HL Deb 12 April 1949 vol 161 cc1136-7

Premiums allowed on assignment where before commencement of Act premium paid on grant of tenancy

5.—(1) Where—

  1. (a) before the commencement of this Act a premium has been lawfully required, and paid, in respect of the grant, continuance or renewal of a tenancy to which section three of this Act applies, and
  2. (b) since the said grant, continuance or renewal the landlord has not granted a tenancy of the dwelling-house under which, as against the landlord, a person became entitled to possession other than the person 1137 who was so entitled to possession of the dwelling-house immediately before that tenancy began,
then, subject to the provisions of this paragraph, subsection (2) of the said section three shall not prevent the requiring, on any assignment of the first-mentioned tenancy or of any subsequent tenancy of the same dwelling-house, of a premium not exceeding the amount hereinafter specified.

(2) Subject to the provisions of the next following sub-paragraph, the said amount is the amount which hears to the premium paid on the said grant, continuance or renewal the same proportion as the period beginning with the date at which the assignment takes effect and ending with the relevant date bears to the period beginning with the said grant, continuance or renewal and ending with the relevant date.

(3) Where before the assignment in question the Tribunal have issued a certificate under sub-paragraph (b) of paragraph 1 of this Schedule, then if the case falls within the following provisions of this sub-paragraph the foregoing provisions of this paragraph shall have effect subject to the following provisions, that is to say:—

  1. (a) if the existing rent is equal to or greater than the reasonable rent, the foregoing provisions of this paragraph shall not apply;
  2. (b) if the existing rent is less than the reasonable rent, but the difference between them is less than the rental equivalent of the premium therein mentioned, the last foregoing sub-paragraph shall apply as if the said premium were reduced by the product of—
    1. (i) the amount by which the rental equivalent of that premium exceeds the difference between the reasonable rent and the existing rent, and
    2. (ii) the number of complete rent-periods in the period beginning with the grant, continuance or renewal in respect of which the premium was paid and ending with the relevant date.

In this sub-paragraph the expression "existing rent" means the rent which would be payable by the tenant, apart from the provisions of section one of this Act and of this Schedule, for the rent-period comprising the date of the Tribunal's determination of the reasonable rent.

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