Section 138 — Housing and Planning Act 2016: Procedure for redeeming English rentcharges

Procedure for redeeming English rentcharges 138 1 The Rentcharges Act 1977 is amended in accordance with subsections (2) to (5).

2 Before section 8 (but after the italic heading before section 8) insert— Power to make procedure for redeeming English rentcharges 7A 1 The Secretary of State may by regulations make provision allowing the owner of land in England affected by a rentcharge to redeem it.

2 Regulations under subsection (1) may not make provision in relation to—

a a rentcharge that could be redeemed by making an application under section 8(1A),

b a rentcharge of a kind mentioned in section 2(3) or section 3(3)(a),

c a rentcharge in respect of which the period for which it is payable cannot be ascertained, or d a variable rentcharge.

3 For the purposes of subsection (2)(d) a rentcharge is variable if the amount of the rentcharge will, or may, vary in the future in accordance with the provisions of the instrument under which it is payable.

4 Regulations under subsection (1) may, in particular—

a provide for the owner of land affected by a rentcharge to be able to redeem a rentcharge by taking specified steps, including making payments determined in accordance with the regulations;

b require a rent owner or other person to take specified steps to facilitate the redemption of a rentcharge, such as providing information or executing a deed of release;

c where the documents of title of the owner of land affected by a rentcharge are in the custody of a mortgagee, require the mortgagee to make those documents or copies of those documents available in accordance with the regulations;

d permit or require a person specified in the regulations to design the form of any document to be used in connection with the redemption of rentcharges under the regulations;

e provide for a court or tribunal to—

i determine disputes about or in relation to the redemption of a rentcharge;

ii make orders about the redemption of a rentcharge; iii issue a redemption certificate;

f make provision corresponding to any of the provisions of section 10(2) to (4).

5 Nothing in this section prevents the redemption of a rentcharge otherwise than in accordance with regulations under subsection (1).

3 In section 8—

a in subsection (1)—

i after “land” insert “ in Wales ” ;

ii for the words from “a certificate” to the end substitute “ a redemption certificate ” ;

b after subsection (1) insert— 1A The owner of any land in England affected by a rentcharge which has been apportioned to that land by an apportionment order with a condition under—

a section 7(2) above, or b section 20(1) of the Landlord and Tenant Act 1927, may apply to the Secretary of State, in accordance with this section, for a redemption certificate.

4 In section 12—

a in subsection (1), after “this Act” insert “ , apart from regulations under section 7A, ” ;

b after subsection (1) insert— 1A Regulations under section 7A are to be made by statutory instrument. 1B A statutory instrument containing regulations under section 7A may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

5 In section 13(1), in the definition of “redemption certificate”, for the words from “has” to the end substitute “ means a certificate certifying that a rentcharge has been redeemed ” .

6 The Leasehold Reform Act 1967 is amended in accordance with subsections (7) and (8).

7 In section 8(4)(b), for “8” substitute “ 7A ” .

8 In section 11—

a in subsection (6), after “1977” insert “ or the amount that would have to be paid to secure the redemption of that rentcharge in accordance with regulations made under section 7A of that Act ” ;

b in subsection (7)(a), after “specified” insert “ or required ” ;

c in subsection (8), for “8” substitute “ 7A ” .