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Part II Security of Tenure for Business, Professional and other Tenants

Annotations:

Modifications etc. (not altering text)

C1Pt. II amended by Opencast Coal Act 1958 (c. 69), s. 37, Sch. 7 paras. 10, 20; excluded by Leasehold Reform Act 1967 (c. 88), s. 16(1)(c)(d) and Rent Act 1977 (c. 42), s. 24(2), Sch. 1 paras. 8, 9

C2Pt. II (ss. 23–46) excluded (prosp.) by Transport Act 1982 (c. 49, SIF 107:1), ss. 14(1), 76(2)

C3Pt. II (ss. 23–46) excluded by Dockyard Services Act 1986 (c. 52, SIF 58), s. 3(2)

C4Pt. II (ss. 23–46) excluded by Housing Act 1988 (c. 50, SIF 61), s. 101(2)

C5Pt. II (ss. 23–46) restricted by City of London (Spitalfields Market) Act 1990 (c. ix), s. 5(4)

C6Pt. II (ss. 23-46) excluded by Atomic Weapons Establishment Act 1991 (c. 46, SIF 8), ss. 3(1), 6(2), Sch. para. 3

Pt. II (ss. 23-46) excluded (1.11.1993) by 1993 c. 28, s. 59(2)(b)(ii); S.I. 1993/2134, art. 5

Pt. II (ss. 23-46) excluded: (1.4.1994) by 1993 c. 43, s. 31(1) and S.I. 1994/571, art. 5; (3.11.1994) by 1994 c. 33, s. 7(3)(a); (3.11.1994) by 1991 c. 53, s. 84 (as substituted (3.11.1994) by 1994 c. 33, s. 96); (1.10.1996) by 1996 c. 46, s. 30(7)(11) and S.I. 1996/2474, art. 2

Pt. II (ss. 23-46) excluded (1.8.2000) by 1999 c. 33, s. 149(3)(a); S.I. 2000/1985, art. 2, Sch.

Tenancies to which Part II applies

23 Tenancies to which Part II applies

(1)Subject to the provisions of this Act, this Part of this Act applies to any tenancy where the property comprised in the tenancy is or includes premises which are occupied by the tenant and are so occupied for the purposes of a business carried on by him or for those and other purposes.

(2)In this Part of this Act the expression “business” includes a trade, profession or employment and includes any activity carried on by a body of persons, whether corporate or unincorporate.

(3)In the following provisions of this Part of this Act the expression “the holding”, in relation to a tenancy to which this Part of this Act applies, means the property comprised in the tenancy, there being excluded any part thereof which is occupied neither by the tenant nor by a person employed by the tenant and so employed for the purposes of a business by reason of which the tenancy is one to which this Part of this Act applies.

(4)Where the tenant is carrying on a business, in all or any part of the property comprised in a tenancy, in breach of a prohibition (however expressed) of use for business purposes which subsists under the terms of the tenancy and extends to the whole of that property, this Part of this Act shall not apply to the tenancy unless the immediate landlord or his predecessor in title has consented to the breach or the immediate landlord has acquiesced therein.

In this subsection the reference to a prohibition of use for business purposes does not include a prohibition of use for the purposes of a specified business, or of use for purposes of any but a specified business, but save as aforesaid includes a prohibition of use for the purposes of some one or more only of the classes of business specified in the definition of that expression in subsection (2) of this section.

Continuation and renewal of tenancies

[F124Continuation of tenancies to which Part II applies and grant of new tenancies

(1)A tenancy to which this Part of this Act applies shall not come to an end unless terminated in accordance with the provisions of this Part of this Act; and, subject to the provisions of section 29 of this Act, the tenant under such a tenancy may apply to the court for a new tenancy—

(a)if the landlord has given notice under section 25 of this Act to terminate the tenancy, or

(b)if the tenant has made a request for a new tenancy in accordance with section 26 of this Act.

