18 F1Terms of extension of lease.N.I.
(1)Where under the provisions of this Act a lease is extended, the extension shall (subject to any terms, conditions or covenants referred to in subsection (2)) be a graft for all purposes on and a continuation of the old lease and, in particular, the estate of the lessor and of the lessee under the extension of the lease shall be subject to any undischarged mortgage of the estate of the lessee which was entered into prior to the execution of the extension and to any other rights or equities arising from the extension being such a graft and continuation.
(2)The old lease shall be extended for such period not exceeding fifty years and be subject to and contain such terms and conditions as the parties may agree or the Lands Tribunal shall determine and, in any case where the Tribunal fixes the covenants and conditions of the extended lease, the lessee shall be made liable to pay all rates and taxes in respect of the land (other than the lessor's proportion of income tax) and to insure against fire and keep the premises in repair.
(3)The rent shall be such sum as the parties shall agree upon or such sum as the Lands Tribunal considers fair having regard to the ground rents created in respect of similar land in the area in which the land is situate within one year of the date of the service of the notice under section 2, and if no such ground rents have been so created, such sum as the Lands Tribunal considers to be a fair modern ground rent; and the rent shall, if the lessor so requires, be subject to revision twenty-five years after the date on which the old lease would have expired, on such terms as the parties may agree upon or as the Lands Tribunal shall determine in accordance with the provisions of this subsection; and for the purposes of this subsection, but not otherwise, “ground rent” means the rent which a lessee might reasonably be expected to pay for the land comprised in the extended lease, excluding any buildings standing thereon, for the duration, or, as the case may be, the remainder, of the extension.
(4)The Lands Tribunal may require an applicant for an extended lease to expend, within such time as the Tribunal shall think proper, a specified sum of money on repairs or to execute specified repairs to the buildings on the land comprised in the lease and may authorise the postponement of the execution of the extension of the lease until the requirement has been complied with, and the Tribunal shall also have power to extend the time on being satisfied that there is reasonable cause for granting such extension; and, if the applicant neglects or refuses to comply with the requirement of the Tribunal within the specified or extended time, the Tribunal shall have power to declare him to have forfeited his right to an extended lease.
(5) In this section “old lease” has the meaning assigned to it by section 17(9).
F1functions transf. 1982 NI 6