Regulation 38 Reduction in the initial cost of certain leasesI1

a lease is a relevant lease if it is a lease of land and its initial cost falls to be determined under regulation 35, 36 or 37;

“old lease” means a lease of which the initial cost fell to be determined under regulation 35, 36 or 37 or paragraph (6) or (7) of regulation 7, or regulation 7A, of the 1990 Regulations^f1; and

“relevant time”, in relation to an old lease, means the time when the authority’s interest in the lease ceases other than by reason of the expiry of the term of the lease.

estimating, at the relevant time and on the assumptions specified in paragraph (4), the initial cost of a new lease of the land demised by the old lease; and

subtracting from that estimate any amount which the authority have already applied out of that estimate in reduction under paragraph (2) of the initial cost of a lease other than the relevant lease concerned.

that the term of the new lease was equal to the term of the old lease less the expired portion of that term;

that the initial cost of the new lease would fall to be determined under regulation 36;

that apart from the term of the new lease, the new lease was identical to the old lease; and

that the initial cost of the new lease fell to be calculated at the time when the initial cost of the old lease was calculated.