Leasehold Reform (Ground Rent) Act 2022
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Change 1
7 Term reserving prohibited rent treated as reserving permitted rent
(1) This section applies where any term of a regulated lease to which a section specified in column 1 of the table applies reserves a prohibited rent. (2) The term has effect as if, in place of the prohibited rent, it reserved the rent specified in column 2 of the table. (3) Where the prohibited rent is reserved in respect of a period specified in column 3 of the table, or a share in the demised premises specified in column 4 of the table, or both, the term is treated as reserving the rent specified in column 2 of the table in respect of that period, that share, or that period and that share. Column 1 | Column 2 | Column 3 | Column 4 Section | Rent treated as reserved | Period for which rent reserved | Share in demised premises Section 4 (general rule) | peppercorn rent Section 5 (shared ownership leases) | peppercorn rent | tenant’s share Section 6 (replacement leases) | maximum permitted rent | excepted period | tenant’s share (where section 6(7) applies) Section 6 (replacement leases) | peppercorn rent | regulated period | tenant’s share (where section 6(7) applies) (4) The “maximum permitted rent” means the maximum rent permitted by section 6(2)(a). (5) The other terms of the regulated lease have effect with any modifications necessary because of subsections (2) and (3). (6) For the purposes of this section, the terms of a regulated lease include the terms of any contract relating to the lease. (7) Terms used in this section and in sections 4 to 6 have the same meaning in this section as in those sections.
7 Term reserving prohibited rent treated as reserving permitted rent
(1) This section applies where any term of a regulated lease to which a section specified in column 1 of the table applies reserves a prohibited rent. (2) The term has effect as if, in place of the prohibited rent, it reserved the rent specified in column 2 of the table. (3) Where the prohibited rent is reserved in respect of a period specified in column 3 of the table, or a share in the demised premises specified in column 4 of the table, or both, the term is treated as reserving the rent specified in column 2 of the table in respect of that period, that share, or that period and that share. Column 1 | Column 2 | Column 3 | Column 4 Section | Rent treated as reserved | Period for which rent reserved | Share in demised premises Section 4 (general rule) | peppercorn rent Section 5 (shared ownership leases) | peppercorn rent | tenant’s share Section 6 (replacement leases) | maximum permitted rent | excepted period | tenant’s share (where section 6(7) applies) Section 6 (replacement leases) | peppercorn rent | regulated period | tenant’s share (where section 6(7) applies) (4) The “maximum permitted rent” means the maximum rent permitted by section 6(2)(a). (5) The other terms of the regulated lease have effect with any modifications necessary because of subsections (2) and (3). (6) For the purposes of this section, the terms of a regulated lease include the terms of any contract relating to the lease. (7) Terms used in this section and in sections 4 to 6 have the same meaning in this section as in those sections.
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