Re Midland Freeholds Ltd and Speedwell Estates Ltd’s appeals [2017] UKUT 463 (LC)
Anthony Radevsky acted for the successful Appellants in 7 conjoined appeals heard by the Upper Tribunal (Lands Chamber). The appeals were from decisions of the First-tier Tribunal involving flats in the West Midlands. Each case concerned the valuation of a new lease under the Leasehold Reform, Housing and Urban Development Act 1993.
The Upper Tribunal held that the FTT should not have (i) increased the deferment rate by 0.25% on account of an additional risk of deterioration; (ii) made a nil or nominal allowance for the benefit of rights under the 1993 Act in assessing relativity. The appropriate allowances were 10% and 7%; (iii) made a deduction of 6% from the freehold reversion for the risk of a lessee remaining in possession as an assured tenant under Schedule 10 to the Local Government and Housing Act 1989. There was no evidence to support any deduction where the unexpired term was 46 years.
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