Search Legislation

Leasehold and Freehold Reform Act 2024

 Help about what version

What Version

 Help about advanced features

Advanced Features

 Help about opening options

Opening OptionsExpand opening options

Changes over time for: Paragraph 38

 Help about opening options

Alternative versions:

Status:

This version of this provision is prospective. Help about Status

Changes to legislation:

There are currently no known outstanding effects for the Leasehold and Freehold Reform Act 2024, Paragraph 38. Help about Changes to Legislation

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—

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—

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—

Formula

where—

  • p is the percentage or other proportion;

  • v is the capital value of the property at the valuation date.

(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.

Commencement Information

I1Sch. 4 para. 38 not in force at Royal Assent, see s. 124(3)

Back to top

Options/Help

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?