7 Wansbeck Walk, Woodsetton, Dudley, West Midlands, DY3 1DD BIR/00CR/OAF/2024/0013

FIRST-TIER TRIBUNAL

PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case No BIR/00CR/OAF/2024/0013

Between

Mrs Lisa Nicholls and Mrs Linda Plant as Executors to the Estate of Margaret Jean Groves (deceased)Applicant

William and Mary Taylor (missing landlord)Respondent

Before

I.D. Humphries B.Sc.(Est.Man.) FRICS

V. Ward B.Sc FRICS

Talbots Law Ltd. for the Applicant

None for the Respondent

Date 12 December 2024

Property: 7 Wansbeck Walk, Woodsetton, Dudley, West Midlands, DY3 1DD

Type of application: To determine the sum payable into Court by lessees to purchase a freehold interest pursuant to Section 27 Leasehold Reform Act 1967 by Order of Dudley County Court of 8 August 2024. Claim No: L00DD189

DECISION

[1]This is an application to determine the sum payable into Court by Lessees to purchase the freehold interest in 7 Wansbeck Walk, Woodsetton, Dudley, West Midlands, DY3 1DD where the landlord cannot be found, pursuant to Section 27 Leasehold Reform Act 1967 ('the Act').

[2]The Lessees have been unable to locate the freeholder to serve Notice to acquire the freehold interest and applied to Dudley County Court for a Vesting Order on 24 April 2024. This was granted on 8 August 2024 by District Judge Newnham-Payne subject to assessment of the price by the First-tier Tribunal (Property Chamber). The Law

[3]There are two known interests in the property: Freehold Owned by parties unknown. The lease had been granted by William and Mary Taylor to James Newman for 380 years from 26 April 1712 at a peppercorn ground rent. Leasehold The Leasehold interest was registered to Leslie Groves and Margaret Jean Groves on 29 November 2001. The Applicants acting as Executors to the Estate of Margaret Jean Groves (decd.) received Grant of Probate dated 16 November 2023.

[4]The Applicants wish to acquire the freehold interest. They had been unable to locate the freeholders to serve notice of acquisition and applied to Dudley County Court for a Vesting Order under Section 27 of the Leasehold Reform Act 1967. The Application was made on 24 April 2024 which is the date of valuation date under the Act.

[5]The Court issued a General Form of Judgment or Order on 8 August 2024 subject to determination of the price by the First-tier Tribunal (Property Chamber).

[6]The Tribunal has considered the facts and assesses the price under section 9(1) of the Act. Facts Found

[7]The Tribunal has not inspected the property and relies on the Submission of Miss S.L. Abel MSc MRICS of Messrs Lawrence & Wightman Chartered Surveyors dated 24 September 2024.

[8]The property comprises a two bedroom bungalow on a housing estate near Dudley built around 1990. It is in the Woodsetton area of Dudley, in Wansbeck Walk, accessed via a shared drive to the rear of No.5 Wansbeck Walk. It is brick and tile construction. The accommodation comprises a living room, kitchen, two bedrooms and bathroom. There is an attached single garage, open plan front garden and enclosed back garden.

[9]The property is in good condition. Issues

[10]The Court Order requires the Tribunal to determine the price of the freehold interest. The price payable under section 9(1) of the Act

[11]The Applicants submitted a Valuation Report prepared by Miss S.L. Abel MSc MRICS of Messrs Lawrence & Wightman Chartered Surveyors. The Tribunal's determination of each element of valuation is below:

[12]Unexpired Term Applicant 68.04 years. Tribunal The Tribunal accepts the term from the Land Registry entry and agrees the unexpired term at the valuation date but for calculation purposes rounds to 68 years.

[13]Value of Term Ground Rent Applicant Nil. The ground rent is one peppercorn per annum recorded by H.M. Land Registry. Tribunal The Tribunal agrees.

