SCHEDULES
I1 SCHEDULE 6 PURCHASE PRICE PAYABLE BY NOMINEE PURCHASER
Part VI VALUATION ETC. OF OTHER INTERESTS WITH NEGATIVE VALUES
Valuation of freehold and leasehold interests
18
1
Where—
a
the value of any freehold interest (as determined in accordance with paragraph 11(1)), or
b
the value of any leasehold interest (as determined in accordance with paragraph 11(2)),
is a negative amount, the value of the interest for the relevant purposes shall be nil.
2
Where, in the case of any property, sub-paragraph (1) applies to any leasehold interest in the property whose value is a negative amount (“the negative interest”), then for the relevant purposes any interests in the property superior to the negative interest and having a positive value shall, if they are interests which are to be acquired by the nominee purchaser, be reduced in value—
a
beginning with the interest which is nearest 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 leasehold interests in any property 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.
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 any freehold interest, means the purposes of paragraph 10(1)(a); and
b
as respects any leasehold interest, means the purposes of paragraph 10(2)(a).
Sch. 6 wholly in force at 1.11.1993 see s. 188(2) and S.I. 1993/2134, art. 5