18Amount of lease variation charge

18 Amount of lease variation charge

Working out the amount of lease variation charge (1) A lease variation charge, in relation to an application to vary a lease, is an amount worked out using this formula: start formula open bracket V subscript 1 minus V subscript 2 close bracket times 75% end formula where V1 and V2 are amounts worked out using the table in subsection (2). (2) Use the following table to work out V1 and V2 for the purposes of the formula in subsection (1):

<table cellspacing="0" cellpadding="0" style="width:100%; border-collapse:collapse"><thead><tr><td colspan="5" style="border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Lease variation charge—amount of V</span><span style="font-size:6.67pt; vertical-align:sub">1</span><span> and V</span><span style="font-size:6.67pt; vertical-align:sub">2</span></p></td></tr><tr><td style="width:2.98%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span></span></p></td><td colspan="2" style="border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span></span></p></td><td style="width:42.62%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>For a variation that is a consolidation or subdivision</span></p></td><td style="width:45.5%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>For any other variation</span></p></td></tr></thead><tbody><tr><td colspan="2" style="border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:5.94%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-weight:bold">V</span><span style="font-size:6.67pt; font-weight:bold; vertical-align:sub">1</span></p></td><td style="width:42.62%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>an amount equal to the capital sum that the new lease or leases to be granted under the consolidation or subdivision might be expected to realise if:</span></p><p class="Tablea"><span>(a) the consolidation or subdivision were to take place as proposed; and</span></p><p class="Tablea"><span>(b) the new lease or leases were genuinely offered for sale immediately after the variation on the reasonable terms and conditions that a genuine seller would require; and</span></p><p class="Tablea"><span>(c) the rent payable throughout the term of the new lease or leases were a nominal rent</span></p></td><td style="width:45.5%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>an amount equal to the capital sum that the lease might be expected to realise if:</span></p><p class="Tablea"><span>(a) the lease were varied as approved by the Minister; and</span></p><p class="Tablea"><span>(b) the lease were genuinely offered for sale immediately after the variation on the reasonable terms and conditions that a genuine seller would require; and</span></p><p class="Tablea"><span>(c) the rent payable throughout the term of the lease or, for a variation that involves the surrender of a lease and the grant of a new lease, the new lease, were a nominal rent</span></p></td></tr><tr><td colspan="2" style="border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:5.94%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-weight:bold">V</span><span style="font-size:6.67pt; font-weight:bold; vertical-align:sub">2</span></p></td><td style="width:42.62%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>an amount equal to the capital sum that the lease or leases to be surrendered under the consolidation or subdivision might be expected to realise if:</span></p><p class="Tablea"><span>(a) no consolidation or subdivision were to take place during the remainder of the term of the surrendered lease or leases; and</span></p><p class="Tablea"><span>(b) the lease or leases were genuinely offered for sale immediately before the consolidation or subdivision on the reasonable terms and conditions that a genuine seller would require; and</span></p><p class="Tablea"><span>(c) the rent payable throughout the term of the lease or leases to be surrendered were a nominal rent</span></p></td><td style="width:45.5%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>an amount equal to the capital sum that the lease might be expected to realise if:</span></p><p class="Tablea"><span>(a) the lease were not varied during the remainder of its term; and</span></p><p class="Tablea"><span>(b) the lease were genuinely offered for sale immediately before the application for the variation on the reasonable terms and conditions that a genuine seller would require; and</span></p><p class="Tablea"><span>(c) the rent payable throughout the term of the lease, or the lease to be surrendered, were a nominal rent</span></p></td></tr><tr style="height:0pt"><td style="width:12.75pt"></td><td style="width:12.6pt"></td><td style="width:25.4pt"></td><td style="width:181.75pt"></td><td style="width:193.95pt"></td></tr></tbody></table>