F1SCHEDULE 17AFurther provisions relating to leases
Tenants' obligations etc. that do not count as chargeable consideration
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(1)
In the case of the grant of a lease none of the following counts as chargeable consideration—
(a)
any undertaking by the tenant to repair, maintain or insure the demised premises (in Scotland, the leased premises);
(b)
any undertaking by the tenant to pay any amount in respect of services, repairs, maintenance or insurance or the landlord’s costs of management;
(c)
any other obligation undertaken by the tenant that is not such as to affect the rent that a tenant would be prepared to pay in the open market;
(d)
any guarantee of the payment of rent or the performance of any other obligation of the tenant under the lease;
(e)
any penal rent, or increased rent in the nature of a penal rent, payable in respect of the breach of any obligation of the tenant under the lease.
(2)
Where sub-paragraph (1) applies in relation to an obligation, a payment made in discharge of the obligation does not count as chargeable consideration.
(3)
The release of any such obligation as is mentioned in sub-paragraph (1) does not count as chargeable consideration in relation to the surrender of the lease.