Notable cases
- House Enfranchisement, Expert Witness
7 Montagu Mews West, London W1H 2EE
- The Portman Estate Nominees v Jamieson (2015) Ft-T
A client with a knack of working the Act spotted the house wasn’t the one demised under the original lease. It was, he argued, a ‘tenant’s improvement’ so the valuation had to be of the hypothetical original Victorian mews house. This required historic expert opinion. No sensible deal was possible with the Portman so off to the First Tier Tribunal (FTT).
The value and premium for the existing 1950s house was agreed and it was all down to the original house argument. The valuation evidence took different approaches. The FTT ‘treated both’ approaches with caution and ‘with a degree of reluctance…concluded that...(Mr Lee’s)…valuation provided the less unreliable method’ (than Savills!) and determined the premium at Michael’s valuation.
- House enfranchisement under s 9(1C) of the Leasehold Reform Act 1967
- Acted for private client who bought the lease
- Expert Witness before FTT. Currently appealed to Upper Tribunal
Issues
- Value (leasehold and freehold) of the original mews house
- Whether the replacement house increased the value
- Value of roof terrace
- Development costs – residual or comparable method
Result
- Michael Lee valuation £1,771,185; landlord valuation £2,925,620
- FTT determined £1,771,185
Appeal
- Upper Tribunal (Lands Chamber)
- Determined that the replacement house was not an improvement
- Agreed value of replacement house of £3.05M applied
Michael_Lee_Surveyors
