SCHEDULES

I1 SCHEDULE 6 PURCHASE PRICE PAYABLE BY NOMINEE PURCHASER

Annotations:
Commencement Information
I1

Sch. 6 wholly in force at 1.11.1993 see s. 188(2) and S.I. 1993/2134, art. 5

Part V VALUATION ETC. OF INTERESTS IN SPECIFIED PREMISES WITH NEGATIVE VALUES

Valuation of freehold and intermediate leasehold interests

14

1

Where—

a

the value of F1a freeholder’s interest in the specified premises (as determined F1for the relevant purposes), or

b

the value of any intermediate leasehold interest (as determined F2for the relevant purposes),

is a negative amount, the value of the interest for F3those purposes shall be nil.

2

Where sub-paragraph (1) applies to any intermediate leasehold ainterest whose value is a negative amount (“the negative interest”), then for the relevant purposes any interests in the specified premises superior to the negative interest and having a positive value shall be reduced in value—

a

beginning with the interest which is immediately superior to the negative interest and continuing (if necessary) with any such other superior interests in order of proximity to the negative interest;

b

until the aggregate amount of the reduction is equal to the negative amount in question; and

c

without reducing the value of any interest to less than nil.

3

In a case where sub-paragraph (1) applies to two or more intermediate leasehold interests whose values are negative amounts, sub-paragraph (2) shall apply separately in relation to each of those interests—

a

beginning with the interest which is inferior to every other of those interests and then in order of proximity to that interest; and

b

with any reduction in the value of any interest for the relevant purposes by virtue of any prior application of sub-paragraph (2) being taken into account.

F43A

Where sub-paragraph (2) applies—

a

for the purposes of paragraph 5A(2)(a), and

b

in relation to an intermediate leasehold interest in relation to which there is more than one immediately superior interest,

any reduction in value made under that sub-paragraph shall be apportioned between the immediately superior interests.

4

For the purposes of sub-paragraph (2) an interest has a positive value if (apart from that sub-paragraph) its value for the relevant purposes is a positive amount.

5

In this Part of this Schedule “the relevant purposes”—

a

as respects F5a freeholder’s interest in the specified premises, means the purposes of paragraph 2(1)(a) F6or, as the case may be, 5A(2)(a); and

b

as respects any intermediate leasehold interest, means the purposes of paragraph 6(1)(b)(i).