(2)The last foregoing subsection shall not prevent the coming to an end of a tenancy by notice to quit given by the tenant, by surrender or forfeiture, or by the forfeiture of a superior tenancy, unless—

(a)in the case of a notice to quit, the notice was given before the tenant had been in occupation in right of the tenancy for one month; or

(b)in the case of an instrument of surrender, the instrument was executed before, or was executed in pursuance of an agreement made before, the tenant had been in occupation in right of the tenancy for one month.

(3)Notwithstanding anything in subsection (1) of this section,—

(a)where a tenancy to which this Part of this Act applies ceases to be such a tenancy, it shall not come to an end by reason only of the cesser, but if it was granted for a term of years certain and has been continued by subsection (1) of this section then (without prejudice to the termination thereof in accordance with any terms of the tenancy) it may be terminated by not less than three nor more than six months’ notice in writing given by the landlord to the tenant;

(b)where, at a time when a tenancy is not one to which this Part of this Act applies, the landlord gives notice to quit, the operation of the notice shall not be affected by reason that the tenancy becomes one to which this Part of this Act applies after the giving of the notice.]

Annotations:

Amendments (Textual)

F1S. 24 substituted by virtue of Law of Property Act 1969 (c. 59), s. 15, Sch. 1

Modifications etc. (not altering text)

C1S. 24 restricted by Leasehold Reform Act 1967 (c. 88), s. 35(2)

C2S. 24(1) amended by Opencast Coal Act 1958 (c. 69), s. 37, Sch. 7 para. 22

C3S. 24(3)(b) excluded by Landlord and Tenant (Licensed Premises) Act 1990 (c. 39, SIF 75:1), s. 1(2)

[F124A Rent while tenancy continues by virtue of s. 24

(1)The landlord of a tenancy to which this Part of this Act applies may,—

(a)if he has given notice under section 25 of this Act to terminate the tenancy; or

(b)if the tenant has made a request for a new tenancy in accordance with section 26 of this Act;

apply to the court to determine a rent which it would be reasonable for the tenant to pay while the tenancy continues by virtue of section 24 of this Act, and the court may determine a rent accordingly.

(2)A rent determined in proceedings under this section shall be deemed to be the rent payable under the tenancy from the date on which the proceedings were commenced or the date specified in the landlord’s notice or the tenant’s request, whichever is the later.

(3)In determining a rent under this section the court shall have regard to the rent payable under the terms of the tenancy, but otherwise subsections (1) and (2) of section 34 of this Act shall apply to the determination as they would apply to the determination of a rent under that section if a new tenancy from year to year of the whole of the property comprised in the tenancy were granted to the tenant by order of the court.]

Annotations:

Amendments (Textual)

F1S. 24A inserted by Law of Property Act 1969 (c. 59), s. 3(1)

25Termination of tenancy by the landlord

(1)The landlord may terminate a tenancy to which this Part of this Act applies by a notice given to the tenant in the prescribed form specifying the date at which the tenancy is to come to an end (hereinafter referred to as “the date of termination”):

Provided that this subsection has effect subject to the provisions of Part IV of this Act as to the interim continuation of tenancies pending the disposal of applications to the court.

(2)Subject to the provisions of the next following subsection, a notice under this section shall not have effect unless it is given not more than twelve nor less than six months before the date of the termination specified therein.

(3)In the case of a tenancy which apart from this Act could have been brought to an end by notice to quit given by the landlord—

(a)the date of termination specified in a notice under this section shall not be earlier than the earliest date on which apart from this Part of this Act the tenancy could have been brought to an end by notice to quit given by the landlord on the date of the giving of the notice under this section; and

(b)where apart from this Part of this Act more than six months’ notice to quit would have been required to bring the tenancy to an end, the last foregoing subsection shall have effect with the substitution for twelve months of a period six months longer than the length of notice to quit which would have been required as aforesaid.

(4)In the case of any other tenancy, a notice under this section shall not specify a date of termination earlier than the date on which apart from this Part of this Act the tenancy would have come to an end by effuxion of time.

