Long Leases (Scotland) Act 2012

Determination of “qualifying lease”

1 Meaning of “qualifying lease”

(1) A lease is a “qualifying lease” if it complies with subsection (3).

(2) Subsection (1) is subject to section 3.

(3) A lease complies with this subsection if, immediately before the appointed day, it is a right of lease in land—

(a) which is registered,

(b) granted for a period of more than 175 years, and

(c) in respect of which the unexpired portion of that period is—

(i) where the subjects of the lease wholly or mainly comprise a private dwelling house, more than 100 years,

(ii) in any other case, more than 175 years.

(4) But a lease does not so comply if—

(a) the annual rent payable under the lease is over £100,

(b) the subjects of the lease include a harbour (either wholly or partly) in relation to which there is a harbour authority,

(c) it is one granted for the sole purpose of allowing the tenant to install and maintain pipes or cables, or

(d) it is one either—

(i) of minerals, or

(ii) which includes minerals and in respect of which a royalty, lordship or other payment of rent determined by reference to the exploitation of those minerals is or may be payable.

(5) Where a lease is divided (whether as a result of partial assignation or otherwise), each part is treated as a separate lease for the purposes of this Act.

(6) For the purposes of subsection (3)(c)(i), “dwelling house” includes any yard, garden, outbuilding or other pertinent.

2 Further provision about annual rent

(1) This section applies for the purposes of section 1(4)(a) in determining the annual rent payable under a lease.

(2) Subject to subsections (4) to (6), the rent payable under a lease is the rent as set out in a document mentioned in subsection (3).

(3) The documents are—

(a) the lease,

(b) a registered assignation of the lease, or

(c) a registered minute of variation or agreement in relation to the lease.

(4) Where a cumulo rent is payable in relation to two or more leases, the annual rent payable under each lease is deemed to be nil.

(5) Any rent payable under a lease which is expressed wholly or partly in non-monetary terms is, to the extent that it is so expressed, to be left out of account.

(6) Any rent payable under a lease which is variable from year to year is, to the extent that it is so variable, to be left out of account.

3 Only one lease is qualifying lease

(1) This section applies where land is subject to two or more potential qualifying leases.

(2) Subsections (3) and (4) have effect for the purposes of determining—

(a) which of the leases is the qualifying lease, and

(b) of which land the lease is a qualifying lease.

(3) A potential qualifying lease is not a qualifying lease if all of the land which forms the subjects of the lease forms the subjects of an inferior lease.

(4) In any other case, a potential qualifying lease is the qualifying lease of land that—

(a) forms the subjects of the potential qualifying lease, but

(b) does not form the subjects of an inferior lease.

(5) In this section—

• “potential qualifying lease” means a lease that complies with section 1(3),

• “inferior lease”, in relation to a potential qualifying lease, means a sublease—

  (a)

  of the whole or part of the subjects of the potential qualifying lease, and

  (b)

  which is itself a potential qualifying lease.