Section Sch6-9 — Property Law Act 2007: Recovery of annual sums charged on land

9 Recovery of annual sums charged on land (1) This clause applies if— (a) a person is entitled to receive out of any land, or out of the income of land, any annual sum, payable half-yearly or otherwise, whether charged on the land or on the income of the land, and whether by way of rentcharge or otherwise, not being rent incident to a reversion; and (b) the instrument under which the annual sum is payable came into operation on or after 1 January 1906. (2) The person entitled to receive the annual sum has the remedies for recovering payment of it described in subclause (4)— (a) so far as the remedies might have been conferred by the instrument under which the annual sum is payable, but not further; and (b) subject to the terms of the instrument. (3) Subclause (2) applies subject and without prejudice to all estates, interests, and rights having priority to the annual sum. (4) If at any time the annual sum or any part of it is unpaid for 40 days after the time appointed for payment, then, although no legal demand for the payment has been made, the person entitled to receive the annual sum may do either or both of the following: (a) enter into possession of and hold the land charged, or any part of it, and take the income of the land, or any part of it, without impeachment of waste, until the annual sum and all arrears due at the time of entry or afterwards becoming due while the person continues in possession, and all costs arising from the non-payment of the annual sum, are fully paid: (b) by deed, convey the land charged or any part of it to a trustee for a term of years, with or without impeachment of waste, on trust, by all or any of the following means: (i) mortgage; or (ii) sale; or (iii) demise for all or any part of the term; or (iv) receipt of the income of the land or any part of it; or (v) any other reasonable means. (5) The power in subclause (4)(b) may be exercised only to raise and pay the annual sum and all arrears due or becoming due, and all costs arising from the non-payment of the annual sum, or incurred in compelling or obtaining payment of the annual sum, including the costs of the preparation and execution of any instrument and the costs of execution of the trust thereby created. (6) The surplus, if any, of the money raised or the income received under the trust must be paid to the person for the time being entitled to the land comprised in the trust, in reversion immediately expectant on the term of the trust. (7) The rule against perpetuities as modified by the Perpetuities Act 1964 does not apply to— (a) any powers or remedies conferred by this clause; or (b) any equivalent powers or remedies conferred by any instrument for recovering the payment of any annual sum within the meaning of this clause. Compare: 1952 No 51 s 150