[37A Compensation for postponement of termination in connection with ineffective claims]
Leasehold Reform, Housing and Urban Development Act 1993 (1993 c 28) | Legislation

[Landlord's right to compensation in relation to ineffective claims]

[37A  Compensation for postponement of termination in connection with ineffective claims]

[(1)     This section applies where a claim to exercise the right to collective enfranchisement in respect of any premises is made on or after 15th January 1999 by tenants of flats contained in the premises [a RTE company] and the claim is not effective.

(2)     A person who is a participating tenant [qualifying tenant who is a participating member of the RTE company] immediately before the claim ceases to have effect shall be liable to pay compensation if—

(a)     the claim was not made at least two years before the term date of the lease by virtue of which he is a qualifying tenant (“the existing lease”), and

(b)     any of the conditions mentioned in subsection (3) is met.

(3)     The conditions referred to above are—

(a)     that the making of the claim caused a notice served under paragraph 4(1) of Schedule 10 to the Local Government and Housing Act 1989 in respect of the existing lease to cease to have effect and the date on which the claim ceases to have effect is later than four months before the termination

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