[2001] EWLands LRA_46_2000 (16 October 2001)
15 Cadogan Square (First Floor)LRA/46/2000
LANDS TRIBUNAL ACT 1949
Leasehold Reform, Housing and Urban Development Act, 1993 Schedule 13 - Valuation of Leases disregarding rights - Evidence of settlements - Marginal variation from LVT's valuation - Appeal and cross-appeal dismissed.
IN THE MATTER of an APPEAL against a DECISION of the LEASEHOLD
VALUATION TRIBUNAL FOR THE LONDON RENT ASSESSMENT PANEL
BETWEEN ADRIAN J R LANGINGER Appellant
and
THE EARL OF CADOGAN AND Respondents
CADOGAN ESTATES LIMITED
Re: Flat 7 & Garage 6,
Clunie House,
Hans Place,
London SW1
Before: His Honour Judge Michael Rich QC
Sitting at 48/49 Chancery Lane, London WC2A 1JR
on 4, 5 and 8 October 2001
Edwin Johnson, instructed by Bircham Dyson Bell for the Appellant
Anthony Radevsky, instructed by Pemberton Greenish, solicitors of London for the Respondent
DECISION
Issues
Tenant | Landlord | Landlord |
Extended lease | £717,750 (£667 psf) | £825,000 (£767 psf) |
Freehold interest (+ 1%) | £725,000 (£674 psf) | £833,000 (£774 psf) |
Existing lease | £610,000 (£567 psf) | £550,000 (£511 psf) |
(The LVT's figures are in bold. The agreed deduction of £20,000 for the tenant's improvements has been made.) Having regard to the parties' agreement as to other matters, the price to be paid in accordance with the statute would be a simple matter of calculation from the determination of these disputed figures.
Evidence before the Tribunal
Valuation of Freehold
Description of the Surroundings
Description of the Building
Description of the Subject Flat
5.2 The accommodation in the flat comprises:
Description | Metres | Feet |
Hallway | ||
Living Room (west facing with balcony) | 4.93 x 4.41 | 16' 2" x 14' 6" |
Bedroom 1 (west facing) | 4.77 x 3.76 | 15' 7" x 12' 4" |
Bathroom 1 (en suite to Bedroom 1) | 3.08 x 2.09 | 10' 1" x 6' 10" |
Bathroom 2 (no natural light) | 1.81 x 2.09 | 5' 11" x 6' 10" |
Cloakroom/wc | 0.89 x 1.69 | 2' 11" x 5' 6" |
Bedroom 2 (east facing) | 3.48 X 3.15 | 11' 5" X 10' 4" |
Dining Room/Bedroom 3 (east facing) | 3.48 X 2.71 | 11' 5" X 8' 11" |
Kitchen (east facing) | 2.76 x 2.93 | 9' 0" X 9' 7" |
Valuation of existing lease
Conclusion
Dated: 16 October 2001
(Signed) HH Judge Michael Rich QC
ANNEX 1
7 Clunie House
Freehold Comparables
Freehold Comparables unimproved
Index | Time | Adjust to freehold | £ rate psf of GIA |
||
Flat | Penthouse 12 Clunie House |
237.20 | £1,560,540 | £1,576,303 | £871 |
Date | Oct 99 | ||||
Price | £1,400,000 | ||||
GIA sqft | 1810 | ||||
Lease | 118 | ||||
Floor | 5 | ||||
Aspect | E/W | ||||
Condition | Excellent | ||||
Lift | Yes | ||||
Balcony | Terrace 383 sqft | ||||
Flat | 16 Whaddon House William Mews |
255.06 | £609,014 | £609,014 | £476 |
Date | Feb 00 | ||||
Price | £587,500 | ||||
GIA sqft | 1280 | ||||
Lease | sof | ||||
Floor | 5 | ||||
Aspect | E/W | ||||
Condition | Fair | ||||
Lift | Yes | ||||
Balcony | Yes | ||||
Flat | 17 Thorburn House | 255.06 | £373,183 | Shingles £444,265 Wiggin £466,650 |
