First Floor Flat, 97 Mattison Road, London N4 1BQ : LON/00AP/OLR/2021/0432 LON/00AP/OLR/2021/0432
FIRST-TIER TRIBUNAL
PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
Case No LON/00AP/OLR/2021/0432
Between
Helen Katrine EmersonApplicantDemetrios Geogiou ( Missing)Respondent
Before
Judge ShepherdKevin Ridgeway MRICSThirsk Winton LLP for the ApplicantNA Section 50 and 51 of the Leasehold for the RespondentVenue the papersDate 13 July 2021Property: 97 Mattison Road,London N41BQType of application: Reform, Housing and Urban Development Act 1993 Judge Shepherd
[1]This is an application made by the applicant leaseholder pursuant to section 50 and 51 of the Leasehold Reform, Housing and Urban Development Act 1993 (“the Act”) for a determination of the premium to be paid for the grant of a new lease of 97 Mattison Road,London N41BQ (the “property”).[2]On 30th March 2021 DDJ Hocking at Central London County Court made an order pursuant to s. 50 of the Act to the effect that the Applicant was entitled to a new lease. The freeholder landlord is missing. The case was transferred to the Tribunal to determine the value of the new lease. The property[3]The property comprises a two bedroom first floor flat.[4]The Tribunal did not inspect the property. Limited assistance was provided by some rather poor photographs in the report of the expert value employed by the Applicant, Richard Murphy. The Tribunal are familiar with the location which is increasingly a sought after part of London. It lies to the West of Green Lanes on the “Haringey Ladder”. Green Lanes like many parts of London is being gradually gentrified as a younger more affluent population moves in. The tribunal’s determination[5]The tribunal determines that the value of the new leasehold at the date of the application was £34300. Reasons for the tribunal’s determination3[6]The right to a new lease is conferred by Ch 2 of Pt 1 of the 1993 Act. By exercising the right the tenant acquires a new lease of the flat in substitution for his or her existing lease for a term expiring 90 years after the term date at a peppercorn rent ( s.56(1)). The tenant pays a premium which compensates the landlord for the loss of the remainder of the term. In the present case the landlord is missing and the procedure pursuant to ss50 and 51 of the Act has been followed.[7]The premium for the new lease is calculated in accordance with Sch 13, para 2 of the Act and is the aggregate of the following figures :(a) The diminution in value of the landlord’s interest in the flat;(b) The landlord’s share of the marriage value;(c) Any amount of compensation payable.[8]The calculation carried out by Mr Murphy appears broadly sound. However, having considered his comparable evidence along with other comparables available, the Tribunal preferred a higher long leasehold valuation of £415,000. This results in a slightly higher Premium of £34,300. A calculation carried out by the Tribunal is attached as a schedule to this determination. The premium[9]The tribunal determines the appropriate premium to be £34300 A copy of its valuation calculation is annexed to this decision. The terms of the draft lease submitted to the Tribunal are approved. Name: Judge Shepherd Date: 21st July July 2021 Appendix: Valuation setting out the tribunal’s calculations Valuation for lease extension Flat 5, 40 Birkbeck Road, London,W3 6BQ4 Valuation Date 23/12/2019 Lease Commencement 29/09/1984 Lease Term 99.00 years Expiry Date 28/09/2083 Unexpired Term 63.77 years Long Lease value £400,000 Freehold VP value £404,000 +1% long lease value Term 1 Term 2 Term 3 Ground rent £200.00£300.00£0.00 Reversion years 30.77 33.00 0.00 Capitalisation rate 7% Deferment rate 5% Compensation £0.00 Relativity 85.50% Diminution of Landlord's interest Ground rent £200 YP 30.77 yrs @ 7.00% 12.50430742 £2,501 Rent Review 1 £300 YP 33.00 yrs @ 7.00% 12.75379002 PV of £1 30.77 yrs @ 7.00% 0.12469848 £477 Rent Review2 £0 YP 0.00 yrs @ 7.00% 0 PV of £1 63.77 yrs @ 7.00% 0.013372004 £0 Reversion to VP value £404,000 PV 63.77 yrs @ 5.00% 0.04454084 £17,994 Value existing freehold £20,972 5 L/lord's interest on reversion of new lease FH VP £404,000 PV 153.77 yrs @ 5.00% 0.00055172 -£223£20,750 Landlord's share of Marriage Value Val. Tenant's interest new long lease £400,000 Val. l/lord's interest