# Leasehold and Freehold Reform Act 2024, Paragraph 8: Market rack rent leases

Extent: E+W
Status: prospective

(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.

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Source: https://www.legislation.gov.uk/ukpga/2024/22/schedule/4/paragraph/8 (the official version)
Page: https://openlegislation.uk/leasehold-and-freehold-reform-act-2024/schedule-4/paragraph-8
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.