(5)A notice under this section shall not have effect unless it requires the tenant, within two months after the giving of the notice, to notify the landlord in writing whether or not, at the date of termination, the tenant will be willing to give up possession of the property comprised in the tenancy.

(6)A notice under this section shall not have effect unless it states whether the landlord would oppose an application to the court under this Part of this Act for the grant of a new tenancy and, if so, also states on which of the grounds mentioned in section thirty of this Act he would do so.

Annotations:

Modifications etc. (not altering text)

C1S. 25 restricted by Leasehold Reform Act 1967 (c. 88), s. 35(2); excluded by Leasehold Reform Act 1967 (c. 88), ss. 22(1), 34, Sch. 3 para. 2(2)

26 Tenant’s request for a new tenancy

(1)A tenant’s request for a new tenancy may be made where the tenancy under which he holds for the time being (hereinafter referred to as “the current tenancy”) is a tenancy granted for a term of years certain exceeding one year, whether or not continued by section twenty-four of this Act, or granted for a term of years certain and thereafter from year to year.

(2)A tenant’s request for a new tenancy shall be for a tenancy beginning with such date, not more than twelve nor less than six months after the making of the request, as may be specified therein:

Provided that the said date shall not be earlier than the date on which apart from this Act the current tenancy would come to an end by effluxion of time or could be brought to an end by notice to quit given by the tenant.

(3)A tenant’s request for a new tenancy shall not have effect unless it is made by notice in the prescribed form given to the landlord and sets out the tenant’s proposals as to the property to be comprised in the new tenancy (being either the whole or part of the property comprised in the current tenancy), as to the rent to be payable under the new tenancy and as to the other terms of the new tenancy.

(4)A tenant’s request for a new tenancy shall not be made if the landlord has already given notice under the last foregoing section to terminate the current tenancy, or if the tenant has already given notice to quit or notice under the next following section; and no such notice shall be given by the landlord or the tenant after the making by the tenant of a request for a new tenancy.

(5)Where the tenant makes a request for a new tenancy in accordance with the foregoing provisions of this section, the current tenancy shall, subject to the provisions of subsection (2) of section thirty-six of this Act and the provisions of Part IV of this Act as to the interim continuation of tenancies, terminate immediately before the date specified in the request for the beginning of the new tenancy.

(6)Within two months of the making of a tenant’s request for a new tenancy the landlord may give notice to the tenant that he will oppose an application to the court for the grant of a new tenancy, and any such notice shall state on which of the grounds mentioned in section thirty of this Act the landlord will oppose the application.

Annotations:

Modifications etc. (not altering text)

C1S. 26 excluded by Leasehold Reform Act 1967 (c. 88), ss. 17, 18, Sch. 2 para. 6(1)

S. 26 restricted (1.11.1993) by 1993 c. 28, s. 61, Sch. 14, para. 6(1); S.I. 1993/2134, art. 5

[F127 Termination by tenant of tenancy for fixed term

(1)Where the tenant under a tenancy to which this Part of this Act applies, being a tenancy granted for a term of years certain, gives to the immediate landlord, not later than three months before the date on which apart from this Act the tenancy would come to an end by effluxion of time, a notice in writing that the tenant does not desire the tenancy to be continued, section 24 of this Act shall not have effect in relation to the tenancy, unless the notice is given before the tenant has been in occupation in right of the tenancy for one month.

(2)A tenancy granted for a term of years certain which is continuing by virtue of section 24 of this Act may be brought to an end on any quarter day by not less than three months’ notice in writing given by the tenant to the immediate landlord, whether the notice is given after the date on which apart from this Act the tenancy would have come to an end or before that date, but not before the tenant has been in occupation in right of the tenancy for one month.]

