Landlord and Tenant Act 1954

32 Property to be comprised in new tenancy.

(1) Subject to the following provisions of this section, an order under section 29 of this Act for the grant of a new tenancy shall be an order for the grant of a new tenancy of the holding; and in the absence of agreement between the landlord and the tenant as to the property which constitutes the holding the court shall in the order designate that property by reference to the circumstances existing at the date of the order. (1A) Where the court, by virtue of paragraph (b) of section 31A(1) of this Act, makes an order under section 29 of this Act for the grant of a new tenancy in a case where the tenant is willing to accept a tenancy of part of the holding, the order shall be an order for the grant of a new tenancy of that part only. (2) The foregoing provisions of this section shall not apply in a case where the property comprised in the current tenancy includes other property besides the holding and the landlord requires any new tenancy ordered to be granted under section 29 of this Act to be a tenancy of the whole of the property comprised in the current tenancy; but in any such case— (a) any order under the said section 29 for the grant of a new tenancy shall be an order for the grant of a new tenancy of the whole of the property comprised in the current tenancy, and (b) references in the following provisions of this Part of this Act to the holding shall be construed as references to the whole of that property. (3) Where the current tenancy includes rights enjoyed by the tenant in connection with the holding, those rights shall be included in a tenancy ordered to be granted under section 29 of this Act, except as otherwise agreed between the landlord and the tenant or, in default of such agreement, determined by the court.

33 Duration of new tenancy.

Where on an application under this Part of this Act the court makes an order for the grant of a new tenancy, the new tenancy shall be such tenancy as may be agreed between the landlord and the tenant, or, in default of such an agreement, shall be such a tenancy as may be determined by the court to be reasonable in all the circumstances, being, if it is a tenancy for a term of years certain, a tenancy for a term not exceeding fifteen years, and shall begin on the coming to an end of the current tenancy.

34 Rent under new tenancy.

(1) The rent payable under a tenancy granted by order of the court under this Part of this Act shall be such as may be agreed between the landlord and the tenant or as, in default of such agreement, may be determined by the court to be that at which, having regard to the terms of the tenancy (other than those relating to rent), the holding might reasonably be expected to be let in the open market by a willing lessor, there being disregarded— (a) any effect on rent of the fact that the tenant has or his predecessors in title have been in occupation of the holding, (b) any goodwill attached to the holding by reason of the carrying on thereat of the business of the tenant (whether by him or by a predecessor of his in that business), (c) any effect on rent of an improvement to which this paragraph applies, (d) in the case of a holding comprising licensed premises, any addition to its value attributable to the licence, if it appears to the court that having regard to the terms of the current tenancy and any other relevant circumstances the benefit of the licence belongs to the tenant. (2) Paragraph (c) of the foregoing subsection applies to any improvement carried out by a person who at the time it was carried out was the tenant, but only if it was carried out otherwise than in pursuance of an obligation to his immediate landlord and either it was carried out during the current tenancy or the following conditions are satisfied, that is to say,— (a) that it was completed not more than twenty-one years before the application to the court was made; and (b) that the holding or any part of it affected by the improvement has at all times since the completion of the improvement been comprised in tenancies of the description specified in section 23(1) of this Act; and (c) that at the termination of each of those tenancies the tenant did not quit. (2A) If this Part of this Act applies by virtue of section 23(1A) of this Act, the reference in subsection (1)(d) above to the tenant shall be construed as including— (a) a company in which the tenant has a controlling interest, or (b) where the tenant is a company, a person with a controlling interest in the company. (3) Where the rent is determined by the court the court may, if it thinks fit, further determine that the terms of the tenancy shall include such provision for varying the rent as may be specified in the determination. (4) It is hereby declared that the matters which are to be taken into account by the court in determining the rent include any effect on rent of the operation of the provisions of the Landlord and Tenant (Covenants) Act 1995. (5) The court’s powers under this section to determine the rent payable under a tenancy granted by order of the court under this Part of this Act do not apply where— (a) the current tenancy is a subsisting agreement within the meaning of Schedule 2 to the Digital Economy Act 2017, and (b) the primary purpose of the current tenancy is to confer code rights (within the meaning of paragraph 3 of that Schedule). (See instead section 34A.).

34A Rent under new tenancy conferring code rights

(1) This section applies where— (a) the current tenancy is a subsisting agreement within the meaning of Schedule 2 to the Digital Economy Act 2017, and (b) the primary purpose of the current tenancy is to confer code rights. (2) In default of agreement between the landlord and the tenant as mentioned in section 34(1), the rent payable under a new tenancy granted by order of the court under this Part of this Act shall be such amount or amounts determined by the court as represent the market value of the landlord’s agreement to confer the code rights conferred by the new tenancy. (3) For this purpose the market value of a landlord’s agreement to confer code rights is, subject to subsection (4), the amount that, at the date the market value is assessed, a willing buyer would pay a willing seller for the agreement— (a) in a transaction at arm’s length, (b) on the basis that the buyer and seller were acting prudently and with full knowledge of the transaction, and (c) on the basis that the transaction was subject to the other provisions of the tenancy granted by order of the court. (4) The market value must be assessed on these assumptions— (a) that the rights to which the transaction relates do not relate to the provision or use of an electronic communications network; (b) that paragraphs 16, 17 and 17A of the electronic communications code (assignment, and upgrading and sharing) do not apply to the rights or any apparatus to which those rights could apply; (c) that the rights in all other respects correspond to the code rights; (d) that there is more than one site which the buyer could use for the purpose for which the buyer seeks the rights. (5) In this section— references to “code rights” are to be read— in relation to the current tenancy, in accordance with paragraph 3 of Schedule 2 to the Digital Economy Act 2017; in relation to a new tenancy granted by order of the court under this Part of this Act, in accordance with paragraph 3 of the electronic communications code; “the electronic communications code” means the code set out in Schedule 3A to the Communications Act 2003; “electronic communications network” has the meaning given by section 32(1) of that Act.

34B Compensation for exercise of code rights

(1) This section applies where— (a) the court grants a new tenancy by an order under this Part of this Act, (b) the primary purpose of the new tenancy is to confer code rights, (c) the tenancy subsisting at the time the order is made is a subsisting agreement within the meaning of Schedule 2 to the Digital Economy Act 2017, and (d) the primary purpose of that tenancy was to confer code rights. (2) The court may order the tenant to pay compensation to the landlord for any damage or loss that has been sustained or will be sustained by the landlord as a result of the exercise of any of the code rights conferred by the new tenancy. (3) An order under subsection (2) may be made— (a) at the time the court makes the order granting the new tenancy under this Part of this Act, or (b) at any time afterwards, on the application of the landlord. (4) An order under subsection (2) may— (a) specify the amount of compensation to be paid by the tenant, or (b) give directions for the determination of any such amount. (5) Directions under subsection (4)(b) may provide— (a) for the amount of compensation to be agreed between the landlord and the tenant; (b) for any dispute about that amount to be determined by arbitration. (6) An order under subsection (2) may provide for the tenant— (a) to make a lump sum payment, (b) to make periodical payments, (c) to make a payment or payments on the occurrence of an event or events, or (d) to make a payment or payments in such form or at such other time or times as the court may direct. (7) Section 34C makes further provision about compensation in relation to the exercise of code rights conferred by a tenancy under this Part of this Act. (8) In this section, references to “code rights” are to be read— (a) in relation to the new tenancy, in accordance with paragraph 3 of the electronic communications code set out in Schedule 3A to the Communications Act 2003; (b) in relation to a subsisting agreement within the meaning of Schedule 2 to the Digital Economy Act 2017, in accordance with paragraph 3 of that Schedule.

