Notable cases
- House Enfranchisement, Expert Witness
28 Devonshire Place Mews, London W1G 6DA
- DPM Ltd v Howard de Walden and Plant (2016)
The client, who has a good eye for deals, bought an underlease with 34 years remaining. The landlord owned a 999 year intermediate lease from the freeholder, Howard de Walden Estate. The mews house, a 1950s post-war replacement, was ripe for refurbishment, lying just behind the Conran shop and restaurant on Marylebone High Street in the heart of Marylebone’s revitalised centre.
Unable to persuade the landlord to agree to a sensible figure, the matter went to the First Tier Tribunal (FTT). Evidence was given by both sides, Michael giving Expert Witness evidence for the leaseholder. Immediately after the hearing and without waiting for the decision, the landlord offered a deal, including costs, of circa 16% above Michael’s valuation and just 58% of their own. An excellent result!
- House enfranchisement under s 9(1C) of the Leasehold Reform Act 1967
- Acted for private client who bought the underlease
- Expert Witness before FTT
Issues
- Freehold and leasehold vacant possession values
- Effect of traffic movements/location (the house faced the loading/collection bay of the Conran shop/restaurant)
- Relativity
- Development value risk
- Roof extension potential (lapsed planning consent)
- Basement extension potential (changes in planning policy)
- Development costs
Result
- Matter settled after hearing; FTT not required to issue determination
- Michael Lee valuation £577,021: landlord valuation £1,193,000
- Settled c £700,000 including costs
Michael_Lee_Surveyors
