Landlord and Tenant (Ground Rents) (No. 2) Act, 1978
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Determination of purchase price by arbitration. [New in pt. cf. 1967, s. 18] |
17.—(1) This section applies to the determination of the purchase price of the fee simple or any other interest by arbitration under the Act of 1967 including an arbitration conducted by the Registrar of Titles in pursuance of section 21 of this Act. | |
(2) The purchase price shall, subject to subsections (3), (4) and (6), be the sum which, in the opinion of the arbitrator, a willing purchaser would give and a willing vendor would accept for the fee simple or other interest having had regard to— | ||
(a) the rent payable for the land by the person acquiring the fee simple, | ||
(b) where the land was held by the person acquiring the fee simple under a lease which has expired or is held by him under a lease which will expire less than fifteen years after the date of the service of the notice under section 4 of the Act of 1967 or of the application under Part III of this Act, the rent which, in the opinion of the arbitrator, would be reserved by a reversionary lease under the Act of 1958 of the land granted for a term commencing on the expiration of the first-mentioned lease, | ||
(c) the current interest yields on securities of the Government issued for subscription in the State, | ||
(d) if the land is used for the purposes of business or exceeds one acre in area and is not used for the purposes of business, the area and nature of the land, its location and user and the state of repair of any buildings or structures thereon, | ||
(e) the price paid for the fee simple or any other interest in the land on a sale taking place on or after the 22nd day of May, 1964, | ||
(f) any mortgage or other charge on the interest in the land of any person from whom, mediately or immediately, the person acquiring the fee simple holds the land, | ||
(g) the costs and expenses which, in the opinion of the arbitrator, would be reasonably incurred by the persons from whom, mediately or immediately, the person acquiring the fee simple holds the land, in investing the purchase money payable in respect of the acquisition of the fee simple, | ||
(h) the costs and expenses which, in the opinion of the arbitrator, have been incurred by a person acquiring the fee simple who holds the land under a lease by reason of the failure of the lessor to maintain any amenities which he is required to maintain under a covenant in the lease, | ||
(i) the current price of the immediate lessor's interest in land held under leases or yearly tenancies similar to the lease or yearly tenancy, as the case may be, under which the land is held by the person acquiring the fee simple, and | ||
(j) such other matters as are, in the opinion of the arbitrator, relevant to the determination of the purchase price. | ||
(3) If the land— | ||
(a) is not used for the purposes of business, | ||
(b) is held by the person acquiring the fee simple under a yearly tenancy, under a statutory tenancy implied by holding over property on the expiration of a lease which reserved a yearly rent or under a lease which will not expire within fifteen years after the date of the service of the notice under section 4 of the Act of 1967 or of the application under Part III of this Act, and | ||
(c) does not exceed one acre in area, | ||
then, subject to the subsequent provisions of this section, the purchase price shall not exceed the amount which, if invested on the date of the award in the security of the Government which was issued last before that date for subscription in the State and is redeemable not less than fifteen years after the date of issue, would produce annually in gross interest an amount equal to the amount of the rent payable under the lease or yearly tenancy, as the case may be, during the year immediately preceding the date of the service of the said notice or application. | ||
(4) Where the cost of extinguishing a rent or charge out of or on land the fee simple in which is being acquired under this Act or the Act of 1967 is fixed by statute, allowance shall be made for such cost in determining the purchase price of the fee simple under this section. | ||
(5) Subsection (3) shall not apply in the case of a lease which provides for an increased rent payable at any time within fifteen years after the date of the service of the notice under section 4 of the Act of 1967 or of the application under Part III of this Act. | ||
(6) If the land— | ||
(a) is not used for the purposes of business, | ||
(b) is held by the person acquiring the fee simple under a lease that will expire within fifteen years after the date of the service of the notice under section 4 of the Act of 1967 or of the application under Part III of this Act, and | ||
(c) does not exceed one acre in area, | ||
the purchase price shall not exceed the amount which would be determined under subsection (3) if the land were land to which that subsection applied, together with, in respect of each year by which the unexpired term of the lease falls short of fifteen years, one fifteenth of the difference between that price and the price that would be determined on the basis of a current reversionary rent. | ||
(7) The arbitrator shall, if so requested by a party to the arbitration, specify the matters (if any) to which he has had regard under subsection (2) (j). |