Determination of “qualifying lease” Section 2: Further provision about annual rent
16.This section makes provision relating to section 1(4)(a) to determine whether or not the annual rental under the lease exceeds £100.
17.Subsection (2) provides that the rent for the purposes of section 1(4)(a) is deemed to be the rent as set out in a document mentioned in subsection (3), subject to subsections (4) to (6).
18.The documents mentioned in subsection (3) are the lease, a registered assignation of the lease or a registered minute of variation or agreement in relation to the lease.
19.Subsection (4) disapplies subsection (2) in relation to cumulo rent. Cumulo rent is defined in section 38 of the Act and means a single rent payable in relation to two or more leases. Section 39 allows the landlord to allocate cumulo rent to individual leases before the appointed day, when leases covered by the Act convert to ownership. When cumulo rent is allocated in this way, it ceases to be cumulo rent.
20.Subsection (5) disapplies subsection (2) in relation to any non-monetary rent. Section 51(1)(a) makes provision for landlords to claim an additional payment in respect of any leases converting to ownership under the Act where there is any right to any rent expressed wholly or partly in non-monetary terms (such as six fat hens).
21.Subsection (6) disapplies subsection (2) in relation to any variable rent. Section 64 of the Act makes provision relating to the exemption of leases where the annual rental at any point during the period of 5 years before Royal Assent exceeded £100. Section 64 allows landlords to register an agreement with the tenant or, if agreement cannot be reached, to register an order made by the Lands Tribunal for Scotland.