[14]Freehold Entirety Value 'Entirety value' is the notional market value of a house that could reasonably have been expected to be built on the plot at the valuation date, assuming the plot had been fully developed to its maximum potential. Applicant Miss Abel values the freehold interest with vacant possession at 24 April 2024 at £275,000 based on sales records of other properties on the estate: Address Description Date Price £ 32 Bosworth Close A 2 bed detached bungalow of the Aug 2023 263,000 same design and construction as the subject property. The property has a larger back garden and required modernisation. 6 Westerdale Close A 2 bed detached bungalow of the Apr 2023 275,000 same design and construction as the subject property. The rear garden is similar. 19 Bosworth Close A bungalow with a similar plot size Jan 2023 238,000 size plot but details of the internal accommodation had not been provided. It was understood to be in poor repair. Miss Abel re-geared the sale prices of the comparables in line with the Land Registry house price index to reflect market movements from their dates of sale to the valuation date of 7 Wansbeck Walk, which produced the following re-geared prices for comparison: 32 Bosworth Close 258,244 6 Westerdale Close 273,823 19 Bosworth Close 233,274 All the comparables are on the same estate, from which Miss Abel considered the Entirety Value to have been £275,000 at the valuation date. Tribunal The Tribunal agrees Miss Abel's assessment of an entirety value of £275,000 at 24 April 2024.

[15]Site Value as Percentage of Entirety Value Applicant Miss Abel considers the value of the plot to be 35% of the Entirety Value. Tribunal The Tribunal agrees.

[16]Years Purchase Applicant As there is a peppercorn ground rent the value of the term is nil and there would be no point determining the capitalisation rate. Miss Abel submits the appropriate deferment rate to be 5.25% based on case law (see below) and experience of negotiating settlements in the West Midlands. Tribunal The Tribunal agrees. Cases cited by Miss Abel: 1 Zuckerman v Trustees of the Calthorpe Estates [2008] LRA 97. 2 Earl Cadogan v Sportelli [2005] LRA 50 3 JGS Properties Ltd. v King

[2017] UKUT 0233 (LC)

[17]Freehold Standing House Value The 'standing house value' is the market value of the bungalow built on the site, excluding tenant improvements, assuming a freehold vacant possession sale. Applicant £270,000. Miss Abel considers the value of the existing bungalow, i.e. the 'Standing House' value, to be £5,000 less than the Entirety Value, as there is potential to increase the value of the existing house by adding a small extension. Tribunal The Tribunal agrees. 18 'Clarise reduction' Under Clarise Properties Limited

[2012] UKUT 4 (LC)

[2012] 1 EGLR 83

, Valuers sometimes make allowance for the prospect of lessees remaining in occupation at the end of the lease under Schedule 10 to the Local Government and Housing Act 1989. Applicant Miss Abel makes no Clarise reduction as the lease expiry is so remote. Tribunal The Tribunal considers the date of lease expiry to be too remote to justify a Clarise reduction. Each case is considered on its merits but in this instance it is too far in the future and disregarded.

[19]Tribunal Valuation Based on the inputs, the Tribunal determines the value of the freehold interest as: Term 1 £ 0 Term 2 Entirety Value £275,000 x plot ratio 0.35 Plot Value £ 96,250 5.25% return 0.0525 Equivalent rental value per s.15 of the Act £ 5,053 Years Purchase 50 years 5.25% 17.5728 Present Value 68 years 5.25% 0.030824 £2,737 Reversion Standing House Value £ 270,000 Present Value 118 years 5.25% 0.00238 £ 642 £3,379 Freehold Value rounded to £3,380 20 Tribunal Determination The Tribunal determines the price of the freehold interest in accordance with section 9(1) of the Leasehold Reform Act 1967 to be £3,380 (Three Thousand Three Hundred and Eighty Pounds). I.D. Humphries B.Sc.(Est.Man.) FRICS Chairman Date 12 December 2024 Appeal to the Upper Tribunal Any appeal against this decision must be made to the Upper Tribunal (Lands Chamber). Prior to making such an appeal the party appealing must apply, in writing, to this Tribunal for permission to appeal within 28 days of the date of issue of this decision (or, if applicable, within 28 days of any decision on a review or application to set aside) identifying the decision to which the appeal relates, stating the grounds on which that party intends to rely in the appeal and the result sought by the party making the application.