First-tier Tribunal Sets Freehold Transfer Premium at £94,310

OUTCOME: Allowed

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00/00AP/OCE/2023/0028 HMCTS code (paper, video, audio)

P: PAPERREMOTE Property : 18 [ADDRESS] [POSTCODE] Applicants : [redacted] (2) [COUNSEL] (3) [NAME] [COUNSEL] :

Respondents : [redacted] (2) [COUNSEL] (3) [COUNSEL] : N/A Type of [NAME] : Premium to be paid and terms of transfer of freehold Tribunal member(s) : Judge Tagliavini Miss M Krisko FRICS Venue : 10 [ADDRESS] [POSTCODE] Date of decision : 16 May 2023

DECISION

2 The tribunal’s summary decisions (i) The tribunal determines the premium payable for the value of freehold interest of the subject property at 18 Bruce Gove, London [POSTCODE] (‘the Property’) is £94,310 plus £100 for appurtenant land. (ii) The tribunal determines the terms of the transfer of the freehold are adequately set out in the applicants’ draft/TR1.

The [NAME]

1. By an Order dated 30 September 2022 of District Judge Davies sitting in the county court at Edmonton stated:

1. Service of a notice pursuant to s.13 of the Leasehold Reform, Housing and Urban Development Act 1993 ('the Act') shall be dispensed with.

2. Pursuant to s.26(1) of the Act the interest of the Defendants in all that property known as 18 [ADDRESS] [POSTCODE] including the building together with garden and other areas to the front and rear of the building all as registered at HM Registry with title number EGL403533 (together 'the Premises') are vested in the [NAME] on such terms and at such price to be determined in accordance with Chapter I of the Act by the First-tier Tribunal Property Chamber (Residential Property) ('the FTT') The applicants’ case 2. In support of the [NAME] to determine the value of the freehold interest appropriate premium payable for a lease extension and the terms of transfer, the tribunal was provided with a bundle of 210 pages. This included the valuation report of Mr [NAME] of [NAME] dated 06/03/2023 in which he concluded the premium payable is £94,310 plus £100 in respect of Appurtenant Land.

3. In his report, Mr [NAME] gave evidence of his experience at dealing with similar valuations and his obligation to the tribunal as an expert witness. The subject property is a Victorian three-storey centre- terraced house converted into three flats of varying sizes, one on each floor. Each flat is held on a lease for a term of 99-years from 25 March 1988 with 65.25 years remaining as at the valuation date. Ground rent

3 is £120 per annum per flat rising to £240 for the final 33 years of the term.

4. In his report, Mr [NAME] adopted the following dates and figures: Valuation date: 22 December 2021 being the date the [NAME] was made to the county court. Capitalisation rate: 6% as doubling of ground rent for remaining thirty-three years would be attractive to the hypothetical [NAME]-party investor. Value of each flat on a share of freehold basis:

Ground Floor Flat: £350,000

First Floor Flat: £320,000

[NAME]: £280,000 (not participating) In reaching these values, Mr [NAME] relied upon a number of comparable properties in the same local area. Deferment rate: 5% relying on [NAME] [NAME] v [NAME] and another [2008] UKHL 71 Relativity: 81.8% relying on average of [NAME] (2016) Graph and [NAME]; [COMPANY] (Birkdale) [COMPANY] v Treskonova [2020] UKUT 165 (LC) Hope Value: £10% (nominal value only). Value of appurtenant land:

£100 (includes part of the front garden and nominal value only). Premium: £94,310 plus £100 for appurtenant land

The respondents’ case

4 5. No evidence was received from any of the respondents by the tribunal The tribunal’s decision and reasons 6. In the absence of any objections or evidence to counter the report and opinion of Mr [NAME], the tribunal accepts his report as providing an adequate and reasonable valuation of the subject Property and calculation of the premium payable.

7. The tribunal finds Mr [NAME] relied upon a reasonable selection of comparable properties at 15 [ADDRESS], [POSTCODE]; 66a [ADDRESS], [POSTCODE]; 51 [ADDRESS], [POSTCODE]; 4b [ADDRESS], [POSTCODE] and 57 [ADDRESS], [POSTCODE]. The tribunal also accepted Mr [NAME] adoption of the other values set out above was appropriate and in accordance with current case law and found no reason to deviate from them.

8. Therefore, the tribunal accepts the premium payable for the value of the freehold interest in accordance with Schedule 6 of the Leasehold Reform, Housing & Urban Development Act 1993 is £94,310 plus £100 for appurtenant land.

9. The tribunal approves the terms of transfer of the freehold of the subject Property as set out in the draft/TR1.

Name: Judge Tagliavini

Date: 16 May 2023

Rights of appeal

By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. 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 [NAME] which has been dealing with the case. The [NAME] for permission to appeal must arrive at [NAME] within 28 days after the tribunal sends written reasons for the decision to the [NAME]. 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

5 reason(s) and decide whether to allow the [NAME] for permission to appeal to proceed, despite not being within the time limit. The [NAME] for permission to appeal must identify the decision of the tribunal to which it relates (i.e. 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. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).