Part 3Allocation of rents and renewal premiums etc.

Allocation of renewal premium

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).