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After section 79 of the [1980 c. 65.] Local Government, Planning and Land Act 1980 there shall be inserted the following section—
(1)In any case where—
(a)an interest in or right over land is acquired on or after 10 March 1988, and
(b)the interest or right confers a right to possession or occupation of the land, and
(c)the interest or right is neither the fee simple absolute in possession nor an interest or right not exceeding one year in duration, and
(d)the acquisition is neither by gift nor by deed with no consideration other than the presumed consideration imported by the deed,
then, for the purposes of this Part of this Act, the authority making the acquisition shall be treated as having acquired, for a consideration which is not in money alone, the fee simple absolute in possession in that land, subject only to the interests and rights referred to in subsection (2) below.
(2)The interests and rights referred to in subsection (1) above are those (if any) to which the interest or right which is actually acquired is subject at the time of the acquisition, excluding any which arise by virtue of a mortgage or charge to secure the payment of money.
(3)In subsection (1)(b) above—
(a)“possession” has the same meaning as in the Law of Property Act 1925, that is to say, it includes receipt of rents and profits or the right to receive the same, if any; and
(b)“occupation” means occupation with-out possession but, subject to that, includes future occupation.
(4)Subsection (12) of section 80 below applies for the purposes of this section but where, by virtue of that subsection, an authority is taken to acquire an interest exceeding one year in duration, that interest shall not be regarded for the purposes of subsection (1)(c) above as the fee simple absolute in possession.”
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