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7(1)This paragraph applies where the tenancy of a dwelling-house came to an end before 14th August 1974 and, if it had come to an end immediately after that date it would then have been a protected furnished tenancy within the meaning of the [1974 c. 51.] Rent Act 1974.
(2)If the tenant under the tenancy which came to an end duly retained possession of the dwelling-house on 14th August 1974 without an order for possession having been made or after the rescission of such an order he shall be deemed to have done so as a statutory tenant under a regulated tenancy and, subject to sub-paragraph (5) below, as a person who became a statutory tenant on the termination of a protected tenancy under which he was the tenant; and, subject to sub-paragraphs (4) and (5) below, the tenancy referred to in sub-paragraph (1) above shall be treated, in relation to his statutory tenancy,—
(a)as the original contractual tenancy for the purposes of section 3 of this Act, and
(b)as the previous contractual tenancy for the purposes of paragraph 2 of Part III of Schedule 15 to this Act.
(3)In any case where—
(a)immediately before 14th August 1974 a rent was registered for a dwelling under Part VI of the [1968 c. 23.] Rent Act 1968, and
(b)on that date a person became a statutory tenant of that dwelling by virtue of paragraph 3(4) of Schedule 3 to the Rent Act 1974,
the amount which was so registered under Part VI shall be deemed to be registered under Part IV of this Act as the rent for that dwelling, and that registration shall be deemed to have taken effect on 14th August 1974.
(4)The High Court or the county court may by order vary all or any of the terms of the statutory tenancy imposed by sub-paragraph (2) above in any way appearing to the court to be just and equitable (and whether or not in a way authorised by the provisions of sections 46 and 47 of this Act).
(5)If on 14th August 1974 the dwelling-house was occupied by a person who would, if the tenancy had been a protected tenancy for the purposes of the [1968 c. 23.] Rent Act 1968, have been "the first successor " as defined in paragraph 4 of Schedule 1 to that Act, sub-paragraph (2) above shall apply where that person retained possession as it applies where the tenant retained possession, except that he shall be the first successor as so defined.
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