Tenant Can Buy Freehold When Landlord Is Untraceable

OUTCOME: Allowed

© CROWN COPYRIGHT 2014

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

BIR/00GG/OAF/2023/0025

Property : 4 [ADDRESS] [POSTCODE] Applicant: [redacted]

Respondent: [redacted] : Not applicable (missing landlord) Type of application : Application under sections 21(1) and 27(5) of the Leasehold Reform Act 1967 (“the 1967 Act”) Tribunal members :

[NAME] [NAME] [NAME] : Remote Date of paper determination : 13 March 2024

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 the nominal sum of £91.

2 The Background 1. This is an application under section 21 (1) (a) of the 1967 Act pursuant to an order made by District Judge England sitting at the County Court at Stoke on Trent on 13 November 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]. She is the qualifying tenant of 4 [ADDRESS] [POSTCODE] (“the Property”) with a long tenancy within the meaning of section 3(1) of the 1967 Act. The respondent freehold owners or owner are Persons [RESPONDENT].

5. On 30 October 2023 following an Application to Court on 19 October 2023, a Part 8 Claim was issued in the County Court at Telford 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 Mr [NAME] [NAME], a Consultant Chartered Surveyor acting on behalf of [NAME] dated 14 November 2023.

8. Mr [NAME] is of the view that the premium to be paid for the freehold is £90 as at the valuation date adopted of 19 October 2023. The Determination 9. It is acknowledged by the tribunal that the long dated reversionary interest held by the freeholder is material to the enfranchisement premium value in this application. The term remaining at the valuation date is 236.5 years. However after review of the opinions expressed by Mr [NAME] in his valuation report dated 14 November 2023 the tribunal agree save that:

3 i) The Expert has allocated 35% of the Entirety Value to the site value. The tribunal has reviewed the site size, shape and location of the property site. It has had regard for the large plot the property occupies which is significantly larger than the neighbouring properties. The tribunal has had regard for the guidance offered in Upper Tribunal decision [NAME], [NAME] v Liverpool City Council (LRA/78/2015) on the appropriate percentage of the entirety value attributable to the site. It has deemed 45% of the Entirety Value should be adopted as the apportioned site value.

ii) The Expert provides no evidence to support his contention that the Entirety value with vacant possession and Standing House value is £180,000. The Tribunal based upon their experience and knowledge of property values in the locality determine an Entirety value and Standing House value of £250,000 as at the valuation date.

iii) In accordance with the guidance offered in [NAME] (2007) 1 EGLR 83 the freeholders ground rental revenue is capitalised at 7%.

10. An adjusted calculation that adopts the revised parameter listed above at (i)–(iii) results in a nominal freehold purchase premium of £91. A copy of the tribunal’s valuation is attached to this decision.

11.

Accordingly, the tribunal determines that the premium to be paid in respect of the purchase of the freehold of the property is £91.

12. This matter should now be returned to the County Court sitting at Stoke on Trent under Claim Number K01SQ419 in order for the final procedures to take place.

[NAME]

13 March 2024

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Appendix A : Premium Valuation

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

2. The application for permission to appeal must arrive at the Regional Office within 28-days after the Tribunal sends written reasons for the Decision to the person making the application.

3. If the application is not made within the 28-day time limit, such application 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 application for permission to appeal to proceed despite not being within the time limit.

4. The application 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 making the application is seeking.