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Long Leases (Scotland) Act 2012

Section 57: Making payment by instalments

237.Where the compensatory payment or additional payment is £50 or more the former landlord has to serve an instalment document along with the relevant notice. This section sets out the rules of the instalment scheme.

238.Subsection (2) provides that the instalment document must be completed in the prescribed form and accompanied by a copy of the explanatory note.

239.Subsection (3) requires that to obtain the option to pay by instalments, the former tenant has to sign, date and return the instalment document along with payment of a 10% surcharge. The tenant has to do this within the period allowed for payment of the compensatory or additional payment, which is either 56 or 28 calendar days.

240.Subsection (4) provides that the option of paying by instalments is lost by the former tenant of a qualifying lease in the event of a sale of the whole or part of the land now owned.

241.Subsections (6) and (7) set out the details of the instalment scheme. Whitsunday is 28 May and Martinmas is 28 November.

242.Subsection (8) provides for immediate payment of the balance if an instalment is unpaid for forty two calendar days.

243.Subsection (9) makes clear that in other cases the balance can be repaid at any time.

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Explanatory Notes

Text created by the Scottish Government to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Acts of the Scottish Parliament except those which result from Budget Bills.


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