Effect of term reserving prohibited rent

I1I2I37Term reserving prohibited rent treated as reserving permitted rent

1

This section applies where any term of a regulated lease to which a section specified in column 1 of the table applies reserves a prohibited rent.

2

The term has effect as if, in place of the prohibited rent, it reserved the rent specified in column 2 of the table.

3

Where the prohibited rent is reserved in respect of a period specified in column 3 of the table, or a share in the demised premises specified in column 4 of the table, or both, the term is treated as reserving the rent specified in column 2 of the table in respect of that period, that share, or that period and that share.

Column 1

Column 2

Column 3

Column 4

Section

Rent treated as reserved

Period for which rent reserved

Share in demised premises

Section 4 (general rule)

peppercorn rent

Section 5 (shared ownership leases)

peppercorn rent

tenant’s share

Section 6 (replacement leases)

maximum permitted rent

excepted period

tenant’s share (where section 6(7) applies)

Section 6 (replacement leases)

peppercorn rent

regulated period

tenant’s share (where section 6(7) applies)

4

The “maximum permitted rent” means the maximum rent permitted by section 6(2)(a).

5

The other terms of the regulated lease have effect with any modifications necessary because of subsections (2) and (3).

6

For the purposes of this section, the terms of a regulated lease include the terms of any contract relating to the lease.

7

Terms used in this section and in sections 4 to 6 have the same meaning in this section as in those sections.