Part II PUBLIC SECTOR HOUSING

Chapter IENGLAND AND WALES

Right to acquire on rent to mortgage terms

I1113 Determination of landlord’s share, initial discount etc.

For section 148 of the 1985 Act there shall be substituted the following section—

148 Determination of landlord’s share, initial discount etc.

The landlord’s share shall be determined by the formula—

S=P-IPPx100math

the amount of the initial discount shall be determined by the formula—

ID=IPPxDmath

and the amount of any previous discount which will be recovered by virtue of the transaction shall be determined by the formula—

RD=IPPxPDmath

where—

S = the landlord’s share expressed as a percentage;

P = the price which would be payable if the tenant were exercising the right to buy;

IP = the amount of the tenant’s initial payment (but disregarding any reduction in pursuance of section 153B(3));

ID = the amount of the initial discount;

D = the amount of the discount which would be applicable if the tenant were exercising the right to buy;

RD = the amount of any previous discount which will be recovered by virtue of the transaction;

PD = the amount of any previous discount which would be recovered if the tenant were exercising the right to buy.