Section 118: General effect of final management orders: immediate landlords, mortgagees etc., Housing Act 2004

This section applies in relation to—

immediate landlords, and

other persons with an estate or interest in the house,

while a final management order is in force in relation to a house.

A person who is an immediate landlord of the house or a part of it—

is not entitled to receive—

any rents or other payments from persons occupying the house or part which are payable to the local housing authority by virtue of section 124(4), or

any rents or other payments from persons occupying the house or part which are payable to the authority by virtue of any leases or licences granted by them under section 107(3)(c) or 116(3)(c);

may not exercise any rights or powers with respect to the management of the house or part; and

may not create any of the following—

any leasehold interest in the house or part (other than a lease of a reversion), or

any licence or other right to occupy it.

However (subject to subsection (2)(c)) nothing in section 116 or this section affects the ability of a person having an estate or interest in the house to make any disposition of that estate or interest.

Nothing in section 116 or this section affects—

the validity of any mortgage relating to the house or any rights or remedies available to the mortgagee under such a mortgage, or

the validity of any lease of the house or part of it under which the immediate landlord is a lessee, or any superior lease, or (subject to section 116(5)) any rights or remedies available to the lessor under such a lease,

except to the extent that any of those rights or remedies would prevent the local housing authority from exercising their power under section 116(3)(c).

In proceedings for the enforcement of any such rights or remedies the court may make such order as it thinks fit as regards the operation of the final management order (including an order quashing it).

For the purposes of this Chapter, as it applies in relation to a final management order, a person is an "immediate landlord" of the house or a part of it if—

he is an owner or lessee of the house or part, and

(but for the order) he would be entitled to receive the rents or other payments from persons occupying the house or part which are payable to the authority by virtue of section 124(4).

Section 118: General effect of final management orders: immediate landlords, mortgagees etc.

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