PART V THE RIGHT TO BUY

Right to acquire on rent to mortgage terms

F1 148 Determination of landlord’s share, initial discount etc.

The landlord’s share shall be determined by the formula—

S=P-IPPx100

the amount of the initial discount shall be determined by the formula—

ID=IPPxD

and the amount of any previous discount which will be recovered by virtue of the transaction shall be determined by the formula—

RD=IPPxPD

where—

S = the landlord’s share expressed as a percentage;

P = the price which would be payable if the tenant were exercising the right to buy;

IP = the amount of the tenant’s initial payment (but disregarding any reduction in pursuance of section 153B(3));

ID = the amount of the initial discount;

D = the amount of the discount which would be applicable if the tenant were exercising the right to buy;

RD = the amount of any previous discount which will be recovered by virtue of the transaction;

PD = the amount of any previous discount which would be recovered if the tenant were exercising the right to buy.