Annotations:

Amendments (Textual)

F1S. 27 substituted by virtue of Law of Property Act 1969 (c. 59), s. 15, Sch. 1

Modifications etc. (not altering text)

C1S. 27(1) extended by Leasehold Reform Act 1967 (c. 88), ss. 22(1), 34, Sch. 3 para. 1(3)

28 Renewal of tenancies by agreement

Where the landlord and tenant agree for the grant to the tenant of a future tenancy of the holding, or of the holding with other land, on terms and from a date specified in the agreement, the current tenancy shall continue until that date but no longer, and shall not be a tenancy to which this Part of this Act applies.

Application to court for new tenancies

29 Order by court for grant of a new tenancy

(1)Subject to the provisions of this Act, on an application under subsection (1) of section twenty-four of this Act for a new tenancy the court shall make an order for the grant of a tenancy comprising such property, at such rent and on such other terms, as are hereinafter provided.

(2)Where such an application is made in consequence of a notice given by the landlord under section twenty-five of this Act, it shall not be entertained unless the tenant has duly notified the landlord that he will not be willing at the date of termination to give up possession of the property comprised in the tenancy.

(3)No application under subsection (1) of section twenty-four of this Act shall be entertained unless it is made not less than two nor more than four months after the giving of the landlord’s notice under section twenty-five of this Act or, as the case may be, after the making of the tenant’s request for a new tenancy.

Annotations:

Modifications etc. (not altering text)

C1S. 29 amended by Opencast Coal Act 1958 (c. 69), s. 37, Sch. 7 para. 23(2)

[F130 Opposition by landlord to application for new tenancy

(1)The grounds on which a landlord may oppose an application under subsection (1) of section 24 of this Act are such of the following grounds as may be stated in the landlord’s notice under section 25 of this Act or, as the case may be, under subsection (6) of section 26 thereof, that is to say:—

(a)where under the current tenancy the tenant has any obligations as respects the repair and maintenance of the holding, that the tenant ought not to be granted a new tenancy in view of the state of repair of the holding, being a state resulting from the tenant’s failure to comply with the said obligations;

(b)that the tenant ought not to be granted a new tenancy in view of his persistent delay in paying rent which has become due;

(c)that the tenant ought not to be granted a new tenancy in view of other substantial breaches by him of his obligations under the current tenancy, or for any other reason connected with the tenant’s use or management of the holding;

(d)that the landlord has offered and is willing to provide or secure the provision of alternative accommodation for the tenant, that the terms on which the alternative accommodation is available are reasonable having regard to the terms of the current tenancy and to all other relevant circumstances, and that the accommodation and the time at which it will be available are suitable for the tenant’s requirements (including the requirement to preserve goodwill) having regard to the nature and class of his business and to the situation and extent of, and facilities afforded by, the holding;

(e)where the current tenancy was created by the sub-letting of part only of the property comprised in a superior tenancy and the landlord is the owner of an interest in reversion expectant on the termination of that superior tenancy, that the aggregate of the rents reasonably obtainable on separate lettings of the holding and the remainder of that property would be substantially less than the rent reasonably obtainable on a letting of that property as a whole, that on the termination of the current tenancy the landlord requires possession of the holding for the purpose of letting or otherwise disposing of the said property as a whole, and that in view thereof the tenant ought not to be granted a new tenancy;

(f)that on the termination of the current tenancy the landlord intends to demolish or reconstruct the premises comprised in the holding or a substantial part of those premises or to carry out substantial work of construction on the holding or part thereof and that he could not reasonably do so without obtaining possession of the holding;

(g)subject as hereinafter provided, that on the termination of the current tenancy the landlord intends to occupy the holding for the purposes, or partly for the purposes, of a business to be carried on by him therein, or as his residence.

(2)The landlord shall not be entitled to oppose an application on the ground specified in paragraph (g) of the last foregoing subsection if the interest of the landlord, or an interest which has merged in that interest and but for the merger would be the interest of the landlord, was purchased or created after the beginning of the period of five years which ends with the termination of the current tenancy, and at all times since the purchase or creation thereof the holding has been comprised in a tenancy or successive tenancies of the description specified in subsection (1) of section 23 of this Act.

