Landlord and Tenant (Ground Rents) (No. 2) Act, 1978

Landlord and Tenant (Ground Rents) (No. 2) Act, 1978 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 1978 Landlord and Tenant (Ground Rents) (No. 2) Act, 1978 Landlord and Tenant (Ground Rents) (No. 2) Act, 1978 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Print Full ActPriontáil an tAcht Iomlán Number 16 of 1978 LANDLORD AND TENANT (GROUND RENTS) (NO. 2) ACT, 1978 ARRANGEMENT OF SECTIONS

PART I

Preliminary Section

Section 1

Short title, construction and collective citation.

Section 2

Commencement.

Section 3

Definitions.

Section 4

Restrictions on application to State.

Section 5

Regulations.

Section 6

Expenses.

Section 7

Repeals.

PART II

Purchase of Fee Simple General Right

Section 8

General right to acquire fee simple.

Lessees

Section 9

Right of lessee.

Section 10

Alternative conditions to be complied with.

Section 11

Greatest rent under section 10.

Section 12

Extension of section 10, condition 7.

Section 13

Right of lessee under expired lease.

Section 14

Partly-built leases.

Yearly Tenants

Section 15

Right of yearly tenant.

Restrictions

Section 16

Restrictions on right to acquire fee simple.

Purchase Price

Section 17

Determination of purchase price by arbitration.

PART III

Vesting of Fee Simple in Dwellinghouses

Section 18

Duration of Part III.

Section 19

Dwellinghouses.

Section 20

Vesting by consent.

Section 21

Arbitration.

Section 22

Vesting certificate.

Section 23

Fees.

Section 24

Duty of Registrar of Titles as to applications under Part III.

Section 25

Exercise of functions of Registrar of Titles.

PART IV

Micellaneous

Section 26

Acquisition of fee simple from housing authority.

Section 27

Covenant for re-entry for non-payment of ground rent for dwellinghouse.

Section 28

Effect of acquisition of fee simple on covenants.

Section 29

Effect of acquisition of fee simple on mortgages.

Number 16 of 1978 LANDLORD AND TENANT (GROUND RENTS) (NO. 2) ACT, 1978 AN ACT TO PROVIDE FOR THE ACQUISITION OF THE FEE SIMPLE IN LAND BY CERTAIN LESSEES AND TENANTS AND THE CONSEQUENTIAL TERMINATION OF THEIR LIABILITY FOR THE PAYMENT OF GROUND RENT, TO AMEND IN OTHER RESPECTS THE LAW OF LANDLORD AND TENANT AND TO PROVIDE FOR OTHER MATTERS CONNECTED WITH THE MATTERS AFORESAID. [28th June, 1978] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Preliminary Short title, construction and collective citation.

1.—(1) This Act may be cited as the Landlord and Tenant (Ground Rents) (No. 2) Act, 1978.

Commencement.

2.—This Act shall come into operation on the 1st day of August, 1978.

Definitions. [New in pt. cf. 1931, s.2; 1958, s.2; 1967, s.2 (1)] 3.—In this Act, except where the context otherwise requires— “the Act of 1931” means the Landlord and Tenant Act, 1931 ; “the Act of 1958” means the Landlord and Tenant (Reversionary Leases) Act, 1958 ; “the Act of 1967” means the Landlord and Tenant (Ground Rents) Act, 1967 ; “the Court” means the Circuit Court; “dwelling” does not include a separate and self-contained flat in premises divided into two or more such flats; “dwellinghouse” has the meaning assigned by section 19; “immediate lessor” means the person for the time being entitled to the next superior interest in land held by any person whether under a lease or other contract of tenancy, or otherwise; “lease” means an instrument in writing, whether under or not under seal, containing a contract of tenancy in respect of any land in consideration of a rent or return and includes a fee farm grant; “lessee” includes the personal representatives and successors in title of a lessee; “lessor” includes the personal representatives and successors in title of a lessor; “the Minister” means the Minister for Justice; “notice”, in relation to the acquisition of the fee simple, means, where notices are required to be served under section 4 of the Act of 1967 on more than one person, the first served of those notices; “statutory tenancy” means a statutory tenancy under the Rent Restrictions Act, 1946 , or the Rent Restrictions Act, 1960 .

