Paragraph 2 Landlord and Tenant Act 1954

After section 2(1) (tenancies to which section 1 applies) insert—

“(1A)

For the purpose only of determining whether the qualifying condition is fulfilled with respect to a tenancy which is entered into on or after 1st April 1990 (otherwise than, where the property comprised in the tenancy had a rateable value on 31st March 1990, in pursuance of a contract made before 1st April 1990), for section 4(4)(b)and (5) of that Act^f1 substitute—

“(b)

on the date the contract for the grant of the tenancy was made (or, if there was no such contract, on the date the tenancy was entered into) R exceeded £25,000 under the formula—

$$\mathrm{R}=\genfrac{}{}{0.1ex}{}{\mathrm{P}\times \mathrm{I}}{1-{\left(1+\mathrm{I}\right)}^{-\mathrm{T}}}$$

where—

• P is the premium payable as a condition of the grant of the tenancy (and includes a payment of money’s worth) or, where no premium is so payable, zero,

• I is 0.06, and

• T is the term, expressed in years, granted by the tenancy (disregarding any right to terminate the tenancy before the end of the term or to extend the tenancy). ”.”.