Print Options
PrintThe Whole
Act
PrintThe Whole
Schedule
PrintThe Whole
Part
PrintThis
Section
only
Changes over time for: Paragraph 38
Timeline of Changes
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Status:
This version of this provision is prospective.
Status
The term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section. A version of a provision is prospective either:
- where the provision (Part, Chapter or section) has never come into force or;
- where the text of the provision is subject to change, but no date has yet been appointed by the appropriate person or body for those changes to come into force.
Commencement Orders listed in the ‘Changes to Legislation’ box as not yet applied may bring this prospective version into force.
Changes to legislation:
There are currently no known outstanding effects for the Leasehold and Freehold Reform Act 2024, Paragraph 38.
Changes to Legislation
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
Prospective
Lease subject to any other rent reviewE+W
This section has no associated Explanatory Notes
38(1)This paragraph applies to a lease if—
(a)the rent under the lease is subject to a rent review, and
(b)paragraph 36 does not apply to the lease.
(2)The term value is determined using this formula—
where—
c is the applicable capitalisation rate;
r1 is the rent at the valuation date (but see sub-paragraph (6));
r2 is the rent after the first rent review following the valuation date (but see sub-paragraph (6));
n1 is the length (in years) of the period during which the rent at the valuation date will be payable;
n2 is the length (in years) of the period that begins with the first day of the first rent review following the valuation date and ends with the term date of the current lease.
(3)If the rent review provides for the rent under the lease to change by the same proportion as an index of price inflation or the capital or rental value of property, r2 is determined using this formula—
where—
a1 is the index of price inflation, or the capital or rental value, at the valuation date;
a2 is the index of price inflation, or the capital or rental value, at the time when the previous rent review took effect or (if none has taken effect) when the term of the lease began;
r1 is the rent at the valuation date;
(4)If the rent review provides for the rent under the lease to be a percentage or other proportion of the capital value of property, r2 is determined using this formula—
(5)If neither sub-paragraph (3) nor (4) applies to the rent review, r2 is to be determined in line with the terms of the rent review provision.
(6)If paragraph 26(3) requires the notional annual rent to be used—
(a)instead of the rent at the valuation date to determine the term value of the lease, r1 is the notional annual rent;
(b)instead of the rent after the first rent review following the valuation date, r2 is the notional annual rent.
Back to top