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Landlord and Tenant Amendment

Act, 1971

This Act which was passed on the 1st December 1971

deals with four unconnected topics, two of which relate

to the law of rent restrictions.

The first matter dealt with by the Act is an attempt

to remedy the unsatisfactory position in which sports

clubs found themselves where they could not qualify

tor reversionary leases under the provisions of the 1958

Act because the lands which they held were too exten-

S1

ve or were not subsidiary and ancillary to the buil-

dings on the land. The new provisions will enable a

club^ which either holds its land, called "qualifying

•and", for the purpose of sport under a lease for twenty-

one years or longer or has been in continuous occupation

o r

possession for that purpose for not less than twenty-

one years and has spent (other than on maintenance)

sums of at least fifteen times the yearly rent, with a

minimum of £1,000.00, on permanent buildings or

structures or on developing the land for sport, to obtain

a

"sporting lease". Note that if the qualifying land

ceases to be primarily used for the purpose of carrying

°n the sport in respect of which the lease was originally

granted, the landlord may terminate the lease. In addi-

tion where a sports club holds other land other than

that on which the buildings have been built or the

development carried out on which there are no buil-

dings but which are used in conjunction with qualifying

*and for the same purpose as the qualifying land the

club can obtain a sporting lease of the additional land

so long as it is not more than a quarter of the total area

°f the qualifying land and the other land. The provi-

sions of the 1958 Act apply generally to sporting leases.

If the terms of the lease have to be fixed by the Court

J

t will contain rent review clauses to operate at the

expiration of the first twenty-four years of the term of

ninety-nine years and further reviews at twenty-five

year intervals.

The second matter dealt with by the Act is the prob-

e

m created by certain leases which fell outside the terms

of the 1958 Act in particular on the Proby Estate in

County Dublin. It is known that considerable difficulty

w a s

being experienced in drafting any legislation which

w

ould cover the case of the Proby lessees, who were

generally considered to be worthy of protection, but

which would not open the flood gates to numerous other

tenants whose claims were not so just. The solution

adopted in the Act is first to repeal and re-enact with

amendments Section 10 of the 1958 Act. This provided

that where a new lease or a renewal of a lease which

wpitld have been a building or proprietary lease if the

ty58 Act had been in force was granted to the person

e

ntitled to the lessee's interest under the old lease the

J^newed lease was to be deemed to be a building lease,

this provision did not cover the Proby Estate cases

because the renewed or new leases were not granted to

e

persons entitled to the lessee's interest under the old

lease. Section 10 has therefore been amended so that it

provides now under Section 8 of the 1971 Act that

where the renewal or new lease was granted either to a

person entitled to the lessee's interest under the old lease

as heretofore or at a rent less than the rateable valuation

of the property at the date of the granting of the new

lease then the new lease will be deemed to be a building

lease.

As some of the Proby leases had in fact expired prior

to the passing of the Act a further section provides that

where this had happened within eight years before the

passing of the Act and subject to certain other require-

ments the lessees are given a period of twelve months

following the passing of the Act to claim reversionary

leases under the 1958 Act.

The third matter covered by the Act, which inciden-

tally was not in the Bill as originally introduced, gives a

further opportunity to landlords of less than six con-

trolled dwellings to apply to the District Court to have

the basic rent of any or all of these dwellings reviewed.

This is in fact a reactivation of the provisions of Section

8 (la) of the Rent Restrictions Act, 1960, which, of

course, was inserted in the 1960 Act by Section 4 (1) of

the 1967 Act. This provision originally had a life of

two years but many landlords who would have been

entitled to make use of the provision apparently were

unaware of the existence of the provisions and many

practitioners may not have fully appreciated the pur-

pose of the extremely complex Section 4 of the 1967

Act. At any rate such landlords have now been given a

further year to bring applications for a review to the

District Court.

The last matter dealt with by the Act is one which

will give great relief to conveyancing practitioners be-

cause it clarifies, by amendment, the effect of the noto-

rious Section 10 of the Rent Restrictions (Amendment)

Act, 1967, which was so wide in its provisions as to

require lessees of property held under long leases and

who would for all practical purposes have been regarded

as the "owners" of the premises to get their ground

landlord's consent to the assignment of the premises on

sale. The new Act excludes from the necessity for con-

sent any house occupied for the purposes of his own

residence by a person who holds it under a lease the

term of which is more than twenty-one years.

It should be noted that two of the provisions of the

Act are retrospective, those relating to the right to a

sporting lease which is to be retrospective to the 3rd

March 1970, being the date on which the Department

of Justice announced that amending legislation was to

be introduced to deal with this matter and the second

being the amendment of Section 10 of the Rent Restric-

tions Act of 1967 which is to be retrospective to the

date of the passing of that Act.

JOHN F. BUCKLEY

17