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LEASEHOLD (ENLARGEMENT AND EXTENSION) ACT (NORTHERN IRELAND) 1971 - SECT 20

Application of capital money under Settled Land Acts.

20.(1) Where the Lands Tribunal is satisfied that a lessee would, but for the
provisions of section 19(1), be entitled to obtain an extension of his
leasehold estate in the land the subject of his lease or to enlarge that
estate into a fee simple, and an order has been made under section 19(1)
permitting the lessor to resume possession of the land, then compensation
shall be paid by the immediate lessor to the lessee in accordance with this
section.

(2) The amount of compensation payable to a lessee by virtue of an order made
under section 19(1) shall be the amount which, if the said section 19(1) had
not been enacted, the land, if sold in the open market by a willing vendor,
might at the date when the order is to take effect be expected to realise, on
the assumption that the vendor was selling the leasehold estate, and was
selling

(a)subject to the rights of any person who will on the determination of the
lease be entitled to retain possession as against the immediate lessor, but
otherwise with vacant possession; and

(b)subject to any subsisting rights, equities or obligations which will not
terminate with the lease and for which during the currency of the lease the
lessee is liable without having a right to be indemnified by the
immediate lessor, but otherwise free of incumbrances; and

(c)subject to any restriction which would be required (in addition to any
imposed by the terms of the lease) to limit the user of the land to that to
which it had been put since the commencement of the lease and to preclude the
erection on the land of any new dwelling-house or any other building not
ancillary to the buildings on the land and used, in whole or in part, as a
dwelling-house;

(3) The compensation payable to a lessee under this section shall become due
and payable on the occurrence of whichever of the following events is the
later, that is to say, the expiration of one month after the amount of the
compensation is fixed or on the date on which the lessee's lease terminates
either by effluxion of time or by agreement between the parties to it.

(4) Where compensation is payable to a lessee under this section and his
estate in the land comprised in the lease is subject to a mortgage the
mortgage shall attach to the compensation and any person who is liable to pay
compensation and who has notice of the mortgage shall pay the compensation in
accordance with the joint direction of the lessee and the mortgagee or, in
default of such direction, in accordance with the directions of the
Lands Tribunal.

(5) Where compensation awarded by the Lands Tribunal under this section is not
paid within the time specified in subsection (3) or within such extended time
as the Tribunal may allow, the following provisions shall have effect

(a)the lessee shall, notwithstanding section 19(4), be entitled to obtain from
the lessor an extension of his leasehold estate or to obtain the grant to
himself of the fee simple interest therein;

(b)the provisions of section 19(1) and (4) shall not apply to the land;

(c)the granting of the extension of the lease or of the fee simple shall
operate as a discharge of the said award of compensation; and

(d)the Tribunal may make an order for the payment by the lessor of such
damages as the Tribunal considers proper for the loss which the lessee has
suffered as a direct consequence of the lessor having obtained an order
permitting him to resume possession of the land.

© 1971 Crown Copyright

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