—(1) A mortgagor of land while in possession, as against every incumbrancer, may make from time to time an agricultural or occupation lease of the mortgaged land or any part thereof for any term not exceeding 3 years.
(2) A mortgagee of land while in possession, as against all subsequent incumbrancers, if any, and as against the mortgagor, may make from time to time —
an agricultural or occupation lease for any term not exceeding 21 years;
a building lease for any term not exceeding 99 years.
(3) Every person making a lease under this section may execute and do all assurances and things necessary or proper in that behalf.
(4) Every such lease shall be made to take effect in possession not later than 12 months after its date.
(5) 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.
(6) Every such lease shall contain a covenant by the lessee for payment of the rent, and a condition of re-entry on the rent not being paid within a time therein specified, not exceeding 30 days.
(7) A counterpart of every such lease shall be executed by the lessee and delivered to the lessor, of which execution and delivery the execution of the lease by the lessor shall, in favour of the lessee and all persons deriving title under him, be sufficient evidence.
(8) Every such building lease shall be made in consideration of the lessee, or some person by whose direction the lease is granted, agreeing to erect within not more than 5 years from the date of the lease, buildings, new or additional, or having improved or repaired buildings, or agreeing to improve or repair buildings within that time, or having executed, or agreeing to execute, within that time, on the land leased, an improvement for or in connection with building purposes.
(9) In any such building lease a peppercorn rent, or a nominal or other rent less than the rent ultimately payable, may be made payable for the first 5 years, or any less part of the term.
(10) A contract to make or accept a lease under this section may be enforced by or against every person on whom the lease, if granted, would be binding.
(11) This section shall apply only if and as far as a contrary intention is not expressed by the mortgagor and mortgagee in the mortgage deed, or otherwise in writing, and shall have effect subject to the terms of the mortgage deed or of any such writing and to the provisions therein contained.
(12) Nothing in this Act shall prevent the mortgage deed from reserving to or conferring on the mortgagee any further or other powers of leasing or having reference to leasing, and any further or other powers so reserved shall be exercisable, as far as may be, as if they were conferred by this Act, and with all the like incidents, effects and consequences, unless a contrary intention is expressed in the mortgage deed.
(13) Nothing in this Act shall be construed to enable a mortgagee to make a lease for any longer term or on any other conditions than such as could have been granted or imposed by the mortgagor, with the concurrence of all the incumbrancers, if this Act had not been passed.
(14) This section shall apply only in the case of a mortgage made on or after 1st August 1886; but the provisions thereof, or any of them, may, by agreement in writing made on or after that date between the mortgagor and mortgagee, be applied to a mortgage made before that date, so nevertheless, that any such agreement shall not prejudicially affect any right or interest of any mortgagee not joining in or adopting the agreement.
(15) The provisions of this section referring to a lease shall be construed to extend and apply, as far as circumstances admit, to any letting, and to any agreement, whether in writing or not, for leasing or letting.