Regulation 4 Purchase Price

The cost of the equitable interest purchased (“purchase price”) must be met by the landlord reducing or (as the case may be) cancelling the service charge payable to the landlord by the tenant to such extent as corresponds to the amount concerned, but this is subject to paragraph (2).

Where, in accordance with a term agreed as mentioned in regulation 5, the tenant is liable to pay the landlord’s administrative expenses, the purchase price may, at the option of the landlord, be reduced by the amount of those expenses.