Lease not subject to a rent review
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36(1)This paragraph applies to a lease if the rent under the lease is not subject to a rent review at any time during the unexpired term of the lease.
(2)That includes a case where—
(a)the rent under the lease is subject to a rent review, but
(b)the terms of the rent review are such that there will be no further rent reviews during the unexpired term of the lease.
(3)The term value is determined using this formula—
where—
c is the applicable capitalisation rate;
r is the rent (but see sub-paragraph (4));
n is the length (in years) of the unexpired term of the lease.
(4)If paragraph 26(3) requires the notional annual rent to be used instead of the rent to determine the term value of the lease, r is the notional annual rent.