106Leasing powers where mortgages or certain charges

106 Leasing powers where mortgages or certain charges

106 Leasing powers where mortgages or certain charges

(1) A mortgagor of land while in possession shall as against every incumbrancee have by virtue of this Act power to make from time to time any such lease of the mortgaged land, or any part thereof, as is in this section described and authorised. For the purposes of this subsection the expression mortgagor does not include an incumbrancee deriving title under the original mortgagor.

(2) A mortgagee of land or person having the benefit of a charge on land while in possession shall as against all prior incumbrancees (if any) and as against the mortgagor or person whose land is subject to the charge have by virtue of this Act power to make from time to time any such lease as aforesaid.

(3) The lease which this section authorises is—A lease for any term not exceeding five years.

(4) Every person making a lease under this section may execute and do all assurances and things necessary or proper in that behalf.

(5) Every such lease shall be made to take effect in possession not later than three months after its date.

(6) Every such lease shall reserve the best rent that can reasonably be obtained, regard being had to the circumstances of the case, but without any fine being taken or the rent made payable in advance except as to the last payment which may be made payable on a day not more than one month before the expiration of the term.

(7) Every such lease shall contain a condition of re-entry on the rent not being paid within a time therein specified not exceeding thirty days, and the covenants implied by section 84 shall not be excluded therefrom.

(8) Where the land comprised in any such lease is under the provisions of the Real Property Act 1900, the lease shall be registered in accordance with the provisions of that Act.

(8A) Where the land comprised in such lease is not under the provisions of the Real Property Act 1900, the lease shall be executed by the lessee and registered under Division 1 of Part 23.

(9) Within one month after having made a lease under this section—

(a) a mortgagor shall deliver to the mortgagee (or, if there is more than one, to the mortgagee first in priority) and, where another person has the benefit of a charge on the land, to the other person, or