Notable cases
- House Enfranchisement, Expert Witness
373 Upper Richmond Road, London SW15 5QJ
- Jewelcraft Limited v Pressland & Pressland (2017)
This dealt with the premium for the freehold which followed the Court of Appeals landmark decision that the property comprised a house: Jewelcraft v Pressland [2015] EWCA Civ 1111.
Negotiations with the freeholder’s valuer were frankly a waste of time due to their grossly excessive expectations and so it went to the First Tier Tribunal (FTT).
The property comprised a ground floor shop and separate residential upper with 9.78 years unexpired with a June 2010 valuation date (due the length of the previous proceedings). Due to the loft potential the parties were at very different capital values. The evidence supported Michael’s valuation. The valuations dealt with the commercial value of the shop and the residential values and mixed-use investment rates.
- House enfranchisement under s 9(1) of the Leasehold Reform Act 1967
- Acted for private client who bought the lease
- Expert Witness before FTT.
Issues
- Freehold Vacant Possession Value
- Entirety/standing house value – there was an element of development potential in the roof space
- Site Value percentage
- Site value decapitalisation rate
- Modern Ground Rent decapitalisation rate
- Deferment Rates
Result
- Michael Lee valuation £84,925; landlord valuation £351,597, reduced to £324,143, then further on cross examination.
- FTT accepted Michael’s entirety value of £470,500 (opposed to £940,000), his decapitalisation rate of 7% (landlord at 5%), his Deferment Rate of 6% (landlord at 5%), capital value on reversion of £300,000 (landlord at £500,000). Tribunal determined a premium of £110,015.
- Determined Site Value percentage of 40% (Michael was at 35% and Landlords at 55% reduced to 45% on cross examination)
Michael_Lee_Surveyors
