PART IIGROUND RENTS AND CERTAIN OTHER PAYMENTS

Prohibition of transactions giving rise to, or to increases in, ground rents

Avoidance of provisions for increase or review of ground rent31

1

Subject to paragraphs (3) and (4), this Article applies to any of the following instruments executed on or after the appointed day, that is to say—

a

a fee farm grant;

b

a lease of a dwelling-house originally granted for a term of more than 50 years;

c

an agreement collateral to any instrument mentioned in sub-paragraph (a) or (b).

2

Any provision of an instrument to which this Article applies for the increase or review of a ground rent on one or more than one occasion is of no effect.

3

Nothing in this Article affects section 18(3) of the Act of 1971 (which allows the rent fixed on the extension of a lease under that Act to be made subject to revision).

4

This Article does not apply to a building lease or to a fee farm grant for purposes corresponding to those of a building lease merely because provision is made for increases in the ground rent which are related to periods or events in the progress of building or related activities.