Schedule 4 - Determining and sharing the market value Part 3: Determining the Market Value
Paragraph 5 sets out that, in general, the standard valuation method must be used to determine the value of acquiring the relevant freehold or notional lease. However, the standard valuation method is not required to be used where the property (or parts of the property) fall into paragraphs 6 to 13: kinds of property for which the standard valuation method is not compulsory.
	Paragraph 6 sets out that the standard valuation method is not compulsory if, when the enfranchisement claim is made, the lease has five years or less remaining until its term date, or if the leaseholder is holding over under the Local Government and Housing Act 1989. (Under paragraphs 1(1) and 2 of Schedule 6, "term date" has the same meaning as in the LRA 1967 and the LRHUDA 1993, subject to the modification in paragraph 1(2) of Schedule 6.)
	Paragraph 7 sets out that the standard valuation method is not compulsory for property comprised in a lease that is an excepted home finance plan lease, as defined by the Leasehold Reform (Ground Rent) Act 2022.
	Paragraph 8 sets out that the standard valuation method is not compulsory if the lease is a "market rack rent lease". A market rack rent lease is defined as a lease which was granted for no (or a very low) premium, was granted at a market rack rent, and which the parties intended to be at a market rack rent.
	Paragraph 9 sets out that the standard valuation method is not compulsory for parts of the property which are included in the enfranchisement claim under Section 2(4) of the LRA 1967 (property that was originally let to the leaseholder, but which is no longer owned by the leaseholder at the date of the enfranchisement claim).
	Paragraph 10 sets out that the standard valuation method is not compulsory where there has been a pre-commencement lease extension of a house for 50 years at a modern ground rent.
	Paragraph 11 sets out that the standard valuation method is not compulsory where there is a freehold acquisition or lease extension claim under the LRA 1967 in respect of a business tenancy (to which Part 2 of the Landlord and Tenant Act 1954 applies).
	Paragraph 12 sets out that the standard valuation method is not compulsory where there is a freehold acquisition of a house by a shared ownership leaseholder under the 1967 Act. A 1967 Act freehold acquisition of a house by a shared ownership leaseholder is only possible if the shared ownership lease does not meet the criteria in Section 33B of the LRA 1967.
	Paragraph 13 sets out that, in a collective enfranchisement, the standard valuation method only applies to a relevant flat (and appurtenant property leased with a relevant flat). A relevant flat is a flat demised to (a) a qualifying tenant or (b) a person who would be a qualifying tenant but for Section 5(5) and (6) of the LRHUDA (which exclude a tenant from being a qualifying tenant where they own the leases of three or more flats in the same building). However, a flat will not be a relevant flat where it is let to an intermediate leaseholder whose lease is not being acquired, or where it is let to a shared ownership leaseholder.
	Paragraph 14 provides that the standard valuation method can still be used to determine the value of the relevant freehold or notional lease, even when it is not compulsory to do so.
	Paragraph 15 explains that property is subject to the standard valuation method if the method is required to be used or is used voluntarily.