Statutes of Northern Ireland

2001 Chapter 5

An Act to make provision for the redemption of certain ground rents and other periodic payments.

[20th March 2001]

BE IT ENACTED by being passed by the Northern Ireland Assembly and assented to by Her Majesty as follows:
 

(a) the land is used wholly for business purposes; or

(b) the rent-payer is prohibited by the terms of his title from using the land otherwise than wholly for business purposes.

(a) there is a conveyance of a dwelling-house to be held for an estate in fee simple or for a leasehold estate subject (in either case) to a ground rent; and

(b) the dwelling-house is in a compulsory registration area (within the meaning of the Land Registration Act).

(a) the ground rent is payable under a lease which has been the subject of a notice of a proposal to acquire the fee simple, or to obtain an extension, under section 2 of the Act of 1971; and

(b) the notice is capable of being withdrawn, but has not been withdrawn, under section 7 of that Act.

(a) in the case of section 1, the application date;

(b) in the case of section 2, the date of execution of a conveyance or transfer such as is mentioned in subsection (1) or (2) of that section.

(a) the lease is an equity-sharing lease; or

(b) the lease is of agricultural land within the meaning of section 43(1) of the Agriculture Act (Northern Ireland) 1949 (c. 2) (whether or not including farm houses and farm buildings); or

(c) the rent-owner or a superior owner is the National Trust and the Trust's estate in the land is vested in it inalienably under section 21 of the National Trust Act 1907 (c. xxxvi);

(a) each such unit is dependent to a substantial degree on one or more than one other such unit for support or shelter; and

(b) the boundary, or part of the boundary, between at least two such units is horizontal; and

(c) the owners or occupiers of such units, or any of them share or may share in the enjoyment of common parts.

"common parts" means any parts of the development or facilities therein not included in a lease or grant of a unit which, in consideration of a periodic payment which is not merely nominal, are provided or used for the accommodation (direct or indirect) of the rent-payers or their tenants or licensees or any of them or members of their households or their visitors, and includes (where relevant, having regard to the terms of the lease or grant) boundary walls or fences, gardens, roads, paths, parking or drying areas, areas for waste storage or disposal, play areas, rooms or areas reserved for the use of the manager of the development or his staff, sewers, drains, watercourses, water tanks, pipes, gutters, cables, wires, ducts, utility rooms, forecourt, steps, staircases, passages, lifts and the structure and exterior of buildings (but does not include any sewer, drain, watercourse, pipe, cable, wire, duct or installation which is vested in a government department or a body established under a statutory provision or for purposes of public utility);

"development" means land comprising units of accommodation together with common parts and includes a distinct part of a development;

"unit of accommodation" means a part of a building which is leased or granted to a rent-payer subject to a ground rent.

(a) the Northern Ireland Co-ownership Housing Association; or

(b) any other housing association (within the meaning of the Housing (Northern Ireland) Order 1992 (NI 15)) specified by an order made by the Department for Social Development subject to negative resolution.

(a) the redemption money;

(b) the receipt for the last payment of the ground rent or the sum of money necessary to discharge any arrears of the ground rent due and recoverable by law at the date of lodgment;

(c) such sum of money, if any, necessary to discharge any apportionment of the ground rent for the period from the last day for payment of ground rent before the date of lodgment to the date of lodgment;

(d) such evidence of title and other matter as may be prescribed; and

(e) such sum as may be prescribed to defray expenses to be incurred in obtaining a certificate under section 6.

(a) the rent-payer does not know the name and address of the rent-owner or his agent; or

(b) a notice sought to be served by post is returned undelivered.

(a) a register of all moneys which have been lodged with the Land Registry under section 4(2); and

(b) such indexes to the register as may be prescribed.

(a) "register" included the register kept under subsection (2) and "the land" included the land in relation to which money has been lodged with the Land Registry under section 4(2) and that money;

(b) subsections (3) and (4) were omitted.

(a) where he is satisfied in accordance with rules that the person is so entitled, he shall certify accordingly;

(b) where he is not so satisfied, he shall refuse so to certify.

(a) he is the rent-owner or, in such circumstances as may be prescribed, a superior owner; and

(b) in a case where there is one or more superior rent, he enters into such arrangements and complies with such other conditions as may be prescribed for the purpose of ensuring that each relevant owner receives his appropriate share of that money.

