Schedule 8: Remediation costs under qualifying leases Paragraph 6: the permitted maximum Proposed use of power
The power at sub-paragraphs (6) and (7) will be used to make further provision setting out how the value of the qualifying lease is to be determined.
	The regulations will set out a formula by which the value of the qualifying lease at the qualifying time will be calculated, taking account of the most recent sale price of the property, the year in which that sale took place, and a fixed uprating multiplier for that year.
	It is intended that the uprating multiplier will be based on the House Price Index published by the Office for National Statistics, which is the measure of house price inflation. The regulations will set out a list of uprating multipliers, one for each year before 2022.
	The regulations also allow provision to be made in respect of "prescribed cases". It is intended that these regulations will set out how the value of the qualifying lease is to be determined when the most recent sale price cannot be identified.
Example 1
A qualifying leaseholder’s flat in Leeds has a value of £180,000 according to the uprating formula set out in regulations. The leaseholder’s permitted maximum is £10,000.
Example 2
A qualifying leaseholder owns a shared ownership lease in London. On 14 February 2022 they had a 50% share in their lease. Their share of the lease has a value of £325,000, according to the uprating formula set out in regulations, meaning that a 100% share would be worth £650,000. As the permitted maximum for a £650,000 lease in Greater London would be £15,000, the shared ownership leaseholder’s permitted maximum is £7,500.