after reversion of new lease £223£400,223 Less Val. l/lord's interest existing lease Relativity 85.50% £345,420 Val. tenant's interest existing lease £20,972£366,392£33,830 Marriage Value at 50% £16,915 Compensation £0 PREMIUM £37,665 SAY £37,6606 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 Firsttier 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).7 CASE REFERENCE LON/00AC/OLR/2014/0106 First-tier Tribunal Prope[1]This is an application made by the applicant leaseholder pursuant to section 50 and 51 of the Leasehold Reform, Housing and Urban Development Act 1993 (“the Act”) for a determination of the premium to be paid for the grant of a new lease of 97 Mattison Road,London N41BQ (the “property”).[2]On 30th March 2021 DDJ Hocking at Central London County Court made an order pursuant to s. 50 of the Act to the effect that the Applicant was entitled to a new lease. The freeholder landlord is missing. The case was transferred to the Tribunal to determine the value of the new lease. The property[3]The property comprises a two bedroom first floor flat.[4]The Tribunal did not inspect the property. Limited assistance was provided by some rather poor photographs in the report of the expert value employed by the Applicant, Richard Murphy. The Tribunal are familiar with the location which is increasingly a sought after part of London. It lies to the West of Green Lanes on the “Haringey Ladder”. Green Lanes like many parts of London is being gradually gentrified as a younger more affluent population moves in. The tribunal’s determination[5]The tribunal determines that the value of the new leasehold at the date of the application was £34300. 3 Reasons for the tribunal’s determination[6]The right to a new lease is conferred by Ch 2 of Pt 1 of the 1993 Act. By exercising the right the tenant acquires a new lease of the flat in substitution for his or her existing lease for a term expiring 90 years after the term date at a peppercorn rent ( s.56(1)). The tenant pays a premium which compensates the landlord for the loss of the remainder of the term. In the present case the landlord is missing and the procedure pursuant to ss50 and 51 of the Act has been followed.[7]The premium for the new lease is calculated in accordance with Sch 13, para 2 of the Act and is the aggregate of the following figures :(a) The diminution in value of the landlord’s interest in the flat;(b) The landlord’s share of the marriage value;(c) Any amount of compensation payable.[8]The calculation carried out by Mr Murphy appears broadly sound. However, having considered his comparable evidence along with other comparables available, the Tribunal preferred a higher long leasehold valuation of £415,000. This results in a slightly higher Premium of £34,300. A calculation carried out by the Tribunal is attached as a schedule to this determination. The premium[9]The tribunal determines the appropriate premium to be £34300 A copy of its valuation calculation is annexed to this decision. The terms of the draft lease submitted to the Tribunal are approved. Name: Judge Shepherd Date: 21st July July 2021 Appendix: Valuation setting out the tribunal’s calculations 4 Appendix A Valuation for lease extension 97 Mattison Road, Harringay, London, N4 1BQ Valuation Date 05/06/2020 Lease Commencement 10/06/1993 Lease Term 99.00 years Expiry Date 09/06/2092 Unexpired Term 72.01 years Long Lease value £415,000 Freehold VP value £419,150 +1% long lease value Term 1 Term 2 Term 3 Ground rent £75.00£0.00£0.00 Reversion years 72.01 0.00 0.00 Capitalisation rate 7% Deferment rate 5% Compensation £0.00 Relativity 85.84% Diminution of Landlord's interest Ground rent £75 YP 72.01 yrs @ 7.00% 14.17632466 £1,063 Reversion to VP value £419,150 PV 72.01 yrs @ 5.00% 0.02979604 £12,489 Value existing freehold £13,552 L/lord's interest on reversion of new lease FH VP £419,150 PV 162.01 yrs @ 5.00% 0.00036908 -£155 Landlord's share of Marriage Value Val. l/lord's interest after reversion of new lease £155£415,155 Less Val. tenant's interest existing lease Relativity 85.84% £359,798 Val. l/lord's interest existing lease £13,552£373,351£41,804 Marriage Value at 50% £20,902 Compensation £0 Premium £34,300 5 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 Firsttier 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).