Paragraph 3

England and Wales

(1)

The consideration for an additional share (referred to in this Part as an “additional contribution”) shall be determined by the formula—

C = \frac{S (V - D)}{100}

and the effective discount to which the tenant is entitled on the acquisition of an additional share shall be determined by the formula—

E = \frac{S x D}{100}

where—

C = the additional contribution,
E = the effective discount,
S = the additional share expressed as a percentage,
V = the value of the dwelling-house (determined in accordance with paragraph 11) at the time when the notice under paragraph 1 is served, and
D = the discount which on the assumptions stated in sub-paragraph (2) below would be applicable under sections 129 to 131 (discount on exercise of right to buy).

(2)

The assumptions are that—

(a)

the shared ownership lease had not been granted and the secure tenancy had not come to an end, and

(b)

the tenant was exercising the right to buy and his notice under paragraph 1 was a notice claiming to exercise that right.

Notes on Schedule 8

F1: Sch. 8 repealed (11.10.1993) by 1993 c. 28, s. 187(2), Sch. 22; S.I. 1993/2134, arts. 2, 4(b), Sch. 2 (with saving in Sch. 1 para. 4(1)).