6 College Road, London N17 8EA LON/00AP/OCE/2021/0035

FIRST-TIER TRIBUNAL

PROPERTY CHAMBER (RESIDENTIAL PROPERTY)

Case No LON/00AP/OCE/2021/0035

Between

Skydove Limited (1) Mr Philip Ian Popeck & Mrs Amanda Caroline Popeck (2)Applicant

Pauline Anne King (missing landlord)Respondent

Before

Judge D Brandler

Stephen Mason FRICS

Berlad Graham LLP for the Applicant

none Section 24 of the Leasehold for the Respondent

Date 10 June 2021

Property: 6 College Road, London N17 8EA Skydove Limited (1)

Type of application: Reform, Housing and Urban Development Act 1993 Judge D Brandler

DECISION

Covid-19 pandemic: description of hearing This has been a remote hearing on the papers which has not been objected to by the parties. The form of remote hearing was P:PAPERREMOTE. A face-to-face hearing was not held because it was not practicable and no-one requested the same. The documents that we were referred to are in the Applicants’ bundle of 202 pages. The Respondent has played no part in these proceedings, being a missing landlord. The order made is described at the end of these reasons. Summary of the tribunal’s decision(1) The tribunal determines that the premium payable by the applicants for the enfranchisement of the subject property situated at 6 College Road, London N17 8EA is £30,520.

(2) The Tribunal approves the terms of transfer in the form of TR1 relied upon by the applicants at pages 185 to 188 of the applicants’ bundle of documents. Background

[1]On 18th February 2021 Deputy District Judge Sharkey, sitting at the County Court at Edmonton, made an order pursuant to Section 26(1) of the Leasehold Reform, Housing and Urban Development Act 1993 (“the Act”) vesting the freehold title in 6 College Road, London N17 8EA (“the property”) in the Applicants.

[2]The Judge ordered that the matter be transferred to this Tribunal to determine the terms upon which the applicants shall be entitled to acquire the property. Evidence

[3]We have been provided with a detailed valuation report by Mr Andrew Marsden BSc (Hons) MRICS dated 5th January 2021. He computes the premium to be £30,520. Lease details

[4]The Respondent missing landlord is the lessor of the Property which comprises a two-storey mid-terrace house which has been converted into two flats. Flat 6 is the ground floor flat which has the benefit of a garden and an extension for the bathroom, and flat 6a which has been extended into the loft area. The property is in the London Borough of Haringey and is situated on College Road which leads to the west to Academia Way, and to the east joins Pretoria Road at a T-junction. A railway line runs parallel to Pretoria Road. The property is located opposite a retirement community and a 6th Form College. Both flats are accessed by the communal front door. The Council operates a residents parking scheme, but demand for spaces is competitive. In addition, parking in the area is adversely affected on football match days when there are coach parking areas. College road bins are stored on the pavement.

[5]The particulars of the two flats are:(i) Ground floor flat 6: This is occupied under a lease for a term of 99 years from 25th March 1985, with some 63.2 years unexpired with a ground rent of £50 per annum. It comprises a hallway leading to a front reception room, a bedroom, and to the rear of the flat a lounge diner. This leads directly to the bathroom/wc which is housed in a rear extension. The garden is accessed from the kitchen. The Ground floor flat has sole use of the garden. The approximate floor area of the flat is 566 sq.ft (52.6 sq.m).

(ii) The first floor flat 6A: This is occupied under a lease for a term of 189 years from 25th March 1985, with some 153.2 years unexpired. It is noted that the lease was extended under the 1993 Act, granted pursuant to proceedings under section 50(1) of the 1993 Act on the basis that the landlord could not be found. It comprises on the first floor two bedrooms, a kitchen/reception room, and a bathroom. There are stairs leading to a loft room, which we are told do not comply with current Building Regulations. Valuation date

[6]The valuation date is 5th January 2021, namely the date of the application to the Court. Reasons for the tribunal’s determination

[7]The tribunal accepts the valuation report of Mr Marsden. Also accepted is the valuation date relied upon by Mr Marsden as 5th January 2021 being the date of issue of the applicants’ claim in the County Court.

[8]The tribunal considered Mr Marsden’s use of the figures of 6.5% (capitalisation rate) and 5% (deferment rate) are appropriate. Mr Marsden has submitted evidence of comparables to substantiate the value of the two flats. One of those comparables being the sale value for flat 6 at auction in 2020. This is accepted by the tribunal.

[9]He has used a 1% uplift for the freehold vacant possession value which is also accepted.

[10]The tribunal noted that Mr Marsden had used the prime central London graphs on relativity produced by Savills and Gerald Eve. Whilst this property is outside central London, these graphs are now commonly used for the Greater London area following a number of cases determined by the Upper Tribunal. Mr Marsden computed a relativity for his valuation based on a combination of the value calculated from a sale of flat 6 in 2020 and has adjusted this to arrive at a relativity of 82.63% which we accept is reasonable for this property.

[11]The tribunal accepted Mr Marsden’s use of the UK House Price Index by type of property in Haringey, as well as comparables all in the local postcode and of similar flats in the area on Rightmove and Zoopla.

[12]In conclusion the Tribunal accepts the valuation report of Mr Marsden and finds that the total premium payable by the applicants is £30,520, as set out in Appendices 3 and 4 of his valuation report.

[13]The tribunal approves the terms of the acquisition as set out in the form TR1 relied upon by the applicants at pages 185 to 188 of the applicants’ bundle.

[14]The tribunal now remits the application back to the County Court at Edmonton for any final orders that may be required. The premium

[15]The tribunal determines the appropriate premium to be £30,520. A copy of its valuation calculation is annexed to this decision. Name: Judge D Brandler Date: 10th June 2021 Appendix: Valuation setting out the tribunal’s calculations Rights of appeal By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First-tier Tribunal at the regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the person making the application. If the application is not made within the 28 day time limit, such application must include a request for an extension of time and the reason for not complying with the 28 day time limit; the tribunal will then look at such reason(s) and decide whether to allow the application for permission to appeal to proceed, despite not being within the time limit. The application for permission to appeal must identify the decision of the tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party making the application is seeking. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber). APPENDIX: CASE REFERENCE LON/00AP/OCE/2021/0035 First-tier Tribunal Property Chamber (Residential Property) Valuation under Schedule 6 of the Leasehold Reform Housing and Urban Development Act 1993 Premium payable for the freehold interest in 6 & 6a College Road, London N17 8EA Valuation date: 5th January 2021 Valuation of Freehold Interest Flat 6 Freeholder present interest: Ground rent: £50 YP 63.2 years @ 6.5% 15.10 £ 755 Reversion to £272,700 PV £1 in 63.2 years @ 5% 0.045757 £12,478 £13,233 Freeholder proposed interest: £0 Diminution in value of freeholder’s interest £13,233 Marriage Value Value of interests after the lease freehold enfranchisement Freeholder: £0 Leaseholder: £272,700 £272,700 Value of interests prior to the freehold enfranchisement Freeholder: £ 13,233 Leaseholder: £225,332 £238,565 Marriage value: £ 34,135 50% of marriage value £17,068 Premium payable £30,301 Appurtenant land £25 £30,326 Flat 6a Freeholder present interest: Ground rent: £0 Reversion to £297,950 PV £1 in 153.2 years @ 5% 0.000567 £169 Freeholder proposed interest: £0 Diminution in value of freeholder’s interest: £169 Marriage Value £0 Premium payable £169 Appurtenant land £25 £194 TOTAL PREMIUM PAYABLE £30,520