Tenant Successfully Acquires Freehold Interest Through Valid Notice
📌 In brief
A tenant successfully acquired the freehold interest in their property after serving a valid notice under the Leasehold Reform Act 1967. The First-tier Tribunal confirmed the price payable for the freehold interest at £1400, including the landlord's costs.
⚖️ Legal holding
A tenant is entitled to acquire the freehold interest in their property if they serve a valid notice under the Leasehold Reform Act 1967.
📖 Technical summary
The claimant successfully acquired the freehold interest in their property after serving a valid notice under the Leasehold Reform Act 1967.
📜 Headnote Official document
The claimant, a tenant, sought to acquire the freehold interest in their property after serving a valid notice under the Leasehold Reform Act 1967. The Tribunal confirmed the price payable for the freehold interest at £1400, including the respondent's costs. The decision was made on 21 July 2020 by A M Davies, LLB, and S Kendall, MRICS, in the First-tier Tribunal (Property Chamber).
📚 Full judgment Official document
OUTCOME: Allowed
1
FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : MAN/00CG/OAF/2019/0031
Property : 7 [ADDRESS] [POSTCODE]
Applicant: [redacted]
Respondent: [redacted] : Section 21, Leasehold Reform Act 1967
Tribunal Members : [NAME]
S [NAME], MRICS
Date of Decision : 21 July 2020
DECISION
© CROWN COPYRIGHT 2020
2
DECISION
1. The sum to be paid by the Applicants for the freehold interest in [ADDRESS], Sheffield is £1400 including the Respondent’s costs.
2. The transfer of the freehold interest is to include the following provision: that the boundary structures separating the property from adjoining residential property are mesne or party structures and shall be maintained at joint expense accordingly.
REASONS
1. On 25 June 2019 the Applicants sent a notice to the Respondent claiming the right to acquire the freehold of [ADDRESS], Sheffield (“the Property”). The notice was served pursuant to part 1 of the Leasehold Reform Act 1967 (“the Act”), and was substantially in the form required by the Act. The Respondent denies that the notice was valid because, although signed, it was not dated. However it was accompanied by a dated letter from the Applicants, and was sent by recorded delivery post and signed for. The Tribunal finds that the notice was validly served.
2. The Applicants are leaseholders of the Property who qualify for the right to enfranchise. They valued the freehold interest at £450 and offered to pay £1000 for it, including the Respondent’s costs. The Respondent valued the freehold interest at £700.
3. The parties were unable to come to an agreement as to the amount payable to the Respondent. On 19 November 2019 the Applicants applied to the Tribunal for a determination (a) under section 21(1)(a) of the Act as to the amount payable for the freehold and (b) under section 21(2)(a) of the Act as to the provisions to be included in the transfer.
4. The Respondent has supplied a valuation schedule prepared by [RESPONDENT]. The Tribunal agrees with the figures in the schedule and confirms the price payable for the freehold interest at £700.
5. The Respondent has not provided any details of its costs and disbursements. The Tribunal considers that £700 inclusive of VAT is a reasonable amount to allow. The total payable by the Applicants to the Respondent is therefore £1400.
6. The [NAME] for the Property will automatically include the restrictive covenants applicable to the freehold estate, which are currently set out in the Applicant’s leasehold title (title number SYK330839). These provide that the Property is to be used only as a residence, that no alcohol is to be supplied there, and that the owners are not to use the Property in any manner that would be offensive to adjoining occupiers. The [NAME] does not make any provision for joint ownership of boundary structures, but such a provision does appear in the Applicants’ lease. That provision should therefore be included in the transfer to the Applicants.
Tribunal Judge AM Davies 28 July 2020
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) Tribunal Sets £11,610 Freehold Premium for Assured Tenancy in Hertfordshire
- First-tier Tribunal (Property Chamber) Tribunal Sets £150 Freehold Price for Property in Formby
- First-tier Tribunal (Property Chamber) Tribunal Sets £3234 Freehold Price for Assured Tenancy in Rotherham
- First-tier Tribunal (Property Chamber) Tenant Entitled to Freehold Under Leasehold Reform Act - First-tier Tribuna…
- First-tier Tribunal (Property Chamber) Tribunal Sets £75 Freehold Price for Sheffield Property
- First-tier Tribunal (Property Chamber) Tribunal Sets £43,022 Freehold Price for Assured Tenancy in Birmingham
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Freehold Purchase Price at £13,160
- First-tier Tribunal (Property Chamber) Tribunal Sets £2,930 Freehold Premium for Bungalow in Foulsham
- First-tier Tribunal (Property Chamber) Tribunal sets £42,300 freehold price for mixed-use property in Birmingham
- First-tier Tribunal (Property Chamber) Tribunal Sets £2,332 Price for Freehold Acquisition in Sheffield
- First-tier Tribunal (Property Chamber) Valuation of Freehold Interest Under Leasehold Reform Act
- First-tier Tribunal (Property Chamber) Tenant Granted Right to Freehold Interest Under Leasehold Reform Act
A snapshot of this collection — not a prediction of your case's outcome.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The tenants' notice to acquire the freehold was validly served, despite not being dated, because it was accompanied by a dated letter and sent by recorded delivery.
- The tenants qualify for the right to acquire the freehold interest in their property.
- A reasonable amount for the respondent's costs and disbursements, including VAT, is £700.
- The transfer of the freehold should include a provision for joint maintenance of boundary structures, as this was in the original lease.
❌ Tends to be rejected
- The respondent's argument that the notice was invalid because it was not dated was rejected.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tribunal decided that the claimant could acquire the freehold interest in their property for £1400, including the Respondent’s costs.
What was the dispute about?
The dispute was about the amount payable for the freehold interest in the property.
How did the court decide, and why?
The court decided that the amount payable for the freehold interest was £1400, including the Respondent’s costs, based on the valuation schedules provided by both parties.
Which laws or rules were applied?
The Leasehold Reform Act 1967, specifically section 21, was applied.
What was the argument that mattered most?
The argument that mattered most was the validity of the notice served by the claimant under the Leasehold Reform Act 1967.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, confirming the amount payable for the freehold interest at £1400.
What does this mean for someone in a similar situation?
Someone in a similar situation can also seek to acquire the freehold interest in their property through the First-tier Tribunal process.
What evidence or documents mattered?
The valuation schedules provided by both parties were crucial in determining the amount payable for the freehold interest.
