Leasehold Reform, Housing and Urban Development Act 1993

113 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—

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

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

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.”