183 Belfont Close, Feltham, Middlesex, TW14 8LQ: LON/00AT/OLR/2018/1217 LON/00AT/OLR/2018/1217
DECISION
[6]The applicants have provided a valuation report by P J Roper BSc, FRICS, of London Surrey Surveyors, dated 29 November 2018. The report indicates that the property is a purpose built two bedroomed ground floor maisonette in a detached block of two self-contained maisonettes, constructed in about 1960. It is situated in a residential area close to Heathrow airport, to the west of Feltham town centre. Mr Roper considers that the external condition of the property is in generally good condition, and the interior is in good condition.[7]Mr Roper values various improvements to the maisonette over the course of the lease at £8,000.[8]Mr Roper gives his general account of the current market in the area, which he describes as static since the end of 2016, with some further slowing of the market, and sliding prices, since that date. He gives details of the sale price achieved by five similar properties in the area.[9]The valuation Mr Roper arrives at is a market price of the property in January 2018 as £270,000, ignoring improvements.[10]The lease is for a term of 99 years from 24 June 1998, at a peppercorn rent.[11]Mr Roper states that he sees no reason to depart from the deferment rate of 5% in Sportelli.[12]Mr Roper was unable to find market evidence for leases with a similar unexpired term. He considers various relativity graphs. He considers that the Nesbitt and Co graph is the most generally appropriate. Consideration of the market now leads him to adjust the Nesbitt figure slightly down to 95%.[13]The valuation for the premium proposed by Mr Roper is £8, 194.[14]The Tribunal sees no reason to depart from Mr Roper’s valuation in principle. However, we disagree with his calculation of the existing lease term, which we think is 79.43 years rather than 79.48 years. Our valuation above is based on this approach. Right of appeal[15]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.[16]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.[17]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.[18]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.[19]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.[20]If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber). Name: Tribunal Judge Professor Richard Percival Date: 8 January 2019 First-tier Tribunal: 90 years Ref AB/LON/00AT/OLR/2018/1217 Valuation Date 18 January 2018 Lease 99 years from 24 June 1998 Unexpired term 79.43 yrs Ground rent Peppercorn Deferment rate 5% Relativity (freehold to existing lease) 95% Freehold value £270,000 Long lease value @99% of freehold £267,300 Existing lease value £256,500 Freehold interest Reversion to freehold value £270,000 PV of £1 in 79.43 years @ 5% 0.02070 £5,589 Proposed Reversion to freehold value £270,000 PV of £1 in 169.43 years @ 5% 0.000257 £69 Diminution to freehold interest £5,520 Marriage Value Proposed interest Freeholder £69 Tenant £267,300 £267,369 Existing interest Freeholder £5,589 Tenant £256,500 £262,089 Marriage value £5,280 Marriage value @ 50% £2,640 Premium payable £8,160 First-tier Tribunal: 80 years Ref AB/LON/00AT/OLR/2018/1217 Valuation Date 18 January 2018 Lease 99 years from 24 June 1998 Unexpired term 79.43 yrs Ground rent Peppercorn Deferment rate 5% Relativity (freehold to existing lease) 95% Freehold value £270,000 Long lease value @99% of freehold £267,300 Existing lease value £256,500 Freehold interest Reversion to freehold value £270,000 PV of £1 in 79.43 years @ 5% 0.02070 £5,589 Proposed Reversion to freehold value £270,000 PV of £1 in 159.43 years @ 5% 0.0004186 £113 Diminution to freehold interest £5,476 Marriage Value Proposed interest Freeholder £113 Tenant £267,300 £267,413 Existing interest Freeholder £5,589 Tenant £256,500 £262,089 Marriage value £5,324 Marriage value @ 50% £2,662 Premium payable £8,138