Paragraph 31 Local Government and Housing Act 1989

After paragraph 1(2) of Schedule 10 (security of tenure on ending of long residential tenancies) insert—

“(2A)

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 dwelling-house has a rateable value on 31st March 1990, in pursuance of a contract made before 1st April 1990), for paragraph 2(1)(b) and (2) of Schedule 1^f1 to the Housing Act 1988 there shall be substituted—

“(b)

where (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,

• 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). ”.”.