(a) "relevant owner" means the rent-owner and a superior owner; and

(b) a relevant owner's appropriate share of the redemption money shall be determined in accordance with rules.

(a) the amount of money so lodged; and

(b) interest upon that money from the date of its payment into the Consolidated Fund under subsection (1) to the time of payment to the person entitled thereto.

(a) any covenant giving the rent-owner or a superior owner a right to enter or re-enter the land when ground rent or a superior rent is in arrear, or in the event of any other breach of covenant, is not enforceable;

(b) section 52 of the Landlord and Tenant Law Amendment Act, Ireland, 1860 (c. 154) (proceedings for ejectment when year's rent in arrear) does not apply to the land.

(a) a quit rent;

(b) a tithe rentcharge;

(c) any other rentcharge except a rentcharge such as is mentioned in Article 29(3)(b) to (e) of the Property (Northern Ireland) Order 1997 (NI 8).

(a) of the redemption of the ground rent to which it relates (and of the right of the rent-payer to that redemption); and

(b) of the operation in relation to the land, and any other parcel or parcels of land affected, of sections 11 to 17 so far as those sections are applicable and subject to their terms.

(a) a certificate of redemption has been obtained by fraud; and

(b) the certificate can be cancelled without hardship to a purchaser of the land in good faith for value,

(a) land comprised of two or more parcels vested in separate persons is subject to a single ground rent;

(b) the rent-payers do not combine under section 4(6) to redeem the ground rent; and

(c) a rent payer entitled to any parcel or parcels has complied with section 4(1) and (2) in relation to the ground rent.

(a) of the facts; and

(b) that that person has paid any amount for which he is liable under subsection (4)(b);

(a) where he has been indemnified against payment of the ground rent or any part of it, from the indemnifior; or

(b) in any other case, from the person entitled to any other parcel, unless he himself has indemnified that person against any demand for ground rent.

(a) the title of the rent-owner or any superior owner to the fee simple; and

(b) all other estates in the land of the rent-owner or any superior owners to the extent that those estates carry entitlement to ground rent or a superior rent, or relate to matters connected with any such rent,

(a) where the rent-payer's estate in the land is a registered freehold estate, to discharge any burden such as is mentioned in paragraph 2 of Part I of Schedule 6 to the Land Registration Act and make such alteration in the class of title with which the land is registered as appears to him appropriate;

(b) where the rent-payer's estate in the land is a registered leasehold estate and an application is made under subsection (1) of section 27 of the Land Registration Act, to cancel the entry relating to the title to that estate and register the estate in fee simple vested in the rent-payer by virtue of subsection (2) in accordance with that section with such class of title as appears to him appropriate (the references in that section to the leasehold estate's being converted or not having been converted being read as including references to that estate's being or not having been the subject of a certificate of redemption);

(c) where the rent-payer's estate in the land is an unregistered leasehold estate registered as a burden on a superior registered freehold or leasehold estate, to cancel the entry or entries relating to the title to the superior estate or estates so far as that title relates to the land and falls to be extinguished by virtue of subsection (2) and register the estate in fee simple vested in the rent-payer by virtue of that subsection with such class of title as appears to him appropriate,

(a) operates as a grant by the rent-owner and any superior owner to the rent-payer of all easements, rights and privileges in or over land of, respectively, the rent-owner and the superior owner (and, so far as it is within the power of the rent-owner or superior owner to grant, in or over any other land) which existed and were enjoyed, or were prospectively capable of being enjoyed, by the rent-payer immediately before the time when the enlargement took effect;

(b) operates to make the land of the rent-payer continue to be subject to all easements, rights and privileges enjoyed by the rent-owner or any superior owner in or over that land which existed immediately before the time mentioned in paragraph (a), so far as those easements, rights or privileges are not extinguished by virtue of subsection (2)(b);

(c) does not affect any easement, right or privilege in or over land of a third person which had been granted by that person, or a predecessor in title of his, to the rent-payer in right of the rent-payer's land and which existed and was enjoyed, or was prospectively capable of being enjoyed, by the rent-payer immediately before the time mentioned in paragraph (a), but without affecting the duration of any such easement, right or privilege where it is of limited duration (that duration being measured as if the leasehold estate had not been enlarged).