34C Further provision about compensation under section 34B

(1) This section applies to the court’s power to order a tenant to pay compensation to a landlord under section 34B (compensation for exercise of code rights). (2) Depending on the circumstances, the power of the court to order the payment of compensation for damage or loss includes power to order payment for— (a) expenses (including reasonable legal and valuation expenses, subject to the provisions of any enactment about the powers of the court to award costs), (b) diminution in the value of the land, and (c) costs of reinstatement. (3) For the purposes of assessing such compensation for diminution in the value of land, rules (2) to (4) set out in section 5 of the Land Compensation Act 1961 apply with any necessary modifications as they apply for the purposes of assessing compensation for the compulsory purchase of any interest in land. (4) Section 10(1) to (3) of the Land Compensation Act 1973 (compensation in respect of mortgages, trusts of land and settlements) applies in relation to such compensation for diminution in the value of land as it applies in relation to compensation under Part 1 of that Act. (5) Where a landlord has a claim for compensation to which this section applies and a claim for compensation under any other provision of this Act, or any provision of the electronic communications code, in respect of the same loss, the compensation payable to the landlord must not exceed the amount of the landlord’s loss. (6) In this section “the electronic communications code” means the code set out in Schedule 3A to the Communications Act 2003.

35 Other terms of new tenancy.

(1) The terms of a tenancy granted by order of the court under this Part of this Act (other than terms as to the duration thereof and as to the rent payable thereunder), including, where different persons own interests which fulfil the conditions specified in section 44(1) of this Act in different parts of it, terms as to the apportionment of the rent, shall be such as may be agreed between the landlord and the tenant or as, in default of such agreement, may be determined by the court; and in determining those terms the court shall have regard to the terms of the current tenancy and to all relevant circumstances. (2) In subsection (1) of this section the reference to all relevant circumstances includes (without prejudice to the generality of that reference) a reference to the operation of the provisions of the Landlord and Tenant (Covenants) Act 1995.

36 Carrying out of order for new tenancy.

(1) Where under this Part of this Act the court makes an order for the grant of a new tenancy, then, unless the order is revoked under the next following subsection or the landlord and the tenant agree not to act upon the order, the landlord shall be bound to execute or make in favour of the tenant, and the tenant shall be bound to accept, a lease or agreement for a tenancy of the holding embodying the terms agreed between the landlord and the tenant or determined by the court in accordance with the foregoing provisions of this Part of this Act; and where the landlord executes or makes such a lease or agreement the tenant shall be bound, if so required by the landlord, to execute a counterpart or duplicate thereof. (2) If the tenant, within fourteen days after the making of an order under this Part of this Act for the grant of a new tenancy, applies to the court for the revocation of the order the court shall revoke the order; and where the order is so revoked, then, if it is so agreed between the landlord and the tenant or determined by the court, the current tenancy shall continue, beyond the date at which it would have come to an end apart from this subsection, for such period as may be so agreed or determined to be necessary to afford to the landlord a reasonable opportunity for reletting or otherwise disposing of the premises which would have been comprised in the new tenancy; and while the current tenancy continues by virtue of this subsection it shall not be a tenancy to which this Part of this Act applies. (3) Where an order is revoked under the last foregoing subsection any provision thereof as to payment of costs shall not cease to have effect by reason only of the revocation; but the court may, if it thinks fit, revoke or vary any such provision or, where no costs have been awarded in the proceedings for the revoked order, award such costs. (4) A lease executed or agreement made under this section, in a case where the interest of the lessor is subject to a mortgage, shall be deemed to be one authorised by section ninety-nine of the Law of Property Act 1925 (which confers certain powers of leasing on mortgagors in possession), and subsection (13) of that section (which allows those powers to be restricted or excluded by agreement) shall not have effect in relation to such a lease or agreement.

37 Compensation where order for new tenancy precluded on certain grounds.

(1) Subject to the provisions of this Act, in a case specified in subsection (1A), (1B) or (1C) below (a “compensation case”) the tenant shall be entitled on quitting the holding to recover from the landlord by way of compensation an amount determined in accordance with this section. (1A) The first compensation case is where on the making of an application by the tenant under section 24(1) of this Act the court is precluded (whether by subsection (1) or subsection (2) of section 31 of this Act) from making an order for the grant of a new tenancy by reason of any of the grounds specified in paragraphs (e), (f) and (g) of section 30(1) of this Act (the “compensation grounds”) and not of any grounds specified in any other paragraph of section 30(1). (1B) The second compensation case is where on the making of an application under section 29(2) of this Act the court is precluded (whether by section 29(4)(a) or section 31(2) of this Act) from making an order for the grant of a new tenancy by reason of any of the compensation grounds and not of any other grounds specified in section 30(1) of this Act. (1C) The third compensation case is where— (a) the landlord’s notice under section 25 of this Act or, as the case may be, under section 26(6) of this Act, states his opposition to the grant of a new tenancy on any of the compensation grounds and not on any other grounds specified in section 30(1) of this Act; and (b) either— (i) no application is made by the tenant under section 24(1) of this Act or by the landlord under section 29(2) of this Act; or (ii) such an application is made but is subsequently withdrawn. (2) Subject to the following provisions of this section, compensation under this section”; and shall be as follows, that is to say,— (a) where the conditions specified in the next following subsection are satisfied in relation to the whole of the holdingit shall be the product of the appropriate multiplier and twice the rateable value of the holding, (b) in any other case it shall be the product of the appropriate multiplier and the rateable value of the holding. (3) The said conditions are— (a) that, during the whole of the fourteen years immediately preceding the termination of the current tenancy, premises being or comprised in the holding have been occupied for the purposes of a business carried on by the occupier or for those and other purposes; (b) that, if during those fourteen years there was a change in the occupier of the premises, the person who was the occupier immediately after the change was the successor to the business carried on by the person who was the occupier immediately before the change. (3A) If the conditions specified in subsection (3) above are satisfied in relation to part of the holding but not in relation to the other part, the amount of compensation shall be the aggregate of sums calculated separately as compensation in respect of each part, and accordingly, for the purpose of calculating compensation in respect of a part any reference in this section to the holding shall be construed as a reference to that part. (3B) Where section 44(1A) of this Act applies, the compensation shall be determined separately for each part and compensation determined for any part shall be recoverable only from the person who is the owner of an interest in that part which fulfils the conditions specified in section 44(1) of this Act. (4) Where the court is precluded from making an order for the grant of a new tenancy under this Part of this Act in a compensation case, the court shall on the application of the tenant certify that fact. (5) For the purposes of subsection (2) of this section the rateable value of the holding shall be determined as follows:— (a) where in the valuation list in force at the date on which the landlord’s notice under section 25 or, as the case may be, subsection (6) of section 26 of this Act is given a value is then shown as the annual value (as hereinafter defined) of the holding, the rateable value of the holding shall be taken to be that value; (b) where no such value is so shown with respect to the holding but such a value or such values is or are so shown with respect to premises comprised in or comprising the holding or part of it, the rateable value of the holding shall be taken to be such value as is found by a proper apportionment or aggregation of the value or values so shown; (c) where the rateable value of the holding cannot be ascertained in accordance with the foregoing paragraphs of this subsection, it shall be taken to be the value which, apart from any exemption from assessment to rates, would on a proper assessment be the value to be entered in the said valuation list as the annual value of the holding; and any dispute arising, whether in proceedings before the court or otherwise, as to the determination for those purposes of the rateable value of the holding shall be referred to the Commissioners of Inland Revenue for decision by a valuation officer. An appeal shall lie to the Upper Tribunal from any decision of a valuation officer under this subsection, but subject thereto any such decision shall be final. (5A) If part of the holding is domestic property, as defined in section 66 of the Local Government Finance Act 1988,— (a) the domestic property shall be disregarded in determining the rateable value of the holding under subsection (5) of this section; and (b) if, on the date specified in subsection (5)(a) of this section, the tenant occupied the whole or any part of the domestic property, the amount of compensation to which he is entitled under subsection (1) of this section shall be increased by the addition of a sum equal to his reasonable expenses in removing from the domestic property. (5B) Any question as to the amount of the sum referred to in paragraph (b) of subsection (5A) of this section shall be determined by agreement between the landlord and the tenant or, in default of agreement, by the court. (5C) If the whole of the holding is domestic property, as defined in section 66 of the Local Government Finance Act 1988, for the purposes of subsection (2) of this section the rateable value of the holding shall be taken to be an amount equal to the rent at which it is estimated the holding might reasonably be expected to let from year to year if the tenant undertook to pay all usual tenant’s rates and taxes and to bear the cost of the repairs and insurance and the other expenses (if any) necessary to maintain the holding in a state to command that rent. (5D) The following provisions shall have effect as regards a determination of an amount mentioned in subsection (5C) of this section— (a) the date by reference to which such a determination is to be made is the date on which the landlord’s notice under section 25 or, as the case may be, subsection (6) of section 26 of this Act is given; (b) any dispute arising, whether in proceedings before the court or otherwise, as to such a determination shall be referred to the Commissioners of Inland Revenue for decision by a valuation officer; (c) an appeal shall lie to the Upper Tribunalfrom such a decision but, subject to that, such a decision shall be final. (5E) Any deduction made under paragraph 2A of Schedule 6 to the Local Government Finance Act 1988 (deduction from valuation of hereditaments used for breeding horses etc. ) shall be disregarded, to the extent that it relates to the holding, in determining the rateable value of the holding under subsection (5) of this section. (6) The Commissioners of Inland Revenue may by statutory instrument make rules prescribing the procedure in connection with references under this section. (7) In this section— the reference to the termination of the current tenancy is a reference to the date of termination specified in the landlord’s notice under section 25 of this Act or, as the case may be, the date specified in the tenant’s request for a new tenancy as the date from which the new tenancy is to begin; the expression “ annual value ” means rateable value except that where the rateable value differs from the net annual value the said expression means net annual value; the expression “ valuation officer ” means any officer of the Commissioners of Inland Revenue for the time being authorised by a certificate of the Commissioners to act in relation to a valuation list. (8) In subsection (2) of this section “ the appropriate multiplier ” means such multiplier as the Secretary of State may by order made by statutory instrument prescribe and different multipliers may be so prescribed in relation to different cases . (9) A statutory instrument containing an order under subsection (8) of this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

