Part 1Conversion of long lease to ownership

Determination of “qualifying lease”

I12Further provision about annual rent

1

This section applies for the purposes of section 1(4)(a) in determining the annual rent payable under a lease.

2

Subject to subsections (4) to (6), the rent payable under a lease is the rent as set out in a document mentioned in subsection (3).

3

The documents are—

a

the lease,

b

a registered assignation of the lease, or

c

a registered minute of variation or agreement in relation to the lease.

4

Where a cumulo rent is payable in relation to two or more leases, the annual rent payable under each lease is deemed to be nil.

5

Any rent payable under a lease which is expressed wholly or partly in non-monetary terms is, to the extent that it is so expressed, to be left out of account.

6

Any rent payable under a lease which is variable from year to year is, to the extent that it is so variable, to be left out of account.