Regulation 3 Valuation of Minor Intermediate Leasehold Interest

(1)

In relation to land in England, the value of a minor intermediate leasehold interest^f1 in accordance with paragraph 7(2) of Schedule 6 or, as the case may be, paragraph 8(2) of Schedule 13, to the Leasehold Reform, Housing and Urban Development Act 1993 is calculated by applying the following formula—

P = £ \frac{R}{Y} - \frac{R}{Y {(1 + Y)}^{n}}

(2)

For the purposes of the formula in paragraph (1)—

P = the value of the minor intermediate leasehold interest;
R = the profit rent^f2 (in pounds sterling);
Y = the maturity rate, expressed as a decimal fraction, of the “over 30 not over 30.5 year” National Loans Fund interest rate; and

n = the number of years (rounding up any part of a year to a whole year) remaining on the minor intermediate lease on the relevant date.

(3)

In paragraph (2), the maturity rate is the published interest rate at the close of business on the last trading day of the week before the week in which the relevant date falls.

(4)

In this regulation, “the relevant date” means the date on which the relevant notice of the claim is given under section 13 or, as the case may be, section 42 of the Leasehold Reform, Housing and Urban Development Act 1993.

Annotations

Footnotes

f1: “A minor intermediate lease” is defined in paragraph 7(3) of Schedule 6, and paragraph 8(3) of Schedule 13, to the Leasehold Reform, Housing and Urban Development Act 1993.
f2: “Profit rent” is defined in paragraph 7(5) of Schedule 6, and paragraph 8(4) of Schedule 13, to the Leasehold Reform, Housing and Urban Development Act 1993.