Landlord and Tenant (Amendment) Act, 1980

Compensation on termination of tenancy in obsolete buildings.

[New]

60.—(1) In this section—

“the relevant building” means—

(a) in relation to a tenement consisting of land covered wholly or partly by buildings—those buildings, and

(b) in relation to a tenement consisting of a defined portion of a building—that building;

“obsolete area” has the meaning assigned to it by the Local Government (Planning and Development) Act, 1963 .

(2) Where, in the case of a tenement—

(a) either the relevant building is situate in an obsolete area or, having regard to the age, condition and character of the building—

(i) the repairing of the building would involve expenditure which would be excessive in relation to the value of the tenement, or

(ii) the building could not profitably be used unless it were reconstructed or altered to a substantial extent or rebuilt, and

(b) the landlord has a scheme for the development of property which includes the tenement, being development for which planning permission has been granted,

the Court may, by order made on the application of the landlord on at least six months' notice in the prescribed form to the tenant, terminate the tenancy if it considers it reasonable to do so:

Provided that the lease or other contract of tenancy under which the tenant, at the time the notice is served on him, holds the tenement is for a term of which not less than three and not more than twenty-five years are unexpired.

(3) Where a tenancy is terminated under this section the tenant shall be entitled, on quitting the tenement, to be paid by the landlord compensation for the termination of the tenancy in accordance with this section.

(4) Where a tenancy is terminated under this section, the tenant may continue in occupation until the expiration of the period beginning on the day on which the order of the Court is made and ending on the expiration of one year from that day or on the day on which compensation for the termination of the tenancy is paid (whichever is the later) and, so long as he does so, he shall be subject to the terms (including payment of rent) of the tenancy.

(5) Where the Court awards compensation for the termination of a tenancy under this section, the measure of the compensation shall primarily be the pecuniary loss, damage or expense which the tenant sustains or incurs or will sustain or incur by reason of his quitting the tenement and which is the direct consequence of such quitting, but

(a) such amount as the Court considers reasonable shall be added for the pecuniary benefit accruing to the landlord which is referable to his getting possession of the tenement earlier than he was entitled to under the lease or other contract of tenancy, and

(b) such amount as the Court considers reasonable shall be added for any further hardship which the tenant sustains through the making of the order terminating the tenancy.

(6) This section does not apply where the tenant of the tenement is entitled to a reversionary lease of the tenement or would be so entitled but for section 33.

Consequential Provisions