(a) so far as any such rights consist of an easement, right or privilege in or over land, they are exercisable to the same extent as they would have been if the ground rent had not been redeemed (but no further); and

(b) so far as such rights consist of a right to payment of a sum of money charged on or issuing out of the land, that sum continues to be charged or to issue as theretofore.

(a) the rent-payer; or

(b) the rent-owner or a superior owner.

(a) any mortgage of the leasehold estate continues to have effect as if it were, and had originally been created as, a mortgage of the fee simple, and, in particular-

(i) where the instrument creating the mortgage was an assignment of the leasehold estate, it has effect as if it were a conveyance of the fee simple;

(ii) where the instrument creating the mortgage was a sub-lease, it has effect as if it were a lease for a term equivalent to the term of the sub-lease and any provision in the instrument providing for an estate acquired by the mortgagor to be held in trust for the mortgagee or appointing the mortgagee as the mortgagor's attorney in relation to such estate applies to the fee simple;

(b) any sub-lease of the land granted by the rent-payer or a predecessor in title of his has effect as if it were a lease for a term equivalent to the term of the sub-lease, and any mortgage of the estate created by such a sub-lease has effect as if it were a mortgage of the estate created by such a lease.

(a) upon the sealing of a certificate of redemption, where the land is unregistered land; or

(b) upon the making of any relevant alteration, cancellation or entry in the register (in accordance with section 13(4)), where the land is registered land,

(a) covenants for title, including-

(i) a covenant that a former vendor had a good right to convey, transfer or lease, the whole property and interest he had agreed to sell;

(ii) covenants for quiet enjoyment, freedom from incumbrances and further assurance;

(iii) covenants by a former assignor of a lease that the lease was valid and in full force and that the rent had been paid and the covenants in the lease duly performed;

(b) covenants for indemnities (except indemnities relating to a ground rent or superior rent which has been redeemed);

(c) covenants categorizing boundary walls or fences as party walls or fences or in respect of the maintenance, repair or renewal of walls or fences or the preservation of boundaries;

(d) covenants to do, or to pay for or contribute to the cost of, works on, or to permit works to be done on, or for access to be had to, or for any activity to be pursued on, the land for the benefit of other land;

(e) covenants to do, or to pay for, or contribute to the cost of, works done on other land where the works benefit the land;

(f) covenants to reinstate in the event of damage or destruction;

(g) covenants for the protection of amenities or services or for compliance with a statutory provision (or a requirement under it), including-

(i) covenants (however expressed) not to use the land for specified purposes or otherwise than for the purposes of a private dwelling;

(ii) covenants against causing nuisance, annoyance, damage or inconvenience to neighbours;

(iii) covenants against interfering with facilities which benefit neighbours;

(iv) covenants prohibiting, regulating or restricting building works or the erection of any structure, or the planting, cutting or removal of vegetation (including grass, trees and shrubs) or requiring the tending of such vegetation;

(h) covenants in relation to a body corporate formed for the management of land;

(i) any covenants which were reciprocally enforceable between the rent-payer and other participants in a relevant building scheme immediately before the redemption of the ground rent by virtue of that scheme;

(j) any covenant, not falling within any of the preceding paragraphs, which is contained in a lease granted by the Northern Ireland Housing Executive before 10th January 2000 and relates-

(i) to a district heating supply provided by the Executive; or

(ii) to the repayment to the Executive of any discount of part of the purchase price under a house sales scheme made under the Housing (Northern Ireland) Order 1983 (NI 15).

"building scheme" means a scheme (express or implied) under which land (whether freehold or leasehold) is divided into two or more parcels subject to obligations which are reciprocally enforceable (whether at law or in equity) between owners of the parcels; and

"relevant building scheme", in relation to any land, means a building scheme which includes the land or which is taken to subsist in respect of the land by virtue of section 17(6).

(a) not only do those covenants continue to be enforceable by and against the rent-owner and his successors in title so long as he or they continue as such in relation to any participant, but

(b) the covenants are also enforceable by and against each of the various participants among themselves, whether or not their ground rents have been redeemed;

(a) a rent-owner and his predecessors and successors in title are to be taken to be the same rent-owner;

(b) a mortgagee in possession of land in which a building scheme subsists or is taken to subsist, or a person acting as a receiver appointed by a mortgagee, is to be taken to be a participant in the building scheme.

