Part 3Allocation of rents and renewal premiums etc.
Allocation of renewal premium
42Allocation of cumulo renewal premium
1
This section applies where—
a
immediately before the appointed day, the renewal premium payable in relation to two or more leases containing a renewal obligation was a cumulo renewal premium,
b
on that day, one or more of the leases is extinguished by virtue of Part 1 in respect of any subjects of the leases, and
c
a lease mentioned in paragraph (b) complies with section 1(3)(b) and (c) by virtue of section 71(1)(b).
2
The landlord must, before the expiry of the period of 2 years beginning with the appointed day, allocate the cumulo renewal premium between the leases mentioned in subsection (1)(a).
3
The allocation under subsection (2) must be in such proportions as are reasonable in all the circumstances.
4
For the purposes of subsection (3)—
a
the proportions are presumed to be reasonable in so far as they accord with any apportionment of the cumulo renewal premium that was effective immediately before the appointed day,
b
where there is no such apportionment, the proportions are presumed to be reasonable in so far as they accord with any allocation of rent under section 40.
5
The renewal premium payable from the appointed day under a lease which is not wholly extinguished by virtue of Part 1 is (subject to section 43) the renewal premium allocated to the lease under subsection (2).
43Partially continuing leases: allocation of renewal premium
1
This section applies to a lease which—
a
contains a renewal obligation,
b
complies with section 1(3)(b) and (c) by virtue of section 71(1)(b), and
c
is a partially continuing lease.
2
The landlord must, before the expiry of the period of 2 years beginning with the appointed day, allocate the renewal premium between the converted subjects and continuing subjects.
3
For the purposes of subsection (2), the renewal premium is—
a
the renewal premium payable under the lease immediately before the appointed day, or
b
where a cumulo renewal premium is allocated to the lease under section 42(2), the premium so allocated.
4
The allocation under subsection (2) must be in such proportions as are reasonable in all the circumstances.
5
For the purposes of subsection (4), the proportions are presumed to be reasonable in so far as they accord with any allocation of rent under section 41.
6
The renewal premium payable from the appointed day under the partially continuing lease is the renewal premium allocated to the continuing subjects under subsection (2).