£486 £510 |
Date | Feb 00 | ||||
Price | £360,000 | ||||
GIA sqft | 915 | ||||
Lease | 63 | ||||
Floor | 5 | ||||
Aspect | NW/SW | ||||
Condition | Tired | ||||
Lift | Yes | ||||
Balcony | No |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
Flat | 24 Greville House | 280.9 | £698,879 | £705,938 | £596 |
Date | Jan 01 | ||||
Price | £710,000 | ||||
GIA sqft | 1184 | ||||
Lease | 125 | ||||
Floor | 7 | ||||
Aspect | NE | ||||
Condition | Fair | ||||
Lift | Yes | ||||
Balcony | No | ||||
Flat | 12 Bolebec House | 212.37 | £796,811 | £796,811 | £777 |
Date | Jul 98 | ||||
Price | £640,000 | ||||
GIA sqft | 1026 | ||||
Lease | 985 | ||||
Floor | 2 | ||||
Aspect | N/S | ||||
Condition | Fair | ||||
Lift | Yes | ||||
Balcony | Yes | ||||
Flat | 2 Lowndes Court | 264.40 | £810,000 | Shingles £843,750 Wiggin £879,967 |
£664 £686 |
Date | Aug 00 | ||||
Price | £810,000 | ||||
GIA sqft | 1270 | ||||
Lease | 85.75 | ||||
Floor | Raised G | ||||
Aspect | E | ||||
Condition | Good quality | ||||
Lift | Yes | ||||
Balcony | No | ||||
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
Flat | 22 Lowndes Court | 211.67 | £905,622 | Shingles £938,468 Wiggin £965,282 |
£790 £811 |
Date | Feb 99 | ||||
Price | £725,000 | ||||
GIA sqft | 1188 | ||||
Lease | 87 | ||||
Floor | 2 | ||||
Aspect | E | ||||
Condition | Good quality | ||||
Lift | Yes | ||||
Balcony | No | ||||
Flat | 41 Royal Court House | 244.00 | £958,992 | Shingles £988,651 Wiggin |
£612 £625 |
Date | Dec 99 | ||||
Price | £885,000 | ||||
GIA sqft | 1615 | ||||
Lease | 90 | ||||
Floor | 4 | ||||
Aspect | N/W/S | ||||
Condition | Immaculately presented | ||||
Lift | yes | ||||
Balcony | Roof terrace: 159 sq ft | ||||
Flat | 39 South Lodge | 212.30 | £1,071,050 | £1,071,050 | £820 |
Date | Sep 98 | ||||
Price | £860,000 | ||||
GIA sqft | 1306 | ||||
Lease | sof | ||||
Floor | 9 | ||||
Aspect | N & S | ||||
Condition | Good | ||||
Lift | Yes | ||||
Balcony | Yes | ||||
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
ANNEX 1 (Continued) |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
7 Clunie House Freehold Comparables |
Flat | 42 The Bromptons | 244.00 | £1,046,764 | £1,046,764 | £818 |
Date | Frv 99 | ||||
Price | £966,000 | ||||
GIA sqft | 1280 | ||||
Lease | sof | ||||
Floor | 1st & 2nd | ||||
Aspect | NE & NW | ||||
Condition | Excellent | ||||
Lift | Yes | ||||
Balcony | Yes + roof terrace | ||||
Flat | 45 The Bromptons | 249.53 | £842,364 | £842,364 | £877 |
Date | Jan 00 | ||||
Price | £795,000 | ||||
GIA sqft | 960 | ||||
Lease | sof | ||||
Floor | 2 | ||||
Aspect | N & S | ||||
Condition | Good | ||||
Lift | Yes | ||||
Balcony | Terrace: 72 sq ft | ||||
Flat | 18 Chelsea House | 299.90 | £520,160 | Shingles £571,604 Wiggin £584,449 |
£566 £579 |
Date | May 01 | ||||
Price | £590,000 | ||||
GIA sqft | 1010 | ||||
Lease | 76.83 | ||||
Floor | 9 | ||||
Aspect | E & W | ||||
Condition | Bright | ||||
Lift | Yes | ||||
Balcony | No | ||||
ANNEX 2
7 Clunie House
