4. Where section 9(1) of the Act applies, the purchase price and cost of enfranchisement is determined on the basis of the value of the land and there is no element of marriage value.
Where section 9(1A) of the Act applies, the purchase price and cost of enfranchisement is determined on the basis of the land and the house including fifty percent of any marriage value (see new section 9(1D) of the Act inserted by section 145 of the Commonhold and Leasehold Reform Act 2002(1)). No marriage value is payable if the unexpired term of the lease exceeds eighty years (see new section 9(1E) of the Act inserted by section 146 of the Commonhold and Leasehold Reform Act 2002). The fact that the tenant has security of tenure will be taken into account in determining the price.
Where section 9(1C) of the Act applies, the purchase price and cost of enfranchisement is determined on the same basis as that under section 9(1A) of the Act, except that there is no security of tenure at the end of the lease, and additional compensation may be payable if the sale of the freehold results in the diminution of value of or any other loss or damage in relation to any interest of the landlord in any other property.