Law of Property Act 1969



Law of Property Act 1969

1969 CHAPTER 59

An Act to amend Part II of the Landlord and Tenant Act 1954; to provide for the closing of the Yorkshire deeds registries; to amend the law relating to dispositions of estates and interests in land and to land charges; to make further provision as to the powers of the Lands Tribunal and court in relation to restrictive covenants affecting land; and for purposes connected with those matters.

[22nd October 1969]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

I Amendment of Part II of Landlord and Tenant Act 1954

Part I

Amendment of Part II of Landlord and Tenant Act 1954

Provisions as to rent

Provisions as to rent

S-1 Improvements to be disregarded in fixing rent.

1 Improvements to be disregarded in fixing rent.

(1) In section 34 of the Act of 1954 (rent under new tenancy) the following paragraph shall be substituted for paragraph (c ) (improvements to be disregarded):—

‘(c ) any effect on rent of an improvement to which this paragraph applies’

and the following subsection shall be added (the present section, as amended by the foregoing provisions, becoming subsection (1)):—

(2) Paragraph (c ) of the foregoing subsection applies to any improvement carried out by a person who at the time it was carried out was the tenant, but only if it was carried out otherwise than in pursuance of an obligation to his immediate landlord, and either it was carried out during the current tenancy or the following conditions are satisfied, that is to say,—

(a ) that it was completed not more than twenty-one years before the application for the new tenancy was made; and

(b ) that the holding or any part of it affected by the improvement has at all times since the completion of the improvement been comprised in tenancies of the description specified in section 23(1) of this Act; and

(c ) that at the termination of each of those tenancies the tenant did not quit.’

(2) In section 41(1)(b(b ) of the Act of 1954 the words ‘subsection (1) of’ shall be inserted before the words ‘section 34’.

S-2 Determination of variable rent.

2 Determination of variable rent.

2. At the end of section 34 of the Act of 1954 (rent under new tenancy) there shall be added the following subsection:—

(3) Where the rent is determined by the court the court may, if it thinks fit, further determine that the terms of the tenancy shall include such provision for varying the rent as may be specified in the determination.’

S-3 Rent while tenancy continues by virtue of s. 24 of Act of 1954.

3 Rent while tenancy continues by virtue of s. 24 of Act of 1954.

(1) After section 24 of the Act of 1954 there shall be inserted the following section:—

S-24A

24A

(1) The landlord of a tenancy to which this Part of this Act applies may,—

(a ) if he has given notice under section 25 of this Act to terminate the tenancy; or

(b ) if the tenant has made a request for a new tenancy in accordance with section 26 of this Act;

apply to the court to determine a rent which it would be reasonable for the tenant to pay while the tenancy continues by virtue of section 24 of this Act, and the court may determine a rent accordingly.

(2) A rent determined in proceedings under this section shall be deemed to be the rent payable under the tenancy from the date on which the proceedings were commenced or the date specified in the landlord's notice or the tenant's request, whichever is the later.

(3) In determining a rent under this section the court shall have regard to the rent payable under the terms of the tenancy, but otherwise subsections (1) and (2) of section 34 of this Act shall apply to the determination as they would apply to the determination of a rent under that section if a new tenancy from year to year of the whole of the property comprised in the tenancy were granted to the tenant by order of the court.’

(2) In section 24(1)(a ) of the Act of 1954 for the words ‘the next following section’ there shall be substituted the words ‘section 25 of this Act’.

Termination of tenancy and right to new tenancy

Termination of tenancy and right to new tenancy

S-4 Restriction on termination of tenancy by agreement.

4 Restriction on termination of tenancy by agreement.

(1) At the end of section 24(2) of the Act of 1954 (which includes notice to quit by the tenant and surrender among the means by which a tenancy to which Part II of that Act applies can be brought to an end) there shall be added the words ‘unless—

(a ) in the case of a notice to quit, the notice was given before the tenant had been in occupation in right of the tenancy for one month; or

(b ) in the case of an instrument of surrender, the instrument was executed before, or was executed in pursuance of an agreement made before, the tenant had been in occupation in right of the tenancy for one month.’

