Landlord and Tenant (Amendment) Act 1980

Fixing of terms of new tenancy by Court.

[New in pt. cf. 1931, s. 29]

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23. (1) This section applies where the Court fixes the terms of a new tenancy under this Part.

F10 [ (2) The Court shall fix the duration of the tenancy at thirty-five years or such less term as the tenant may nominate save, where the right to a new tenancy arises in respect of a tenement referred to in section 13 (1) ( a ) (as amended by section 3 of the Landlord and Tenant (Amendment) Act, 1994), the duration of the tenancy shall be fixed at twenty years or such less term as the tenant may nominate provided that it shall not be fixed for a term of less than five years without the landlord's agreement. ]

(3) The rent payable by the tenant under the new tenancy shall not be less than (as the case may require) the rent payable by the landlord in respect of the tenement or such proportion of the rent payable by the landlord in respect of the tenement and other property as is in the opinion of the Court fairly apportionable to the tenement.

(4) Subject to subsection (3), the rent shall be the gross rent reduced, where appropriate, by the allowance for improvements provided for by subsection (6).

(5) The gross rent shall be the rent which in the opinion of the Court a willing lessee not already in occupation would give and a willing lessor would take for the tenement, in each case on the basis of vacant possession being given, and having regard to the other terms of the tenancy and to the letting values of tenements of a similar character to the tenement and situate in a comparable area but without regard to any goodwill which may exist in respect of the tenement.

(6) The allowance for improvements shall be such proportion of the gross rent as is, in the opinion of the Court, attributable to improvements made by the tenant or his predecessors in title and in respect of which the tenant would have been entitled to compensation for improvements if (as the case may be) this Part did not apply to the tenement or the new tenancy had not been created.

(7) The Court may, as one of the terms of the new tenancy, require the intended tenant to expend, within such time as the Court thinks proper, a specified sum of money in the execution of specified repairs (including painting for purposes of preservation but not painting for purposes of mere decoration) to the tenement and authorise the postponement of the grant of the new tenancy until the requirement has been complied with.

(8) If the intended tenant refuses or fails to comply with a requirement under subsection (7), the Court shall have power to declare him to have forfeited his right to a new tenancy and to discharge any order granting it to him.

(9) The new tenancy shall be subject to such covenants as may be agreed upon between the parties or, in default of agreement, as may be determined by the Court.