The Local Authorities (Capital Finance) Regulations 1997

Variation of lease where initial cost included consideration under earlier lease

49.—(1) In this regulation—

• “preceding interest”, in relation to a relevant lease, means the earlier leasehold interest mentioned in regulation 35(2) or, as the case may be, paragraph (6)(b) of regulation 7 of the 1990 Regulations; and

• “relevant lease” means a lease of which the initial cost was determined under regulation 35 or paragraph (6) of regulation 7 of the 1990 Regulations(1).

(2) Where a local authority agree to a variation of a credit arrangement which is a relevant lease, the adjusted cost of the lease shall be the aggregate of—

(a) the amount which, apart from this regulation, would be the adjusted cost by virtue of regulation 47; and

(b) the value of the consideration given by the authority in respect of the preceding interest.

(1)

S.I. 1990/432; paragraph (6) of regulation 7 was amended by S.I. 1992/3257, S.I. 1995/850, S.I. 1996/568 and S.I. 1996/2539.