143Relief against loss of lessee's option

143 Relief against loss of lessee's option (a) a reference to an option in a lease is a reference to a right on the part of the lessee to require the lessor to: (i) sell, or offer to sell, to the lessee the reversion expectant on the lease; or (ii) grant, or offer to grant, to the lessee a renewal or extension of the lease or a further lease of the leased premises or a part of the leased premises, whether the right is conferred by the lease or by an agreement collateral to the lease; (b) a reference to a breach by the lessee of an obligation of the lessee under a lease containing an option is a reference to a breach of the obligation by an act done or omitted to be done before or after the commencement of this Act to the extent that the act or omission would constitute a breach of the obligation if there were no option contained in the lease; and (c) notice means a written notice served by a lessor on a lessee that: (i) specifies an act or omission; and (ii) states that, subject to an order of the Court made under subsection (5), the lessor proposes to treat the act or omission as precluding the lessee from exercising an option contained in the lease. (2) If an act or omission that constitutes a breach by a lessee of an obligation of the lessee under a lease containing an option would, but for this section, have the effect of precluding the lessee from exercising the option, the act or omission is to be taken not to have that effect if the lessee purports to exercise the option unless, not later than 14 days after the purported exercise of the option, the lessor serves on the lessee a notice in respect of the act or omission and: (a) neither the lessor nor lessee applies to the Court for an order for relief against the effect of the breach in relation to the purported exercise of the option before the expiry of one month after service of the notice on the lessee; or

Law of Property Act 2000 97 (b) if the lessor or lessee applies to the Court for an order for relief and: (i) the relief is not granted; or (ii) the relief is granted subject to the lessee complying with conditions specified in the order (one of which is to be the time within which the lessee must comply with the conditions) and the lessee fails to comply with the conditions. (3) A lessor or lessee may apply to the Court for an order for relief referred to in subsection (2): (a) in proceedings instituted for that purpose; (b) in proceedings concerning the existence of an alleged breach by the lessee of the lessee's obligations under the lease; or (c) in proceedings concerning the effect of the breach in respect of which relief is sought. (4) In proceedings referred to in subsection (3), the Court may: (a) make the orders it thinks just that will grant relief; or (b) make an order refusing to grant relief, and may make any consequential or ancillary order it considers necessary to give effect to the order or orders. (5) In making an order granting relief or refusing to grant relief, the Court may consider: (a) the nature of the breach complained of; (b) the extent that the lessor was prejudiced by the breach at the date the proceedings were instituted; (c) the conduct of the lessor and the lessee, before and after the service of the notice; (d) the rights of persons other than the lessor or lessee; (e) the operation of subsection (7); and (f) any other matter the Court considers relevant. (6) An order under subsection (4) may include terms as to costs, damages or compensation as the Court thinks just.