Part I E+W LANDLORD AND TENANT

Chapter I E+W COLLECTIVE ENFRANCHISEMENT IN CASE OF TENANTS OF FLATS

[F1 Landlord’s right to compensation in relation to ineffective claims] E+W

Textual Amendments

F1 Ss. 37A, 37B and crossheading inserted (1.10.1996) by 1996 c. 52, s. 116, Sch. 11 para. 2(1); S.I. 1996/2212, art. 2

[F2 37B Modification of section 37A where change in immediate reversion. E+W

(1) Where a tenant’s liability to pay compensation under section 37A relates to a period during which there has been a change in the interest immediately expectant on the determination of his lease, that section shall have effect with the following modifications.

(2) For subsections (4) and (5) there shall be substituted—

“(4) Compensation under subsection (2) shall become payable at the end of the appropriate period and there shall be a separate right to compensation in respect of each of the interests which, during that period, have been immediately expectant on the determination of the existing lease.

(5) Compensation under subsection (2) above shall—

(a) in the case of the interest which is immediately expectant on the determination of the existing lease at the end of the appropriate period, be the right of the person in whom that interest is vested at that time, and

(b) in the case of an interest which ceases during the appropriate period to be immediately expectant on the determination of the existing lease, be the right of the person in whom the interest was vested immediately before it ceased to be so expectant.

(5A) The amount which the tenant is liable to pay under subsection (2) above in respect of any interest shall be equal to the difference between—

(a) the rent under the existing lease for the part of the appropriate period during which the interest was immediately expectant on the determination of that lease, and

(b) the rent which might reasonably be expected to be payable for that part of that period were the property to which the existing lease relates let for a term equivalent to that part of that period on the open market by a willing landlord on the following assumptions—

(i) that no premium is payable in connection with the letting,

(ii) that the letting confers no security of tenure, and

(iii) that, except as otherwise provided by this paragraph, the letting is on the same terms as the existing lease.”

(3) In subsection (6), for “(4) and (5)” there shall be substituted “(4) to (5A)”.]

Textual Amendments

F2 Ss. 37A, 37B and crossheading inserted (1.10.1996) by 1996 c. 52, s. 116, Sch. 11 para. 2(1); S.I. 1996/2212, art. 2