§ Mr. Wigleyasked the Secretary of State for the Environment, in view of Her Majesty's Government's statement at the time of the passage of the Leasehold Reform Act in 1967 that it was anticipated that the purchase price of freeholds would be between about 20 and 25 times the annual ground rent, and of the fact that in parts of Wales there are numerous cases where the asking price is up to 800 times the annual ground rent, if he will modify the basis for determining the price to be paid for a freehold under the provisions of the Leasehold Reform Act 1967.
§ Mr. FreesonThe basis for determining the purchase price of a freehold under the Leasehold Reform Act 1967 is that broadly speaking it should represent the capitalised value of the ground rent plus the deferred development value of the site. It will, therefore, vary with circumstances. When agreement cannot be reached the price can be determined by the Lands Tribunal. The price a freeholder may ask is not controlled by the legislation.