Paragraph 23 Enfranchisement of house or lease extension: tenant with superior leaseI1

England and Wales Not yet in force

(1)

This paragraph applies when determining—

(a)

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

(b)

the market value of the notional lease on a lease extension,

if the qualifying tenant is also the tenant of a relevant superior lease.

(2)

A “relevant superior lease” is a lease that—

(a)

is superior to the current lease, and

(b)

in accordance with paragraph 17 (2)(a)(ii), (b)(ii) or (d)(ii) must be assumed to have been surrendered.

(3)

After the application of the other provisions of this Schedule for the purposes of calculating the market value, including the assumptions in paragraph 17 (2)—

(a)

the amount produced by the application of those other provisions must be reduced to take account of the value of the relevant superior lease, and

(b)

the amount produced after that reduction is the market value.

Annotations

Commencement

I1: Sch. 4 para. 23 not in force at Royal Assent, see s. 124(3)