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LEASEHOLD (ENLARGEMENT AND EXTENSION) ACT (NORTHERN IRELAND) 1971 - SECT 15

Discharge of mortgages on lessor's estate.

15.(1) Where a person serves a notice under section 2 in respect of a lease
which is not held immediately of the owner of the fee simple in the land
comprised in the lease, the rights and duties of the lessor under this Act
shall, in so far as their estates in the land are affected, be the rights and
duties respectively of the lessor and every superior lessor, and for the
purpose of carrying on any proceedings for the purposes of this Act, the
lessor and all of the superior lessors shall be represented by one only of
them, in this section referred to as "the reversioner", and the lessors other
than the reversioner are referred to as "the other lessors".

(2) Where there is a lease reversionary on a lease in respect of which a
person serves a notice under section 2, then (except in so far as special
provision is made for such a reversionary lease) this section shall have
effect as if the reversionary lease were a concurrent lease intermediate
between the lease of the lessee in possession and any estate superior to that
last-mentioned lease.

(3) In default of agreement between the lessors, the reversioner shall be the
immediate lessor if the estate of that lessor has an expectation in possession
of thirty years or more, and if that estate has not such an expectation,
the reversioner shall be the next superior lessor whose estate has such an
expectation, and if he acts in good faith and with reasonable care and
diligence, the reversioner shall not be liable to any of the other lessors for
any loss or damage caused by any act or omission in the exercise or intended
exercise of his functions under this section.

(4) Notwithstanding anything in subsection (1), any of the other lessors shall
be entitled, if he so desires, to be separately represented in any proceedings
in which his title to any property comes in question, or in any proceedings
relating to the price payable for the land under section 14.

(5) For the purpose of deducing, evidencing or verifying his title to any
property, any of the other lessors, on giving written notice to
the reversioner and to the lessee, may deal directly with the lessee, if he
objects to disclosing his title to the reversioner, and he shall deal directly
with the lessee if the lessee by written notice given to him and to
the reversioner so requires.

(6) For the purpose of agreeing the price payable for his estate under
section 14, any of the other lessors, on giving written notice to
the reversioner and to the lessee, may deal directly with the lessee; and
whether he does that or not, he may require the reversioner to apply to the
Lands Tribunal for the price to be determined by the Lands Tribunal.

(7) Any of the other lessors shall be entitled to require that the price
payable for his estate (or so much of it as is payable to him) shall be paid
by the lessee to him or to a person authorised by him to receive it, instead
of to the reversioner; but if, after being given proper notice of the time and
place fixed for completion with the lessee, neither he nor a person so
authorised attends to receive payment, and he has not made, and notified
the reversioner of other arrangements with the claimant to receive payment,
the reversioner shall be authorised to receive it for him and
the reversioner's written receipt for the amount payable shall be a complete
discharge to the lessee.

(8) It shall be the duty of each of the other lessors

(a)subject to subsections (5) and (6), to give the reversioner all such
information and assistance as he may reasonably require; and

(b)after being given proper notice of the time and place fixed for completion
with the lessee (if the lessee is acquiring the fee simple), to ensure that
all deeds and other documents that ought on his part to be delivered to the
lessee on completion are available for the purpose of perfecting the lessee's
title;

(9) Each of the other lessors shall make such contribution as may be just to
the costs and expenses incurred by the reversioner and not recoverable or not
recovered from the lessee.

(10) The authority given by this section to the reversioner shall not extend
to the bringing of proceedings under section 19 on behalf of any of
the other lessors, or preclude any of the other lessors from bringing
proceedings under that section on his own behalf; and (without prejudice to
subsection (2)) a person entitled to a lease reversionary on the lease in
possession may make an application under section 19 as lessor.

(11) Where a conveyance of the fee simple is executed for the purposes of
this Act

(a)a separate price shall be payable in accordance with section 14 for each of
the estates superior to the lease in possession, and that section shall apply
to the computation of that price with such modifications as are appropriate to
relate it to a sale of the estate in question subject to any estates
intermediate between that estate and the lease in possession, together with
lessee's incumbrances relative to those estates; and

(b)section 16 shall apply separately to the price payable for each estate.

(12) For purposes of this section and section 17 the expectation of possession
carried by a lease is the expectation which it carries of possession after the
lease in possession at the date on which notice under section 2 is served, on
the basis that

(a)the lease in possession terminates at that date if its term date fell
before then, or else terminates at its term date or (in the case of a lease
which has been extended) its original term date; and

(b)a lease other than the lease in possession terminates at its term date, so,
however, that where before the date on which the notice is served under
section 2 the immediate lessor had given to the lessee in possession notice to
quit terminating the lease at a date earlier than the term date, the date
specified in the notice to quit shall be substituted for the date in paragraph
(a).

© 1971 Crown Copyright

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