Lord Gascoigne:

Moved by Lord Gascoigne

26: Schedule 4, page 166, line 30, at end insert—“(4A) But, as this paragraph has effect subject to any assumptions that must be made in accordance with other provisions of this Schedule, the effect of those assumptions must form part of the determination of what, if any, specified matters arise.” Member’s explanatory statementThis amendment would make clear that the assumptions made under Schedule 4 govern paragraph 20 (so that, for example, an intermediate lease which is assumed to have been surrendered, or merged with a superior title, would not be a “specified matter”).

27: Schedule 4, page 166, line 38, leave out from “1989” to end of line 7 on page 167 and insert “, and(b) the tenant is not holding over under that Act at the valuation date.(1A) That right to hold over, and the likelihood of that right being exercised, is to be taken into consideration in determining the market value only if—(a) the term date of the current lease is within the period of five years beginning at the valuation date, and(b) that right to hold over is likely to be exercised.”Member’s explanatory statementThis would clarify that paragraph 21 only applies before the tenant starts to hold over under the Local Government and Housing Act 1989.

28: Schedule 4, page 167, line 27, at end insert—“22A “(1) This paragraph applies when determining—(a) the market value of the relevant freehold on the transfer of a freehold house under the LRA 1967, or(b) the market value of the notional lease on a lease extension,if the qualifying tenant is also the tenant of a relevant superior lease.(2) A “relevant superior lease” is a lease that—(a) is superior to the current lease, and(b) in accordance with paragraph 17(2)(a)(ii), (b)(ii) or (d)(ii) must be assumed to have been surrendered.(3) After the application of the other provisions of this Schedule for the purposes of calculating the market value, including the assumptions in paragraph 17(2)—(a) the amount produced by the application of those other provisions must be reduced to take account of the value of the relevant superior lease, and(b) the amount produced after that reduction is the market value.”Member’s explanatory statementThis amendment would ensure that the qualifying tenant is not required to pay a price that includes the value of an interest which they already own (namely a lease that is superior to the lease they are enfranchising or extending).

Amendments 26 to 28 agreed.