section 35 of the 1987 Act is intended to make it clear that a lease of a flat which does not require the building as a whole to be insured under a single policy does not make satisfactory provision for insurance. New subsection (2)(g) of that section provides a power to specify further grounds by regulations. New subsection (3A) of that section makes it clear that in considering whether a lease makes satisfactory provision for the recovery of expenditure incurred, the factors include whether the lease makes provision for interest or other charges in the event of late payment.
Commentary on the Sections: Part 1 Variation of leases Section 162: Grounds for application by party to lease