37A Compensation for possession obtained by misrepresentation

(1) Where the court— (a) makes an order for the termination of the current tenancy but does not make an order for the grant of a new tenancy, or (b) refuses an order for the grant of a new tenancy, and it subsequently made to appear to the court that the order was obtained, or the court was induced to refuse the grant, by misrepresentation or the concealment of material facts, the court may order the landlord to pay to the tenant such sum as appears sufficient as compensation for damage or loss sustained by the tenant as the result of the order or refusal. (2) Where— (a) the tenant has quit the holding— (i) after making but withdrawing an application under section 24(1) of this Act; or (ii) without making such an application; and (b) it is made to appear to the court that he did so by reason of misrepresentation or the concealment of material facts, the court may order the landlord to pay to the tenant such sum as appears sufficient as compensation for damage or loss sustained by the tenant as the result of quitting the holding.

38 Restriction on agreements excluding provisions of Part II.

(1) Any agreement relating to a tenancy to which this Part of this Act applies (whether contained in the instrument creating the tenancy or not) shall be void (except as provided by section 38A of this Act) in so far as it purports to preclude the tenant from making an application or request under this Part of this Act or provides for the termination or the surrender of the tenancy in the event of his making such an application or request or for the imposition of any penalty or disability on the tenant in that event. (2) Where— (a) during the whole of the five years immediately preceding the date on which the tenant under a tenancy to which this Part of this Act applies is to quit the holding, premises being or comprised in the holding have been occupied for the purposes of a business carried on by the occupier or for those and other purposes, and (b) if during those five years there was a change in the occupier of the premises, the person who was the occupier immediately after the change was the successor to the business carried on by the person who was the occupier immediately before the change, any agreement (whether contained in the instrument creating the tenancy or not and whether made before or after the termination of that tenancy) which purports to exclude or reduce compensation under section 37 of this Act shall to that extent be void, so however that this subsection shall not affect any agreement as to the amount of any such compensation which is made after the right to compensation has accrued. (3) In a case not falling within the last foregoing subsection the right to compensation conferred by section 37 of this Act may be excluded or modified by agreement. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

38A Agreements to exclude provisions of Part 2

(1) The persons who will be the landlord and the tenant in relation to a tenancy to be granted for a term of years certain which will be a tenancy to which this Part of this Act applies may agree that the provisions of sections 24 to 28 of this Act shall be excluded in relation to that tenancy. (2) The persons who are the landlord and the tenant in relation to a tenancy to which this Part of this Act applies may agree that the tenancy shall be surrendered on such date or in such circumstances as may be specified in the agreement and on such terms (if any) as may be so specified. (3) An agreement under subsection (1) above shall be void unless— (a) the landlord has served on the tenant a notice in the form, or substantially in the form, set out in Schedule 1 to the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 (“the 2003 Order”); and (b) the requirements specified in Schedule 2 to that Order are met. (4) An agreement under subsection (2) above shall be void unless— (a) the landlord has served on the tenant a notice in the form, or substantially in the form, set out in Schedule 3 to the 2003 Order; and (b) the requirements specified in Schedule 4 to that Order are met.

39 Saving for compulsory acquisitions.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) If the amount of the compensation which would have been payable under section thirty-seven of this Act if the tenancy had come to an end in circumstances giving rise to compensation under that section and the date at which the acquiring authority obtained possession had been the termination of the current tenancy exceeds the amount of the compensation payable under section 121 of the Lands Clauses Consolidation Act 1845 or section 20 of the Compulsory Purchase Act 1965 in the case of a tenancy to which this Part of this Act applies, that compensation shall be increased by the amount of the excess. (3) Nothing in section twenty-four of this Act shall affect the operation of the said section one hundred and twenty-one.

