Rule 1: If—

a

the terms of the lease or any other circumstances make it unlikely that the lease will continue beyond a date before the end of the term for which the lease was granted, and

b

the premium was not substantially greater than it would have been had the term been one ending on that date,

the lease is treated as ending on that date (or the earliest such date).

2A

In Rule 1 “premium” includes—

a

an amount treated as a premium under section 278 (amount treated as lease premium where work required),

b

a sum payable by the tenant under the terms subject to which the lease is granted instead of the whole or a part of the rent for a period,

c

a sum payable by the tenant under the terms subject to which the lease is granted as consideration for the surrender of the lease, and

d

a sum payable by the tenant (otherwise than by way of rent) as consideration for the variation or waiver of a term of the lease.