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Terms of reversionary lease when settled by the Court.
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18.— (1) Where the terms on which a reversionary lease is to be granted are settled by the Court the subsequent provisions of this section shall have effect.
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(2) The lease shall be for a term expiring ninety-nine years after the expiration of the lease to which it is reversionary.
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(3) (a) Subject to paragraph (c) of this subsection, the rent reserved by the lease shall not be less than the rent reserved by the lease to which it is reversionary or than the rent reserved by any superior lease the lessor under which is required to join in the grant of the reversionary lease.
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(b) Where the land to be comprised in the reversionary lease is part only of the land comprised in the lease to which it is reversionary or of the land comprised in any superior lease the lessor under which is required to join in the grant of the reversionary lease, such proportion of the rent reserved by any such lease as is fairly apportionable to the land to be comprised in the reversionary lease shall, for the purpose of paragraph (a) of this subsection, be deemed to be the rent reserved by such lease in respect of the land to be comprised in the reversionary lease.
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(c) If any new covenant or condition restricting the lessee's rights is included in the reversionary lease, the Court shall have power to fix a lower rent where it thinks proper to do so.
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(4) Subject to subsection (3) of this section, the rent to be reserved by the reversionary lease shall be one-sixth of the gross rent as defined in subsection (5) of this section.
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(5) (a) The gross rent shall be the rent which, in the opinion of the Court, a willing lessee not already in occupation would give and a willing lessor would take for the land comprised in the reversionary lease in such circumstances that the supply of similar lands is sufficient to meet the demand and the competition therefor is normal—
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(i) on the basis that vacant possession is given and that the lessee pays rates and taxes in respect of the land (other than the lessor's proportion of income tax) and is liable to insure against fire and to keep the premises in repair;
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(ii) having regard to the other terms of the reversionary lease and to the letting values of land of a similar character to and situate in the vicinity of the land comprised in the reversionary lease but without having regard to any goodwill which may exist in respect of the land comprised in the reversionary lease.
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(b) If the Court requires or the parties have agreed upon the expenditure by the applicant for a reversionary lease of a specified sum of money on repairs to the premises as a condition precedent to the execution of the lease, the gross rent shall be assessed—
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(i) if the lease in respect of which the applicant seeks a reversionary lease contains a covenant by the lessee to keep or deliver up the premises in repair, having regard to the condition in which the premises will be after the repairs have been carried out, or
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(ii) if there is no such covenant, having regard to the actual condition of the premises at the date of the application for the reversionary lease.
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(c) If the premises, or any part thereof, are controlled premises within the meaning of the Rent Restrictions Act, 1946, as amended, which are let, either in whole or in part, as dwellings, the Court, in determining the gross rent, shall have regard to the restrictions imposed by the said Acts on the rents which tenants of such premises would be liable to pay.
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(6) (a) The reversionary lease shall contain such covenants and conditions as may be agreed upon between the parties or, in default of agreement, as may be determined by the Court.
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(b) In any case where the Court fixes the covenants and conditions of the lease, the lessee shall be made liable to pay all rates and taxes in respect of the land (other than the lessor's proportion of income tax) and to insure against fire and keep the premises in repair.
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(7) (a) The Court may require an applicant for a reversionary lease to expend, within such time as the Court shall think proper, a specified sum of money on repairs or to execute specified repairs to the buildings to be comprised in the lease and may authorise the postponement of the execution of the lease until the requirement has been complied with, and the Court shall also have power to extend the time on being satisfied that there is reasonable cause for granting such extension.
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(b) If the applicant neglects or refuses to comply with the requirement of the Court within the specified or extended time, the Court shall have power to declare him to have forfeited his right to a reversionary lease and to discharge any order granting it to him.
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