New Clause 13: Renters (Reform) Bill
New Clause 13 - Sections 1 and 2: effect of superior leases
“(1) Where, immediately before the commencement date, the lessee under an existing lease of premises that consist of or include a dwelling—
(a) could sub-let the dwelling under a fixed term assured tenancy without breaching the lease, but
(b) could not sub-let the dwelling under a relevant assured tenancy without breaching the lease,
the lease has effect on and after the commencement date as if it provided that the lessee may sub-let the dwelling under a relevant assured tenancy in the same circumstances and on the same terms as the lessee could previously sub-let it under a fixed term assured tenancy, except so far as it would be inconsistent with any provision made by or under this Act for the lease to have effect in that way.
(2) Where, immediately before the commencement date, the lessee under an existing lease of premises that consist of or include a dwelling—
(a) could sub-let the dwelling under an assured shorthold tenancy without breaching the lease, but
(b) could not sub-let the dwelling under a relevant assured tenancy without breaching the lease,
the lease has effect on and after the commencement date as if it provided that the lessee may sub-let the dwelling under a relevant assured tenancy in the same circumstances and on the same terms as the lessee could previously sub-let it under an assured shorthold tenancy, except so far as it would be inconsistent with any provision made by or under this Act for the lease to have effect in that way.
(3) Where—
(a) an existing lease which is—
(i) periodic, or
(ii) a fixed term lease of a term certain not exceeding 21 years,
is modified by subsection (1) or (2),
(b) a dwelling is sub-let under the lease on a tenancy (entered into before or after the commencement date) which is (or becomes on or after that date, by virtue of this Act or otherwise) a relevant assured tenancy, and
(c) the tenancy was entered into in accordance with the terms of the lease as they stood when the tenancy was entered into (or, if it was not, the breach has been waived by the landlord),
the existing lease has effect as if it provided that a failure by the lessee at the end of the lease to return the premises to the landlord free from the relevant assured tenancy does not constitute a breach of the lease.
(4) Subsection (5) applies where, immediately before the commencement date, the lessee under an existing lease of premises that consist of or include a dwelling could sub-let the dwelling under a relevant assured tenancy without breaching the lease.
(5) On and after the commencement date, the circumstances in which and terms on which the lessee may so sub-let the dwelling remain the same as they were immediately before the commencement date, except so far as that would be inconsistent with provision made by or under this Act.
(6) Nothing in this section alters the effect of an existing lease, before the extended application date (within the meaning given by section (Application of Chapter 1 of Part 1)(3)), in relation to a sub-tenancy that is an existing tenancy (within the meaning given by section (Application of Chapter 1 of Part 1)(2)).
(7) Nothing in this section prevents an existing lease from being varied by the parties to it.
(8) The Secretary of State may by regulations disapply or modify the effect of this section in relation to existing leases of a specified description.
(9) Where the Secretary of State makes regulations under subsection (8) disapplying the effect of this section, the fact that this section has previously applied in relation to an existing lease does not prevent the exercise of the powers in section 117(4)(b) in relation to the lease.
(10) In this section—
“assured shorthold tenancy” is to be read in accordance with Part 1 of the 1988 Act as it had effect immediately before the commencement date;
“the commencement date” has the meaning given by section (Application of Chapter 1 of Part 1)(1)(a);
“dwelling” means a “dwelling-house” within the meaning of Part 1 of the 1988 Act (see section 45 of that Act) in England;
“existing lease” means a lease which is entered into before the commencement date or under a contract entered into before that date;
“relevant assured tenancy” means a periodic assured tenancy which is not an assured shorthold tenancy and in relation to which each of the rent periods is a period of—
(a) 28 days or less, or
(b) 1 month;
“sub-letting” includes sub-letting under any inferior lease.
(11) In this section references to a lease, and to the terms of a lease, include references to—
(a) the terms of any agreement relating to the lease, and
(b) any document or communication from the landlord which gives or refuses consent for sub-letting in relation to a category or description of sub-tenancy.”—(Jacob Young.)