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Leasehold and Freehold Reform Act 2024

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Dyma’r fersiwn wreiddiol (fel y’i gwnaed yn wreiddiol).

Market rack rent leases

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8(1)The standard valuation method is not compulsory for the property comprised in a current lease if it is a market rack rent lease at the valuation date.

(2)If section 3(3) of the LRA 1967 applies to the current lease (successive leases treated as a single lease), sub-paragraph (1) is to apply only if the one of those leases which is in effect at the valuation date is a market rack rent lease.

(3)A “market rack rent lease” is a lease which—

(a)was granted—

(i)for no premium, or

(ii)for a premium which was low relative to the value of the freehold of the property with vacant possession at the time of the grant,

(b)was granted at a market rack rent, and

(c)the parties entered into with the intention that the rent would be a market rack rent.

(4)In this paragraph “market rack rent” means a rent which was, or was reasonably close to, a market rack rent at the time of the grant.

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