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BILL

To amend the law governing the relations between landlords and tenants.

Ordered to be brought in by

Major Owen, Mr. Lloyd George,
Mr. Haydn Jones, Captain Garro-Jones,
Mr. Percy Harris, Mr. Fenby and
Mr. C. P. Williams.

Ordered, by The House of Commons, to be Printed, 23 February 1927.

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To be purchased directly from

H.M. STATIONERY OFFICE at the following addresses:
Adastral House, Kingsway, London, W.C. 2;

120, George Street, Edinburgh; York Street, Manchester; 1, St. Andrew's Crescent, Cardiff; 15, Donegall Square West, Belfast; or through any Bookseller.

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ARRANGEMENT OF CLAUSES.

PART I

COMPENSATION FOR IMPROVEMENTS AND GOODWILL ON THE TERMINATION OF TENANCIES OF BUSINESS PREMISES.

Clause.

1. Tenant's right to compensation for improvements. 2. Limitation on tenant's right to compensation in certain cases.

3. Landlord's right to object.

4. Compensation for goodwill.

5. Right to new lease in certain cases.

6.

Rights of mesne landlords.

7. Prohibition of contracting out.

8. Right of entry.

9. Right to make deductions.

10. Application of 13 & 14 Geo. 5. c. 9. s. 20.

11. Power to apply and raise capital money. 12. Holdings to which Part I. applies.

PART II.

GENERAL AMENDMENTS OF THE LAW OF
LANDLORD AND TENANT.

13. Limitation on damages for breach of covenants to repair.

14. Provisions as to covenants not to assign, &c., without licence or consent.

15. Apportionment of rents.

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18. Application to Crown, Duchy, ecclesiastical and charity lands.

19. Interpretation.

20. Short title, commencement and extent.

SCHEDULES.

A

BILL

ΤΟ

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Provide for the payment of compensation for A.D. 1927. improvements and goodwill to tenants of premises used for business purposes, or the grant of a new lease in lieu thereof; and to amend the law of landlord and tenant.

E it enacted by the King's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, 5 as follows:

10

PART I.

COMPENSATION FOR IMPROVEMENTS AND GOODWILL ON
THE TERMINATION OF TENANCIES OF BUSINESS
PREMISES.

ments.

1.-(1) Subject to the provisions of this Part of Tenant's this Act, a tenant of a holding to which this Part of this right to Act applies shall, if a claim for the purpose is made in compensathe prescribed manner not more than six, nor less than tion for three, months before the termination of the tenancy, be improve15 entitled, at the termination of the tenancy, on quitting his holding, to be paid by his landlord compensation in respect of any improvement on his holding made by him or his predecessors in title which at the termination of the tenancy adds to the letting value of the holding:

A.D. 1927.

Provided that the sum to be paid as compensation for any improvement

(a) shall not exceed the capitalised value of the net
addition to the letting value of the holding as
a whole which may be determined to be the 5
direct result of the improvement; nor shall it
exceed

(b) the reasonable cost of carrying out the improve-
ment at the termination of the tenancy, subject
to a deduction of an amount equal to the 10
cost (if any) of putting the works constituting
the improvement into a reasonable state of
repair.

(2) In determining the capitalised value of such net
addition as aforesaid, regard shall be had to the purposes 15
for which it is intended that the premises shall be used
after the termination of the tenancy, and if it is shown
that it is intended to demolish the buildings or to use
the premises for a different purpose, and that after such
demolition or change of user the improvement will not 20
add to the letting value of the premises, regard shall
be had to the length of time likely to elapse between
the termination of the tenancy and the demolition or
change of user.

(3) All questions as to the right of compensation 25 under this section, or as to the amount thereof, shall be determined by the tribunal hereinafter mentioned, and if the tribunal determines that, on account of the intention to demolish the buildings or to change the user of the premises, no compensation or a reduced amount of com- 30 pensation shall be paid, the tribunal may authorise a further application for compensation to be made by the tenant if effect is not given to the intention within such time as may be fixed by the tribunal.

Limitation 2.-(1) A tenant shall not be entitled to compensa- 35 on tenant's tion under this Part of this Act

right to compensation in certain

cases.

(a) in respect of any improvement made before the commencement of this Act; or

(b) in respect of any improvement which the tenant was under an obligation to make in pursuance 40 of a contract entered into for valuable consideration, including a building lease.

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