40 Duty of tenants and landlords of business premises to give information to each other.

(1) Where a person who is an owner of an interest in reversion expectant (whether immediately or not) on a tenancy of any business premises has served on the tenant a notice in the prescribed form requiring him to do so, it shall be the duty of the tenant to give the appropriate person in writing the information specified in subsection (2) below. (2) That information is— (a) whether the tenant occupies the premises or any part of them wholly or partly for the purposes of a business carried on by him; (b) whether his tenancy has effect subject to any sub-tenancy on which his tenancy is immediately expectant and, if so— (i) what premises are comprised in the sub-tenancy; (ii) for what term it has effect (or, if it is terminable by notice, by what notice it can be terminated); (iii) what is the rent payable under it; (iv) who is the sub-tenant; (v) (to the best of his knowledge and belief) whether the sub-tenant is in occupation of the premises or of part of the premises comprised in the sub-tenancy and, if not, what is the sub-tenant’s address; (vi) whether an agreement is in force excluding in relation to the sub-tenancy the provisions of sections 24 to 28 of this Act; and (vii) whether a notice has been given under section 25 or 26(6) of this Act, or a request has been made under section 26 of this Act, in relation to the sub-tenancy and, if so, details of the notice or request; and (c) (to the best of his knowledge and belief) the name and address of any other person who owns an interest in reversion in any part of the premises. (3) Where the tenant of any business premises who is a tenant under such a tenancy as is mentioned in section 26(1) of this Act has served on a reversioner or a reversioner’s mortgagee in possession a notice in the prescribed form requiring him to do so, it shall be the duty of the person on whom the notice is served to give the appropriate person in writing the information specified in subsection (4) below. (4) That information is— (a) whether he is the owner of the fee simple in respect of the premises or any part of them or the mortgagee in possession of such an owner, (b) if he is not, then (to the best of his knowledge and belief)— (i) the name and address of the person who is his or, as the case may be, his mortgagor’s immediate landlord in respect of those premises or of the part in respect of which he or his mortgagor is not the owner in fee simple; (ii) for what term his or his mortgagor’s tenancy has effect and what is the earliest date (if any) at which that tenancy is terminable by notice to quit given by the landlord; and (iii) whether a notice has been given under section 25 or 26(6) of this Act, or a request has been made under section 26 of this Act, in relation to the tenancy and, if so, details of the notice or request; (c) (to the best of his knowledge and belief) the name and address of any other person who owns an interest in reversion in any part of the premises; and (d) if he is a reversioner, whether there is a mortgagee in possession of his interest in the premises and, if so, (to the best of his knowledge and belief) what is the name and address of the mortgagee. (5) A duty imposed on a person by this section is a duty— (a) to give the information concerned within the period of one month beginning with the date of service of the notice; and (b) if within the period of six months beginning with the date of service of the notice that person becomes aware that any information which has been given in pursuance of the notice is not, or is no longer, correct, to give the appropriate person correct information within the period of one month beginning with the date on which he becomes aware. (6) This section shall not apply to a notice served by or on the tenant more than two years before the date on which apart from this Act his tenancy would come to an end by effluxion of time or could be brought to an end by notice to quit given by the landlord. (7) Except as provided by section 40A of this Act, the appropriate person for the purposes of this section and section 40A(1) of this Act is the person who served the notice under subsection (1) or (3) above. (8) In this section— “business premises” means premises used wholly or partly for the purposes of a business; “mortgagee in possession” includes a receiver appointed by the mortgagee or by the court who is in receipt of the rents and profits, and “his mortgagor” shall be construed accordingly; “reversioner” means any person having an interest in the premises, being an interest in reversion expectant (whether immediately or not) on the tenancy; “reversioner’s mortgagee in possession” means any person being a mortgagee in possession in respect of such an interest; and “sub-tenant” includes a person retaining possession of any premises by virtue of the Rent (Agriculture) Act 1976 or the Rent Act 1977 after the coming to an end of a sub-tenancy, and “sub-tenancy” includes a right so to retain possession.

40A Duties in transfer cases

(1) If a person on whom a notice under section 40(1) or (3) of this Act has been served has transferred his interest in the premises or any part of them to some other person and gives the appropriate person notice in writing— (a) of the transfer of his interest; and (b) of the name and address of the person to whom he transferred it, on giving the notice he ceases in relation to the premises or (as the case may be) to that part to be under any duty imposed by section 40 of this Act. (2) If— (a) the person who served the notice under section 40(1) or (3) of this Act (“the transferor”) has transferred his interest in the premises to some other person (“the transferee”); and (b) the transferor or the transferee has given the person required to give the information notice in writing— (i) of the transfer; and (ii) of the transferee’s name and address, the appropriate person for the purposes of section 40 of this Act and subsection (1) above is the transferee. (3) If— (a) a transfer such as is mentioned in paragraph (a) of subsection (2) above has taken place; but (b) neither the transferor nor the transferee has given a notice such as is mentioned in paragraph (b) of that subsection, any duty imposed by section 40 of this Act may be performed by giving the information either to the transferor or to the transferee.

40B Proceedings for breach of duties to give information

A claim that a person has broken any duty imposed by section 40 of this Act may be made the subject of civil proceedings for breach of statutory duty; and in any such proceedings a court may order that person to comply with that duty and may make an award of damages.

41 Trusts.

(1) Where a tenancy is held on trust, occupation by all or any of the beneficiaries under the trust, and the carrying on of a business by all or any of the beneficiaries, shall be treated for the purposes of section twenty-three of this Act as equivalent to occupation or the carrying on of a business by the tenant; and in relation to a tenancy to which this Part of this Act applies by virtue of the foregoing provisions of this subsection— (a) references (however expressed) in this Part of this Act and in the Ninth Schedule to this Act to the business of, or to carrying on of business, use, occupation or enjoyment by, the tenant shall be construed as including references to the business of, or to carrying on of business, use, occupation or enjoyment by, the beneficiaries or beneficiary; (b) the reference in paragraph (d) of subsection (1) of section thirty-four of this Act to the tenant shall be construed as including the beneficiaries or beneficiary; and (c) a change in the persons of the trustees shall not be treated as a change in the person of the tenant. (2) Where the landlord’s interest is held on trust the references in paragraph (g) of subsection (1) of section thirty of this Act to the landlord shall be construed as including references to the beneficiaries under the trust or any of them; but, except in the case of a trust arising under a will or on the intestacy of any person, the reference in subsection (2) of that section to the creation of the interest therein mentioned shall be construed as including the creation of the trust. (3) Where a tenancy is held on trust, section 43ZA(2) has effect as if— (a) paragraph (b) were omitted, and (b) the condition in paragraph (c)(i) were a condition that the terms of the tenancy require at least one individual who is a trustee or a beneficiary under the trust to occupy the dwelling-house as a home (whether or not as that individual's only or principal home).

41A Partnerships.

(1) The following provisions of this section shall apply where— (a) a tenancy is held jointly by two or more persons (in this section referred to as the joint tenants); and (b) the property comprised in the tenancy is or includes premises occupied for the purposes of a business; and (c) the business (or some other business) was at some time during the existence of the tenancy carried on in partnership by all the persons who were then the joint tenants or by those and other persons and the joint tenants’ interest in the premises was then partnership property; and (d) the business is carried on (whether alone or in partnership with other persons) by one or some only of the joint tenants and no part of the property comprised in the tenancy is occupied, in right of the tenancy, for the purposes of a business carried on (whether alone or in partnership with other persons) by the other or others. (2) In the following provisions of this section those of the joint tenants who for the time being carry on the business are referred to as the business tenants and the others as the other joint tenants. (3) Any notice given by the business tenants which, had it been given by all the joint tenants, would have been— (a) a tenant’s request for a new tenancy made in accordance with section 26 of this Act; or (b) a notice under subsection (1) or subsection (2) of section 27 of this Act; shall be treated as such if it states that it is given by virtue of this section and sets out the facts by virtue of which the persons giving it are the business tenants; and references in those sections and in section 24A of this Act to the tenant shall be construed accordingly. (4) A notice given by the landlord to the business tenants which, had it been given to all the joint tenants, would have been a notice under section 25 of this Act shall be treated as such a notice, and references in that section to the tenant shall be construed accordingly. (5) An application under section 24(1) of this Act for a new tenancy may, instead of being made by all the joint tenants, be made by the business tenants alone; and where it is so made— (a) this Part of this Act shall have effect, in relation to it, as if the references therein to the tenant included references to the business tenants alone; and (b) the business tenants shall be liable, to the exclusion of the other joint tenants, for the payment of rent and the discharge of any other obligation under the current tenancy for any rental period beginning after the date specified in the landlord’s notice under section 25 of this Act or, as the case may be, beginning on or after the date specified in their request for a new tenancy. (6) Where the court makes an order under section 29 of this Act for the grant of a new tenancy it may order the grant to be made to the business tenants or to them jointly with the persons carrying on the business in partnership with them, and may order the grant to be made subject to the satisfaction, within a time specified by the order, of such conditions as to guarantors, sureties or otherwise as appear to the court equitable, having regard to the omission of the other joint tenants from the persons who will be the tenants under the new tenancy. (7) The business tenants shall be entitled to recover any amount payable by way of compensation under section 37 or section 59 of this Act.