Restriction on application to State. [New] 4.—This Act shall not bind a Minister of the Government, the Commissioners of Public Works in Ireland or the Irish Land Commission.

Regulations. [cf. 1931, s.7; 1967, s.34] 5.—(1) The Minister may make regulations for the purpose of giving full effect to the provisions of this Act including the prescribing of forms.

Expenses. [cf. 1931, s.8] 6.—The expenses incurred by the Minister in the administration of this Act shall, to such extent as may be sanctioned by the Minister for Finance, be paid out of moneys provided by the Oireachtas.

Repeals.

7.—(1) The following provisions of the Act of 1967 are hereby repealed: sections 3 (except subsection (5)), 5 (1) (2), 18 and 31.

Part II

of this Act.

PART II

Purchase of Fee Simple General Right General right to acquire fee simple. [1967, s. 3(1)] 8.—A person to whom this Part applies shall, subject to the provisions of this Part, have the right as incident to his existing interest in land to enlarge that interest into a fee simple, and for that purpose to acquire by purchase the fee simple in the land and any intermediate interests in it and the Act of 1967 shall apply accordingly.

Lessees Right of lessee. [New in pt. cf. 1958, s. 4 (2) in pt., (4) (5) (6); 1967, s.3 (2) in pt.] 9.—(1) This Part applies to a person who holds land under a lease, if the following conditions are complied with: (a) that there are permanent buildings on the land and that the portion of the land not covered by those buildings is subsidiary and ancillary to them; (b) that the permanent buildings are not an improvement within the meaning of subsection (2); (c) that the permanent buildings were not erected in contravention of a covenant in the lease; and (d) one of the alternative conditions set out in section 10.

Alternative conditions to be complied with.

10.—The following are alternative conditions one of which must also be complied with in a case to which section 9 relates: [1958, s. 4 (2) (d)] 1. that the permanent buildings were erected by the person who at the time of their erection was entitled to the lessee's interest under the lease or were erected in pursuance of an agreement for the grant of the lease upon the erection of the permanent buildings; [New. cf. 1958, s. 4 (3) (a)] 2. that the lease is for a term of not less than fifty years and the yearly amount of the rent or the greatest rent reserved thereunder (whether redeemed at any time or not) is of an amount that is less than the amount of the rateable valuation of the property at the date of service under section 4 of the Act of 1967 of notice of intention to acquire the fee simple or the date of an application under

Part III

of this Act, as the case may be, and that the permanent buildings on the land demised by the lease were not erected by the lessor or any superior lessor or any of their predecessors in title: provided that it shall be presumed, until the contrary is proved, that the buildings were not so erected; [1958, s. 5 in pt.] 3. that the lease was granted by a lessor to the nominee of a person (in this paragraph referred to as the builder) to whom land was demised for the purpose of erecting buildings thereon in pursuance of an agreement between the lessor and the builder that the builder having contracted to sell the buildings would surrender his lease in consideration of the lessor granting new leases to the builder's nominees; [1958, s. 5 in pt.] 4. that the lease was granted by a lessor to the nominee of a person (in this paragraph referred to as the builder) in pursuance of an agreement between the lessor and the builder that the lessor, upon the erection of the buildings by the builder, would grant leases to the builder's nominees; [1971, s. 8 (1)] 5. that the lease was granted, either at the time of the expiration or surrender of a previous lease or subsequent to such expiration or surrender— (a) at a rent less than the rateable valuation of the property at the date of the grant of the lease, or (b) to the person entitled to the lessee's interest under the previous lease, provided that the previous lease expired or was surrendered before the 31st day of March, 1931 and that it would have been a lease to which this Part applied had this Act then been in force and provided that it shall be presumed, until the contrary is proved, that the person to whom the lease was granted was so entitled; [1958, s. 19 in pt.] 6. that the lease is a reversionary lease granted on or after the 31st day of March, 1931, to a person entitled thereto under Part V of the Act of 1931 or the Act of 1958, whether granted on terms settled by the Court or negotiated between the parties; [New. cf. 1958, s. 7] 7. that the lease, being a lease for a term of not less than fifty years, was made— (a) partly in consideration of the payment of a sum of money (other than rent) by the lessee to the lessor at or immediately before the grant of the lease and, for this purpose, any money paid in redemption of any part of the rent reserved by the lease (whether the money was paid in pursuance of a covenant in the lease or in pursuance of an agreement made between the lessee and the lessor during the currency of the lease) shall be deemed to be part of the consideration, or

