Collective enfranchisement: property other than relevant flats etc and appurtenant property
13(1)This paragraph applies only to a collective enfranchisement.
(2)The requirement under paragraph 5(1) to use the standard valuation method applies only in relation to property comprised in the newly owned premises that is—
(a)a relevant flat, or
(b)appurtenant property leased with a relevant flat.
(3)Accordingly, the standard valuation method is not compulsory for any other property comprised in the newly owned premises.
(4)A flat is a “relevant flat” for the purposes of this paragraph if the flat is—
(a)demised to a qualifying tenant, or
(b)demised to a person who is not a qualifying tenant, but only because of section 5(5) and (6) of the LRHUDA 1993 (a person who is the tenant of three or more flats in the building).
(5)But a flat is not a relevant flat if—
(a)it, or any part of it, is demised by a lease which the nominee purchaser could acquire, but is not acquiring, under paragraph 2(5) of Schedule A1 to the LRHUDA 1993 (acquisition of intermediate leases);
(b)it, or any part of it, is demised by a shared ownership lease.
(6)Appurtenant property is “leased with” a relevant flat for the purposes of this paragraph if—
(a)the appurtenant property and the relevant flat are leased under the same lease (including where, under section 7(6) of the LRHUDA 1993, two or more leases are treated as a single lease), and
(b)by virtue of that lease, the tenant is a qualifying tenant or, but for the impediment referred to in sub-paragraph (4)(b), would be a qualifying tenant.
(7)By virtue of paragraph 1(1)(c) of Schedule 6, the references in this paragraph to a flat, a qualifying tenant, appurtenant property or a shared ownership lease have the same meanings that they have in Chapter 1 of Part 1 of the LRHUDA 1993 (see, respectively, sections 101(1), 5, 1(7) and 101(1) of that Act).