42 Groups of companies.

(1) For the purposes of this section two bodies corporate shall be taken to be members of a group if and only if one is a subsidiary of the other or both are subsidiaries of a third body corporateor the same person has a controlling interest in both. ... ... ... (2) Where a tenancy is held by a member of a group, occupation by another member of the group, and the carrying on of a business by another member of the group, shall be treated for the purposes of section 23 of this Act as equivalent to occupation or the carrying on of a business by the member of the group holding the tenancy; and in relation to a tenancy to which this Part of this Act applies by virtue of the foregoing provisions of this subsection— (a) references (however expressed) in this Part of this Act and in the Ninth Schedule to this Act to the business of or to use occupation or enjoyment by the tenant shall be construed as including references to the business of or to use occupation or enjoyment by the said other member; (b) the reference in paragraph (d) of subsection (1) of section 34 of this Act to the tenant shall be construed as including the said other member; and (c) an assignment of the tenancy from one member of the group to another shall not be treated as a change in the person of the tenant. (3) Where the landlord’s interest is held by a member of a group— (a) the reference in paragraph (g) of subsection (1) of section 30 of this Act to intended occupation by the landlord for the purposes of a business to be carried on by him shall be construed as including intended occupation by any member of the group for the purposes of a business to be carried on by that member; and (b) the reference in subsection (2) of that section to the purchase or creation of any interest shall be construed as a reference to a purchase from or creation by a person other than a member of the group.

43 Tenancies excluded from Part II.

(1) This Part of this Act does not apply— (a) to a tenancy of an agricultural holding which is a tenancy in relation to which the Agricultural Holdings Act 1986 applies or a tenancy which would be a tenancy of an agricultural holding in relation to which that Act applied if subsection (3) of section 2 of that Act did not have effect or, in a case where approval was given under subsection (1) of that section, if that approval had not been given; (aa) to a farm business tenancy; (b) to a tenancy created by a mining lease; (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d) to a tenancy of premises licensed for the sale of intoxicating liquor for consumption on the premises, other than— (i) premises which are structurally adapted to be used, and are bona fide used, for a business which comprises one or both of the following, namely, the reception of guests and travellers desiring to sleep on the premises and the carrying on of a restaurant, being a business a substantial proportion of which consists of transactions other than the sale of intoxicating liquor; (ii) premises adapted to be used, and bona fide used, only for one or more of the following purposes, namely, for judicial or public administrative purposes, or as a theatre or place of public or private entertainment, or as public gardens or picture galleries, or for exhibitions, or for any similar purpose to which the holding of the licence is merely ancillary; (iii) premises adapted to be used, and bona fide used, as refreshment rooms at a railway station. (2) This Part of this Act does not apply to a tenancy granted by reason that the tenant was the holder of an office, appointment or employment from the grantor thereof and continuing only so long as the tenant holds the office, appointment or employment, or terminable by the grantor on the tenant’s ceasing to hold it, or coming to an end at a time fixed by reference to the time at which the tenant ceases to hold it: Provided that this subsection shall not have effect in relation to a tenancy granted after the commencement of this Act unless the tenancy was granted by an instrument in writing which expressed the purpose for which the tenancy was granted. (3) This Part of this Act does not apply to a tenancy granted for a term certain not exceeding six months unless— (a) the tenancy contains provision for renewing the term or for extending it beyond six months from its beginning; or (b) the tenant has been in occupation for a period which, together with any period during which any predecessor in the carrying on of the business carried on by the tenant was in occupation, exceeds twelve months. (4) This Part does not apply to a tenancy— (a) the primary purpose of which is to grant code rights within the meaning of Schedule 3A to the Communications Act 2003 (the electronic communications code), and (b) which is granted after that Schedule comes into force.

43ZA Further exclusion of home business tenancies from Part 2

(1) This Part of this Act does not apply to a home business tenancy. (2) A home business tenancy is a tenancy under which— (a) a dwelling-house is let as a separate dwelling, (b) the tenant or, where there are joint tenants, each of them, is an individual, and (c) the terms of the tenancy— (i) require the tenant or, where there are joint tenants, at least one of them, to occupy the dwelling-house as a home (whether or not as that individual's only or principal home), (ii) permit a home business to be carried on in the dwelling-house, or permit the immediate landlord to give consent for a home business to be carried on in the dwelling-house, and (iii) do not permit a business other than a home business to be carried on in the dwelling-house. (3) The terms of a tenancy permit the carrying on of a home business if they permit the carrying on of a particular home business, a particular description of home business or any home business. (4) A “home business” is a business of a kind which might reasonably be carried on at home. (5) A business is not to be treated as a home business if it involves the supply of alcohol for consumption on licensed premises which form all or part of the dwelling-house. (6) The appropriate national authority may by regulations prescribe cases in which businesses are, or are not, to be treated as home businesses. (7) Regulations under this section— (a) may include transitional or saving provision, (b) may make different provision for different purposes, (c) are to be made by statutory instrument, (d) may not be made unless— (i) in the case of regulations made by the Secretary of State, a draft of the statutory instrument containing the regulations has been laid before Parliament and approved by a resolution of each House of Parliament, (ii) in the case of regulations made by the Welsh Ministers, a draft of the statutory instrument containing the regulations has been laid before, and approved by a resolution of, the National Assembly for Wales. (8) For the purposes of this section, a dwelling-house which is let for mixed residential and business use is capable of being let as a dwelling. (9) If, under a tenancy, a dwelling-house is let together with other land, then, for the purposes of this section— (a) if the main purpose of the letting is the provision of a home for the tenant, the other land is to be treated as part of the dwelling-house, and (b) if the main purpose of the letting is not as mentioned in paragraph (a), the tenancy is to be treated as not being one under which a dwelling-house is let as a separate dwelling. (10) In this section— “ the appropriate national authority ” means— in relation to England, the Secretary of State, and in relation to Wales, the Welsh Ministers; “dwelling-house” may be a house or part of a house; “ let ” includes sub-let; “ licensed premises ” has the same meaning as in the Licensing Act 2003 (see section 193 of that Act); “ supply of alcohol ” has the same meaning as in the Licensing Act 2003 (see section 14 of that Act).

43A Jurisdiction of county court to make declaration.

Where the rateable value of the holding is such that the jurisdiction conferred on the court by any other provision of this Part of this Act is, by virtue of section 63 of this Act, exercisable by the county court, the county court shall have jurisdiction (but without prejudice to the jurisdiction of the High Court) to make any declaration as to any matter arising under this Part of this Act, whether or not any other relief is sought in the proceedings.

44 Meaning of the landlord in Part II, and provisions as to mesne landlords, etc.

(1) Subject to subsections (1A) and (2) below, , in this Part of this Act the expression “the landlord”, in relation to a tenancy (in this section referred to as “ the relevant tenancy ”), means the person (whether or not he is the immediate landlord) who is the owner of that interest in the property comprised in the relevant tenancy which for the time being fulfils the following conditions, that is to say— (a) that it is an interest in reversion expectant (whether immediately or not) on the termination of the relevant tenancy, and (b) that it is either the fee simple or a tenancy which will not come to an end within fourteen months by effluxion of time and, if it is such a tenancy, that no notice has been given by virtue of which it will come to an end within fourteen months or any further time by which it may be continued under section 36(2) or section 64 of this Act, and is not itself in reversion expectant (whether immediately or not) on an interest which fulfils those conditions. (1A) The reference in subsection (1) above to a person who is the owner of an interest such as is mentioned in that subsection is to be construed, where different persons own such interests in different parts of the property, as a reference to all those persons collectively. (2) References in this Part of this Act to a notice to quit given by the landlord are references to a notice to quit given by the immediate landlord. (3) The provisions of the Sixth Schedule to this Act shall have effect for the application of this Part of this Act to cases where the immediate landlord of the tenant is not the owner of the fee simple in respect of the holding.