(b) partly in consideration of the expenditure (otherwise than on decoration) of a sum of money by the lessee on the premises demised by the lease, or (c) partly in consideration of both that payment and that expenditure, where the sum so paid or expended or the total of those sums was not less than fifteen times the yearly amount of the rent or the greatest rent reserved by the lease, whichever is the less.

Greatest rent under section 10. [1958, s. 7 (3)] 11.—In determining for the purposes of section 10 the greatest rent reserved by a lease the following provisions shall have effect: (a) where during the currency of a lease part of the rent is redeemed by a capital payment, the reduced rent shall be deemed to be the greatest rent reserved by the lease; (b) a penal rent payable for any breach of covenant and any exceptional rent reserved for a specified period not exceeding five years shall be disregarded.

Extension of section 10, condition 7. [New] 12.—A lease for a term of not less than fifty years shall be deemed to comply with condition 7 in section 10 if— (a) the lease was granted partly in consideration of an undertaking by the lessee to carry out specified works on the premises demised by the lease, (b) the amount to be expended on the works was not specified, (c) the works were carried out by the lessee, and (d) it is proved that the reasonable cost of the works taken either alone or together with any fine or other payment mentioned in that condition was not less than fifteen times the yearly amount of the rent or the greatest rent reserved by the lease, whichever is the less.

Right of lessee under expired lease. [1958, s. 14; 1971, s. 9] 13.—Where— (a) a lease expired within ten years before the commencement of this Act, and (b) the lessee is, at such commencement, in possession of the land comprised in the expired lease under a yearly tenancy arising by implication from the acts of the parties or under a statutory tenancy under the Rent Restrictions Acts, 1960 and 1967, or as a tenant at will or otherwise, without having obtained a new tenancy from the lessor or acquired the lessor's interest in the land, and (c) no person was, immediately before such commencement, entitled to be granted a lease under the Act of 1958, the lessee shall, during the twelve months after the commencement of this Act, have the same right to acquire the fee simple as he would have if his lease had not expired.

Partly-built leases. [New in pt. cf. 1958, s. 6] 14.—(1) Where a person holds land under a lease (in this section referred to as a partly-built lease) which would entitle him to acquire the fee simple but for the fact that the portion of the land which is not covered by the permanent buildings is not wholly subsidiary and ancillary to those buildings, the following provisions of this section shall have effect.

Yearly Tenants Right of yearly tenant.

15.—(1) This Part also applies to a person who holds land in the following circumstances— [New in pt. cf. 1967, s. 3 (2) (d) (ii), (4) (b)] (a) that the land is covered wholly or partly by permanent buildings and any land not so covered is subsidiary and ancillary to those buildings; (b) that the land is held under a contract of yearly tenancy or under a yearly tenancy arising by operation of law or by inference on the expiration of a lease, or under a statutory tenancy implied by holding over property on the expiration of a lease which reserves a yearly rent; (c) that the land has been continuously held under any one or more of the tenancies referred to in paragraph (b) (including any expired lease) by the person or his predecessors in title for a period of not less than twenty-five years prior to the date of service by the person of notice of intention under section 4 of the Act of 1967 to acquire the fee simple or the date of an application under

Part III

of this Act; (d) that the yearly rent is less than the rateable valuation of the property at the date of the service of that notice of intention or application; (e) that the permanent buildings were not erected by the immediate lessor or any superior lessor or any of their predecessors in title, provided, however, that it shall be presumed until the contrary is proved that the permanent buildings were not so erected; (f) that the contract of tenancy is not a letting which is made and expressed to be made for the temporary convenience of the immediate lessor or of the person holding under the contract and, if the letting was made after the passing of the Act of 1931, stating the nature of the temporary convenience, and (g) that the contract of tenancy is not a letting which is made for or dependent on the continuance of the person holding under the contract in any office, employment or appointment. [New. cf. 1958, s. 6]

Restrictions Restrictions on right to acquire fee simple. [1967, s. 3 (3) (4) (a)] 16.—(1) Section 8 does not apply, in relation to any land, to a person who has been declared by virtue of section 15 (1) of the Act of 1958 not to be entitled to a reversionary lease of the land under that Act and who is in possession of the land under a lease or tenancy or by virtue of subsection (2) of the said section 15.

