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Determination of purchase price by arbitration.
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7.—(1) In this section, “the relevant date” in relation to any land means the date of service of the notice under section 4 of the Act of 1967 or of the application under Part III of Act (No. 2) of 1978, as the case may be.
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(2) 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 Act (No. 2) of 1978.
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(3) Subject to the provisions of this section, the purchase price shall 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 at the relevant date having had regard to—
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(a) the rent payable for the land by the person acquiring the fee simple,
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(b) where, at the relevant date, the land is held under a lease which provides for an increased rent payable within fifteen years after that date, the amount of that increase and the time when it becomes payable,
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(c) the current interest yields on securities of the Government issued for subscription in the State,
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(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,
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(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,
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(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,
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(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,
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(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,
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(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
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(j) such other matters as are, in the opinion of the arbitrator, relevant to the determination of the purchase price.
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(4) (a) Where, at the relevant date, the land is held under a lease that has expired or is held at a rent which, whether under the terms of the lease or by operation of a statute, is subject to a review which is due but has not been made, the purchase price of the fee simple shall, subject to the other provisions of this section, be a sum equal to one-eighth of the amount which, at that date, a willing purchaser would give and a willing vendor would accept for the land in fee simple free of all estates, interests and incumbrances, but having regard to any covenant which continues in force by virtue of section 28 of Act (No. 2) of 1978, and assuming that the lessee has complied with any other covenants or conditions in his lease that could affect the price.
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(b) A deduction shall be made from that amount equal to the value of the goodwill, if any, in the premises of the person acquiring the fee simple.
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(c) A deduction shall also be made from that amount equal to any addition to the value of the premises resulting from such works as would qualify for the special allowance mentioned in section 35 of the Act of 1980.
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(d) In determining the amount referred to in paragraph (a) any addition to value deriving from contemplation of substantial rebuilding or a scheme of development (such as are mentioned in section 33 (1) (b) (i) and (ii) of the Act of 1980) shall be disregarded.
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(5) If the land—
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(a) is not used for the purposes of business,
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(b) is held by the person acquiring the fee simple under a contract of yearly tenancy, or under a yearly tenancy arising by operation of law or by inference on the expiration of a lease or under a lease which will not expire within fifteen years after the relevant date, and
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(c) does not exceed one acre in area,
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then, subject to subsections (6) and (7), 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 relevant date.
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(6) Where the cost of extinguishing a rent or charge out of or on land the fee simple in which is being acquired under Act (No. 2) of 1978 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.
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(7) Subsection (5) shall not apply to a case where, whether under the lease or by virtue of the operation of a statute, an increased rent is or may become payable, or the rent is subject to review, within fifteen years after the relevant date.
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(8) If the land—
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(a) is not used for the purposes of business,
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(b) is held by the person acquiring the fee simple under a lease, and—
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(i) the lease will expire within fifteen years after the relevant date, or
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(ii) the rent is subject to review within that period, under the lease or by virtue of any statute, and
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(c) does not exceed one acre in area,
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the purchase price shall not exceed the amount which would be determined under subsection (5) if the land were land to which the subsection applied, together with, in respect of each year by which the unexpired term (reckoned from that date) of the lease falls short of fifteen years, one fifteenth of the difference between that price and the price that would be determined under subsection (4) if the lease had expired.
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(9) Subject to subsection (8), where, at the relevant date, the land is held under a lease that will expire within fifteen years after that date or where the rent is subject to review within that time, under the lease or by virtue of any statute, then—
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(a) the length of time to run from that date to the expiration of the lease or to the earliest date from which the rent as so reviewed may become payable, as the case may be, and
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(b) the provisions as to price that would apply if, as the case may be, the lease had already expired or the review of rent were already due,
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shall be among the matters to which, pursuant to subsection (3), the arbitrator shall have regard in determining the purchase price.
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(10) 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 (3) (j).
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(11) Section 17 of Act (No. 2) of 1978 is hereby repealed.
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