(a) subject to the following paragraphs, the limited owner is to be treated as the rent-payer or, as the case requires, the rent-owner;

(b) where the limited owner is treated as the rent-payer-

(i) references (however expressed) to an estate of the rent-payer in the land or to his title are to be read as including references to the estate in the settled land which is the subject of the settlement or the title to that estate;

(ii) where a certificate of redemption is sealed, all estates in the land arising under the settlement (whether legal or equitable) are converted, in accordance with their nature, to take into account the consequences of that certificate;

(c) where the limited owner is treated as the rent-owner, the trustees of the settlement are the persons entitled to (or to a share of) the redemption money;

(d) where the settled land is registered land the powers of the Registrar for the purposes of this Act extend to making such entries, changes, cancellations or notes in the register, in relation to the settled land, as the case requires.

"limited owner" means a tenant for life of settled land or a person who has the powers of a tenant for life under the Settled Land Acts 1882 to 1890;

"settled land" means land which is or is deemed to be the subject of a settlement;

(a) on any person who acts as agent for the rent-owner in respect of the land in question; or

(b) on the person who last demanded or received ground rent for the land.

(a) determine the question; or

(b) refer the question to the Lands Tribunal for determination by it.

(a) the applicability of section 1 or section 2 in a particular case;

(b) the amount of the redemption money;

(c) the amount of arrears of ground rent or apportioned ground rent referred to in section 4(2)(b) and (c);

(d) what abatement is appropriate for the purpose of paragraph 3(3) of Schedule 1;

(e) the yearly amount of a ground rent which is subject to a future increase or a periodic review and falls to be determined under paragraph 4 or 5 of Schedule 1;

(f) any other difference arising under this Act (but not a difference as to a matter which may be subject to proceedings in a court other than the Lands Tribunal).

(a) makes a statement which he knows to be false; or

(b) recklessly makes a statement which is false,

"the Act of 1971" means the Leasehold (Enlargement and Extension) Act (Northern Ireland) 1971 (c. 7);

"application date", in relation to a ground rent, means the date on which the rent-payer complies with section 4(1) and (2);

"building lease" means a lease of land made for the purposes of having buildings erected thereon (and a lease is deemed to be made for those purposes if, at the time when it is made, planning permission has been applied for, or is in force, for those purposes);

"business purposes" means purposes other than the purposes of a private dwelling; and, for the purposes of this Act, land is used for business purposes if it is not a dwelling-house;

"certificate of redemption" has the meaning given in section 7(2);

"costs", in any connection, means reasonable costs properly incurred in that connection;

"covenant" (except where that expression last occurs in section 16(5)) includes a promise in writing which is not a deed, an agreement to make a covenant, a proviso, a declaration and a condition and, so far as it makes a provision that could have been framed as a covenant, a limitation;

"dwelling-house" has the meaning given in section 29;

"equity-sharing lease" means a lease of land the general effect of which is to provide-

(a) that, in consideration for the granting of the lease, the lessee shall pay a capital sum, representing a part payment in respect of the cost of acquisition of the premises demised, and a rent; and

(b) that the lessee may make additional part payments towards the cost of acquisition of the premises demised and may exercise an option to purchase the whole or part of the lessor's reversion in those premises;

"fee farm grant" means a grant of a fee simple reserving or charging a perpetual rent (whether or not the relation of landlord and tenant subsists between the person entitled to receive the rent and the person liable to pay it) and includes a sub-fee farm grant;

"fee farm rent" means the rent payable under a fee farm grant;

"fee simple" means a legal fee simple absolute in possession;

"ground rent" has the meaning given in section 28;

"land", in relation to a rent-payer, means land held by him subject to a ground rent; and, in relation to a ground rent or a superior rent, "the land" means the land subject to the ground rent or superior rent or, in relation to a redeemed ground rent or superior rent, means the land formerly subject to it;

"the Land Registration Act" means the Land Registration Act (Northern Ireland) 1970 (c. 18);

"lease" includes a sub-lease;

"leasehold estate" means a legal estate for a term of years absolute;

"lessor" and "lessee" include the successors in title to, respectively, the original lessor and the original lessee;

"mortgage" includes a charge, and "mortgagor" and "mortgagee" include respectively a person who is entitled to land which is subject to a charge and the person in whose favour a charge is created, and the successorsin title to, respectively, the original mortgagor and the original mortgagee;

