Housing Act 1985

148 Tenant’s initial contribution and effective discount.

(1) The consideration for the grant of a shared ownership lease (the tenant’s “initial contribution”) shall be determined by the formula—

and the effective discount shall be determined by the formula—

where—

C

=

the tenant’s initial contribution,

E

=

the effective discount,

S

=

the tenant’s initial share expressed as a percentage,

V

=

the value of the dwelling-house at the relevant time, determined in accordance with section 127, and

D

=

the discount which if the tenant were exercising the right to buy would be applicable under sections 129 to 131.

(2) In determining the value of the dwelling-house for the purposes of this section, the assumptions to be made under section 127 (which vary according to whether it is the freehold or a lease which is to be acquired) are those applicable in relation to the dwelling-house for the pruposes of the right to buy.