Paragraph 18 Additional assumption on transfer of freehold house or lease extension: repairing obligations and improvementsI1

England and Wales Not yet in force

(1)

This paragraph applies when determining the market value of—

(a)

the relevant freehold on the transfer of a freehold house under the LRA 1967, or

(b)

the notional lease on a lease extension.

(2)

Assumption 3: it must be assumed—

(a)

that the qualifying tenant has complied with any tenant’s repairing obligations under the current lease at the valuation date, so that the property has not been devalued by any breach of those obligations, and

(b)

that any improvements to the currently leased premises that have been made by any tenant under the current lease (including the current tenant) at the tenant’s own expense have not been made, unless they were required to be made by any tenant’s repairing obligations under the lease.

(3)

In the case of the transfer of a freehold house, if section 3(3) of the LRA 1967 applies to the current lease (successive leases treated as single lease), assumption 3 is to apply only to the one of those leases which is in effect at the valuation date.

(4)

This paragraph does not prevent other assumptions from being made when determining the market value as long as they are consistent with assumption 3 and the other provisions of this Schedule.

(5)

In this paragraph “tenant’s repairing obligation”, in relation to a lease, means an obligation under the lease (however expressed or described) for the tenant under the lease to repair, maintain or decorate the currently leased premises.

Annotations

Commencement

I1: Sch. 4 para. 18 not in force at Royal Assent, see s. 124(3)