(3)Where the landlord has a controlling interest in a company any business to be carried on by the company shall be treated for the purposes of subsection (1)(g) of this section as a business to be carried on by him.

For the purposes of this subsection, a person has a controlling interest in a company if and only if either—

(a)he is a member of it and able, without the consent of any other person, to appoint or remove the holders of at least a majority of the directorships; or

(b)he holds more than one-half of its equity share capital, there being disregarded any shares held by him in a fiduciary capacity or as nominee for another person;

and in this subsection “company” and “share” have the meanings assigned to them by section 455(1) of the M1Companies Act 1948 and “equity share capital” the meaning assigned to it by section 154(5) of that Act.]

Annotations:

Amendments (Textual)

F1S. 30 substituted by virtue of Law of Property Act 1969 (c. 59), s. 15, Sch. 1

Modifications etc. (not altering text)

C1S. 30(2) excluded by: 1993 c. xviii, s. 13(a); 1994 c. xiv, s. 9(1); 1996 c. ii, s. 11(1)

S. 30(2) excluded by 1994 c. v, s. 1, Sch., s. 24(1)(a)

S. 30(2) excluded by 1998 c. v, ss. 3, 13(1)(a).

S. 30(2) excluded by 1999 c. iv, s. 13(1)(a)

S. 30(2) excluded by 2000 c. iii, ss. 14(a), 16

S. 30(2) excluded by 2001 c. i, s. 11(a) (with s. 13)

S. 30(2) excluded by 2001 c. v, s. 15(1)(a)

C2S. 30(2) excluded (coming into force in accordance with s. 4 of the amending Act) by Barclays Group Reorganisation Act 2002 (c. iv), s.14(1)(a)

C3S. 30(2) excluded (coming into force in accordance with s. 4 of the amending Act) by HSBC Investment Banking Act 2002 (c. iii), s.14(1)(a)

Marginal Citations

M11948 c. 38.

31 Dismissal of application for new tenancy where landlord successfully opposes

(1)If the landlord opposes an application under subsection (1) of section twenty-four of this Act on grounds on which he is entitled to oppose it in accordance with the last foregoing section and establishes any of those grounds to the satisfaction of the court, the court shall not make an order for the grant of a new tenancy.

(2)Where in a case not falling within the last foregoing subsection the landlord opposes an application under the said subsection (1) on one or more of the grounds specified in paragraphs (d), (e) and (f) of subsection (1) of the last foregoing section but establishes none of those grounds to the satisfaction of the court, then if the court would have been satisfied of any of those grounds if the date of termination specified in the landlord’s notice or, as the case may be, the date specified in the tenant’s request for a new tenancy as the date from which the new tenancy is to begin, had been such later date as the court may determine, being a date not more than one year later than the date so specified,—

(a)the court shall make a declaration to that effect, stating of which of the said grounds the court would have been satisfied as aforesaid and specifying the date determined by the court as aforesaid, but shall not make an order for the grant of a new tenancy;

(b)if, within fourteen days after the making of the declaration, the tenant so requires the court shall make an order substituting the said date for the date specified in the said landlord’s notice or tenant’s request, and thereupon that notice or request shall have effect accordingly.

[F131A Grant of new tenancy in some cases where s. 30(1)(f) applies

(1)Where the landlord opposes an application under section 24(1) of this Act on the ground specified in paragraph (f) of section 30(1) of this Act the court shall not hold that the landlord could not reasonably carry out the demolition, reconstruction or work of construction intended without obtaining possession of the holding if—

(a)the tenant agrees to the inclusion in the terms of the new tenancy of terms giving the landlord access and other facilities for carrying out the work intended and, given that access and those facilities, the landlord could reasonably carry out the work without obtaining possession of the holding and without interfering to a substantial extent or for a substantial time with the use of the holding for the purposes of the business carried on by the tenant; or

(b)the tenant is willing to accept a tenancy of an economically separable part of the holding and either paragraph (a) of this section is satisfied with respect to that part or possession of the remainder of the holding would be reasonably sufficient to enable the landlord to carry out the intended work.

