Landlord and Tenant (Reversionary Leases) Act, 1958

Partly-built leases.

6.— Where a lease (in this Act referred to as a partly-built lease) which expires or is terminated for any reason would, at such expiration or termination, be a building lease but for either or both of the following facts, that is to say, that though there are (in either case), at such expiration or termination, permanent buildings on the land demised by such lease—

(a) the portion of that land which is not covered by such buildings is not wholly subsidiary and ancillary to such buildings, or

(b) some (but not all) of such buildings were neither erected by the person entitled at their erection to the lessee's interest under the partly-built lease nor erected in pursuance of an agreement for the grant of that lease on their erection,

the following provisions shall have effect:

(i) the partly-built lease shall, for the purposes of this Act, be deemed to be two separate leases whereof one lease (in this Act referred to as the built-on lease) comprises that portion of the land demised by the partly-built lease which is covered by permanent buildings either erected by the person entitled at their erection to the lessee's interest under the partly-built lease or erected in pursuance of an agreement for the grant of that lease on their erection, together with so much of the said land as is subsidiary and ancillary to those buildings and the other lease (in this Act referred to as the vacant lease) comprises the residue of the said land, whether there are or are not permanent buildings on that residue;

(ii) for the purposes of such division of the partly-built lease, such portion of the rent reserved by that lease as is fairly attributable to the land comprised in the built-on lease shall be deemed to be apportioned to the built-on lease and the remainder of the said rent shall be deemed to be apportioned to the vacant lease, and the covenants on the lessee's part and the conditions contained in the partly-built lease shall be deemed to be apportioned likewise so as to relate separately to the land comprised in the built-on lease and to the land comprised in the vacant lease;

(iii) the built-on lease shall be deemed to be a building lease.