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(1)This section applies in any case where—
(a)a tenancy includes a covenant on the part of the tenant not to enter into one or more of the following transactions, that is—
(i)assigning,
(ii)underletting,
(iii)charging, or
(iv)parting with the possession of,
the premises comprised in the tenancy or any part of the premises without the consent of the landlord or some other person, but
(b)the covenant is subject to the qualification that the consent is not to be unreasonably withheld (whether or not it is also subject to any other qualification).
(2)In this section and section 2 of this Act—
(a)references to a proposed transaction are to any assignment, underletting, charging or parting with possession to which the covenant relates, and
(b)references to the person who may consent to such a transaction are to the person who under the covenant may consent to the tenant entering into the proposed transaction.
(3)Where there is served on the person who may consent to a proposed transaction a written application by the tenant for consent to the transaction, he owes a duty to the tenant within a reasonable time—
(a)to give consent, except in a case where it is reasonable not to give consent,
(b)to serve on the tenant written notice of his decision whether or not to give consent specifying in addition—
(i)if the consent is given subject to conditions, the conditions,
(ii)if the consent is withheld, the reasons for withholding it.
(4)Giving consent subject to any condition that is not a reasonable condition does not satisfy the duty under subsection (3)(a) above.
(5)For the purposes of this Act it is reasonable for a person not to give consent to a proposed transaction only in a case where, if he withheld consent and the tenant completed the transaction, the tenant would be in breach of a covenant.
(6)It is for the person who owed any duty under subsection (3) above—
(a)if he gave consent and the question arises whether he gave it within a reasonable time, to show that he did,
(b)if he gave consent subject to any condition and the question arises whether the condition was a reasonable condition, to show that it was,
(c)if he did not give consent and the question arises whether it was reasonable for him not to do so, to show that it was reasonable,
and, if the question arises whether he served notice under that subsection within a reasonable time, to show that he did.
Modifications etc. (not altering text)
C1S. 1 restricted (1.1.1996) by 1927 c. 36, s. 19(1A) (as inserted (1.1.1996) by 1995 c. 30, s. 22 (with ss. 2(2), 26(1)); S.I. 1995/2963, art. 2
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