CA 21 July 1987. Appeal by tenant (H) against cc decision dismissing an application under the Leasehold Reform Act 1967 s4 to acquire the freehold of her property. The main point at issue was whether the rent paid by H was a " low rent " under s4. The tenancy was one to which the proviso to s4(1) applied, ie the rent was not to be regarded as a low rent if it exceeded two-thirds of the letting value of the property at the commencement of the tenancy. In Johnson v Duke of Westminster , HL held that the term "letting value" should be construed as the best annual return obtainable in the open market for the grant of a long lease on the same terms... If a landlord charges a premium , it has to be decapitalised. The rent in the present case was 240pa and the landlords (S) had to establish a letting value of 360pa; S had to satisfy the court that on a new letting at 240pa they could not have obtained a premium of 1,440, or more. In support of H was the fact that soon after the commencement