UPPER TRIBUNAL (LANDS CHAMBER)

	
  	UT Neutral citation number: [2012] UKUT 296 (LC)
	UTLC Case Number: LRA/80/2012

	TRIBUNALS, COURTS AND ENFORCEMENT ACT 2007

LEASEHOLD ENFRANCHISEMENT – maisonette – premium – relativity – LVT granting permission to appeal on grounds that it failed to take proper account of LEASE graph of relativities – appeal allowed

IN THE MATTER OF AN APPEAL AGAINST A DECISION OF A LEASEHOLD VALUTION TRIBUNAL FOR THE
MIDLAND RENT ASSESSMENT PANEL
BY
MIDLAND FREEHOLDS LIMITED

Re:   28 Mallaby Close
	Shirley
Solihull
West Midlands
B90 2PW

Determination on written representations

By N J Rose FRICS

© CROWN COPYRIGHT 2012

The following case is referred to in this decision:
Re Coolrace Ltd and others’ Appeals [2012] 24 EG34

DECISION
Introduction 
1.	This is an appeal by the freeholder, Midland Freeholds Ltd, against a decision by a Leasehold Valuation Tribunal of the Midland Rent Assessment Panel, determining the premium payable for the grant of an extended lease of a maisonette known as 28 Mallaby Close, Shirley, Solihull, West Midlands, B90 2PW pursuant to section 48 of the Leasehold Reform, Housing and Urban Development Act 1993 at £8,054.
2.	On 10 April 2012 the LVT granted permission to appeal against its decision for the following reasons:
“10. Since making the determination the Tribunal has received the benefit of guidance from the Upper Tribunal (Lands Chamber) in the decision of Coolrace Ltd.  (LRA/39/2011) and others dated 29 February 2012.
11. The Upper Tribunal found no evidence to support the argument that there were particular regional variations in relativity percentages (other than PCL) and that in the absence of more reliable evidence a composite graph of relativity compiled by the Leasehold Advisory Service (commonly referred to as “the Lease Graph”) is more representative of appropriate relativities.
12. It follows that in the present case the Tribunal failed to take proper account of the “Lease Graph” and the application to appeal is therefore allowed.”
3.	Re Coolrace Ltd and others’ appeals was reported on 16 June 2012 [2012] 24 EG 84.  
4.	The applicant leaseholder at the LVT hearing was Ms Diane J Thornton.  By letter dated 7 June 2012 Ms Thornton informed the Upper Tribunal that she did not wish to take part in the appeal.  On 17 July 2012 the President ordered that the appeal be allocated to me and determined on written representations.
5.	Mr Matthew Fell submitted brief representations in support of the appeal.  He produced a copy of the Lease Graph which showed that, for a lease with 62 years remaining, the appropriate relativity was 88%, and not 92% as determined by the LVT.  The effect on the LVT’s calculation of substituting the Lease Graph relativity was to increase the extended lease value from £135,000 to £140,909, with a resultant increase in the premium payable to £11,101.
6.	Mr Fell described himself at the LVT as an advocate, not an expert witness.  He has an interest in the outcome of the appeal, since he is a director of the appellant company.  Nevertheless, he has reduced his valuation below the figure which he put forward at the LVT, which was based on a relativity of 83%.  In view of the LVT’s reasons for granting permission to appeal, which I accept were correct, and in the absence of any other evidence on relativity, I accept Mr Fell’s valuation.  I determine that the premium payable for the extended lease of 28 Mallaby Close is £11,101 (Appendix 1).
							Dated 21 August 2012

							N J Rose FRICS

Appendix 1

28 Mallaby Close, Shirley, Solihull, West Midlands, B90 2PW
Determination by the Upper Tribunal of premium payable for lease extension

Term  -  agreed	   892
Reversion
Extended lease value				 140,909
PV £1 in 62 years @ 5.75%                            0.0312332
Current freehold value			4,401		   5,293
Marriage value
Current leasehold value (@ 88%)	 124,000
Current freehold value	      5293
(A)	 129,293
Extended leasehold value	 140,909
Future freehold value	            0
(B)	 140,909
Marriage value (B) – (A)                             11,616 x 50%			   5,808
Lease extension premium					 11,101