(2)For the purposes of subsection (1)(b) of this section a part of a holding shall be deemed to be an economically separate part if, and only if, the aggregate of the rents which, after the completion of the intended work, would be reasonably obtainable on separate lettings of that part and the remainder of the premises affected by or resulting from the work would not be substantially less than the rent which would then be reasonably obtainable on a letting of those premises as a whole.]

Annotations:

Amendments (Textual)

F1S. 31A inserted by Law of Property Act 1969 (c. 59), s. 7(1)

[F132 Property to be comprised in new tenancy

(1)Subject to the following provisions of this section, an order under section 29 of this Act for the grant of a new tenancy shall be an order for the grant of a new tenancy of the holding; and in the absence of agreement between the landlord and the tenant as to the property which constitutes the holding the court shall in the order designate that property by reference to the circumstances existing at the date of the order.

(1A)Where the court, by virtue of paragraph (b) of section 31A(1) of this Act, makes an order under section 29 of this Act for the grant of a new tenancy in a case where the tenant is willing to accept a tenancy of part of the holding, the order shall be an order for the grant of a new tenancy of that part only.

(2)The foregoing provisions of this section shall not apply in a case where the property comprised in the current tenancy includes other property besides the holding and the landlord requires any new tenancy ordered to be granted under section 29 of this Act to be a tenancy of the whole of the property comprised in the current tenancy; but in any such case—

(a)any order under the said section 29 for the grant of a new tenancy shall be an order for the grant of a new tenancy of the whole of the property comprised in the current tenancy, and

(b)references in the following provisions of this Part of this Act to the holding shall be construed as references to the whole of that property.

(3)Where the current tenancy includes rights enjoyed by the tenant in connection with the holding, those rights shall be included in a tenancy ordered to be granted under section 29 of this Act, except as otherwise agreed between the landlord and the tenant or, in default of such agreement, determined by the court.]

Annotations:

Amendments (Textual)

F1S. 32 substituted by virtue of Law of Property Act 1969 (c. 59), s. 15, Sch. 1

33 Duration of new tenancy

Where on an application under this Part of this Act the court makes an order for the grant of a new tenancy, the new tenancy shall be such tenancy as may be agreed between the landlord and the tenant, or, in default of such an agreement, shall be such a tenancy as may be determined by the court to be reasonable in all the circumstances, being, if it is a tenancy for a term of years certain, a tenancy for a term not exceeding fourteen years, and shall begin on the coming to an end of the current tenancy.

[F134 Rent under new tenancy

(1)The rent payable under a tenancy granted by order of the court under this Part of this Act shall be such as may be agreed between the landlord and the tenant or as, in default of such agreement, may be determined by the court to be that at which, having regard to the terms of the tenancy (other than those relating to rent), the holding might reasonably be expected to be let in the open market by a willing lessor, there being disregarded—

(a)any effect on rent of the fact that the tenant has or his predecessors in title have been in occupation of the holding,

(b)any goodwill attached to the holding by reason of the carrying on thereat of the business of the tenant (whether by him or by a predecessor of his in that business),

(c)any effect on rent of an improvement to which this paragraph applies,

(d)in the case of a holding comprising licensed premises, any addition to its value attributable to the licence, if it appears to the court that having regard to the terms of the current tenancy and any other relevant circumstances the benefit of the licence belongs to the tenant.

(2)Paragraph (c) of the foregoing subsection applies to any improvement carried out by a person who at the time it was carried out was the tenant, but only if it was carried out otherwise than in pursuance of an obligation to his immediate landlord and either it was carried out during the current tenancy or the following conditions are satisfied, that is to say,—

(a)that it was completed not more than twenty-one years before the application for the new tenancy was made; and

(b)that the holding or any part of it affected by the improvement has at all times since the completion of the improvement been comprised in tenancies of the description specified in section 23(1) of this Act; and

(c)that at the termination of each of those tenancies the tenant did not quit.

