Part 4Compensation for loss of landlord's rights
Renewal premiums
I149Calculation of notional annual renewal premium
1
This section applies where—
a
a lease contains a renewal obligation,
b
the renewal premium (determined in accordance with subsection (3)) next payable on or after the appointed day is less than or equal to £100, and
c
the lease complies with section 1(3)(b) and (c) by virtue of section 71(1)(b).
2
For the purpose of section 47, the notional annual renewal premium is calculated according to the following formula—
where—
NARP is the notional annual renewal premium,
RP is the renewal premium (determined in accordance with subsection (3)) next payable on or after the appointed day,
Y is the renewal period (expressed as a number of years).
3
The renewal premium is—
a
where the lease is not a partially continuing lease and the renewal premium payable immediately before the appointed day was a cumulo renewal premium, the renewal premium allocated to the lease under section 42,
b
where the lease is a partially continuing lease, the renewal premium allocated to the converted subjects under section 43,
c
in any other case, the renewal premium payable under the lease.