Purchase Price Determination of purchase price by arbitration. [New in pt. cf. 1967, s. 18] 17.—(1) This section applies to the determination of the purchase price of the fee simple or any other interest by arbitration under the Act of 1967 including an arbitration conducted by the Registrar of Titles in pursuance of section 21 of this Act.

Part III

of this Act, the rent which, in the opinion of the arbitrator, would be reserved by a reversionary lease under the Act of 1958 of the land granted for a term commencing on the expiration of the first-mentioned lease, (c) the current interest yields on securities of the Government issued for subscription in the State, (d) if the land is used for the purposes of business or exceeds one acre in area and is not used for the purposes of business, the area and nature of the land, its location and user and the state of repair of any buildings or structures thereon, (e) the price paid for the fee simple or any other interest in the land on a sale taking place on or after the 22nd day of May, 1964, (f) any mortgage or other charge on the interest in the land of any person from whom, mediately or immediately, the person acquiring the fee simple holds the land, (g) the costs and expenses which, in the opinion of the arbitrator, would be reasonably incurred by the persons from whom, mediately or immediately, the person acquiring the fee simple holds the land, in investing the purchase money payable in respect of the acquisition of the fee simple, (h) the costs and expenses which, in the opinion of the arbitrator, have been incurred by a person acquiring the fee simple who holds the land under a lease by reason of the failure of the lessor to maintain any amenities which he is required to maintain under a covenant in the lease, (i) the current price of the immediate lessor's interest in land held under leases or yearly tenancies similar to the lease or yearly tenancy, as the case may be, under which the land is held by the person acquiring the fee simple, and (j) such other matters as are, in the opinion of the arbitrator, relevant to the determination of the purchase price.

Part III

of this Act, and (c) does not exceed one acre in area, then, subject to the subsequent provisions of this section, the purchase price shall not exceed the amount which, if invested on the date of the award in the security of the Government which was issued last before that date for subscription in the State and is redeemable not less than fifteen years after the date of issue, would produce annually in gross interest an amount equal to the amount of the rent payable under the lease or yearly tenancy, as the case may be, during the year immediately preceding the date of the service of the said notice or application.

Part III

of this Act.

Part III

of this Act, and (c) does not exceed one acre in area, the purchase price shall not exceed the amount which would be determined under subsection (3) if the land were land to which that subsection applied, together with, in respect of each year by which the unexpired term of the lease falls short of fifteen years, one fifteenth of the difference between that price and the price that would be determined on the basis of a current reversionary rent.

PART III

Vesting of Fee Simple in Dwellinghouses Duration of Part III. [New] 18.—This Part shall have effect only in relation to applications made under it during the period of five years beginning on the commencement of this Act.

Dwellinghouses. [New] 19.—This Part applies to land to which Part II applies where the permanent buildings are constructed for use wholly or principally as a dwelling and are so used and such land is referred to in this Act as a dwellinghouse.

Vesting by consent. [New] 20.—A person who is entitled to acquire the fee simple in a dwellinghouse by virtue of Part II may, with the consent of every person who would be a necessary party to the conveyance to him of the fee simple free from incumbrances, apply to the Registrar of Titles to vest the premises in him under section 22.

Arbitration. [New] 21.—(1) A person who claims to be entitled to acquire the fee simple in a dwellinghouse by virtue of Part II may, without any consent referred to in section 20, apply to the Registrar of Titles to have the premises vested in him under section 22 and he shall serve notice of his application upon the immediate lessor. Service of a notice may be effected in any manner provided for by section 63 of the Act of 1931 or section 23 of the Act of 1967.