(2) Section 27 of the Act of 1954 (termination by tenant of tenancy for fixed term) shall be amended as follows:—

(a ) at the end of subsection (1) (notice by tenant that he does not desire tenancy to be continued) there shall be added the words ‘unless the notice is given before the tenant has been in occupation in right of the tenancy for one month’; and

(b ) in subsection (2) (termination on quarter day by tenant's notice) the words ‘before or’ shall be omitted and at the end of the subsection there shall be added the words ‘or before that date, but not before the tenant has been in occupation in right of the tenancy for one month’.

S-5 Exclusion of provisions of Part II of Act of 1954 by authorised agreement.

5 Exclusion of provisions of Part II of Act of 1954 by authorised agreement.

5. In subsection (1) of section 38 of the Act of 1954 (restriction on agreements excluding provisions of Part II) after the words ‘shall be void’ there shall be inserted the words ‘(except as provided by subsection (4) of this section)’ and at the end of the section there shall be added the following subsection:—

(4) The court may—

(a ) on the joint application of the persons who will be the landlord and the tenant in relation to a tenancy to be granted for a term of years certain which will be a tenancy to which this Part of this Act applies, authorise an agreement excluding in relation to that tenancy the provisions of sections 24 to 28 of this Act; and

(b ) on the joint application of the persons who are the landlord and the tenant in relation to a tenancy to which this Part of this Act applies, authorise an agreement for the surrender of the tenancy on such date or in such circumstances as may be specified in the agreement and on such terms (if any) as may be so specified;

if the agreement is contained in or endorsed on the instrument creating the tenancy or such other instrument as the court may specify; and an agreement contained in or endorsed on an instrument in pursuance of an authorisation given under this subsection shall be valid notwithstanding anything in the preceding provisions of this section.’

S-6 Business carried on by company controlled by landlord.

6 Business carried on by company controlled by landlord.

6. At the end of section 30 of the Act of 1954 there shall be added the following subsection:—

(3) Where the landlord has a controlling interest in a company any business to be carried on by the company shall be treated for the purposes of subsection (1)(g ) of this section as a business to be carried on by him.

For the purposes of this subsection, a person has a controlling interest in a company if and only if either—

(a ) he is a member of it and able, without the consent of any other person, to appoint or remove the holders of at least a majority of the directorships; or

(b ) he holds more than one-half of its equity share capital, there being disregarded any shares held by him in a fiduciary capacity or as nominee for another person;

and in this subsection 'company' and 'share' have the meanings assigned to them by section 455(1) of the Companies Act 1948 and 'equity share capital' the meaning assigned to it by section 154(5) of that Act.’

S-7 Grant of new tenancy in some cases where section 30\(1)\(f) applies.

7 Grant of new tenancy in some cases where section 30\(1)\(f) applies.

(1) After section 31 of the Act of 1954 there shall be inserted the following section:—

S-31A

31A

(1) Where the landlord opposes an application under section 24(1) of this Act on the ground specified in paragraph (f of this Act the court shall not hold that the landlord could not reasonably carry out the demolition, reconstruction or work of construction intended without obtaining possession of the holding if—

(a ) the tenant agrees to the inclusion in the terms of the new tenancy of terms giving the landlord access and other facilities for carrying out the work intended and, given that access and those facilities, the landlord could reasonably carry out the work without obtaining possession of the holding and without interfering to a substantial extent or for a substantial time with the use of the holding for the purposes of the business carried on by the tenant; or

(b ) the tenant is willing to accept a tenancy of an economically separable part of the holding and either paragraph (a ) of this section is satisfied with respect to that part or possession of the remainder of the holding would be reasonably sufficient to enable the landlord to carry out the intended work.

(2) For the purposes of subsection (1)(b ) of this section a part of a holding shall be deemed to be an economically separable part if,...

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