Robin Norris Keates and Alexandra Del Pilar KeatesApplicantMr Shrikant Khandelwal (missing landlord)Respondent
Before
Judge Robert LathamMrs Helen Gyselynck BSc MRICSPhilip Ross, Solicitors for the ApplicantNone for the RespondentDate 12 July 2018Property: Flat B, 12 Queen Anne Avenue, Bromley, Kent, BR2 0SBType of application: Enfranchisement
[1]The Applicant is claiming the right to acquire a new lease of his flat, namely Flat B, 12 Queen Anne Avenue, Bromley, Kent, BR2 0SB (“the flat”) pursuant to the provisions of the Leasehold Reform, Housing and Urban Development Act 1993 ("the Act"). On 23 March 2018, District Judge Lightman, sitting at the Central London County Court, upon being satisfied that the landlord could not be found, made a vesting order under section 50(1) of the Act. He transferred the matter to this Tribunal to determine the terms of the new lease and the premium payable. Evidence[2]We have been provided with a valuation report by Stephen Jones MRICS, dated 4 April 2018. He computes the premium to be £26,000. He inspected the property on 18 July 2016.[3]We have also been provided with a draft deed of surrender and re-grant. Lease details[4]The Applicant currently holds the flat under a lease, dated 31 March 1983, for a term of 99 years from 1 January 1982. The Valuation Date is 21 July 2017 when the unexpired term was 63.45 years. The flat consists of two bedrooms, a reception room, a kitchen and bathroom, on the ground floor of a converted three-storey semi-detached house. There are no relevant tenant’s improvements. Long Lease Value[5]Mr Jones has regard to three comparables:(i) 9 Fresham House;(ii) First and Second Floor Flat, 8 Westmorelend Road; and(iii) First Floor flat, 3 Gwdyr Road. We are satisfied with the adjustments which he has made to the comparables. We approve his assessment of the existing lease value of £316,800 and the 1% uplift to determine a freehold value of £320,000. Relativity[6]Mr Jones has taken a figure of 87.4%, namely the average of the five RICS’s graphs for Greater London and the rest of England. In the absence of any evidence of local transactions, we are satisfied that this approach is justified. Other valuer’s might suggest that other graphs should be considered. However, we are content to determine relativity on the evidence before us. Capitalisation Rate[7]Mr Jones takes a figure of 6.5%. We approve this. Deferment Rate[8]We approve the “Sportelli” rate of 5% for deferment which Mr Henson has adopted. Calculation of the Premium[9]We have checked Mr Jones’ calculation and approve his assessment of the premium in the sum of £26,000. Mr Jones’ valuation is at p.45 of the Bundle. Judge Robert Latham 12 July 2018