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46 Interpretation of Part II.

(1) In this Part of this Act:— “ business ” has the meaning assigned to it by subsection (2) of section twenty-three of this Act; “current tenancy” means the tenancy under which the tenant holds for the time being; “ date of termination ” has the meaning assigned to it by subsection (1) of section twenty-five of this Act; subject to the provisions of section thirty-two of this Act, “ the holding ” has the meaning assigned to it by subsection (3) of section twenty-three of this Act; “interim rent” has the meaning given by section 24A(1) of this Act; “ mining lease ” has the same meaning as in the Landlord and Tenant Act 1927. (2) For the purposes of this Part of this Act, a person has a controlling interest in a company, if, had he been a company, the other company would have been its subsidiary; and in this Part— “company” has the meaning given by section 1(1) of the Companies Act 2006; and “subsidiary” has the meaning given by section 1159 of that Act.

47 Time for making claims for compensation for improvements.

(1) Where a tenancy is terminated by notice to quit, whether given by the landlord or by the tenant, or by a notice given by any person under Part I or Part II of this Act, the time for making a claim for compensation at the termination of the tenancy shall be a time falling within the period of three months beginning on the date on which the notice is given: Provided that where the tenancy is terminated by a tenant’s request for a new tenancy under section twenty-six of this Act, the said time shall be a time falling within the period of three months beginning on the date on which the landlord gives notice, or (if he has not given such a notice) the latest date on which he could have given notice, under subsection (6) of the said section twenty-six or, as the case may be, paragraph (a) of subsection (4) of section fifty-seven or paragraph (b) of subsection (1) of section fifty-eight of this Act. (2) Where a tenancy comes to an end by effluxion of time, the time for making such a claim shall be a time not earlier than six nor later than three months before the coming to an end of the tenancy. (3) Where a tenancy is terminated by forfeiture or re-entry, the time for making such a claim shall be a time falling within the period of three months beginning with the effective date of the order of the court for the recovery of possession of the land comprised in the tenancy or, if the tenancy is terminated by re-entry without such an order, the period of three months beginning with the date of the re-entry. (4) In the last foregoing subsection the reference to the effective date of an order is a reference to the date on which the order is to take effect according to the terms thereof or the date on which it ceases to be subject to appeal, whichever is the later. (5) In subsection (1) of section one of the Act of 1927, for paragraphs (a) and (b) (which specify the time for making claims for compensation) there shall be substituted the words “and within the time limited by section forty-seven of the Landlord and Tenant Act, 1954”.

48 Amendments as to limitations on tenant’s right to compensation.

(1) So much of paragraph (b) of subsection (1) of section two of the Act of 1927 as provides that a tenant shall not be entitled to compensation in respect of any improvement made in pursuance of a statutory obligation shall not apply to any improvement begun after the commencement of this Act, but section three of the Act of 1927 (which enables a landlord to object to a proposed improvement) shall not have effect in relation to an improvement made in pursuance of a statutory obligation except so much thereof as— (a) requires the tenant to serve on the landlord notice of his intention to make the improvement together with such a plan and specification as are mentioned in that section and to supply copies of the plan and specification at the request of any superior landlord; and (b) enables the tenant to obtain at his expense a certificate from the landlord or the tribunal that the improvement has been duly executed. (2) Paragraph (c) of the said subsection (1) (which provides that a tenant shall not be entitled to compensation in respect of any improvement made less than three years before the termination of the tenancy) shall not apply to any improvement begun after the commencement of this Act. (3) No notice shall be served after the commencement of this Act under paragraph (d) of the said subsection (1) (which excludes rights to compensation where the landlord serves on the tenant notice offering a renewal of the tenancy on reasonable terms).

49 Restrictions on contracting out.

In section nine of the Act of 1927 (which provides that Part I of that Act shall apply notwithstanding any contract to the contrary made after the date specified in that section) the proviso (which requires effect to be given to such a contract where it appears to the tribunal that the contract was made for adequate consideration) shall cease to have effect except as respects a contract made before the tenth day of December, nineteen hundred and fifty-three.

50 Interpretation of Part III.

In this Part of this Act the expression “Act of 1927” means the Landlord and Tenant Act 1927, the expression “compensation” means compensation under Part I of that Act in respect of an improvement, and other expressions used in this Part of this Act and in the Act of 1927 have the same meanings in this Part of this Act as in that Act.

51 Extension of Leasehold Property (Repairs) Act 1938.

(1) The Leasehold Property (Repairs) Act 1938 (which restricts the enforcement of repairing covenants in long leases of small houses) shall extend to every tenancy (whether of a house or of other property, and without regard to rateable value) where the following conditions are fulfilled, that is to say,— (a) that the tenancy was granted for a term of years certain of not less than seven years; (b) that three years or more of the term remain unexpired at the date of the service of the notice of dilapidations or, as the case may be, at the date of commencement of the action for damages; and (c) that the tenancy is neither a tenancy of an agricultural holding in relation to which the Agricultural Holdings Act 1986 applies nor a farm business tenancy (2) In accordance with the last foregoing subsection the said Act of 1938 shall be amended as follows— (a) in subsection (1) of section one, for the words “a house of rateable value of one hundred pounds or less” there shall be substituted the words “all or any of the property comprised in the lease”, and for the word “five” there shall be substituted the word “three” ; (b) in subsection (2) of section one, for the word “five” there shall be substituted the word “three” ; (c) in paragraph (b) of subsection (5) of section one, for the word “house” there shall be substituted the word “premises” and for the words from “relating” to the end of the paragraph there shall be substituted the words “or for giving effect to any order of a court or requirement by any authority under any enactment or any such byelaw or other provision as aforesaid” ; (d) in pargaraph (c) of subsection (5) of section one, for the word “house”, where it first occurs, there shall be substituted the words “premises as respects which the covenant or agreement is proposed to be enforced”, and for the words “the house” in the second place in which they occur there shall be substituted the words “those premises” ; (e) in section three, for the words “a house” there shall be substituted the word “premises”. (f) section four shall be omitted ; (g) in subsection (1) of section seven, in the definition of the expression “lease”, for the words “twenty-one years or more” there shall be substituted the words “seven years or more, not being a lease of an agricultural holding within the meaning of the Agricultural Holdings Act, 1948”. (3) The said Act of 1938 shall apply where there is an interest belonging to Her Majesty in right of the Crown or to a Government department, or held on behalf of Her Majesty for the purposes of a Government department, in like manner as if that interest were an interest not so belonging or held. (4) Subsection (2) of section twenty-three of the Landlord and Tenant Act 1927 (which authorises a tenant to serve documents on the person to whom he has been paying rent) shall apply in relation to any counter-notice to be served under the said Act of 1938. (5) This section shall apply to tenancies granted, and to breaches occurring, before or after the commencement of this Act, except that it shall not apply where the notice of dilapidations was served, or the action for damages begun, before the commencement of this Act. (6) In this section the expression “notice of dilapidations” means a notice under subsection (1) of section one hundred and forty-six of the Law of Property Act 1925.

52 Amendment of Law of Property Act 1925, s. 84.

(1) Subsection (12) of section eighty-four of the Law of Property Act 1925 (which provides that the procedure under that section for discharging or modifying covenants affecting freeholds shall extend to leaseholds held under a term of more than seventy years of which at least fifty years have expired) shall have effect as if for the word “seventy” there were substituted the word “forty” and for the word “fifty” there were substituted the word “twenty-five”. (2) This section shall have effect whether the term in question was created before or after the commencement of this Act.

