Schedules
Schedule 8Remediation costs under qualifying leases etc
6Paragraph 5: the permitted maximum
1
In paragraph 5 “the permitted maximum”, in relation to a qualifying lease, has the following meaning.
2
The permitted maximum is (subject to sub-paragraphs (3) to (5))—
a
if the premises demised by the qualifying lease are in Greater London, £15,000;
b
otherwise, £10,000.
3
Where the value of the qualifying lease at the qualifying time exceeded £1,000,000 but did not exceed £2,000,000, the permitted maximum is £50,000.
4
Where the value of the qualifying lease at the qualifying time exceeded £2,000,000, the permitted maximum is £100,000.
5
Where the qualifying lease is a shared ownership lease and the tenant’s total share was less than 100% at the qualifying time—
a
the value of the qualifying lease at that time is to be determined as if the tenant’s total share at that time was 100%;
b
the permitted maximum is the tenant’s total share (as at that time) of what would otherwise be the permitted maximum.
6
The Secretary of State may by regulations make provision about the determination of the value of a qualifying lease for the purposes of paragraph 4 and this paragraph.
7
The regulations may in particular provide that, except in prescribed cases, the value of a qualifying lease at the qualifying time is to be determined by—
a
ascertaining the consideration given on the latest disposal of the qualifying lease on the open market to have been made before that time, and
b
if that disposal occurred before 2022, uprating the consideration in accordance with the regulations.
8
In this paragraph “shared ownership lease” and “total share” have the meaning given by section 7 of the Leasehold Reform, Housing and Urban Development Act 1993.