Part 4Compensation for loss of landlord's rights

Compensatory payment

I145Requiring compensatory payment

1

This section applies where, on the appointed day, the rights of a landlord under a lease are extinguished by virtue of Part 1.

2

The former landlord under such a lease may serve on the former tenant a notice in the prescribed form requiring that a compensatory payment be made to the former landlord by the former tenant.

3

The compensatory payment must be—

a

calculated in accordance with section 47, and

b

specified in the notice.

4

A notice served under subsection (2) must be—

a

served before the expiry of the period of 2 years beginning with the appointed day, and

b

accompanied by a copy of the prescribed explanatory note.

5

Where the compensatory payment required is equal to or greater than £50, the former landlord must, together with the notice served under subsection (2), serve on the former tenant an instalment document.

6

This section is subject to section 56.

7

In this Act—

  • “compensatory payment” means a payment of the kind mentioned in subsection (2),

  • “instalment document” is to be construed in accordance with section 57(2).