8Regulations respecting building leases

8 Regulations respecting building leases

[Section 8 Amended by 25 Geo. V No. 78 ]

(1)  Every building lease shall be made partly in consideration of the lessee, or some person by whose direction the lease is granted, or some other person having erected, or agreeing to erect, buildings new or additional, or having improved or repaired, or agreeing to improve or repair, buildings, or having executed or agreeing to execute on the land leased an improvement authorized by this Act, for or in connection with building purposes.

(2)  A peppercorn rent, or a nominal or other rent less than the rent ultimately payable, may be made payable for the first five years or any less part of the term.

(3)  Where the land is contracted to be leased in lots, the entire amount of rent to be ultimately payable may be apportioned among the lots in any manner; save that –

(a) the annual rent reserved by any lease shall not be less than $1;

(b) the total amount of the rents reserved on all leases for the time being granted shall not be less than the total amount of the rents which, in order that the leases may be in conformity with this Act, ought to be reserved in respect of the whole land for the time being leased; and

(c) the rent reserved by any lease shall not exceed one-fifth part of the full annual value of the land comprised in that lease, with the buildings thereon when completed.