A person is a reserve successor of the contract-holder if he or she is not a priority successor of the contract-holder and—
he or she meets the family member condition,
he or she occupied the dwelling as his or her only or principal home at the time of the contract-holder's death, and
if he or she meets the family member condition because of section 250(1)(c) (family members other than spouses, civil partners etc.), he or she also meets the basic residence condition.
A person meets the family member condition if he or she is a member of the contract-holder's family.
A person meets the basic residence condition if throughout the period of 12 months ending with the contract-holder's death—
he or she occupied the dwelling, or
he or she lived with the contract-holder.
If the contract-holder was a priority successor in relation to the occupation contract, the references in subsections (2) and (3)(b) to the contract-holder include the person the contract-holder succeeded.