53 Jurisdiction of county court where lessor refuses licence or consent.

(1) Where a landlord withholds his licence or consent— (a) to an assignment of the tenancy or a subletting, charging or parting with the possession of the demised property or any part thereof, or (b) to the making of an improvement on the demised property or any part thereof, or (c) to a change in the use of the demised property or any part thereof, or to the making of a specified use of that property, and the High Court has jurisdiction to make a declaration that the licence or consent was unreasonably withheld, then without prejudice to the jurisdiction of the High Court the county court shall have the like jurisdiction whatever the net annual value for rating of the demised property is to be taken to be for the purposes of the County Courts Act 1984 and notwithstanding that the tenant does not seek any relief other than the declaration. (2) Where on the making of an application to the county court for such a declaration the court is satisfied that the licence or consent was unreasonably withheld, the court shall make a declaration accordingly. (3) The foregoing provisions of this section shall have effect whether the tenancy in question was created before or after the commencement of this Act and whether the refusal of the licence or consent occurred before or after the commencement of this Act. (4) Nothing in this section shall be construed as conferring jurisdiction on the county court to grant any relief other than such a declaration as aforesaid. (5) This section does not apply to occupation contracts within the meaning of section 7 of the Renting Homes (Wales) Act 2016 (anaw 1).

54 Determination of tenancies of derelict land.

Where a landlord, having power to serve a notice to quit, on an application to the county court satisfies the court— (a) that he has taken all reasonable steps to communicate with the person last known to him to be the tenant, and has failed to do so, (b) that during the period of six months ending with the date of the application neither the tenant nor any person claiming under him has been in occupation of the property comprised in the tenancy or any part thereof, and (c) that during the said period either no rent was payable by the tenant or the rent payable has not been paid, the court may if it thinks fit by order determine the tenancy as from the date of the order.

54A Rent reviews and arrangements for new tenancies

(1) Schedule 7A makes provision about rent reviews. (2) Schedule 7B makes provision about terms relating to rent in arrangements which require a new tenancy to be granted or taken.

55 Compensation for possession obtained by misrepresentation.

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56 Application to Crown.

(1) Subject to the provisions of this and the four next following sections, Part II of this Act shall apply where there is an interest belonging to Her Majesty in right of the Crown or the Duchy of Lancaster or belonging to the Duchy of Cornwall, or belonging to a Government department or held on behalf of Her Majesty for the purposes of a Government department, in like manner as if that interest were an interest not so belonging or held. (2) The provisions of the Eighth Schedule to this Act shall have effect as respects the application of Part II of this Act to cases where the interest of the landlord belongs to Her Majesty in right of the Crown or the Duchy of Lancaster or to the Duchy of Cornwall. (3) Where a tenancy is held by or on behalf of a Government department and the property comprised therein is or includes premises occupied for any purposes of a Government department, the tenancy shall be one to which Part II of this Act applies; and for the purposes of any provision of the said Part II or the Ninth Schedule to this Act which is applicable only if either or both of the following conditions are satisfied, that is to say— (a) that any premises have during any period been occupied for the purposes of the tenant’s business; (b) that on any change of occupier of any premises the new occupier succeeded to the business of the former occupier, the said conditions shall be deemed to be satisfied respectively, in relation to such a tenancy, if during that period or, as the case may be, immediately before and immediately after the change, the premises were occupied for the purposes of a Government department. (4) The last foregoing subsection shall apply in relation to any premises provided by a Government department without any rent being payable to the department therefor as if the premises were occupied for the purposes of a Government department. (5) The provisions of Parts III and IV of this Act amending any other enactment which binds the Crown or applies to land belonging to Her Majesty in right of the Crown or the Duchy of Lancaster, or land belonging to the Duchy of Cornwall, or to land belonging to any Government department, shall bind the Crown or apply to such land. (6) Sections fifty-three and fifty-four of this Act shall apply where the interest of the landlord, or any other interest in the land in question, belongs to Her Majesty in right of the Crown or the Duchy of Lancaster or to the Duchy of Cornwall, or belongs to a Government department or is held on behalf of Her Majesty for the purposes of a Government department, in like manner as if that interest were an interest not so belonging or held. (6A) Section 54A and Schedules 7A and 7B apply where the interest of the landlord, or any other interest in the land in question, belongs to His Majesty in right of the Crown or the Duchy of Lancaster or to the Duchy of Cornwall, or belongs to a Government department or is held on behalf of His Majesty for the purposes of a Government department, in like manner as if that interest were an interest not so belonging or held. (7) Part I of this Act shall apply where— (a) there is an interest belonging to Her Majesty in right of the Crown and that interest is under the management of the Crown Estate Commissioners; or (b) there is an interest belonging to Her Majesty in right of the Duchy of Lancaster or belonging to the Duchy of Cornwall; as if it were an interest not so belonging.

57 Modification on grounds of public interest of rights under Part II.

(1) Where the interest of the landlord or any superior landlord in the property comprised in any tenancy belongs to or is held for the purposes of a Government department or is held by a local authority, statutory undertakers or a development corporation, the Minister or Board in charge of any Government department may certify that it is requisite for the purposes of the first-mentioned department, or, as the case may be, of the authority, undertakers or corporation, that the use or occupation of the property or a part thereof shall be changed by a specified date. (2) A certificate under the last foregoing subsection shall not be given unless the owner of the interest belonging or held as mentioned in the last foregoing subsection has given to the tenant a notice stating— (a) that the question of the giving of such a certificate is under consideration by the Minister or Board specified in the notice, and (b) that if within twenty-one days of the giving of the notice the tenant makes to that Minister or Board representations in writing with respect to that question, they will be considered before the question is determined, and if the tenant makes any such representations within the said twenty-one days the Minister or Board shall consider them before determining whether to give the certificate. (3) Where a certificate has been given under subsection (1) of this section in relation to any tenancy, then,— (a) if a notice given under subsection (1) of section twenty-five of this Act specifies as the date of termination a date not earlier than the date specified in the certificate and contains a copy of the certificate subsection (6) of that section shall not apply to the notice and no application for a new tenancy shall be made by the tenant under subsection (1) ofsection twenty-four of this Act; (b) if such a notice specifies an earlier date as the date of termination and contains a copy of the certificate, then if the court makes an order under Part II of this Act for the grant of a new tenancy the new tenancy shall be for a term expiring not later than the date specified in the certificate and shall not be a tenancy to which Part II of this Act applies. (4) Where a tenant makes a request for a new tenancy under section twenty-six of this Act, and the interest of the landlord or any superior landlord in the property comprised in the current tenancy belongs or is held as mentioned in subsection (1) of this section, the following provisions shall have effect:— (a) if a certificate has been given under the said subsection (1) in relation to the current tenancy, and within two months after the making of the request the landlord gives notice to the tenant that the certificate has been given and the notice contains a copy of the certificate, then,— (i) if the date specified in the certificate is not later than that specified in the tenant’s request for a new tenancy, the tenant shall not make an application under section twenty-four of this Act for the grant of a new tenancy; (ii) if, in any other case, the court makes an order under Part II of this Act for the grant of a new tenancy the new tenancy shall be for a term expiring not later than the date specified in the certificate and shall not be a tenancy to which Part II of this Act applies; (b) if no such certificate has been given but notice under subsection (2) of this section has been given before the making of the request or within two months thereafter, the request shall not have effect, without prejudice however to the making of a new request when the Minister or Board has determined whether to give a certificate. (5) Where application is made to the court under Part II of this Act for the grant of a new tenancy and the landlord’s interest in the property comprised in the tenancy belongs or is held as mentioned in subsection (1) of this section, the Minister or Board in charge of any Government department may certify that it is necessary in the public interest that if the landlord makes an application in that behalf the court shall determine as a term of the new tenancy that it shall be terminable by six months’ notice to quit given by the landlord. Subsection (2) of this section shall apply in relation to a certificate under this subsection, and if notice under the said subsection (2) has been given to the tenant— (a) the court shall not determine the application for the grant of a new tenancy until the Minister or Board has determined whether to give a certificate, (b) if a certificate is given, the court shall on the application of the landlord determine as a term of the new tenancy that it shall be terminable as aforesaid, and section twenty-five of this Act shall apply accordingly. (6) The foregoing provisions of this section shall apply to an interest held by a Local Health Board or Special Health Authority, as they apply to an interest held by a local authority but with the substitution, for the reference to the purposes of the authority, of a reference to the purposes of the National Health Service Act 2006 or the National Health Service (Wales) Act 2006. (7) Where the interest of the landlord or any superior landlord in the property comprised in any tenancy belongs to the National Trust the Secretary of State may certify that it is requisite, for the purpose of securing that the property will as from a specified date be used or occupied in a manner better suited to the nature thereof, that the use or occupation of the property should be changed; and subsections (2) to (4) of this section shall apply in relation to certificates under this subsection, and to cases where the interest of the landlord or any superior landlord belongs to the National Trust, as those subsections apply in relation to certificates under subsection (1) of this section and to cases where the interest of the landlord or any superior landlord belongs or is held as mentioned in that subsection. (8) In this and the next following section the expression “Government department” does not include the Crown Estate Commissioners and the expression “landlord” has the same meaning as in Part II of this Act; and in the last foregoing subsection the expression “National Trust” means the National Trust for Places of Historic Interest or Natural Beauty.

