Paragraph 8 Market rack rent leasesI1

England and Wales Not yet in force

(1)

The standard valuation method is not compulsory for the property comprised in a current lease if it is a market rack rent lease at the valuation date.

(2)

If section 3(3) of the LRA 1967 applies to the current lease (successive leases treated as a single lease), sub-paragraph (1) is to apply only if the one of those leases which is in effect at the valuation date is a market rack rent lease.

(3)

A “market rack rent lease” is a lease which—

(a)

was granted—

(i)

for no premium, or

(ii)

for a premium which was low relative to the value of the freehold of the property with vacant possession at the time of the grant,

(b)

was granted at a market rack rent, and

(c)

the parties entered into with the intention that the rent would be a market rack rent.

(4)

In this paragraph “market rack rent” means a rent which was, or was reasonably close to, a market rack rent at the time of the grant.

Annotations

Commencement

I1: Sch. 4 para. 8 not in force at Royal Assent, see s. 124(3)