[F216E(1)Where a lease of a flat granted in pursuance of the right to acquire on rent to mortgage terms requires the tenant to pay—E+W
(a)service charges in respect of repairs (including works for the making good of structural defects), or
(b)improvement contributions,
his liability in respect of costs incurred at any time before the final payment is made is restricted as follows.
(2)He is not required to pay any more than the amount determined by the formula—
where—
M = the maximum amount which he is required to pay;
P = the amount which, but for this paragraph, he would be required to pay;
S = the landlord’s share at the time expressed as a percentage.]
Textual Amendments
F2Sch. 6 Pt. III para. 16E inserted (11.10.1993) by 1993 c. 28, s. 116(2); S.I. 1993/2134, arts. 2, 4(b) (with saving in Sch. 1 para. 4(1)).