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Extension of section 2.
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3.—(1) Section 2 shall extend to a lease which would be a lease to which section 4 of the Act of 1958 applies if, in substitution for paragraph (d) of subsection (2) of that section, the following paragraph were substituted:
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“(d) that the lease, being a lease for a term of not less than fifty years, was made—
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(i) partly in consideration of the payment of a sum of money (other than rent) by the lessee to the lessor at or immediately before the grant of the lease and for this purpose any money paid in redemption of any part of the rent reserved by the lease (whether the money was paid in pursuance of a covenant in the lease or in pursuance of an agreement made between the lessee and the lessor during the currency of the lease) shall be deemed to be part of the consideration, or
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(ii) partly in consideration of the expenditure (otherwise than on decoration) of a sum of money by the lessee on the premises demised by the lease, or
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(iii) partly in consideration of both that payment and that expenditure and that the sum so paid or expended or the total of those sums was not less than fifteen times the yearly amount of the rent or the greatest rent reserved by the lease, whichever is the less.”
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(2) In determining, for the purposes of subsection (1) the greatest rent reserved by a lease the following provisions shall have effect:
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(a) where during the currency of a lease part of the rent is redeemed by a capital payment, the reduced rent shall be deemed to be the greatest rent reserved by the lease;
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(b) a penal rent payable for any breach of covenant and any exceptional rent reserved for a specified period not exceeding five years shall be disregarded.
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