Leasehold Comparables
Flat | 7 Clunie House |
Date | Jun 00 |
GIA sqft | 1976 |
Floor | 2 |
FPD Savills Pcl Flats Index June 2000 | 264/4 |
Length of Lease | 43 |
Lift | Yes |
Balcony | Yes |
Leasehold Comparables unimporved
Index | Time | £ rate psf of GIA of comparable | After Adjustment | ||
Flat | 2 Belgravia House, Halkin Place | 237.20 | £479,309 | £365 | Shingles £386 Wiggin £416 |
Date | Oct 99 | ||||
Price | £430,000 | ||||
GIA sqft | 1312 | ||||
Lease | 33.75 | ||||
Floor | G | ||||
Aspect | NE | ||||
Condition | Well maintained | ||||
Lift | Yes | ||||
Balcony | No | ||||
Flat | 4 Denbigh House Hans Place |
211.6 | £468,573 | £586 | Shingles £536 Wiggin £515 |
Date | Feb 99 | ||||
Price | £375,000 | ||||
GIA sqft | 800 | ||||
Lease | 57.38 | ||||
Floor | 1 | ||||
Aspect | W | ||||
Condition | Fair | ||||
Lift | Yes | ||||
Balcony | No |
ANNEX 3
Flat 7 and Garage No.6
Clunie House, 4-7 Hans Place, London SW1
Determination of the premium to be paid in accordance with s.56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993, as at 8 June 2000 - the agreed valuation date.
A. Diminution in value of the landlord's freehold interest (para 3) | A. Diminution in value of the landlord's freehold interest (para 3) | A. Diminution in value of the landlord's freehold interest (para 3) | A. Diminution in value of the landlord's freehold interest (para 3) | A. Diminution in value of the landlord's freehold interest (para 3) |
LVT's figures | LT's figures |
|||
(i) | Value under existing lease - | |||
Ground Rents 8/6/2007 YP 7 yrs @ 7% |
£255 pa 5.3893 |
£1,374 |
||
Ground Rents 24/5/2007 to 23/6/2028 YP 21 yrs @ 7% |
£510 pa 10.8355 £5526 |
|||
Deferred 7 yrs @ 7% | 0.6227497 | £1,397 | ||
Ground Rents 24/6/2028 to 23/6/2043 |
£1020 pa 9.1079 £9290 |
|||
Deferred 28 yrs @ 7% | 0.1504022 | £1,397 | ||
Reversion to freehold with vacant possession disregarding tenant's improvements £833,250 Deferred 43 yrs @ 6% 0.0816296 |
£68,017 £74,229 |
74,229 |
||
Less | ||||
(ii) | Value under extended lease - | |||
Grounds Rents |
£nil |
|||
Reversion to freehold with vacant possession disregarding tenant's improvements £833,250 Deferred 133 yrs @ 6% 0.00043 |
£358 |
£807,000 £358 x 0.00043 £73,871 |
347 73,882 |
|
ANNEX 3
(Continued)
Flat 7 and Garage No.6
Clunie House, 4-7 Hans Place, London SW1
LVT's figures |
LT's figures |
|||
B | Marriage Value (para 4) |
|||
(i) | Values under the extended lease - | |||
Freehold interest Leasehold interest |
£358 £825,000 £825,358 |
799,099 |
£799,347 £799,446 |
|
Less | ||||
(ii) |
Values under the existing lease - |
|||
Freehold interest £74,229 Leasehold interest £610,000 |
£684,229 |
£74,229 592,000 666,229 |
||
Marriage value 50% of Marriage value |
£141,129 £ 70,564 |
133,217 66,608 |
||
C | Premium for extension of lease | |||
Diminution in value of freehold interest Share of Marriage value Compensation under Sched.13 para 5 |
£73,871 £70,564 £nil |
£ 73,882 £ 66,608 nil |
||
Premium | £144.435 | £140,490 | ||