| 1st: Where landlord absolute owner.
|
| Sum laid out on building cottage (say) |
£100 |
0s.
|
| Less eight years exhaustion of improvement computed as follows:
|
| The whole improvement £100 is exhausted in twenty years, therefore the exhaustion in one year is £5. This sum multiplied by eight years gives amount exhausted |
40 |
0s.
|
| Tenant is entitled to claim |
£60 |
0s.
|
| Less sum required to place same in tenantable repair (say) |
3 |
0s.
|
|
| 2nd: Where landlord not absolute owner.
|
| The addition the improvement makes to the yearly letting value (say) £5.
|
| In the case supposed there are twelve years' improvement unexhausted. This sum then (£5) capitalised at twelve years' purchase at 5% |
£43 |
15s.
|
| Tenant is entitled to claim |
£43 |
15s.
|
| Less sum required to place same in tenantable repair (say) |
£3 |
0s.
|
|
From the previous calculation it will be seen that there is a difference in the sum to be received by the tenant where the landlord is "absolute owner" and where "not absolute owner." The reader is referred to the Remarks upon this difference in the Appendix C, page 58.
N.B.—Sec. 3, 14 and 15 Vict, (see Appendix B, page 57) also enables a tenant to erect buildings upon certain conditions.
