Leasehold Reform Act 1967(1)
5. For section 1(1)(a)(2) (tenants entitled to enfranchisement or extension) substitute—
“(a)his tenancy is a long tenancy at a low rent and,—
(i)if the tenancy was entered into before 1st April 1990 or (where the house and premises had a rateable value on 31st March 1990) on or after 1st April 1990 in pursuance of a contract made before that date, subject to subsections (5) and (6) below, the rateable value of the house and premises on the appropriate day was not more than £200 or, if it is in Greater London, than £400; and
(ii)if the tenancy is entered into on or after 1st April 1990 (otherwise than, where the house and premises had a rateable value on 31st March 1990, in pursuance of a contract made before 1st April 1990), on the date the contract for the grant of the tenancy was made or, if there was no such contract, on the date the tenancy was entered into R exceeded £25,000 under the formula—
where—
P is the premium payable as a condition of the grant of the tenancy (and includes a payment of money’s worth) or, where no premium is so payable, zero,
I is 0.06, and
T is the term, expressed in years, granted by the tenancy (disregarding any right to terminate the tenancy before the end of the term or to extend the tenancy); and ”.
Section 1(1)(a) was amended by section 118(1) of the Housing Act 1974 (c. 44).