§ Valuation of freehold and intermediate leasehold interests
§ 14.—(1) Where—
- (a) the value of the freeholder's interest in the specified premises (as determined in accordance with paragraph 3), or
- (b) the value of any intermediate leasehold interest (as determined in accordance with paragraph 7),
§ (2) Where sub-paragraph (1) applies to any intermediate leasehold interest whose value is a negative amount ("the negative interest"), then for the relevant purposes any interests in the specified premises superior to the negative interest and having a positive value shall be reduced in value—
- (a) beginning with the interest which is immediately superior to the negative interest and continuing (if necessary) with any such other superior interests in order of proximity to the negative interest;
- (b) until the aggregate amount of the reduction is equal to the negative amount in question; and
- (c) without reducing the value of any interest to less than nil.
§ (3) In a case where sub-paragraph (1) applies to two or more intermediate leasehold interests whose values are negative amounts, sub-paragraph (2) shall apply separately in relation to each of those interests—
- (a) beginning with the interest which is inferior to every other of those interests and then in order of proximity to that interest; and
- (b) with any reduction in the value of any interest for the relevant purposes by virtue of any prior application of sub-paragraph (2) being taken into account.
§ (4) For the purposes of sub-paragraph (2) an interest has a positive value if (apart from that sub-paragraph) its value for the relevant purposes is a positive amount.
§ (5) In this Part of this Schedule "the relevant purposes"—
- (a) as respects the freeholder's interest in the specified premises, means the purposes of paragraph 2(1) (a); and
- (b) as respects any intermediate leasehold interest, means the purposes of paragraph 6(1) (b) (i).