Paragraph 7 Relevant payments calculated monthly
Where any relevant payment is to be taken into account under paragraph 6, the amount of that payment is to be calculated as a monthly amount.
Where the period in respect of which a renter is liable to make a relevant payment is not a month, an amount is to be calculated as the monthly equivalent, so for example—
weekly payments are multiplied by 52 and divided by 12;
four-weekly payments are multiplied by 13 and divided by 12;
three-monthly payments are multiplied by 4 and divided by 12; and
annual payments are divided by 12.
Where a renter is liable for relevant payments under arrangements that provide for one or more rent free periods, the monthly equivalent is to be calculated over 12 months by reference to the total number of relevant payments which the renter is liable to make in that 12 month period.
“Rent free period” means any period in respect of which the renter has no liability to make one or more of the relevant payments which are to be taken into account under paragraph 6.