Vesting certificate. [New] 22.—(1) Where— (a) the Registrar of Titles is satisfied that an application under section 20 has been duly made, or (b) the Registrar as arbitrator or the Court on appeal is satisfied that the applicant under section 21 is entitled to acquire the fee simple, the Registrar shall, subject to subsection (2), issue a certificate (in this section referred to as a “vesting certificate”) which shall, subject to subsection (3), operate to convey fee from incumbrances the fee simple and any intermediate interests in the dwellinghouse on the date specified in that behalf in the certificate.

Fees. [New in pt. cf. 1967, ss. 9, 19] 23.—(1) The fee to be taken in the Land Registry (a) for the issue of a vesting certificate under section 22 shall, where the applicant is in occupation of the dwellinghouse, be £5; (b) for an arbitration under section 21 shall, where the applicant is in occupation of the dwellinghouse, be £12 which shall be in addition to the fee to be taken under paragraph (a).

(7)

Section 14

Duty of Registrar of Titles as to applications under Part III. [New] 24.—(1) The Registrar of Titles shall deal with applications received under this Part in the order in which they are received so far as is consistent with the efficient discharge of all his functions as Registrar of Titles.

Exercise of functions of Registrar of Titles. [cf. 1964, s. 13] 25.—All or any of the powers and duties conferred or imposed on the Registrar of Titles by this Part may be exercised and performed by such of his officers as the Minister may authorise in that behalf.

PART IV

Miscellaneous Acquisition of fee simple from housing authority. [New] 26.—(1) Where a housing authority have leased to a tenant a dwelling provided by them under statutory authority, the tenant shall be entitled to acquire from them the fee simple in the dwelling subject to the provisions of this section.

Covenant for re-entry for non-payment of ground rent for dwellinghouse. [New] 27.—(1) Where a person is entitled to acquire the fee simple in a dwellinghouse by virtue of Part II a convenant giving the lessor a right to re-enter and take possession of the premises where rent is in arrear shall not be enforceable against him but this shall not affect any other civil remedy of the lessor.

(2)

Section 52

of the Landlord and Tenant Law Amendment Act, Ireland, 1860 (which provides for proceedings for ejectment for non-payment of a year's rent) shall not apply to a dwellinghouse to which subsection (1) relates.

Effect of acquisition of fee simple on covenants. [New in pt. cf. 1967, s. 31] 28.—(1) Where a person having an interest in land acquires the fee simple in the land, all covenants subject to which he held the land, other than a convenant specified in subsection (2), shall thereupon cease to have effect and no new covenant shall be created in conveying the fee simple.

(4)

Section 72

Effect of acquisition of fee simple on mortgages. [New in pt. cf. 1967, s.6 (2)] 29.—Upon conveyance of the fee simple in land, under this Act or otherwise, to a person whose previous interest in the land was subject to a mortgage or charge (including a mortgage by subdemise) the mortgage or charge shall, if it has not been extinguished, be deemed to be a mortgage or charge on the fee simple in the land.

Acts Referred to Harbours Act, 1946 1946, No. 9 Housing Act, 1966 1966, No. 21 Landlord and Tenant Act, 1931 1931, No. 55 Landlord and Tenant (Ground Rents) Act, 1967 1967, No. 3 Landlord and Tenant Law Amendment Act, Ireland, 1860 1860, c. 154 Landlord and Tenant (Reversionary Leases) Act, 1958 1958, No. 2 Registration of Title Act, 1964 1964, No. 16 Rent Restrictions Act, 1946 1946, No. 4 Rent Restrictions Act, 1960 1960, No. 42 Privacy Statement Accessibility European Legislation Identifier (PDF) Open Data License Ráiteas Príobháideachais Inrochtaineacht Aitheantóir Eorpach Reachtaíochta (ELI) Ceadúnas Sonraí Oscailte Liosta Fianán © Government of Ireland. Oireachtas Copyright Material is reproduced with the permission of the Houses of the Oireachtas © Rialtas na hÉireann. Atáirgtear ábhar faoi Chóipcheart le cead ó Thithe an Oireachtais