58 Termination on special grounds of tenancies to which Part II applies.

(1) Where the landlord’s interest in the property comprised in any tenancy belongs to or is held for the purposes of a Government department, and the Minister or Board in charge of any Government department certifies that for reasons of national security it is necessary that the use or occupation of the property should be discontinued or changed, then— (a) if the landlord gives a notice under subsection (1) of section twenty-five of this Act containing a copy of the certificate, subsection (6) of that section shall not apply to the notice and no application for a new tenancy shall be made by the tenant under subsection (1) of section twenty-four of this Act; (b) if (whether before or after the giving of the certificate) the tenant makes a request for a new tenancy under section twenty-six of this Act, and within two months after the making of the request the landlord gives notice to the tenant that the certificate has been given and the notice contains a copy of the certificate,— (i) the tenant shall not make an application under section twenty-four of this Act for the grant of a new tenancy, and (ii) if the notice specifies as the date on which the tenancy is to terminate a date earlier than that specified in the tenant’s request as the date on which the new tenancy is to begin but neither earlier than six months from the giving of the notice nor earlier than the earliest date at which apart from this Act the tenancy would come to an end or could be brought to an end, the tenancy shall terminate on the date specified in the notice instead of that specified in the request. (2) Where the landlord’s interest in the property comprised in any tenancy belongs to or is held for the purposes of a Government department, nothing in this Act shall invalidate an agreement to the effect— (a) that on the giving of such a certificate as is mentioned in the last foregoing subsection the tenancy may be terminated by notice to quit given by the landlord of such length as may be specified in the agreement, if the notice contains a copy of the certificate; and (b) that after the giving of such a notice containing such a copy the tenancy shall not be one to which Part II of this Act applies. (3) Where the landlord’s interest in the property comprised in any tenancy is held by statutory undertakers, nothing in this Act shall invalidate an agreement to the effect— (a) that where the Minister or Board in charge of a Government department certifies that possession of the property comprised in the tenancy or a part thereof is urgently required for carrying out repairs (whether on that property or elsewhere) which are needed for the proper operation of the landlord’s undertaking, the tenancy may be terminated by notice to quit given by the landlord of such length as may be specified in the agreement, if the notice contains a copy of the certificate; and (b) that after the giving of such a notice containing such a copy, the tenancy shall not be one to which Part II of this Act applies. (4) Where the court makes an order under Part II of this Act for the grant of a new tenancy and the Minister or Board in charge of any Government department certifies that the public interest requires the tenancy to be subject to such a term as is mentioned in paragraph (a) or (b) of this subsection, as the case may be, then— (a) if the landlord’s interest in the property comprised in the tenancy belongs to or is held for the purposes of a Government department, the court shall on the application of the landlord determine as a term of the new tenancy that such an agreement as is mentioned in subsection (2) of this section and specifying such length of notice as is mentioned in the certificate shall be embodied in the new tenancy; (b) if the landlord’s interest in that property is held by statutory undertakers, the court shall on the application of the landlord determine as a term of the new tenancy that such an agreement as is mentioned in subsection (3) of this section and specifying such length of notice as is mentioned in the certificate shall be embodied in the new tenancy.

59 Compensation for exercise of powers under ss. 57 and 58.

(1) Where by virtue of any certificate given for the purposes of either of the two last foregoing sections or, subject to subsection (1A) below, section 60A below the tenant is precluded from obtaining an order for the grant of a new tenancy, or of a new tenancy for a term expiring later than a specified date, the tenant shall be entitled on quitting the premises to recover from the owner of the interest by virtue of which the certificate was given an amount by way of compensation, and subsections (2), (3)to (3B) and (5) to (7) of section thirty-seven of this Act shall with the necessary modifications apply for the purposes of ascertaining the amount. (1A) No compensation shall be recoverable under subsection (1) above where the certificate was given under section 60A below and either— (a) the premises vested in the Welsh Development Agency under section 7 (property of Welsh Industrial Estates Corporation) or 8 (land held under Local Employment Act 1972) of the Welsh Development Agency Act 1975, and were transferred to the National Assembly for Wales by virtue of the Welsh Development Agency (Transfer of Functions to the National Assembly for Wales and Abolition) Order 2005. or (b) the tenant was not the tenant of the premises when the interest by virtue of which the certificate was given was acquired by the Welsh Development Agency or, if the interest was acquired on or after 1 April 2006, by the National Assembly for Wales in exercise of functions transferred to it by the Welsh Development Agency (Transfer of Functions to the National Assembly for Wales and Abolition) Order 2005 (1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Subsections (2) and (3) of section thirty-eight of this Act shall apply to compensation under this section as they apply to compensation under section thirty-seven of this Act.

60 †Special provisions as to premises provided under Distribution of Industry Acts 1945 and 1950, etc.

(1) Where the property comprised in a tenancy consists of premises of which the Secretary of State or the English Industrial Estates Corporation is the landlord, being premises situated in a locality which is either— (a) a development area . . . ; or (b) an intermediate area . . . ; and the Secretary of State certifies that it is necessary or expedient for achieving the purpose mentioned in section 2(1) of the said Act of 1972 that the use or occupation of the property should be changed, paragraphs (a) and (b) of subsection (1) of section fifty-eight of this Act shall apply as they apply where such a certificate is given as is mentioned in that subsection. (2) Where the court makes an order under Part II of this Act for the grant of a new tenancy of any such premises as aforesaid, and the Secretary of State certifies that it is necessary or expedient as aforesaid that the tenancy should be subject to a term, specified in the certificate, prohibiting or restricting the tenant from assigning the tenancy or sub-letting, charging or parting with possession of the premises or any part thereof or changing the use of the premises or any part thereof, the court shall determine that the terms of the tenancy shall include the terms specified in the certificate. (3) In this section “development area” and “intermediate area” mean an area for the time being specified as a development area or, as the case may be, as an intermediate area by an order made, or having effect as if made, under section 1 of the Industrial Development Act 1982.