Landlord and Tenant Act, 1931

Terms of reversionary lease.

48.—(1) Where the terms on which a reversionary lease under this Part of this Act is to be granted are settled by the Court, the following provisions shall have effect, that is to say:—

(a) the duration of such reversionary lease shall be a term of ninety-nine years from the expiration of the building lease to which it is reversionary;

(b) the rent reserved by such reversionary lease shall not in any case be less than the rent reserved by the said building lease or, where the land comprised in such reversionary lease is part only of the land comprised in the said building lease, such proportion of the said rent reserved by the said building lease as is fairly apportionable to the said land comprised in the said reversionary lease;

(c) subject to the foregoing paragraph of this sub-section the rent reserved by the said reversionary lease shall be one quarter of the gross rent as hereinafter defined;

(d) the gross rent shall be the rent which in the opinion of the Court a willing lessee not already in occupation would give and a willing lessor would take for the land comprised in such reversionary lease in each case on the basis of vacant possession being given, and in such circumstances that the supply of similar lands is sufficient to meet the demand and the competition therefor is normal, and having regard to the other terms of such reversionary lease and to the letting values of land of a similar character to and situate in the vicinity of the said land comprised in the said reversionary lease but without having regard to any goodwill which may exist in respect of the said land comprised in the said reversionary lease;

(e) such reversionary lease shall contain all usual covenants, conditions, and agreements;

(f) the Court may require the intended lessee to expend a specified sum of money in the execution of repairs to the buildings to be comprised in such reversionary lease and may authorise the postponement of the execution of such reversionary lease until such sum of money has been so expended.

(2) A reversionary lease granted under this Part of this Act shall be deemed to be a graft on the building lease or the proprietary lease (as the case may be) under which the person to whom such reversionary lease is granted previously held the land comprised in such reversionary lease, and the lessee's interest under such reversionary lease shall be subject to any rights or equities arising from such reversionary lease being such graft.