Paragraph 11 Application of this PartF1

(1)

This Part of this Schedule applies to a tenancy (the “superior tenancy”) at a particular time if, at that time—

(a)

the superior tenancy is a business tenancy,

(b)

the superior tenancy requires or permits the grant of a sub-tenancy (the “authorised sub-tenancy”),

(c)

the authorised sub-tenancy would, at the time of its grant, be a business tenancy with a rent review, and

(d)

either—

(i)

the superior tenancy requires the authorised sub-tenancy to include rent review terms, and that requirement can only be complied with by the inclusion of rent review terms which (on one or more particular rent reviews) would produce, or would be capable of producing, the result that is prohibited by paragraph 9(3), or

(ii)

the superior tenancy permits the authorised sub-tenancy to include rent review terms, but rent review terms can only be within that permission if (on one or more particular rent reviews) they would produce, or would be capable of producing, the result that is prohibited by paragraph 9(3).

(2)

But this Part applies to the superior tenancy only—

(a)

if the superior tenancy was—

(i)

granted, or

(ii)

varied so that it is subject to rent review terms that do not specify new passing rent and include elements 1 and 2,

before this Schedule comes into force, or

(b)

if the superior tenancy is—

(i)

granted, or

(ii)

varied so that it is subject to rent review terms that do not specify new passing rent and include elements 1 and 2,

after this Schedule comes into force and the grant or variation is made under arrangements entered into before then.

Annotations

Textual amendments

F1: Sch. 7A inserted (29.4.2026 for specified purposes) by English Devolution and Community Empowerment Act 2026 (c. 23), s. 108(1)(6), Sch. 37 para. 2