Freehold Purchase Price Determined Under Leasehold Reform Act

OUTCOME: Allowed

Case Reference : MAN/00DA/OAF/2021/0010

Property : 11 [ADDRESS] [POSTCODE]

Applicants : [redacted] : [COMPANY]

Respondents : [redacted]

Type of Application : A determination of amount of the appropriate sum to be paid into Court under the section 27(5) of the Leasehold Reform Act 1967

Tribunal Members : Tribunal Judge Phillip Barber

Tribunal Member [NAME] and venue : Determined without a hearing on 23 August 2021

Date of Decision : 23 August 2021

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DECISION ____________________________________

© CROWN COPYRIGHT 2021

FIRST - TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Order That the purchase price for the freehold interest of 11 [ADDRESS] [POSTCODE] be determined at £118.

That the Applicant shall pay the purchase price into Court pursuant to s27(5) of the Leasehold Reform Act 1967.

The Application

1. The Applicants, [NAME] and [NAME], issued an application in the Leeds County Court on the 26 February 2021 for an order under s27 of the Leasehold Reform Act 1967 (“the Act”) and on the 05 May 2021 the District Judge transferred the matter to the Tribunal for a determination as to the amount of the appropriate sum to be paid into Court under s27(5) of the Act for transfer of the Freehold of the Property, the Landlord being missing.

2. The Tribunal is therefore asked by the Applicant to determine the single issue of the price payable for the transfer of the freehold interest pursuant to s.21 of the Act.

3. The Applicant’s solicitors provided a detailed bundle of documents for the purposes of the application, which include appropriate photographs and extensive details as to the location etc. of the Property.

4. The Application was listed to be determined on the papers alone and without an inspection of the Property.

The Evidence

5. The evidence provided by the Applicants included:

a. A witness statement by [NAME] b. The Judgement of the Court c. The Register of Title, indicating, amongst other things that the purchase price was £199,995.00 d. Witness evidence from [NAME] setting out the circumstances of the purchase and a chronology of events.

6. The Lease is for 500 years from the 25 July 1661. The ground rent is one peppercorn per year, but no ground rent has ever been paid by nor demanded from the Applicants.

7. The photograph of Property shows it to be a terrace house.

The Determination

8. Utilising its expertise, the Tribunal is in a position to assess the purchase price as follows:

Term 500 Years from 25/7/1661 Unexpired Term 140 years Ground Rent Nil Current Market Value (CMV) £200,000 Site Value at 32.5% of CMV £65,000 Valuation Term YP 140 yrs at £0 £0 First Revervsion 200000 @32.5% £65,000 Deferment @4.75% is 3087 x YP for 50 yrs deferred 140 yrs at 4.75% 18.98 x .0015081 £88 Second Reversion To £200,000 in 190 yrs Deferred 190 yrs @ 4.75% £200,000 x .000148 £30 Freehold Purchase Price £118

9. A determination is therefore made in the above terms.

Signed

Phillip Barber Judge of the First-tier Tribunal

23 August 2021