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PART V.
Special Provisions in Relation to Building Leases.
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Building leases and proprietary leases.
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46.—(1) In this Part of this Act the expression “building lease” means a lease in respect of which all the following conditions are complied with, that is to say:—
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(a) the land demised by such lease is situate wholly in an urban area;
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(b) there are permanent buildings on such land and the portion of such land not covered by such buildings is subsidiary and ancillary to such buildings;
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(c) such permanent buildings are not an improvement within the meaning of this Act;
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(d) such permanent buildings were erected by the person who, at the time of such erection, was entitled to the lessee's interest under such lease;
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(e) such permanent buildings were not erected in contravention of a covenant, condition, or agreement contained in such lease.
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(2) In this Part of this Act the expression “proprietary lease” means a lease complying with all the following conditions, that is to say:—
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(a) such lease is a sub-lease (whether mediate or immediate) under a building lease; and
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(b) the land demised by such lease is the whole or part of land comprised in such building lease; and
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(c) such lease is made for a term which equals or exceeds whichever of the following periods is the lesser, that is to say, twenty years or two-thirds of the term of such building lease, and which in any case expires at the same time as or not more than five years before the expiration of such building lease; and
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(d) such lease was made 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 such lease or partly in consideration of the expenditure of a sum of money by the lessee on the premises demised by such lease or partly in consideration of both such payment and such expenditure; and
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(e) the said sum of money so paid or expended or the total of the said sums of money so respectively paid and expended (as the case may be) was not less than fifteen times the yearly amount of the rent or the greatest rent reserved by such lease.
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