Paragraph 36 Lease not subject to a rent reviewI1

This paragraph applies to a lease if the rent under the lease is not subject to a rent review at any time during the unexpired term of the lease.

That includes a case where—

The term value is determined using this formula—

$$r \times \left(\frac{1-{\displaystyle \frac{1}{{\left(1+c\right)}^n}}}{c}\right)$$

where—

• c is the applicable capitalisation rate;

• r is the rent (but see sub-paragraph (4));

• n is the length (in years) of the unexpired term of the lease.

If paragraph 26(3) requires the notional annual rent to be used instead of the rent to determine the term value of the lease, r is the notional annual rent.