36.—(1) 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 land comprised in the reversionary lease—

(a) on the basis that vacant possession is given and that the lessee pays rates and taxes in respect of the land and is liable to insure against fire and to keep the premises in repair, and

(b) having regard to the other terms of the reversionary lease and to the letting values of land of a similar character to and situate in the vicinity of the land comprised in the lease or in a comparable area but without having regard to any goodwill which may exist in respect of the land.

(2) If the Court requires or the parties have agreed upon the expenditure by the applicant for a reversionary lease of a specified sum of money on repairs to the premises or the execution by him of specified repairs as a condition precedent to the execution of the lease, the gross rent shall be assessed—

(a) if under the previous lease the lessee is obliged to keep or deliver up the premises in repair, having regard to the condition in which the premises will be after the repairs have been carried out, or

(b) if there is no such obligation, having regard to the actual condition of the premises at the date of the application for the reversionary lease.

(3) If the premises are, in whole or in part, controlled dwellings (other than premises controlled under section 2 (6) of the Rent Restrictions (Amendment) Act, 1967) the Court in determining the gross rent shall have regard to the restrictions imposed by the Rent Restrictions Acts, 1960 and 1967, on the rents which tenants of such premises would be liable to pay.