Title and commencement
1. The title of these Regulations is the Rentcharges (Redemption Price) (Wales) Regulations 2017 and they come into force on 10 February 2017.
Redemption Price
2.—(1) For the purposes of—
(a)section 9 of the Rentcharges Act 1977(1), and
(b)section 9 of the Rentcharges Act 1977 as applied by section 20(1) of the Landlord and Tenant Act 1927(2),
the redemption price in relation to land in Wales is calculated by applying the following formula—
(2) For the purposes of the formula in paragraph (1)—
P = the redemption price;
R = the annual amount of the Rentcharge (or, as the case may be, the rent to which section 20(1) of the Landlord and Tenant Act 1927 applies) to be redeemed (in pounds sterling);
Y = the maturity rate, expressed as a decimal fraction, of the “over 30 not over 30.5 year” National Loans Fund interest rate; and
n = the period, expressed in years (rounding up any part of a year to a whole year), for which the rentcharge (or, as the case may be, the rent to which section 20(1) of the Landlord and Tenant Act 1927 applies) would remain payable if it were not redeemed.
(3) In paragraph (2), the maturity rate is the published interest rate at the close of business on the last trading day of the week before the week in which instructions for redemption are served under section 9(4) of the Rentcharges Act 1977.
Carl Sargeant
Cabinet Secretary for Communities and Children, one of the Welsh Ministers
16 January 2017