6 Compensation as to part of holding
9.21 It may be that the landlord resumes possession of part only of the holding, either pursuant to a clause allowing repossession of part in the tenancy agreement itself, or by virtue of the provisions of s 31 of the 1986 Act.
Where he does so, s 74 of the 1986 Act safeguards the landlord’s right to compensation by providing that, for the purposes of any claim for compensation, the part of the holding repossessed is treated as if it were a separate holding which the tenant had quitted in consequence of a notice to quit. Compensation can be claimed in respect of dilapidations to that part of the holding as if it were a separate holding. Where possession is resumed pursuant to a term of the contract of tenancy, then when assessing the compensation payable, the arbitrator must take into consideration any benefit or relief allowed to the tenant under the tenancy agreement.9.22 Further, s 74(3) provides that where a person entitled to a severed part of the reversionary estate resumes possession of part of the holding by virtue of a notice to quit,42 then compensation can be claimed as if the part repossessed were a separate holding of which the reversioner is landlord.43
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