"the National Trust" means the National Trust for Places of Historic Interest or Natural Beauty;

"modify" includes making additions, omissions, amendments, extensions, restrictions and substitutions; and "modifications" is to be construed accordingly;

"obligation" includes an obligation under any agreement, whether enforceable at law or not;

"prescribed" means prescribed by rules;

"redemption", in relation to a ground rent, means the discharge of land from the ground rent as mentioned in section 7(4); and "redeem" is to be construed accordingly; and those expressions, in relation to a superior rent, have corresponding meanings;

"redemption money", in relation to a ground rent, is the redemption money appropriate to that ground rent determined as mentioned in section 5(1);

"registered", in relation to an estate, means registered under the Land Registration Act;

"rentcharge" means any annual or periodic sum charged on or issuing out of land, except-

(a) a fee farm rent;

(b) rent reserved by a lease (including an oral lease or an implied lease);

(c) interest;

"rent-owner" means, without prejudice to section 18, the person to whom a ground rent is, or before redemption of the ground rent was, payable by virtue of his being entitled to the next superior estate to the rent-payer's in the land, or, where the ground rent is or was a fee farm rent, the person who is or was entitled to receive it from the rent-payer;

"rent-payer" means, without prejudice to section 18, a person entitled to an estate in land by virtue of which he is liable, or would have become liable but for section 2, to pay a ground rent, and "the rent-payer", in relation to any ground rent or any land, means the person who is, or before redemption of the ground rent was, or would but for section 2 have become, liable to pay that ground rent or a ground rent to which that land is or was subject;

"rules" means Land Registry Rules made in pursuance of section 26(2) to (5);

"statutory provision" has the meaning given by section 1(f) of the Interpretation Act (Northern Ireland) 1954 (c. 33);

"successor in title" includes a personal representative, that is to say, the executor (including an executor by representation) or administrator of the estate of a deceased person, and also includes such a successor at any remove;

"superior owner" means a rent-owner who is, or before redemption of a ground rent was, entitled to a superior rent;

"superior rent", in relation to a ground rent which is to be or has been redeemed, means a ground rent which is, or before redemption of the first-mentioned ground rent was, payable to a person entitled to an estate in land superior to that of the rent-owner of the first-mentioned ground rent, or, where the second-mentioned ground rent is or was a fee farm rent, was created before the first-mentioned ground rent.

(a) a fee farm rent; or

(b) the rent payable under a lease granted for a term of more than 50 years,

(a) a rent of a yearly amount of less than £1; or

(b) a peppercorn or other rent having no money value.

(a) that one or more than one room on the land suitable for being used for letting singly for residential purposes is so let, whether by way of a tenancy or of a licence and whether with or without board or other services or facilities (so long as all, or substantially all, such rooms are not so let);

(b) that the land includes a garage, outhouse, garden, yard, court, forecourt or other appurtenance which is not used, or not used wholly, for the purposes of a private dwelling;

(c) that part of the land, not being a garage, outhouse, garden, yard, court, forecourt or other appurtenance, is used partly for the purposes of a private dwelling and partly for other purposes, unless that part was constructed, or has been adapted, for those other purposes;

(d) that a person who resides on the land, or part of it, is required or permitted to reside there in consequence of his employment or of holding an office.

(a) to which land held under a building lease or under a fee farm grant for purposes corresponding to those of a building lease is subject; and

(b) in relation to which there is an agreement providing for one or more than one increase (whether periodic or dependent on a contingency) in the amount of the ground rent related to periods or events in the progress of building or related activities.

(a) a fixed amount; or

(b) an amount which is ascertained by a formula.

(a) the creation of the ground rent; or

(b) a review of the ground rent,

(a) in paragraph (1)(b) after "no" insert "or nominal";

(b) in paragraph (7) for the words from "no superior rent" to "no money value)" substitute "no or nominal superior rent", for "Article 18(1)" substitute "section 11(1) of the Ground Rents Act (Northern Ireland) 2001" and for "Article 5" substitute "section 1 of that Act";

(c) in paragraph (8) for "Article 20(7) to (10) and Articles 23 to 26" substitute "section 13(7), (8) and (10) and sections 14 to 17 of the Ground Rents Act (Northern Ireland) 2001", for "Part II" substitute "that Act" and for "Articles" substitute "sections";

(d) at the end add-