Commencement Information
I1Sch. 6 wholly in force at 1.11.1993 see s. 188(2) and S.I. 1993/2134, art. 5
7(1)Subject to sub-paragraph (2), paragraph 3 shall apply for determining the value of any intermediate leasehold interest for the purposes of paragraph 6(1)(b)(i) with such modifications as are appropriate to relate that paragraph to a sale of the interest in question subject (where applicable) to any leases intermediate between that interest and any lease held by a qualifying tenant of a flat contained in the specified premises.E+W
[F1(1A)In its application in accordance with sub-paragraph (1), paragraph 3(1A) shall have effect with the addition after paragraph (a) of—
“(aa)an owner of a freehold interest in the specified premises, or”]
[F2(2)The value of an intermediate leasehold interest which is the interest of the tenant under a minor intermediate lease is to be calculated in accordance with regulations made by the appropriate national authority instead of in accordance with sub-paragraph (1).]
(3)“A minor intermediate lease” means a lease complying with the following requirements, namely—
(a)it must have an expectation of possession of not more than one month, and
(b)the profit rent in respect of the lease must be not more than £5 per year;
and, in the case of a lease which is in immediate reversion on two or more leases, those requirements must be complied with in connection with each of the sub-leases.
(4)Where a minor intermediate lease is in immediate reversion on two or more leases—
(a)the [F3calculation method mentioned in sub-paragraph (2)] shall be applied in relation to each of those sub-leases (and sub-paragraphs (5) and (6) shall also so apply); and
(b)the value of the interest of the tenant under the minor intermediate lease shall accordingly be the aggregate of the amounts calculated [F4in accordance with that method].
(5)“Profit rent” means an amount equal to that of the rent payable under the lease on which the minor intermediate lease is in immediate reversion, less that of the rent payable under the minor intermediate lease.
(6)Where the minor intermediate lease or that on which it is in immediate reversion comprises property other than a flat held by a qualifying tenant, then in sub-paragraph (5) the reference to the rent payable under it means so much of that rent as is apportioned to any such flat.
F5(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9)For the purposes of this paragraph the expectation of possession carried by a lease in relation to a lease (“the sub-lease”) on which it is in immediate reversion is the expectation of possession which it carries at [F6the relevant date] after the sub-lease, on the basis that—
(a)(subject to sub-paragraph (10)) where the sub-lease is a lease held by a qualifying tenant of a flat contained in the specified premises, it terminates at [F6the relevant date] if its term date fell before then, or else it terminates on its term date; and
(b)in any other case, the sub-lease terminates on its term date.
(10)In a case where before the relevant date for the purposes of this Chapter the landlord of any such qualifying tenant as is mentioned in sub-paragraph (9)(a) had given notice to quit terminating the tenant’s sub-lease on a date earlier than that date, the date specified in the notice to quit shall be substituted for the date specified in that provision.
[F7(11)In sub-paragraph (2) “appropriate national authority” means—
(a)in relation to a leasehold interest of land in England, the Secretary of State;
(b)in relation to a leasehold interest of land in Wales, the Welsh Ministers.]
Textual Amendments
F1Sch. 6 para. 7(1A) inserted (1.10.1996) by 1996 c. 52, s. 109(4); S.I. 1996/2212, art. 2(2) (with saving in Sch.)
F2Sch. 6 para. 7(2) substituted (12.5.2016) by Housing and Planning Act 2016 (c. 22), s. 216(1)(c), Sch. 10 para. 4(2) (with Sch. 10 para. 4(6))
F3Words in Sch. 6 para. 7(4) substituted (12.5.2016) by Housing and Planning Act 2016 (c. 22), s. 216(1)(c), Sch. 10 para. 4(3)(a) (with Sch. 10 para. 4(6))
F4Words in Sch. 6 para. 7(4) substituted (12.5.2016) by Housing and Planning Act 2016 (c. 22), s. 216(1)(c), Sch. 10 para. 4(3)(b) (with Sch. 10 para. 4(6))
F5Sch. 6 para. 7(7)(8) omitted (12.5.2016) by virtue of Housing and Planning Act 2016 (c. 22), s. 216(1)(c), Sch. 10 para. 4(4) (with Sch. 10 para. 4(6))
F6Words in Sch. 6 substituted (28.2.2005 for E., 31.5.2005 for W.) by Commonhold and Leasehold Reform Act 2002 (c. 15), ss. 126(1), 181(1); S.I. 2004/3056, art. 3(a) (with art. 4(1)(1A)) (as amended by S.I. 2005/193, art. 2); S.I. 2005/1353, art. 2(a) (with art. 3(2))
F7Sch. 6 para. 7(11) inserted (12.5.2016) by Housing and Planning Act 2016 (c. 22), s. 216(1)(c), Sch. 10 para. 4(5) (with Sch. 10 para. 4(6))