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4(1)Subject to the provisions of this paragraph, paragraph 3 applies to any lease of a house granted on or after 3rd July 1962 being a lease for a period of less than 7 years.S
(2)For the purpose of this paragraph a lease—
(a)shall be treated as a lease for a period of less than 7 years if it is determinable at the option of the lessor before the expiration of 7 years from the commencement of the period of the lease, and
(b)shall be treated as a lease for a period of 7 years or more if it confers on the lessee an option for renewal for a period which, together with the original period, amounts to 7 years or more, and it is not determinable as mentioned in head (a) of this sub-paragraph.
(3)Where a lease (hereinafter referred to as “the new lease”) of a house is granted—
(a)to a person who, when or immediately before the new lease is granted, is or was the lessee of the house under another lease, or
(b)to a person who was the lessee of the house under another lease which terminated at some time before the new lease is granted and who, between the termination of that other lease and the grant of the new lease, was continuously in possession of the house or entitled to the rents or profits thereof,
paragraph 3 shall not apply to the new lease unless the other lease, if granted on or after 3rd July 1962, was a lease to which that paragraph applies, or, if granted before the said date, would have been such a lease if it had been granted on or after that date.
(4)Paragraph 3 shall not apply to any lease of a house which is a tenancy of an agricultural holding.
(5)In the application of this paragraph to a lease for a period part of which falls before the date of the granting of the lease, that part shall be left out of account and the lease shall be treated as a lease for a period commencing with the date of the granting.