Long Leases (Scotland) Act 2012 Explanatory Notes

1. Introduction

2. Summary and Background

3. Overview of Act

4. Part 1: Conversion of Long Lease to Ownership

   1. Overview of Part 1 of the Act

   2. Determination of “qualifying lease”

      1. Section 1: Meaning of “qualifying lease”

      2. Section 2: Further provision about annual rent

      3. Section 3: Only one lease is qualifying lease

   3. Conversion of right of lease to ownership

      1. Section 4: Conversion of right of lease to right of ownership

   4. Consequences of conversion

      1. Section 5: Extinction of certain rights and obligations

      2. Section 6: Subordinate real rights, reservations and pertinents

      3. Section 7: Creation of servitudes on conversion

      4. Section 8: Conversion of reserved sporting rights

      5. Section 9: Further provision for section 8

5. Part 2: Conversion of Certain Leasehold Conditions to Real Burdens

   1. Overview of Part 2 of the Act

   2. Determination of “qualifying conditions”

      1. Section 10: Qualifying conditions

      2. Section 11: Restriction on conversion of qualifying conditions

   3. Meaning of “qualifying land”

      1. Section 12: Meaning of “qualifying land”

   4. Entitlement to enforce qualifying conditions

      1. Section 13: Determination of who may enforce condition

   5. Conversion of conditions to burdens

      1. Section 14: Conversion by nomination of benefited property

      2. Section 15: Conversion by nomination: registration

      3. Section 16: Conversion by nomination: effect

      4. Section 17: Conversion by agreement

      5. Section 18: Conversion by agreement: registration

      6. Section 19: Conversion by agreement: effect

      7. Section 20: Conversion by agreement: title not completed

   6. Applications relating to section 14

      1. Section 21: Lands Tribunal order

      2. Section 22: Dealing with application under section 21

   7. Personal real burdens

      1. Section 23: Conversion to personal pre-emption or redemption burden

      2. Section 24: Conversion to economic development burden

      3. Section 25: Conversion to health care burden

      4. Section 26: Conversion to climate change burden

      5. Section 27: Conversion to conservation burden: rule one

      6. Section 28: Conversion to conservation burden: rule two

   8. Other real burdens

      1. Section 29: Conversion to facility or service burden

      2. Section 30: Conversion to manager burden

      3. Section 31: Conversion where common scheme affects related properties

      4. Section 32: Conversion where expressly enforceable by certain third parties

   9. Exclusions from conversion

      1. Section 33: Qualifying condition where obligation assumed by public authority

   10. Effect of conversion on counter-obligations

       1. Section 34: Counter-obligations on conversion

   11. Prescription

       1. Section 35: Prescriptive period for converted conditions

   12. Notices and agreements under this Part

       1. Section 36: Further provision for notices and agreements

6. Part 3: Allocation of Rents and Renewal Premiums Etc.

   1. Overview of Part 3 of the Act

   2. Key terms

      1. Section 37:  Partially continuing leases and renewal obligations etc

      2. Section 38: Cumulo rent and cumulo renewal premium

   3. Allocation of rent

      1. Section 39: Allocation of cumulo rent before appointed day

      2. Section 40: Allocation of cumulo rent after appointed day

      3. Section 41: Partially continuing leases: allocation of rent

   4. Allocation of renewal premium

      1. Section 42: Allocation of cumulo renewal premium

      2. Section 43: Partially continuing leases: allocation of renewal premium

   5. Allocation disputed or not made

      1. Section 44: Allocation disputed or not made: reference to Lands Tribunal

7. Part 4: Compensation for Loss of Landlord’s Rights

   1. Overview of Part 4 of the Act

   2. Compensatory payment

      1. Section 45: Requiring compensatory payment

      2. Section 46: Making compensatory payment

   3. Calculation of compensatory payment

      1. Section 47: Calculation of the compensatory payment

   4. Annual rent

      1. Section 48: Determination of the annual rent

   5. Renewal premiums

      1. Section 49: Calculation of notional annual renewal premium

   6. Additional payment

      1. Section 50: Claiming additional payment

      2. Section 51: Extinguished rights

      3. Section 52: Calculating additional payment

      4. Section 53: Additional payment: former tenant agrees

      5. Section 54: Additional payment: amount mutually agreed

      6. Section 55: Claim for additional payment: reference to Lands Tribunal

   7. Supplementary

      1. Section 56: Claims in excess of £500: preliminary notice

      2. Section 57: Making payment by instalments

      3. Section 58: Collecting third party to disclose information

      4. Section 59: Duty to disclose identity etc. of former tenant

      5. Section 60: Prescription of requirement to make payment

      6. Section 61: Interpretation of Part 4

8. Part 5: Exemption from Conversion and Continuing Leases

   1. Overview of Part 5 of the Act

   2. Exempt leases

      1. Section 62: Exempt leases

   3. Types of exempt leases

      1. Section 63: Exemption of qualifying lease by registration of notice

      2. Section 64: Exemption of qualifying lease by registration of agreement or order

      3. Section 65: Certain leases registered near or after the appointed day

      4. Section 66: Subleases of exempt leases

      5. Section 67: Recall of exemption

   4. Supplementary

      1. Section 68: Exemption and recall notices: supplementary

      2. Section 69: Application to Lands Tribunal for order confirming rent

9. Part 6: General and Miscellaneous

   1. Overview of Part 6 of the Act

   2. The appointed day

      1. Section 70: The appointed day

   3. Duration of lease etc

      1. Section 71: Determining duration of lease

      2. Section 72: Leases continuing on tacit relocation

   4. Extinction of right of irritancy in certain leases

      1. Section 73: Extinction of right of irritancy in certain leases

      2. Section 74: Service of notices

      3. Section 75: Notices: pre-registration requirements

      4. Section 76: Keeper’s duty as regards documents

      5. Section 77: Disputed notices: reference to Lands Tribunal

      6. Section 78: Certain documents registrable despite initial rejection

   5. Miscellaneous

      1. Section 79: Amendments to enactments

      2. Section 80: Interpretation

      3. Section 81: Ancillary provision

      4. Section 82: Subordinate legislation

      5. Section 83: Commencement

      6. Section 84: Short title

   6. Schedule

10. Parliamentary History