SCHEDULE 1THE REDEMPTION MONEY
The redemption money -general provisions
1 F1
The redemption money appropriate to a ground rent is the sum produced by multiplying the yearly amount of the ground rent by the figure fixed under paragraph 2 as the number of years purchase applicable to that ground rent.
2
The Department of Finance and Personnel may by order made subject to negative resolution fix a figure as being the number of years purchase applicable to ground rents or to ground rents of a particular class or description.
Ground rent under building lease, etc.
3
(1)
This paragraph applies for the purpose of determining, for the purposes of paragraph 1, the yearly amount of a ground rent—
(a)
to which land held under a building lease or under a fee farm grant for purposes corresponding to those of a building lease is subject; and
(b)
in relation to which there is an agreement providing for one or more than one increase (whether periodic or dependent on a contingency) in the amount of the ground rent related to periods or events in the progress of building or related activities.
(2)
Subject to sub-paragraph (3), the yearly amount of the ground rent is to be taken to be the greatest annual amount that can become payable in accordance with the agreement (assuming, where an increase is dependent on a contingency, that the contingency will happen).
(3)
The amount arrived at under sub-paragraph (2) is subject to such abatement as is appropriate to take account of the period or periods during which ground rent would be payable, or likely to be payable, at a reduced rate in accordance with the agreement if the ground rent were not redeemed.
(4)
In this paragraph “contingency” does not include a breach of covenant such as is mentioned in section 28(4).
Ground rent subject to future increase
4 F2
(1)
This paragraph applies for the purpose of determining, for the purposes of paragraph 1, the yearly amount of a ground rent which is subject to a provision for its increase, on a date or dates falling after the application date, by—
(a)
a fixed amount; or
(b)
an amount which is ascertained by a formula.
(2)
Where the date for any such increase falls after the expiration of the relevant period, the provision for that increase is to be ignored.
(3)
Where the date for any such increase falls within the relevant period, the yearly amount of the ground rent shall be determined in such manner as may be specified in an order under paragraph 2.
(4)
In this paragraph “the relevant period”, in relation to a ground rent, means the period commencing on the application date and consisting of the number of years fixed by order under paragraph 2 as the number of years purchase applicable to ground rents (or, as the case may be, applicable to ground rents of the same class or description as that ground rent).
Ground rent subject to periodic review
5
(1)
This paragraph applies for the purpose of determining, for the purposes of paragraph 1, the yearly amount of a ground rent which is subject to periodic review having regard to circumstances current at the time of the review.
(2)
If the application date is within one year after the date of—
(a)
the creation of the ground rent; or
(b)
a review of the ground rent,
the yearly amount of the ground rent is to be taken to be its amount as created or, as the case may be, its amount immediately following the implementation of the review.
(3)
If the application date is more than one year after the date of the creation of the ground rent or its review (or most recent review), the yearly amount of the ground rent is to be taken to be that which it would have been if the ground rent had been reviewed on the anniversary of the date of its creation last preceding the application date in accordance with all the provisions for review except any provision about the dates of, or the length of periods between, reviews.
(4)
For the purposes of this paragraph, a single review the occasion for which has not yet arisen or arrived is a periodic review.
Schedule 2 — Amendments
Schedule 3 — Repeals