First-tier Tribunal Determines Freehold Purchase Compensation

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference :

AGR/LON/00BC/OAF/2024/0008

Property : 169 [ADDRESS], [POSTCODE] Applicant: [redacted] : [COUNSEL] [APPELLANT] Respondent : [redacted] : Not applicable (missing landlord) Type of [NAME] : [NAME] under sections 21(1) and 27(5) of the Leasehold Reform Act 1967 (“the 1967 Act”) Tribunal members :

[NAME] Valuer Venue : Remote Date of paper determination :

21 January 2025

DECISION

Decision of the Tribunal (1) The tribunal determines that the price to be paid by the applicant for the purchase of the freehold on statutory terms is £54.

2

The Background 1. This is an [NAME] under section 21 (1) (a) of the 1967 Act pursuant to an order made by District Judge Mauger sitting at the County Court at [NAME] on 13 December 2023 (“the order”).

2. Sections 21(1) and 27(5) of the 1967 Act concerns claims for the purchase of the reversionary freehold interest where the relevant landlord cannot be found. It enables the court to make a vesting order in respect of any interests of the landlord which are liable to acquisition.

3. Under section 27(5)(a) of the 1967 Act, the role of the tribunal is to determine the appropriate sum to be paid into court in respect of the landlord’s interests. This to be done in accordance with section 9 of the 1967 Act.

4. The applicant in this matter is [APPELLANT]. He is the qualifying tenant of 169 [ADDRESS], [POSTCODE] (“the Property”) with a long tenancy within the meaning of section 3(1) of the 1967 Act. The respondent freehold owner is Mrs [RESPONDENT].

5. On 25 April 2023 following an [NAME] to Court on 20 April 2023, a Part 8 Claim was issued at [NAME] for an order pursuant to section 21(1) of the 1967 Act seeking the freehold of the Property.

6. The applicant has been unable to ascertain the whereabouts of the respondents. The applicant subsequently applied for a vesting order under section 27(1) of the 1967 Act. The vesting order was granted subject to the determination of this tribunal.

7. The applicant has provided the tribunal with a valuation report prepared by [NAME] [NAME] [NAME]., MRICS, RICS Registered Valuer. [NAME] [NAME] is a principal in the general practice firm, [NAME] dated 19 August 2024 8. [NAME] [NAME] is of the view that the premium to be paid for the freehold is £54 as at the valuation date adopted of 25 April 2023. The Determination 9. After scrutiny the tribunal accepts the opinions expressed by [NAME] [NAME] in his valuation report dated 19 August 2023. The tribunal acknowledge the long dated reversion of the freehold interest, which is in excess of 870 years has a nominal current value. The £54 premium payment is

3 compensation for the loss to the freeholder of the £3.80 annual ground rent which is currently payable by the leaseholder for the remainer of the term. This payment will cease at enfranchisement.

10.

Accordingly, the tribunal determines that the premium to be paid in respect of the purchase of the freehold of the property is £54.

11. This matter should now be returned to the County Court sitting at [NAME] under Claim Number K01CK533 for the final procedures to take place. [NAME]: 21 January 2025

4 RIGHTS OF APPEAL 1. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber) then a written [NAME] for permission must be made to the First-tier Tribunal at the Regional Office which has been dealing with the case.

2. The [NAME] for permission to appeal must arrive at the Regional Office within 28-days after the Tribunal sends written reasons for the Decision to the [NAME].

3. If the [NAME] is not made within the 28-day time limit, such [NAME] must include a request for an extension of time and the reason for not complying with the 28-day time limit; the Tribunal will then look at such reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed despite not being within the time limit.

4. The [NAME] for permission to appeal must identify the decision of the Tribunal to which it relates (ie, give the date, the property and the case number), state the grounds of appeal and state the result the party [NAME] the [NAME] is seeking.