Schedule 4 - Determining and sharing the market value Part 2: The Market Value
Paragraph 2 sets out that the price (under Schedule 4) in a freehold acquisition claim (under either the LRA 1967 or the LRHUDA 1993) is the open market value of acquiring the freehold of the premises subject to the claim.
	Paragraph 3 sets out that the price (under Schedule 4) in a lease extension claim (under either the LRA 1967 or the LRHUDA 1993) is the open market value of acquiring a notional lease with the following length: 990 years plus the years remaining on the leaseholder’s lease when they claim the lease extension. The notional lease is for a peppercorn ground rent and is over the premises which are subject to the lease extension claim. It must also be assumed that the leaseholder’s existing lease will continue (on its current terms) until its expiry. Specific provision is made for where the leaseholder is holding over under the Local Government and Housing Act 1989.
	Paragraph 4 provides that Part 3 and 4 of Schedule 4 set out how the price is to be determined, and that the price in respect of different parts of the premises can be calculated in different ways.