Rentcharges Act 1977

10 Provisions supplemental to section 9. E+W

(1) For the purposes of section 9 above, the redemption price shall be calculated by applying the formula:—

where:—

• P=the redemption price;

• R=the annual amount of the rentcharge to be redeemed;

• Y=the yield, expressed as a decimal fraction, from 2½per cent. Consolidated Stock; and

• n=the period, expressed in years (taking any part of a year as a whole year), for which the rentcharge would remain payable if it were not redeemed.

In calculating the yield from 2½per cent. Consolidated Stock, the price of that stock shall be taken to be the middle market price at the close of business on the last trading day in the week before that in which instructions for redemption are served under section 9(4) above.

(2) For the purposes of section 9(4)(b) above, the person to whom the redemption price should be paid is—

(a) in a case where the rentcharge was subject to a mortgage, the mortgagee or, if there is more than one mortgagee, the first mortgagee;

(b) in a case where the rentcharge was not subject to a mortgage but was settled land or was subject to a trust for sale, the trustees;

(c) in any other case, the rent owner.

(3) Where a redemption certificate has been issued under section 9 above—

(a) it shall have the effect of releasing the applicant’s land from the rentcharge concerned, but

(b) it shall not affect the exercise by the rent owner of any right or remedy for the recovery of any rent which accrues before the date on which it was issued.

(4) Where a payment is made into court for the purposes of section 9 above, the sum concerned shall—

(a) if it does not exceed the [F1 county court limit], be paid into the county court, and

(b) in any other case, be paid into the High Court.

[F2 (4A) In subsection (4) above, “the county court limit”means the amount which for the time being is the county court limit for the purposes of section 15 of the County Courts Act 1984 (general jurisdiction in actions of contract and tort).]

(5) Any person who, in notifying the Secretary of State under section 9(2) above, makes a statement which he knows to be false in a material particular, or recklessly makes any statement which is so false, shall be guilty of an offence punishable on summary conviction by a fine not exceeding £1,000.

Textual Amendments

F1 Words substituted by County Courts Act 1984 (c. 28, SIF 34), s. 148(1), Sch. 2 Pt. V para. 63(a)

F2 S. 10(4A) inserted by County Courts Act 1984 (c. 28, SIF 34), s. 148(1), Sch. 2 Pt. V para. 63(b)