(3)Where the rent is determined by the court the court may, if it thinks fit, further determine that the terms of the tenancy shall include such provision for varying the rent as may be specified in the determination.]

[F2(4)It is hereby declared that the matters which are to be taken into account by the court in determining the rent include any effect on rent of the operation of the provisions of the Landlord and Tenant (Covenants) Act 1995.]

Annotations:

Amendments (Textual)

F1S. 34 substituted by virtue of Law of Property Act 1969 (c. 59), s. 15, Sch. 1

F2S. 34(4) inserted (1.1.1996) by 1995 c. 30, s. 30(1), Sch. 1 para. 3 (with ss. 2(2), 26(1)(2)); S.I. 1995/2963, art. 2

F135Other terms of new tenancy

[(1)] The terms of a tenancy granted by order of the court under this Part of this Act (other than terms as to the duration thereof and as to the rent payable thereunder) shall be such as may be agreed between the landlord and the tenant or as, in default of such agreement, may be determined by the court; and in determining those terms the court shall have regard to the terms of the current tenancy and to all relevant circumstances.

[F2(2)In subsection (1) of this section the reference to all relevant circumstances includes (without prejudice to the generality of that reference) a reference F1 to the operation of the provisions of the Landlord and Tenant (Covenants) Act 1995.]

Annotations:

Amendments (Textual)

F1S. 35 renumbered (as s. 35(1)) (1.6.1996) by virtue of 1995 c. 30, s. 30(1), Sch. 1 para. 4(1) (with ss. 2(2), 26(1)(2)); S.I. 1995/2963, art. 2

F2S. 35(2) inserted (1.6.1996) by 1995 c. 30, s. 30(1), Sch. 1 para. 4(2) (with ss. 2(2), 26(1)(2)); S.I. 1995/2963, art. 2

Modifications etc. (not altering text)

C1S. 35 amended by Opencast Coal Act 1958 (c. 69), s. 37, Sch. 7 para. 22(3)

36 Carrying out of order for new tenancy

(1)Where under this Part of this Act the court makes an order for the grant of a new tenancy, then, unless the order is revoked under the next following subsection or the landlord and the tenant agree not to act upon the order, the landlord shall be bound to execute or make in favour of the tenant, and the tenant shall be bound to accept, a lease or agreement for a tenancy of the holding embodying the terms agreed between the landlord and the tenant or determined by the court in accordance with the foregoing provisions of this Part of this Act; and where the landlord executes or makes such a lease or agreement the tenant shall be bound, if so required by the landlord, to execute a counterpart or duplicate thereof.

(2)If the tenant, within fourteen days after the making of an order under this Part of this Act for the grant of a new tenancy, applies to the court for the revocation of the order the court shall revoke the order; and where the order is so revoked, then, if it is so agreed between the landlord and the tenant or determined by the court, the current tenancy shall continue, beyond the date at which it would have come to an end apart from this subsection, for such period as may be so agreed or determined to be necessary to afford to the landlord a reasonable opportunity for reletting or otherwise disposing of the premises which would have been comprised in the new tenancy; and while the current tenancy continues by virtue of this subsection it shall not be a tenancy to which this Part of this Act applies.

(3)Where an order is revoked under the last foregoing subsection any provision thereof as to payment of costs shall not cease to have effect by reason only of the revocation; but the court may, if it thinks fit, revoke or vary any such provision or, where no costs have been awarded in the proceedings for the revoked order, award such costs.

(4)A lease executed or agreement made under this section, in a case where the interest of the lessor is subject to a mortgage, shall be deemed to be one authorised by section ninety-nine of the M1Law of Property Act 1925 (which confers certain powers of leasing on mortgagors in possession), and subsection (13) of that section (which allows those powers to be restricted or excluded by agreement) shall not have effect in relation to such a lease or agreement.

Annotations:

Marginal Citations

M11925 c. 20.