Schedules

Schedule 4Determining and sharing the market value

Part 5The standard valuation method

Step 3: calculate the market value of the newly owned premises subject to the standard valuation method

29

(1)

Step 3: add together—

(a)

the term value amount, and

(b)

the reversion value amount.

(2)

The “term value amount” is—

(a)

the term value determined under step 1 (if there is only one term value), or

(b)

the total of all the term values determined under step 1 (if there are two or more of them by virtue of paragraph 25(3) or (7)).

(3)

The “reversion value amount” is—

(a)

the reversion value determined under step 2 (if there is only one reversion value), or

(b)

the total of all the reversion values determined under step 2 (if there are two or more of them by virtue of paragraph 27(5) or (7) or 28(4)).

(4)

The amount calculated under step 3 (with any adjustment resulting from paragraph 20 or 22) is the market value of that property comprised in the relevant freehold or notional lease which is subject to the standard valuation method.

(5)

See paragraph 4(2) for provision about the market value where only some of the property comprised in the relevant freehold or notional lease is subject to the standard valuation method.