## **Part 4** SCompensation for loss of landlord's rights

### Calculation of compensatory paymentS

#### 47Calculation of the compensatory paymentS

The compensatory payment in relation to a lease is calculated as followsâ€”

*Step 1*

Determine the annual rent (AR) in accordance with section 48.

*Step 2*

Calculate the notional annual renewal premium (NARP) (if any) in accordance with section 49.

*Step 3*

Calculate the annual income (AI) according to the following formulaâ€”

.

*Step 4*

Calculate the sum of money which would, if invested in 2.5 per cent Consolidated Stock at the middle market price at the close of business last preceding the appointed day, produce an annual sum equal to AI.

The sum calculated is the compensatory payment.