Document ID: chunk:federal_register_of_legislation:F2022L00470:reg:2
Version: federal_register_of_legislation:F2022L00470
Segment Type: reg
Provision Reference: reg 2
Character Range: 29468–31847

2                                           V2  an amount equal to the capital sum that the lease or leases to be surrendered under the consolidation or subdivision might be expected to realise if:                                        an amount equal to the capital sum that the lease might be expected to realise if:
                                                (a) no consolidation or subdivision were to take place during the remainder of the term of the surrendered lease or leases; and                                                              (a) the lease were not varied during the remainder of its term; and
                                                (b) the lease or leases were genuinely offered for sale immediately before the consolidation or subdivision on the reasonable terms and conditions that a genuine seller would require; and  (b) the lease were genuinely offered for sale immediately before the application for the variation on the reasonable terms and conditions that a genuine seller would require; and
                                                (c) the rent payable throughout the term of the lease or leases to be surrendered were a nominal rent                                                                                        (c) the rent payable throughout the term of the lease, or the lease to be surrendered, were a nominal rent

Meaning of consolidation and subdivision
 (3) A variation of a lease by way of consolidation means the surrender of 2 or more leases held by the same lessee and the grant of a new lease or leases to the lessee to consolidate the parcels of land comprised in the surrendered leases.
 (4) A variation of a lease by way of subdivision means the surrender of one or more leases held by the same lessee, and the grant of new leases to the lessee to subdivide the parcels of land in the surrendered leases.

Treatment of improvements
 (5) In working out V1 and V2 under subsection (2), an improvement in relation to the land comprised in the lease must not be taken into account.
 (6) However, the value of any work carried out by way of clearing, filling, grading, draining, levelling or excavating the land may be taken into account.

Lease variation charge may be nil
 (7) The lease variation charge is nil if the amount worked out as V1 is equal to or less than the amount worked out as V2.